Exclusive Buyer Agents will never try to persuade you to buy a property. Our job is to protect the home buyer’s interest. That means we assist clients by our property research and evaluation of a property AS IF WE WERE THE BUYER. That is far different than “selling” real estate. We work as consultants and advocates of our client, the buyer. Traditional agents and “teams” within a real estate company both list properties and “represent” client buyers. There is an inherent conflict of interest in agents or “teams” representing both sellers and buyers in the same transaction. We eliminate that conflict of interest by never representing sellers of properties.

The cost at closing will vary based on the home you plan to purchase. Other than the down payment there are other costs that range from 2% to 5% of the total home price, including closing costs, escrow for home insurance and property taxes; also for other expenses such as inspections, property survey, etc.

It’s recommended that you review these costs with the mortgage banker to have an understanding of what closing cost will be for your home purchase.

The cost at closing will vary based on the home you plan to purchase. Other than the down payment there are other costs that range from 2% to 5% of the total home price, including closing costs, escrow for home insurance and property taxes; also for other expenses such as inspections, property survey, etc.

It’s recommended that you review these costs with the mortgage banker to have an understanding of what closing cost will be for your home purchase.

Review your credit report and preferably with the three credit score bureaus.

Experian

www.experian.com

Equifax

www.equifax.com

Trans Union

www.transunion.com

If you find incorrect information, errors or information not up to date, be sure that you contact them to ask them to do the changes or updates.

Also follow these general recommendations to improve your credit score if you plan to buy a home in the near future:

• Pay all of your bills on time

• Do not make any major purchases

• Do not close any credit cards

• Do not apply for new credit cards

Having a higher credit score will help you to obtain a lower interest rate, which results in a lower monthly house payment.

First, we do not practice INTERMEDIARY agency which allows an agent or real estate “team” to get paid on both the buyer and seller side of a transaction. Unlike agents in an INTERMEDIARY agency relationship we can:

• Advise our clients if a seller is willing to accept a lower price for their property

• Provide our clients any information we discover legally about the motivation of the seller such as relocation, their purchase of another property, or financial difficulties.

• Advise our clients about any facts about the property that we discover which might discourage our buyer client from purchasing.

Review your credit report and preferably with the three credit score bureaus.

Experian

www.experian.com

Equifax

www.equifax.com

Trans Union

www.transunion.com

If you find incorrect information, errors or information not up to date, be sure that you contact them to ask them to do the changes or updates.

Also follow these general recommendations to improve your credit score if you plan to buy a home in the near future:

• Pay all of your bills on time

• Do not make any major purchases

• Do not close any credit cards

• Do not apply for new credit cards

Having a higher credit score will help you to obtain a lower interest rate, which results in a lower monthly house payment.

First make sure that neither the agent nor their “team” or company lists property. Remember that Exclusive buyer agents who are 100% committed to the best interests of clients DO NOT list property in order to avoid conflicts of interest. Don’t accept the statement that …” it has never been a problem.” We have prepared questions that WE would ask if we were consumers interviewing agents claiming to be buyer agents. Ask us for that set of questions to review before interviewing agents.

The Federal Government through the U.S. Department of Housing and Urban Development

https://www.hud.gov/program_offices/sdb/guide/general

is responsible for national policy programs that address America’s housing needs. Also HUD plays a major role in supporting homeownership by underwriting homeownership for low and moderate income families through its mortgage insurance programs. In the specifics of homeownership, HUD administers the mortgage and loan insurance through the Federal Housing Administration and fair housing public education and enforcement.

In case you need assistance on how to manage your finances, work on your financial situation to apply for a mortgage in the near future or to learn more about the programs available; we suggest you to contact one of the HUD approved housing counseling agencies in Houston, TX.

