Mr. Chaddles' Real Estate FAQ
Mr. Chaddles Guiding Principle|
The biggest cause of stress during a real estate transaction is not knowing the steps. At Mr. Chaddles' Real Estate we simplify the process by clearly communicating the process step by step. Who needs stress by not having a competent agent walk you through what may be one of the biggest transactions of your life? Moving day is stressful enough, the process to get there shouldn't be.
-Get a professional market analysis to determine the expected sale price of your property.
↳We give the most accurate property values in the industry and excel at getting the top value for your property.
-Get a break-down of all costs associated with the sale to get a good estimate of how much money you should walk away with.
-Get informed of local real estate laws to better inform your decision making. Discuss any issues, such as liens and encumbrances, that could potentially effect closing on the property.
-When applicable, notify tenants of expected sale to prepare them for showings.
-When applicable, get the property ready by making appropriate updates, improving curb appeal, possible staging of furniture, etc.
-Get property listed.
↳We are top level property listers and will make your property look as beautiful as possible.
-Have a competent agent work to get you a valid offer.
↳We work hard to get you that offer. We don't just do open houses and will also do individual showings to get maximum eyes on your property.
After you Accept an Offer:
-You'll need to hire an attorney. Your attorney will prepare and review the purchase and sales agreement, prepare the deed and be there for other things that may come up during the transaction. It is important to have your attorney very early in the process so there are no unnecessary delays.
↳We have several highly capable lawyers ready to recommend to you.
-For condominiums you must obtain a 6D certificate from the condo association which should state there are no outstanding condo fees or other charges.
-If you have a septic tank, you will need to provide the Title V report stating that the septic system has passed the requirements. This is required by Massachusetts state law. It is recommended to have the inspection done prior to putting the home on the market.
-The buyers will schedule the property inspection. This is usually done within 7-10 days of the offer being mutually agreed upon. If repairs are requested your agent will negotiate with the buyer to try to come to a satisfactory agreement.
↳Negotiations after inspections is often the most critical part of the process. We're highly experienced negotiators who know how to negotiate terms in your favor.
-The buyer will order the appraisal through their lender. The appraiser will schedule an appointment to look at and appraise the property. If the appraisal comes in at the value of the purchase agreement and no repairs were required, then nothing further is needed from the seller at this time. If the home doesn't appraise, we are back to the negotiating table trying to figure out a price that works for everybody. If repairs are noted, you should have the repairs done as soon as possible so the appraiser can come back out.
-Arrange for a mover. There are times when getting a mover is difficult. Arrange the mover sooner than later. Start packing and get ready for closing.
-30 Days Before Closing:
-Get together all your account numbers and be prepared to give information to the conveying attorney so that any outstanding mortgages, liens or encumbrances can be discharged at the close.
-You'll need to obtain a smoke and carbon monoxide detector certificate. Contact the fire department to determine what kind and where the detectors need to be placed. Make sure you detectors meet the requirements the fire department told you. Arrange for the fire department to inspect and provide a certificate. There will be a fee for this. It is required by Massachusetts state law. You need to have the original certificate at the closing. The certificate is only good for 30 days.
-For rental properties, get together all existing leases, security deposits, prepaid rents and any other information that needs to go to the new owner.
-Inform your insurance company that you are selling your home and give them the closing date.
-Five Days Before Closing:
-Arrange final readings for gas and electric. Give them the closing date and the buyer's names. The buyer's will also call to make arrangements to continue the service in their names.
-You should contact your city water department to get a final water meter reading. Some cities do and some cites do not do final water meter readings. If they don't an escrow will be held until the next bill comes and it will be pro-rated.
-Arrange oil reading, when applicable. Call the oil company to have them take a reading of what oil is left in the tank and provide a bill. This should be provided to the closing attorney for credit. Make sure to cancel service from the oil company. The buyers can arrange to continue service.
-Notify cable, internet, telephone, and security companies to end or transfer service.
-Provide new address to the post office, driver's license, creditors, employer, insurance companies, and subscriptions.
For the Closing:
-We are now waiting for the buyers to get a clear to close. A clear to close means all conditions have been met and the buyer has been completely approved and ready to close on your home. It is not even unusual for the clear to close to be given mere hours before the closing is scheduled.
-Set up the final walk-through. The walk-through usually takes place the day before or day of the closing. You need to be completely moved out and the property needs to be cleaned and in the condition agreed upon.
-Bring to the closing proper identification, house keys, garage door openers, and smoke detector certificate.
↳We can arrange so you don't even need to go to the closing. We can collect all the necessary items from you and handle it for you!
Congratulations! You have sold your property!
-Reach out to a competent agent to discuss your initial information, your best expected outcome, and any potential concerns you may have.
↳We will listen carefully to you and will come up with an appropriate plan to get you to the finish line.
-Get a mortgage pre-approval so you know how much you can afford.
↳We can refer you to some of the most competent local mortgage providers with some of the best rates around.
-Get set-up in the agent's system to start to view listings. Choose which properties you would like to tour and tour properties.
↳Our custom system will keep you on top of the market. We check the market daily for new listings and will alert you of new options very quickly.
-Get agent feedback from property tours.
↳We'll let you know if the property is a good deal or not, and will discuss pros and cons.
-After finding a property you would like to go forward on, work with agent to put in best competitive offer.
↳You want to make sure you put in the lowest offer possible while still being competitive. We'll expertly guide you towards that magic number.
After Your Offer is Accepted:
-Deliver earnest money in the format and timeline agreed upon in your offer contract.
Within the First 10 Days of Acceptance:
-Contact your mortgage person to apply for your mortgage. The mortgage person will begin the financial process and order an appraisal for your new home.
