Creating a Top Notch Home Buyer Team

Your team starts with a knowledgeable Realtor with whom you are able to build a good rapport. Your Realtor acts as the quarterback of your team. Your Realtor will be involved in all aspects of the purchase process and will interact with all other members of your team. Your Realtor can also help you identify potential team members if you aren't sure who to work with. Most Realtors will provide information for 2 or more contacts in each of the categories of team members so you can choose based on the best fit for you.

Lets take a deeper look at what you can expect from your other team members. We will also outline some key questions to ask when choosing team members

Hiring a Home Inspector is very important!

In our opinion, an inspection is an absolute must! Whether you are buying an existing home or you are buying a new construction home, we would always urge you to have a thorough inspection buy a qualified inspector. It is rare that a home sells without at least some inspection issues to deal with. Better to find out exactly what you are dealing with before the transaction is complete.

Your inspector will check the entire structure of the home as well as all home systems including plumbing, electrical, internal and external systems. North Idaho has several quality home inspectors who have been in the business for years.

For most homes under $250,000, an inspection will cost approximately $225-$325. It is important to note that payment is due at the time of the inspection. At the conclusion of the inspection, the inspector will provide a full report for your review. Our initial purchase offer will include a clause allowing us to deal with any inspection issues that arise. Together, we will review the inspection report and notify the Sellers of any issues we feel need to be addressed. Once notified, the Seller has the option of fixing the identified inspection issues or not. If they choose not to complete the fixes, you as the buyer would have the option of walking away from the transaction with your earnest money deposit. If the Sellers do complete the repairs, the transaction will move forward.

Talk to your Accountant about the Tax Implications of owning a home.

As a First-Time Home Buyer, you have the opportunity to see significant tax benefits. Under the current tax code, the interest portion of your monthly mortgage payment is deductible from you taxable income. This can dramatically lower your total taxable income and thus your annual taxes due.

In addition to your annual tax savings, you may also qualify for the $8000 tax credit. See our tax credit page for more details.

As a First-Time Home Buyer, it may be in your best interest to schedule a meeting with a tax accountant to discuss how you can leverage your home purchase to ensure the maximum tax benefit. You may not need to meet with an accountant every year, but it may make sense to plan a meeting in the year you make your first home purchase.

Your Title Company will ensure there are no surprises on your title.

A Title Company acts as a neutral third party in the transaction and has two main functions during your purchase process. First is to determine if the Seller is the legal owner of the property and if the property can be sold. Second is to organize all the required paperwork, from various sources, and facilitate the closing and transfer of funds.

It is the responsibility of the Title Officer at the Title Company to conduct a search of the "chain of title". This search will review all known records of the property to determine if ownership has been properly passed from Seller to Buyer during all past transactions involving the specified property. The Title Officer will search for all know "clouds" on the title which may prevent the smooth transfer to you as the new buyer.

The Escrow Officer is responsible for organizing the transaction paperwork and handles the transfer of funds from one party to the other. It is up to the Escrow Officer to ensure that all conditions of the sale are met and that the written instruction of the agreed upon documents are carried out prior to close.

We work closely with the Title company to make sure we are ready to close by the set closing date. The Title Company will provide us with important information such as a copy of the CC&R's for the property and a breakdown of the property taxes paid. At the time of signing, the title company will review your loan documents with you and cover in detail the allocation of funds. Often times, the title company will help with the exchange of keys once the transaction has been funded and recorded. It is important to note that you will not likely receive keys at the time of signing. If possible, the title company will arrange for you to sign in the morning and receive keys in the afternoon. However, it is possible that there may be a delay of 1-2 days waiting for your lender to fund. Most local lenders will fund the same day as signatures are received

Protect your largest asset.

Homeowners Insurance is also a must for any homeowner. You will need to make arrangements with your insurance agent, prior to closing, for homeowners insurance. If you are financing your purchase, your lender will require you to have proof of coverage at closing. For most owners, your insurance payment will be included in your monthly payment.

Your Real Estate Appraiser will confirm the value of your home.

You will not likely be directly involved in the appraisal process but it is important to understand who they are and what they do. Your lender will select an approved appraiser to evaluate the price you are planning to pay for the house. The bank does not want to finance more than the house is worth, which is good for you as the buyer. The appraiser will compare the house you are buying to other similar houses in the same general area. Through this process, the appraiser will determine if the price is a reasonable price in comparison to recent similar sales. If the home does not appraise for the offered purchase price, you may be able to negotiate with the Seller to lower the price to a level that will appraise.