Please follow this link

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?searchstate=TX&filterLng=&filterSvc=&filterMultiState=&searchName=&searchCity=houston&searchZip=&searchService=&searchLang=&searchAffiliation=&webListAction=Search

or download this PDF file

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs_print.cfm?searchstate=TX&filterLng=&filterSvc=&filterMultiState=&searchName=&searchCity=houston&searchZip=&searchService=&searchLang=&searchAffiliation=&webListAction=Search

The Federal Government through the U.S. Department of Housing and Urban Development

https://www.hud.gov/program_offices/sdb/guide/general

is responsible for national policy programs that address America’s housing needs. Also HUD plays a major role in supporting homeownership by underwriting homeownership for low and moderate income families through its mortgage insurance programs. In the specifics of homeownership, HUD administers the mortgage and loan insurance through the Federal Housing Administration and fair housing public education and enforcement.

In case you need assistance on how to manage your finances, work on your financial situation to apply for a mortgage in the near future or to learn more about the programs available; we suggest you to contact one of the HUD approved housing counseling agencies in Houston, TX.

Please follow this link

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?searchstate=TX&filterLng=&filterSvc=&filterMultiState=&searchName=&searchCity=houston&searchZip=&searchService=&searchLang=&searchAffiliation=&webListAction=Search

or download this PDF file

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs_print.cfm?searchstate=TX&filterLng=&filterSvc=&filterMultiState=&searchName=&searchCity=houston&searchZip=&searchService=&searchLang=&searchAffiliation=&webListAction=Search

Use an online mortgage calculator to determine what you can afford for a monthly payment. The payment amount should be manageable and not stretching your finances. You don’t want to buy a home that will put stress on your finances for the next 15 or 30 years.

This is a mortgage calculator from Bankrate or you can also find them in the websites of the major banks or credit unions.

https://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

Please note most of the calculators include the principal and interest based on the down payment, loan amount, length of the loan and interest rate. The homeowner’s insurance, property tax and home owner association (HOA) fees will vary depending on the house you plan on buying.

Use an online mortgage calculator to determine what you can afford for a monthly payment. The payment amount should be manageable and not stretching your finances. You don’t want to buy a home that will put stress on your finances for the next 15 or 30 years.

This is a mortgage calculator from Bankrate or you can also find them in the websites of the major banks or credit unions.

https://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

Please note most of the calculators include the principal and interest based on the down payment, loan amount, length of the loan and interest rate. The homeowner’s insurance, property tax and home owner association (HOA) fees will vary depending on the house you plan on buying.

Yes. We are members of the Houston Association of Realtors, the Texas Association of Realtors, and the National Association of Realtors. In addition, we have chosen to be members of the National Association of Exclusive Buyer Agents who are agents committed to representing only ONE party in a real estate transaction: the buyer.

This step is critical and it will take a bit longer than you may expect. Contact different mortgage lenders and start with the bank or credit union that you already have a banking relationship; where you deposit your paychecks or that you currently have auto loan. Also meet with other mortgage lenders, so you can compare the overall costs and interest rate that you can get.

Continue the process with one lender and obtain a pre-approval letter before you begin your home search. After the lender has verified your documentation and approved the loan; you will have a mortgage pre-approval letter that will help determine how much you can spend on a home and get financing.

Furthermore having a loan pre-approval in hand strengthens your proposal when you submit an offer on a home, townhome or condo, since you don’t need to wait on the lender to review your application.

In general there are two types of mortgage loans:

• Conventional loans are offered by private mortgage lenders like banks, credit unions and other private companies.

• FHA loans are backed and insured by the Federal Housing Administration.

This step is critical and it will take a bit longer than you may expect. Contact different mortgage lenders and start with the bank or credit union that you already have a banking relationship; where you deposit your paychecks or that you currently have auto loan. Also meet with other mortgage lenders, so you can compare the overall costs and interest rate that you can get.

Continue the process with one lender and obtain a pre-approval letter before you begin your home search. After the lender has verified your documentation and approved the loan; you will have a mortgage pre-approval letter that will help determine how much you can spend on a home and get financing.