-Order your home inspection. A home inspection is not required, but highly recommended. This will most likely be the largest purchase you make. Having a qualified person thoroughly inspect your future home may prevent thousands of dollars of unexpected repairs later on. Contact a licensed home inspector of your choice or have one recommended to you by the agent. The home inspector will set an appointment that is convenient for you. The inspection must take place during your inspection period, usually 10 days from acceptance of your offer. If issues with the property are found you may request the seller conduct the repairs or be compensated at the closing.
↳If issues with the property are found we will expertly negotiate with the seller in your best favor.
-Have the purchase and sale agreement reviewed by your attorney. Although not required, having an attorney familiar with real estate law will save you peace of mind and possibly money should any legal issues come up. An attorney will help to make sure you are financially protected should anything go wrong during the home buying process.
↳We can refer you to some great local real estate lawyers.
-Sign the Purchase and Sale Agreement and pay second deposit. The Purchase and Sale Agreement is the contract that contains all the details of the real estate purchase. Occasionally, this may take place beyond the 10 day period if there are any concerns that are being negotiated between the buyer and seller. The second deposit is normally 5% of the purchase price, but could be less depending on your financing and your available funds.
-Choose your home owners insurance provider.
-Inform your landlord you are purchasing a home if you are renting. Most landlords require at least 30 days notice that you are moving or you may forfeit any deposits you have on your apartment.
Within 30 Days of Acceptance:
-Contact your insurance person to arrange for coverage for your new home. Your insurance broker can let you know how much this will be and will provide a binder for you.
-Stay in contact with your mortgage person. You must obtain a mortgage commitment letter before your financing period ends (usually about 30 days after your offer is accepted).
-Arrange for a mover. Care should be given not to make firm arrangements until you have a confirmed closing date and you have received your financial commitment letter from your mortgage person.
1 to 2 Weeks Before Closing:
-Arrange to have the utilities for your new home transferred to your name. And don't forget to have your current utility services disconnected. This includes (if applicable) gas, electric, telephone, cable television, and internet service. If your new home has city or town provided water, this will be handled by the seller's agent. If the home you are purchasing is heated by oil, you will have to pay for any oil that is left in the tank at the closing.
-Make sure you have the funds available for closing. Your mortgage person should have given you a good faith estimate of the amount that you will need. If not, contact him/her as soon as possible.
-Make final arrangements with your movers.
1 to 2 Days Before Closing:
-Arrange for a final walkthrough of your new home. Your agent will arrange a final inspection of the home you are about to purchase. Most likely everything will be fine, but check to make sure everything is in the same condition as when you first put your offer in.
↳You're almost there! The final inspection walkthrough is usually fun. Bring your tape measure if you would like to measure rooms for furniture.
-Verify the time and place of closing.
↳We'll be on top of that and will let you know.
-Get the final amount needed to be paid at the closing from your mortgage person or lawyer and arrange a wire transfer or certified bank check.
For the Closing:
-Bring the following items to the closing:
-Valid Picture I.D.
-If not doing a wire transfer bring the certified bank check.
-Insurance Policy or binder.
Congratulations! You can move into your new home!
Understanding Provable Income and Credit:
-What is provable income?
Pay stubs, bank statements showing deposits, and official job
offer letters. If you get paid by cash then you'll need to
show bank statements showing deposits to prove your income.
-What is considered good credit for obtaining an apartment?
The score doesn't matter that much but the status of the accounts do. Most
property owners won't accept applicants with current delinquencies on
their credit report. A minor $60 utility delinquency is not considered
a big deal, but a delinquent loan or credit account is. It's best to
fix delinquent loans and credit accounts before applying for an apartment.
Inquiring about a Property:
-How can I contact you by phone regarding an apartment?
We only take apartment inquiries through email. This keeps us more readily available by phone to current and past clientele.
-What type of response time should I expect?
That depends on many factors but approximately 99% of professionally communicated inquiries are responded to within 24 hours and you very well may get a response right away.
-How come I haven't received a response to my inquiry?
We receive too many inquiries a day to be able to respond to them all.
More than half of the inquiries are from prospective renters who
don't meet the qualifications stated in the ad. Sorting through this
mess on a daily basis is an art form but definitely not an exact science. With that
being said, if your inquiry is professionally communicated then your
percentage chance of a response is very good. If your inquiry
is not professionally communicated then your percentage chance of a
response is not so good.
-What is a professionally communicated inquiry?
A professionally communicated inquiry is an inquiry that introduces the
prospective renter with their name and the property they're inquiring
about. The prospective renter doesn't come across as uninformed, they
read the ad and already know the qualifications, the move-in date time
frame allowed, the amount to move-in, general property details, etc.
Applying for a Property:
-How much money is needed and when do I need to have it by?
The full amount needed to rent the apartment is the
amount stated in the ad plus a small application fee per applicant.
Upon acceptance the lease signing will be set-up within a few
days and the amount due will need to be paid right away.
-How long after I apply for a property will it take to get a decision?
This varies from property owner to management company but usually
you'll get an answer within two business days.
Understanding Broker Fees:
-What is a brokers fee?
A brokers fee is a fee that usually ranges from a half month to a full
months rent. This is paid if you find an apartment through a brokerage
due to the access they give you. Access to harder to find
apartments in two to three family houses or small apartment buildings
are often controlled through brokers and usually require a brokers fee.
Luxury properties are often "No Fee" properties.
-Why should I pay a brokers fee?
If you work with real estate brokers you open up your apartment options
significantly. Paying an extra half month to full month is not much
when considering you may be able to find a much better
apartment in a location that works much better for you.
Where you live is one of the most important decisions you can
make. When making such a big decision it's smart to have as many
options as possible.