Purchasing property

Cindy Burress, REALTOR
Briarclif Realty Services
Phone: 865-483-7253
Cell: 865-850-4599
Fax: 865-483-7288
EMAIL: realestate.pros@comcast.net
695 Emory Valley Road
Oak Ridge, Tennessee 37830

A Foundation
Built Upon
Trust

Purchase: Step 1
Evaluate your current needs are compared to your projected future needs. How much square footage, how many bedrooms and
bathrooms do you need? Do you need a workspace at home?   Do you have special needs for your home such as handicapped
accessibility? Where do you want to send your children to school? What projections are available for property values in the area under
consideration. Ultimately, your decision will take into account many important factors that only you can rank in priority.

Purchase: Step 2
While choosing a home is ultimately a very personal decision, most buyers today hire a group of professionals to help them in the buying
process. You should ask questions of your professionals and do your own research until you understand each part of the process of
purchasing a property.

Lenders
Most of us cannot pay cash for our homes. We go to people who are called lenders to borrow money to pay for
our homes. We get to live in the home and pay the lender back over time. For this privilege the lender charges
borrowers a fee, called interest. Each month we make a payment to the lender and a portion of this payment is
credited towards reducing our debt (the amount we borrowed). Another part of the payment goes towards the
amount charged (the interest). Make sure to discuss this with your lender. You will probably find that in the early
years of your loan most of the money goes to the charges to borrow the money (interest) and very little is going
towards reducing the amount you borrowed to purchase the home (another name for this is principle).

Based upon the kind of loan that you choose, you may be signing up for 15 to 30 years of monthly payments.
Other expenses will continue every month such as food, water, sewer, gas, transportation, taxes, insurance, clothes etc..
Thus,understanding your income stream and the total of your expenses will need to be factors when you consider adding the expense of
a monthly payment to purchase a home. Make sure you can afford what you are proposing to borrow. Make sure you know what will
happen to your loan over the life of the loan.
Lenders will discuss with you how much you are qualified to borrow. You will be the person making the
payments. Make sure not to borrow more than you can pay.

Seller
You may deal with this person directly or through an agent. If you deal directly with the seller,
make sure you understand the real estate purchasing process clearly before you enter into any transaction that
you may later regret. Consider getting legal counsel to assist you with the components of the transaction in
order that your interests are represented. Clearly understand the intent and consequences of any document
or agreement with the seller before you sign.

Real Estate Professionals
Realtors are trained to work with both buyers or sellers. Sometimes they represent both and work as a
"Facilitator" of a real estate transaction. Often the buyer will be represented by a Realtor and the seller will be
represented by another Realtor. Realtors should understand the marketplace and be able to advise with
regards to property values based upon recent comparable property sales. Additionally, they should be able
to advise each party about the components of a real estate transaction to ensure the exchange occurs
as smoothly as possible.

Appraisers
Appraisers look at property from the standpoint of value. They are called upon to render an opinion as to what
the property is worth at a particular time. Sellers may need their help to know how much to charge for their
property. Lenders will be looking to see that the property is worth as much as they are lending based upon the value of the property.
Buyers, may want to look at an appraiser's opinion of the value of the property to help them
with making offers to purchase properties.

Home Inspectors
Home inspectors are paid to evaluate what things might be wrong with the property. They will especially be helpful
with regard to the structural and functional aspects of a property.

Title Companies
Title companies examine the chain of ownership of the property through research of the historical documents of
ownership and transfer of property. If, since the beginning of the ownership of the property, there is a clear and
legal passage of ownership from one owner to the next, the property may be said to have a clean title. If there
are identified problems, then the title may be said to have a "cloud" upon it. Further examination will reveal
what steps are necessary in order to remove the title problems in order to pass "clear title" to the purchaser.

Attorneys
Attorneys advise as to the legality of components of a real estate transaction and assist with document prepration relative to the sale of a
property. They can represent either the buyer
or the seller.

Termite Inspectors
These professionals examine property for the presence of termites and any damages that may have resulted
from the presence of termites. Termite inspectors may be required to give estimates about the costs to rid the
home of termites, and how to treat the home to prevent further infestation.

Surveyors
These individuals determine the physical landmarks that describe the boundaries of a property. They generate a
legal description of the property verbalizing where to go to find the property boundary lines.

Step 3
Lets assume that you have contacted a Realtor, discussed your real estate priorities with the Realtor, visited homes with your Realtor and
you are ready to make an offer. Your Realtor will guide you through the necessary paperwork stating what price and under what terms
and conditions you wish to purchase the property in question. Your Realtor submits the offer to the seller, usually by submitting the offer
to the realtor representing the buyer. The buyer can accept the offer, reject the offer or make a counter offer.

Step 4
Lets assume the buyers and sellers have agreed upon the offer to purchase real estate. Generally within this contract to transfer property
a date of the actual transfer of ownership is set (or approximated). By this date (the closing date), it is anticipated that all of the
documents needed to complete the transfer will be prepared and ready for signatures. During this time the professionals listed above
may become involved in the process. Sometimes, the buyers and sellers will be getting information from many sources about the
property in a short period of time. Hopefully, your Realtor will be available to you in organizing this information and you may proceed
smoothly towards property ownership.