Furthermore having a loan pre-approval in hand strengthens your proposal when you submit an offer on a home, townhome or condo, since you don’t need to wait on the lender to review your application.

In general there are two types of mortgage loans:

• Conventional loans are offered by private mortgage lenders like banks, credit unions and other private companies.

• FHA loans are backed and insured by the Federal Housing Administration.

For properties listed through the Houston Association of Realtors (which is probably 99+ percent of transactions) the commission paid to the buyer’s agent is built into the sales price. The buyer, therefore, is ultimately paying for the commission to the seller’s agent and to the buyer’s agent because that cost to the seller is built into the price of the house.

You should start with these questions:

• Where do you want to be located?

• Do you want a house, townhome or condo?

Also, you should make two lists:

• Items you and your family will need

• Items you and your family would like

If we can negotiate to reduce the cost of a purchase for you by $1,000 on a $200,000 transaction it reduces our commission approximately $30. Let’s say that we were able to negotiate a price reduction of $10,000 on that same property. We benefit much more by receiving future referrals from clients than our commission being reduced $30 to $300 in a transaction. As a result, our business focus is on doing the best possible job for our clients in order to get future referrals rather than being focused on making a few extra dollars on a transaction.

You should start with these questions:

• Where do you want to be located?

• Do you want a house, townhome or condo?

Also, you should make two lists:

• Items you and your family will need

• Items you and your family would like

As mentioned above, an exclusive buyer agent will represent you and your best interests. We recommend you interview for an exclusive buyer agent, who is committed to serving and representing the buyer’s interests in the real estate transaction. Rather than working with the builder’s real estate representative that represents the builder

The responsibilities of your exclusive buyer agent are:

• Get the most value for your money.

• Review the builders that you are interested in and help you compare the various things they offer.

• Advise which home builder to use.

• Help you understand the cost of an upgrade versus the potential return on investment.

• Provide you with the pertinent information about the builder, development and community.

• Offer advice on locations, floor plans, elevations and finishes that add to the long term value to the home.

• Keep everything in writing for future reference.

• Negotiate the final purchase at the best price and terms.

Yes. That’s the best way to avoid what otherwise might be a major disappointment. More important, we may be able to negotiate the best price and terms as though you were "cash" buyers. We also recommend being pre-approved for another reason. The process of applying for a mortgage loan can be an excellent counseling value. Most buyers qualify for a much higher mortgage than they want or need. Knowing your comfort zone for financing PLUS the other costs of home ownership including taxes, and insurance is important before making an offer on a property. A good mortgage counselor can help you determine what price range to be considering in order avoiding buying too much house.

Interview multiple realtors and select one that will support your best interests. Avoid realtors that want to sign a representation agreement at the first in person meeting.

We recommend that you interview for an exclusive buyer agent, who is committed to serving and representing the buyer’s interests in the real estate transaction.

The exclusive buyer agent will guide you through each step of the home buying process and will help you find a home that fits your needs. Furthermore they will handle all contract negotiations for your property from the initial offer, inspections to all the way to closing.

In the event your exclusive buyer agent is not able to attend a meeting with a potential builder, inform them that you are working with and being represented by an exclusive buyer agent. If you do not communicate this information upfront when buying new construction, your exclusive buyer agent can’t represent you when negotiating with the builder and over seeing things are done in your best interest.

"If you have ever doubted the value of real estate agents who work solely for home buyers (as opposed to traditional agents who report to sellers), consider this: a recent study by U.S. Sprint found that 233 relocating Sprint employees who hired buyer brokers paid on average of 91% of a home’s list price. People who use traditional agents typically pay about 96%. On a house priced at $150,000, that’s a difference of $7,500." Money Magazine

Share the homes that have caught your attention and your exclusive buyer agent will make the appointments to visit them.

During the home visits ask questions and inspect every area or room that you think is relevant such as the garage, attic, laundry room, bedrooms, back yard, etc. Also take pictures and notes of each house, so you can review them when narrowing down your home options.

