F.A.Q.'s

BUYER FAQ'S

Real estate transactions involve one of, if not the biggest financial investments most people experience in their lifetime. If you had a large income tax problem, would you attempt to negotiate without the help of a CPA or would you address a $200,000 legal question without hiring an attorney? Especially considering that the Seller typically pays for your REALTOR® representation, here in Arizona, and the large downside risk, it would be foolish to consider a transaction in real estate without the professional assistance of a REALTOR®.

REALTORS® have access to the right online platforms, networking groups, pre-mls listings, legal forms (built to protect you), systems, training and many other intangibles to get the job done right. We are with you every step of the way to promote and protect your best interests, not ours.

ABSOLUTELY… and you should always be represented when buying a new home from a builder. Those sales representatives are nice and owe fairness, but they work for the builder, NOT for you. They will not negotiate for you or explain the contracts and procedures the way we can. We have your back, from start to finish. If something isn’t built right, we know how to handle it… if you’re not satisfied with a finish, then we make them correct it. We are there during the walk-thrus & inspections to help point out imperfections and ensure you get the best financing possible as well. When choosing upgrades and features, we can lend insightful tips and market experience that most consumers never think about. You want a bigger backyard, let’s push the home forward on the lot then!

The builder pays us so it costs you nothing, but could save you thousands, literally. We just need to accompany you on your first visit to the new community though to get you registered properly. Builders know people wander in by themselves and that’s why they put the policy in place where you need to bring your REALTOR® with you on the first visit. If you don’t, then they’re not obligated to pay us and you could be taken advantage of during the buying process. They make more money and you will have a less positive experience.

  • Experience – how long have they been in the business, is this full-time and do they specialize in Buyer representation?
  • Accessibility – do they have the ability to take on new clients and will their schedule work with yours?
  • Recommendations – do they have past client testimonials to support their claims?
  • Plan in Place – do they have a routine or set plan in place to find you the right property… not just set you up on a portal in MLS?
  • Repairs – can they point out repairs that would be potentially costly to you down the road and do they have trusted contractors or a handyman to refer?
  • Negotiations – do they have any special training for this as negotiating is critical in a Real Estate transaction?
  • Complaints – have any complaints been filed against them? (you can check with the Arizona Department of Real EstateArizona Association of Realtors and/or their local association)

Ideally, we like to meet for a “Pre-Move Consultation” either at our office or could be a coffee shop. This is where we discuss your goals, timeframes, search criteria and financing options. From there we create your initial search, set up the MLS portal and put you in touch with one of our loan officers (unless you already have one you want to work with).

Completing the Financing Pre-Qualification is then the next step as we need to have the “Pre-Qual” form in hand before going to view any homes for sale. This process can take as little as 24-hours though.

This is why we’re here… we will review comparable sales and market activity together before deciding on what to offer. Many factors will come into play such as how long it’s been on the market, what time of year, overall inventory in the local market, price range, financing type, how quick to close escrow, condition, are concessions needed, etc. We sort out those details so you can make an informed decision.

There is a big misconception about signing versus closing. A buyer will typically sign their loan documents with the title company 1-2 days prior to actual closing. After signing the loan docs, the lender will prepare to fund the loan, often the next day. Once the wire hits the title company’s account, then the county can record the transaction and that’s when keys will be available to the buyer.

Here in Arizona, the seller normally pays the entire real estate fee. This means they’re paying for their listing representation and your representation, as a buyer. Since it will cost you the same ($0) no matter whom you work with, why not work with Team Schlegel, The Trusted Real Estate Professionals since 1975?

When an offer becomes a fully executed contract between Buyer and Seller, the first step is to officially open escrow, which means for the Buyer to deposit earnest funds, showing good faith. These funds are protected by the various contingencies of the contract (inspections, appraisal, financing, etc.).

If a Buyer was found to be in breach of contract and then didn’t cure their breach properly, the Seller would receive the earnest funds as liquid damages for not closing the transaction, as agreed. However, the buyer can receive those funds back as well if the Seller does not perform or if the buyer elects to cancel through inspections, fails to qualify for financing or a few other areas.

The amount of earnest funds will vary depending upon financing type, price range, property type and market conditions. I will help guide you in terms of this.

Closing costs are all the fees and costs associated with buying a property. There is a title company, which issues title insurance and there is a cost associated with that.

The title company usually also handles the escrow and there’s an escrow fee. Recording fees with the county to record the transaction and then if you’re obtaining new financing, there will be many lender fees including, but not limited to underwriting, origination, appraisal, credit, etc.

Outside of these, a buyer may choose to purchase a home warranty and should be hiring professional inspectors. The total amount of closing costs will vary depending upon property type, price point, financing type, etc. I can help guide you when it comes to these.

A home warranty can be requested from the seller when we submit an offer. This is typically a 1-year warranty on some of the home’s major components like HVAC, electrical, plumbing and appliances. There are different add-on options as well, which can be purchased additionally by a buyer.

If the A/C unit fails, then you would pay a service call fee and the warranty company would send out a contractor to repair, or replace as necessary. All home warranty providers differ so you’ll want to review the plans & coverages to make the right selection for you.

Here in Arizona, the Buyer is responsible for all inspections. That means scheduling and cost. We will help you with the scheduling and can certainly refer you to good inspectors if you do not already have your own. Typically a buyer will have at least a general home inspection and termite inspection completed. Prices will vary based upon the home, but expect them to start about $350.

