Don Johnson Co. Realtors

It is not uncommon, especially for those new to the housing market, to question their ability to purchase a home. With the flexibility in the lending market today, most individuals can find a way to purchase a home – with little or no money down and often with some problems with their credit. You are not wasting the time of a sales associate to help find the answer to this question.

Most of us feel uncomfortable talking about our income and savings with anyone. This is not a problem. A good agent will help you get in touch with a lender or mortgage broker. In short order, you can confidentially determine your credit options – basically – how much home you can afford to purchase, and how much money you will need to bring to closing. Your lender or mortgage broker will issue a pre-qualification letter – which will allow your agent to best serve your needs. Our web-site provides a tool to help assist you in getting a feel for what you can afford to purchase – click here to use it.

If you think homeownership is for you, getting pre-approved for a mortgage is a good idea. This determines the size of the mortgage you qualify for, and therefore, decides the price range for the homes you can look at.

Pre-approval helps you to:

Know how much you can borrow.
Confirm your ability to qualify for a mortgage based on your credit, financial and employment information.
Strengthen your position to make an offer on a house. A seller will be more willing to accept an offer if the buyer is pre-approved.

To become pre-approved, you'll need to work with a mortgage lender. The mortgage lender will review your credit history, earnings information, employment history and assets. You will need to provide certain documents to the lender to verify this information.

After the review, the lender will give you a "pre-approval letter." The pre-approval letter tells home sellers that you have the ability to qualify for a certain mortgage amount.

Getting pre-approved is not the same thing as getting pre-qualified. Pre-qualification simply states that the borrower qualifies for a loan based on some preliminary questions but does not commit the mortgage lender to approve the mortgage. The mortgage lender will still have to conduct a complete review of your financial situation, including your credit report and your income and employment history.

The pre-approval process is more thorough. The lender does most of the work for full approval except for an appraisal and title search because there is no property

Buying or renting depends on several factors. If you know you will be moving in a year or two – renting often makes sense. The anticipated increase in the value of your home over a two year period will rarely cover the closing costs involved in selling your home. Ask your agent how much homes in the neighborhood are increasing in value each year. Although historical increases are not a guarantee of value – they are a good indicator that can help you make an informed decision. Under some circumstances, corporate transferees receive special benefits when they move that protect them from closing costs. Your relocation counselor can best explain these benefits. Traditionally, the longer you stay in a home – the greater the return you may hope to achieve when it is sold. However, none of the above factors take in account the satisfaction of being a homeowner.

Generally, it is our experience that rentals tend to move very quickly – much more so than home sales. As a result, it is very difficult to start searching for a rental beyond 30-45 days of your anticipated move-in. Often, we will have inquiries from individuals interested in renting in 3 or 4 months. Unfortunately, the homes currently available for rent will not be available when you are ready to rent. A serious rental search should begin no earlier than 30-45 days prior to move-in.

The newspaper provides a steady supply of rental properties available. If a property seems interesting, call the company for more information. You might want to drive by the home first, and then schedule a showing if you are interested.

Generally, you will be required to file a rental application and provide a non-refundable application fee – which is used to run a credit check. The agent who shows you the home will generally not complete the lease agreement – as that will usually be done by the property management company. If you have every breached a lease agreement, you may expect difficulty in having a rental application accepted. In some instances, you may be rejected. In some instances, you may be required to

A rental will require the first months rent to be paid in advance. In addition, you will be required to pay a security deposit in advance – which often is the same amount as the rent. Not all rentals allow for pets. If they allow pets, it will usually limit the number of pets and require a pet deposit.

When you rent a home, please review the property management firm’s inspection report carefully and make sure that nothing has been missed. You will be responsible for all damage, beyond normal wear and tear, that is not listed on the report.

Most agents feel very uncomfortable investing time with little or no hope of earning a commission. Unfortunately, many buyers think that an agent is paid a salary. Sales associates only earn income when a home sells. Consequently, it is almost impossible to make a living in real estate unless the agent and the client are mutually committed to each other.

Everyone is different – including real estate agents. Choose an agent that you feel comfortable with. If you have a good relationship with the agent, communication will be more effective. Experience is important – but it need not be decisive. A less experienced agent will often be eager to provide a high level of service. With the assistance of a good manager, you will likely be very satisfied.