Yes. In order for a real estate agent to represent you with a new-construction purchase, the buyers and the real estate agent must show up together at the first meeting with the builder’s sales representative at a model home. There will be a “registration” form which tells the builder that this particular customer is represented by a real estate agent. Without that registration at the first meeting it may be difficult for the real estate agent to be involved in the transaction. Some builders pay their sales representatives more commission when a real estate agent is NOT involved in a new-home purchase.

After visiting various neighborhoods, start eliminating the neighborhoods that don’t fit your search criteria.

We suggest you drive around at different times, so you can gauge the traffic and noise levels.

Research the schools assigned to the neighborhood and if possible visit them to ensure they can accommodate you and your children/s needs.

Keep in mind it may be difficult to find a home that meets all your families wants and needs. Having a clear understanding of what you and your family are looking for will make the process easier when visiting homes and comparing the different options that closely match your desires and needs, for your current and future needs.

All builders need to meet the current building codes but that doesn’t mean that they are all the same. Some builders may try to cut corners in order to reduce cost and some builders provide quality work to maintain their reputation and peace of mind by using quality materials and contractors.

With the assistance of you exclusive buyer agent, review the different homes that caught your attention. Pick a home to make an offer on that is within your budget and meets your criteria requirements.

Discuss an offer price that makes the most sense based on what other homes are selling for in the community and your exclusive buyer agent will provide up to date information to prepare and submit a competitive offer.

Your exclusive buyer agent will prepare and manage all the paperwork, submit the offer and act as the negotiator throughout the process on your behalf.

Depending on the stage of the development, they will have different amenities available such as parks, trails, community pools, schools, etc. Research the developments and decide which fits your needs and wants best.

Also consider future needs, amenities and locations that can accommodate your current and future lifestyle.

Some of the model homes you visit will look different then some of the homes you will see for sale. The reason is that the model homes are typically built with most of the upgrades offered. The homes seen for sale may not include the offered upgrades.

The exclusive buyer agent can assist you determining which development best fits you and your needs, as well as sorting out the standard and upgrades offered from each builder. The upgrades that may benefit you and the upgrades that are required for your needs and comfort. The goal is to have the ideal location, largest lot, space options, materials and finishes that will add value to the home.

Yes. The procedure is more complicated than for a property listed through the Houston Association of Realtors Multiple Listing Service so we have a FSBO policy that we can provide.

After visiting various developments, eliminate the neighborhoods that don’t fit your needs.

Research the schools assigned to the neighborhood and if possible visit them to ensure they can accommodate you and your children’s needs.

Inquire for any Homeowners Association fees and the tax rates of the property; when you initially buy your home and when the development is completed.

After the offer is approved by the seller, your exclusive buyer agent will recommend from past experiences; a home inspector should evaluate the home and inform you of any issues that require repair or further inspection.

In the event the inspection report identifies problems with the home, your exclusive buyer agent will help negotiate a lower price on the home or ensure the repairs will be addressed prior to closing on the home.

It is recommended that you do a walk through prior to the closing. At the walkthrough you can verify the home still appears as it did when you agreed to the contract and that any agreed upon repairs have been made as requested.

A new house can take six months or longer to build if the builder runs into delays during construction. It is important to plan your living arrangements while your new home is under construction. If you sell a home you will need to find temporary housing and storage for your belongings while your new home is being built. If you decide to wait until your new home is completed to sell your current home it is possible you will have multiple mortgages while waiting for a home to sell.

Your exclusive buyer agent can advise you when the appropriate time is to put your house on the market to minimize the wait and reduce the chances of having to pay for multiple mortgages.

At the closing, you are the (buyer) party that is purchasing the home and it would be beneficial for you to have an agent representing you from start to finish of the closing process.

After the documents are reviewed and signed, you will get the keys to your new home.

