Buying or selling real estate is not as easy as buyer a pair of jeans- don’t act like it is! Educate yourself and work with a qualified, honest agent. Webb Realty is a company you can trust!

How do buyer’s agents get paid?
 In Northern California, the buyer’s agents are most often paid by the seller’s agent through an agreement they have entered into with their seller called a listing agreement. It is a complicated system, but all you need to know is that buyer’s do NOT pay their agents in most cases. So, it makes no sense to try to buy a property on your own. Always be represented by an agent!!

What will your monthly payment be?

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Steps For Finding Your Dream Property

  • Research before you look.

    Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

  • Be realistic.

    It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

  • Get your finances in order.

    Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

  • Don’t ask too many people for opinions. 

    It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

  • Decide your moving timeline. 

    When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

  • Think long term. 

    Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

  • Insist on a home inspection.

    If possible, get a warranty from the seller to cover defects for one year.

  • Get help from a REALTOR®.

    Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.

(Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.)

10 Ways to Prepare for Homeownership Prepare yourself financially and emotionally!

1. Decide what you can afford.

Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list.

Then, prioritize the features on your list.

3. Select where you want to live.

Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving.

Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order.

Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.

How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved.

Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment.

Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership.

This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®.

Find an experienced REALTOR® who can help guide you through the process.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

https://magazine.realtor/daily-news/2013/12/02/advice-for-first-time-home-buyers

https://magazine.realtor/daily-news/2011/12/13/4-tips-to-help-your-buyers-refine-their-home-search

FINANCING

Before you can buy, you need to know how much money you can spend. What do you qualify for? What will your monthly payments be?
Contact a LENDER before you start looking, that way you know what price range you should start at.
Webb Realty works with all lenders, but we have our favorites, who are educated, experienced and local.

Check out these local lenders that we work with:

Matt Brown and Leticia Romo at Petaluma Home Loans.   http://petalumahomeloans.com/

George Adaire at Bay Equity Home Loans.   https://www.bayequityhomeloans.com/

EDUCATE YOURSELF ABOUT THE MARKET

Although you have an agent who is working hard for you, there is no reason not to educate yourself. There is so much information on-line that we encourage you to watch the market and keep educated. Here are some sites to check out for general market information. Remember, these are not the realtor sites we use, so sometimes the information on them is not up to date, but overall they are a good resource to check out the market with.
https://www.zillow.com/
https://www.realtor.com/

TRANSACTION STAGE:

If you are a buyer, once you have found a property and written an offer that is accepted, you are in contract and enter into the transaction stage, which is most often 30-45 days long.

What are the steps?

ESCROW- Your Webb Realty Agent will open ESCROW. What is escrow?

http://www.dre.ca.gov/files/pdf/Escrow_Info_Consumers.pdf

At its essence, escrow is the process whereby parties to the transfer or financing of real estate deposit documents, funds, or other things of value with a neutral and disinterested third party (the escrow agent), which are held in trust until a specific event or condition takes place according to specific, mutual written instructions from the parties. Escrow is essentially a clearinghouse for the receipt, exchange, and distribution of the items needed to transfer or finance real estate. When the event occurs or the condition is satisfied, a distribution or transfer takes place. When all of the elements necessary to consummate the real estate transaction have occurred, the escrow is “closed”.

PROPERTY INSPECTIONS

If you are a buyer, you should inspect your property and make sure it is the one you want. Pest inspection? Home inspection? Roof inspection? Septic and well inspection? Do you need all these? This is where working with Webb Realty will help you. Lean on the expertise of your agent to help decide all this. Don’t try to do it all yourself. That is why you hired an agent.

FINANCING

Get your LOAN in order- As soon as you are in contract contact your lender and get started. Work with your lender to make sure you meet all the deadlines within your transaction. Make sure you are communicating with your lender and agent regarding timelines and necessary documents. Having a good, trustworthy lender is key to success in meeting your timelines. Pick your lender carefully and make sure they are working hard for you.

CLOSING

Once you have completed all your inspections and are certain you want the property, and your lender has issued all the loan documents to the escrow company it is time to sign the papers. Schedule an appointment with the escrow officer to review and sign the loan and title documents. After you and the other party have signed and the money from the lender and all other sources is in the escrow account, the transaction will be recorded.

Do you need TITLE INSURANCE?

YES.

Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders. Here are five other things you should know about title insurance.1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.2. It’s a one-time cost usually based on the price of the property.3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Sonoma Counties Links

What are the current taxes for the property?
http://sonomacounty.ca.gov/CRA/Assessor/

Look up existing permits for a property.
http://sonomacounty.ca.gov/Permit-Sonoma/

Find out the zoning of a property-
http://sonomacounty.ca.gov/PRMD/Planning/Project-Review/Services/Zoning/

Can you grow Cannabis on the property?
http://sonomacounty.ca.gov/cannabis-program/

Webb Realty