Keep in mind, when you engage the services of a real estate agent, you are really engaging the services of the company they work for. In the unlikely event that you have a problem that arises – a year or more after your home is purchased, you want to be certain the company is still in existence. In addition, you want to be certain the company maintains errors and omissions insurance. The insurance policy is designed to protect the company from the wrongful or negligent acts of its agents. Prudential Don Johnson Company is the oldest real estate company in San Antonio – with second generation ownership and management. We have continuously maintained a complete insurance package for the company – including errors and omissions insurance – since the inception of the company.

It is a contract between a buyer and the real estate broker. It provides a written assurance that the real estate agent represents you – and not the seller. It assures the agent that they will receive a commission if they help you find the home you buy. At Prudential Don Johnson, we have several types of buyers’ agreements. We have a one day agreement – designed primarily for showing a home you have called about. You do not know the agent and you are not certain you want to work with them beyond that day. We also have a more long-term buyer’s agreement. However, you may terminate that agreement with a days written notice. By terminating the agreement, you may enter into a buyer’s agreement with another company – however, the agreement does provide for the broker being treated fairly. If you click here, you may see a copy of these two agreements.

After you have been pre-qualified by a lender or mortgage broker, you and your agent will visit and discuss your goals. You will discuss the location, schools, and amenities you are seeking in a home. Our Multiple Listing Service provides a detailed database of all homes available – you and your agent can design a search using the profile sheet used for preparing a listing for marketing. Select the price, location, and features that interest you. A detailed print-out of each listing is reviewed, discussed, and often revised. At that point, your agent will schedule showings when you are available. After you have visited the homes, you will likely find a home that you are interested in purchasing. You and your agent will prepare an offer. Keep in mind, the terms of the offer are all part of the negotiating process. Your agent will help you evaluate the terms of the offer by reviewing prices of homes sold in the area, calculating the price per square foot, and evaluating the comparative features of the home. Once you are satisfied with the offer, you will sign it. Your agent will present the offer to the agent for the owner. Often, the negotiations will go back and forth with one or more counter-offers – until such time as everyone is in agreement. Once a final agreement is reached, you will have a contract. Your agent will then be available to assist you through the process of bringing the contract to the point of closing – when you become the new owner. During the early stages of the contract, you will be in what is called the option period. It is during the option period that the agent will help you facilitate the inspection of the home and assist you with evaluating the contract in terms of the inspection and the repairs that the inspection may reveal to be needed. Once again, your agent is there to help you with this secondary negotiating period. If you are unable to arrive at acceptable terms during the option period, you agent will help you exit the contract. After the option period expires, and you move on with the purchase, your agent will be there to help keep things moving forward. At this point, you will be dealing with the lender, the seller, the title company, repair issues, and your ultimate satisfaction with the contract being faithfully adhered to. Ultimately, your agent will be with you when you sit down at the title company and close on the purchase. It is every agents hope and goal that a new friendship has grown through the process. After you have moved into the home, you may have some questions or issues that need to be addressed. Your agent will help you facilitate communication regarding those issues. Aside from your agent, the company management should be available to answer any supplemental questions or concerns you may have.

It is not uncommon for buyers to feel concern about a home purchase – after all – it is a big investment. A good agent will help you evaluate your concerns – and separate nervousness from valid issues. The contract provides for several ways in which a buyer can exit the contract without risking legal liability. First, the option period is your opportunity to change your mind. During the option period, you may exit the contract by giving proper written notification to the seller. After the option period expires, you must look to the terms of the contract. Generally, the contract provides for your right to get financing according to the terms of the contract. If financing cannot be achieved accordingly, you may exit the contract.

Your real estate agent is not a lawyer. If you do not abide with the terms of the contract, you have breached the contract. Sellers have often made business decisions based on the contract. For example, they might purchase another home; spend money to make the home ready for you, and the like. If you breach a contract – several things can occur. First, you might lose your earnest money. The seller may also sue for damages or the seller may sue to compel you to purchase the home. If the contract provides no basis for a free exit from the deal, you should visit with an attorney to discuss your options.