Once you have selected the community that best fits your lifestyle, offers the amenities that you would like and offers a school that is appropriate for your family. The next step is to select a builder that offers a quality finished home and maintains a relationship with past and current home owners.

Next you should select the style of home, floor plan, standard items and upgrades.

Your exclusive buyer agent can assist you when it comes to choosing upgrades that will add value to the home.

During the negotiation process, your exclusive buyer agent will negotiate on your behalf and look at the transaction from a dollars and sense perspective.

If there are any issues, the agent will catch them and explain them clearly to you and to the builder. Furthermore, your exclusive buyer agent will be diligent with any concessions or guarantees provided by the builder should be confirmed in writing and ensure the terms agreed upon are included in the contract.

Prior to any contracts that you sign, your exclusive buyer agent will study them to make sure you are protected and that you are getting what you agreed to. Confirm that you fully understand the timeline, costs, mutual obligations, and conditions of the agreement.

Even when buying a brand new home we strongly recommend hiring a home inspector. This will add cost to your home buying process but you will gain confidence that the home you’re purchasing has been checked by a third party that has your best interest in mind, rather than relying on the builder’s construction staff.

As your exclusive buyer agent, we recommend experienced home inspectors in new construction and help you set the appointment with the inspector that you select. A home inspector will check the interior and exterior of the house to make sure it is well constructed. The inspector will also explain how your new home works. You will receive a written report with their findings plus, any suggestions about upkeep and maintenance.

Your exclusive buyer agent will review the inspector’s report and identify potential areas of negotiation, corrections, repairs or replacements with the builder. Request the builder to take care of the issues listed in the report and confirm that they have been properly addressed or solved.

We also advice certain features and details that you should check your self, such as:

• Check fit and finish on all doors and windows. Do they open smoothly?

• Try all faucets. Is the water pressure and temperature acceptable?

• Try all lights and dimmers. Are the lights working properly and bright enough?

• Turn on all ceiling fans. Are the fans working properly at different speeds?

The builder warranty is a big part of new construction home buying process, and it’s important to learn and understand in detail the specifics of the warranty offered by the builder. The warranty will outline the potential issues, defects, or mishaps that you can expect to be covered, or be compensated for, should they arise.

The builder warranty lasts six months to two years, with some lasting up to 10 years for “major structural defects” like an unsafe roof. The warranty should cover all of a home’s materials and workmanship.

The builder warranty should include:

• Concrete foundations and floors

• Clapboard and shingles

• Landscaping (if included in the house)

• Carpentry

• Thermal and moisture cover

• Waterproofing

• Insulation

• Roofing and siding

• Doors and windows

• Glass

• Garage doors

• Paint

• Plumbing

• Electrical

• Heating and cooling

Most builder warranties will NOT cover:

• Household appliances

• Defects resulting from work conducted by the homeowner or anyone after the house was finished

• Shrinkage and expansion of the house

• Normal fading of paint

• Shrinkage of joints/minor cracking

• Weather-related issues

• Dampness/condensation caused by failure of the homeowner to maintain adequate ventilation

• Insect damage

Before you sign the contract, make sure you know not only what is and isn't covered in the builder warranty, also the length of the coverage and who you should contact. Your exclusive buyer agent will take the time to familiarize you with the builder warranty and what it covers. If you have questions about the builder warranty, your exclusive buyer agent will assist you in reviewing and answer any questions, and / or address your concerns with the builder for clarification.

You and your exclusive buyer agent will attend the pre-settlement and walk-through where the project manager will educate you on your new home, go over the systems and features and make sure that there are no last-minute items to address prior to your settlement.

After the walk-through and having a clear understanding of the contract, the builder warranty and the new home you’re purchasing, your exclusive buyer agent will assist you during the closing.

At the closing you will pay for the closing costs, including loan processing, title fees, insurance, taxes and HOA fees.

Depending on the type of home you purchased you may immediately get the keys to your new home if it is ready for move in or will receive them when the builder completes and prepares the home for move in.