Unless changed in the contract, you’re given 10-days from contract acceptance to complete these. There may be some repairs required for financing or others the seller should take care of. That’s where our experience comes into play as we will be able to interject with thoughts and comments. If there is a real area of concern, we can bring in a specialized contractor to look further.

SELLER FAQ'S

Real estate transactions involve one of, if not the biggest financial investments most people experience in their lifetime. If you had a large income tax problem, would you attempt to negotiate without the help of a CPA or would you address a $200,000 legal question without hiring an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a transaction in real estate without the professional assistance of a REALTOR®.

REALTORS® have access to the right online platforms for marketing 24/7, networking with other REALTORS®, professional vendors for photography & video, legal forms (built to protect you), systems, training and many other intangibles to get the job done right.

  • Experience – how long have they been in the business, is this full-time and do they specialize in listings?
  • Marketing – do they have a marketing plan in place and what does that look like?
  • Valuation – how will they come up with the suggested value (BPO, CMA or other)?
  • Staging – do they offer these services, can they refer you to someone who can and/or do they feel it will be worthwhile for your home to sell?
  • Repairs – can they point out repairs that would allow for additional financing types and do they have trusted contractors or a handyman to refer?
  • Negotiations – do they have any special training for this as negotiating is critical in a Real Estate transaction?
  • Complaints – have any complaints been filed against them? (you can check with the Arizona Department of Real EstateArizona Association of Realtors and/or their local association)
  • From our decades of experience, we customize a marketing plan that is unique to your home. Not every home is the same so why should all marketing plans be the same? If necessary, we can recommend repairs or cosmetic work that will significantly enhance the sale-ability of your property and/or increase value and even refer you to the right contractors.

    Marketing your home includes exposure to other real estate agents and buyers via the MLS (Multiple Listing Service) as well as hundreds of additional online platforms. Social Media gain a huge audience and we often run paid ads as well as organic posts on sites like Facebook, Instagram, Pinterest & Google+. A custom blog post is created for your home and distributed out to our sphere and prospect database. Professional photography and videography for true 3D Virtual Tours is another way to generate excitement around your home’s listing.

    We install a traditional for sale sign, but with the brand power of RE/MAX and reputation of Team Schlegel on it. Printed advertisements, “pay per click” campaigns on the top online search engines, mega open houses, bi-lingual publications and many more options exist too.

    The choice of media and frequency of advertising depends a lot on the property and specific market. Overexposing a property in any media may give a buyer the impression that the property is distressed or the seller is desperate. From experience, we know when, where and how to advertise your property. This is all based upon time of year, market conditions, price point, condition, financing options, etc.

This is something we will discuss at the “Pre-Move Consultation” so there is a plan in place. Every situation is unique so we are experienced with ideas to make the process as convenient as possible.

Installing a lockbox is preferred and we use the industry’s best model, which is an electronic sort that requires agents to register when accessing so we can track whom and when someone was in your home. Before accessing, we instruct agents to contact us in order to confirm availability and then they contact you to give advanced notice of when they wish to view the home.

If you have pets or want/need to be home when a showing is going to occur, that’s fine too. We can work with that. The biggest key is making sure we have a way for the home to be accessible and us clearly communicating those details to the Buyer’s Agents wanting to show the home.

We review the comparable sales and activity in your neighborhood, as well as surrounding area, together, during the “Pre-Move Consultation”. Value is defined as what a Seller is willing to sell for and a Buyer is willing to pay, but it must be justified, by either side. Usually that means an appraisal, which is required on every financed transaction. Appraisers review the same information we do so we do not normally experience value issues when it comes time for the appraisal, as long as we price is right to begin with.

We have a whole pricing strategy and this is discussed during our initial evaluation. Ultimately, the seller chooses the list price, but normally our clients will heed our advice when it comes to pricing.

Here in Arizona, the seller normally pays the entire real estate fee. This means they’re paying for their own listing representation and the buyer’s representation. The commission rate is determined at the time of listing and can vary depending upon property type, price range, location and many other factors.

The phrase: “you get what you pay for” certainly applies with this topic as we are immediately spending to advertise your property properly, with no guarantee of ever seeing reimbursement. Many REALTORS® place in the MLS and wait for the phone to ring, but that’s certainly not us. Commissions are not owed though until the property closes escrow so you don’t need to worry about any money out of pocket up front. Another factor, which could affect the total amount paid is if we find and represent the buyer. It’s common for another agent to end up representing the buyer; however, we do sell about 5% of our own listings.

GENERAL FAQ'S

A Short-Sale is when a seller needs to sell their property, but the market value is less than what they owe at that time. This can be with one lien or multiple lien holders involved. Starting in 2007 when our market shifted, these sales became very common as prices fell well below 2004-2006 levels. The lender(s) have to give the approval to complete a Short-Sale, and this process can be lengthy and also requires a reason of hardship with documentation to prove it.

There are various laws that affect deficiency taxation, future liability, judgments & credit impact so we encourage our clients to seek legal counsel, depending on the situation, as we cannot provide legal advice. A CPA may also become involved to be fully protected and educated.

Still have questions?

we are here to help!

Team Schlegel is here to help. Please take a moment and look at our FAQ’s on the left. If these do not answer your questions. please do not hesitate to ask.

We are here to help!!!

TEAM SCHLEGEL HEADQUARTERS

(623) 203-2264

info@teamschlegel.com

6751 N. Sunset Blvd. Suite 320, Glendale, AZ 85305

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