Attached you will find a 1-4 Family TREC Contract. Please keep in mind contract forms change, and we will try to update it periodically. Please do not rely on this form until you have verified that it has not been replaced by a more current form. By familiarizing yourself with the contract prior to actually entering into a contract, you will be better prepared for the whole process. Your agent can help explain the various provisions of the contract.

Sure, your agent will help arrange a final walk-through just before closing. If a home is occupied when you enter into a contract, the furniture may have hidden a problem. The final walk-through will help prevent any misunderstanding after closing. The final walk-through also makes sure that nothing is missing – for example – you want to be sure the thousand dollar chandelier at the entry has not been replaced with a $75 fixture – or the window treatments that were supposed to remain are still in place.

At Prudential Don Johnson Company, we make every effort to insure your satisfaction. If you are working with an agent, you might find that you would prefer working with another agent. If that occurs, please contact the sales manager – Bob Lytle. The buyer’s representation agreement allows for you to terminate the agreement upon written notification. However, we only desire to have satisfied customers. At your request, we will assign another associate to help you achieve your real estate goals.

The promulgated real estate contract provides that all repairs be done by licensed contractors. If you have a concern, your agent may ask the seller to provide evidence that the repair work has been done by a licensed contractor. Additionally, you may hire an inspector to conduct a follow-up inspection of the work that has been completed.

Your agent may not choose your inspector. However, at Prudential Don Johnson we provide list of inspectors that maintain liability insurance. All inspectors are license by the Texas Real Estate Commission – as are all real estate agents. The inspectors must comply with the rules of the Texas Real Estate Commission and must use the form designed by the Commission. You can always ask your agent if they have an opinion about a specific inspection company. We believe the maintenance of a liability policy by the inspector is an important protection for the buyer.

All Realtors are real estate agents. However, not all real estate agents are Realtors. The State of Texas requires a real estate license for most professional real estate activities conducted as a service – the State licensing involves taking required real estate core courses and required continuing education. A Realtor makes an additional commitment, over and above State licensing – a real estate agent who is also a member of the National Association of Realtors. All Realtors subscribe to the NAR Code of Ethics – a rigorous code of conduct. The enforcement of the Code is through our membership in the San Antonio Board of Realtors. Consumers and other agents may file a complaint with the Board if they believe their agent has acted inappropriately. Consumers may also file complaints with the Texas Real Estate Commission.

The Multiple Listing Service (MLS) is a service provided by member Realtors in your area. The San Antonio MLS comes under the authority of the MLS Committee and the Board of Directors of the San Antonio Board of Realtors. The MLS consists of a computerized database of homes, rentals, lots, and commercial property available for sale in San Antonio. The quality of the database is maintained by strict rules governing its use. Members who violate the rules of the MLS may lose their right to use the MLS. The vast majority of existing homes sold in the San Antonio market are marketed through the MLS. Our web-site provides a searchable database that provides you a good starting point for identifying homes that might interest you.

As with any specialized technical advice, you should always consult with your CPA when assessing the tax benefits of a home purchase. The tax laws are complex and the benefits can be affected by your income level, whether your purchase is a second home, the timing of the purchase, and so on. Generally speaking, the real estate property taxes and the mortgage interest you pay are deductible as itemized deductions. The itemized deductions include the allowable medical expenses, property taxes, mortgage interest, charitable contributions, and employee business expenses in excess of a floor amount. Your tax benefit of home ownership will be to the extent your taxes and interest exceed the standard deduction – multiplied by your marginal tax rate. Lower income individuals must be extremely careful when considering the tax benefits. It is not uncommon for the taxes and interest to minimally exceed the standard deduction – resulting in a minimal or no tax benefit. However, the profit on the sale of your home is generally not taxable – nor is the loss on the sale of a home generally deductible. The tax laws are extremely complex. If tax benefits are a consideration for your home purchase, you should seek professional assistance. Real estate agents are not qualified to provide tax advice.

Generally, everything is negotiable. Under some circumstances, certain type loans require the buyer to pay certain expenses. Please clarify with your lender which items you might be required to pay under your loan program. If you don’t understand something in the contract, don’t sign it until you have a satisfactory answer.