2-4-05
BY MIKE McNAMARA
Last month, we discussed various ways to become a homeowner without much money in the bank. (Note: If you missed that article, you can find it online at www.performink.com, under "Owning a Home.") Now that you've been approved for a mortgage, the next challenge is actually finding a home. This article will discuss the relationship between you and your realtor, from your initial meeting through to closing. I've asked a great realtor I work with regularly, Jasen Schrock with Prudential (we took an acting class together back in 2001 and the rest is history), to chime in with comments throughout this article.
The Initial Meeting
The first step in working with your realtor is to meet and discuss what you are looking for in your new home. Take time to think this topic through and write down some notes prior to your meeting. Ask yourself questions like, "Is easy access to public transportation important? Do I need a room with a view? Are there particular neighborhoods that are appealing to me?" Jasen adds, "In my initial meetings with clients, they do most of the talking. We start with their ideal situation and work our way toward goals that meet their financial parameters.
"I tend to think people buy homes on an emotional level as much as they do based on the physical aspects of the property, i.e. does a home 'feel' like a home to them. Yes, it is important to know my clients need two bedrooms, parking and a wood burning fireplace, but also to understand why those items are important to them. That way, when I preview a property, I can put myself in my client's shoes and really get a sense of whether it would work. The more information you can give your realtor, the easier it will be to find the right home in the most efficient manner."
The Search
After that initial meeting, your realtor will look for properties that meet your criteria, and you're off and running. Feel free to join in the search. Through the beauty of technology, your realtor should be able to give you direct access to the Multiple Listing Service (MLS) based on the search parameters you provide. When a property becomes available, an e-mail is sent to you automatically with the listings attached; these listings often include virtual tours which allow you to get a great look at the place from the comforts of your own living room. With each prospect, you will be able to mark whether or not you are interested, and to type in your comments about the property, all of which will be sent to your realtor and saved in your personal account. Jasen adds, "This service allows the client to shop online, drive neighborhoods, and direct me to the places they are most interested in and at the pace they feel most comfortable."
Your realtor will then arrange several showings for you at your convenience. Often, the seller's realtor will also be present at the showing to answer any questions you or your agent might have. Take as long as you like and don't be shy with any comments or concerns you might have about the property. After the showing, if you think you might be interested, it's always good to take a ride around the neighborhood with your realtor and explore a bit, see where the closest grocery store is, that sort of thing.
Once you find a property you would like to purchase, your realtor will take a look at some similar properties on the market and compare asking prices to make sure you are getting a good deal, and then it's on to the negotiation process.
The Negotiation
Once you have found a property you love, your realtor will work with you to determine what offer you would like to make to the seller. The two of you will look at everything from sales price and mortgage details to seller's concessions, which can be anything from covering your closing costs to letting you keep the green leather couch in the living room. Your realtor will represent you during the negotiation process and guide you to a favorable agreement with the seller.
The Closing
Now that you've reached an agreement with the seller, you'll bring in your real estate attorney and mortgage consultant to help guide you through to closing. Your realtor will do his or her best to keep you on schedule with your inspection, mortgage commitment, and other important steps in the closing process. He or she will be present at the inspection and will make sure any repair issues that arise are resolved with the seller. At the closing itself, your realtor will work with your attorney and mortgage consultant to make sure everything goes smoothly and efficiently. Should any issues arise, your realtor will be there to protect your interests. When it's all said and done, the seller will hand you the keys, you'll thank your realtor for a job well done and move into your new home!
Final thoughts from Jasen: "A successful client/realtor relationship is dependent upon opening clear lines of communication. Make sure your realtor knows what expectations you have in him or her and the process in general. Home buying should be a rewarding, exciting part of your life. With the right realtor, it will be."
Next month, we'll get back to exploring some housing programs tailor made for artists. In the meantime, if you have any questions, even if you already are a homeowner, feel free to call or e-mail me anytime. As always, please send me any comments or suggestions about this article, and let me know if there are topics you would like to see discussed.
Mike McNamara is a Chicago actor who has worked in theatre, commercials, television and film. He is also a mortgage consultant and loan originator with West America Mortgage Company. He can be reached at 773/398-0021 or McNamara310@aol.com. Special thanks to Jasen Schrock for his assistance with this article. Jasen is a real estate agent with Prudential Preferred Properties and can be reached at 773/805-7432 or jschrock@prupref.com. Jasen is also an actor and musician in Chicago.