Buyer's Guide

Purchasing a property is most likely the biggest financial decision you will ever make. We are here to provide exceptional, personalized service to all of our clients. Allow us to guide you through the process.

Why Do You Want To Buy?

People purchase real estate for a variety of reasons:

• Financial investment – tired of paying rent and want to build equity
• Change in lifestyle – family, school and job changes
• Space – upsizing as the family grows and downsizing when the kids have flown
• Vacation property – for personal use, rental, or both
• Building an investment portfolio
• Purchasing land to build a dream home

Whatever your reasons, give careful thought to your needs, and share those thoughts with your real estate agent. Clearly identifying needs and desires streamline the process and help us find you the right property.

Property ownership can be an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio.

Before you start shopping for your property, it is a good idea to make some preparations.

Gather your Financial Documents

Gather copies of all your important financial documents. You will need it to secure financing for your property. The typical financial file should contain:

• Financial statements
• Bank accounts
• Investments
• Credit card statements
• Auto loans
• Recent pay stubs
• Tax returns for two years
• Copies of leases for investment properties
• 401K statements, life insurance, stocks, bonds, and mutual account information.

Your lender can advise you exactly which documents pertain to your situation.

Check Your Credit Rating

Your credit score will have a huge impact on what type of property you can buy, and at what price. You can request your own credit report for free once a year from the three credit reporting agencies: Equifax, Experian, and TransUnion. You can also have your lender research your credit rating for a small fee.

We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial and investment real estate fields.

Our financing tab here contains more detailed information on selecting a lender and financing your real estate purchase.

Be Careful With Your Finances.

Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.

Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. Your real estate agent is an expert in your corner and can guide you through this process, and also provide you with access to property listings before they hit the market.

Nola & Associates agents are skilled, educated, experienced and available:

1. Education. A good agent will continually strive to improve and gain knowledge of the latest real estate trends. One of our team beliefs is that education is a valuable tool to keeping us at the top of our game. Keller Williams is internationally known for the education opportunities that it offers its agents, and we take full advantage of these opportunities as well as outside training events and certifications. Our Team Leader, Nola Cady, has achieved special designations for working with both Seniors and Luxury Properties. We also pursue classes that make the most of all the changing technology tools available in real estate.
2. Experience and Expertise. Our agents all have deep ties to the communities in this area and have local knowledge of everything from hiking trails to micro-breweries to special events. We also work with a diversity of individuals, from first time homebuyers, to luxury property owners, to seasonal property owners, etc.. We can consult with you about your needs, and help you find the right property!
3. Availability and Commitment. All our agents work full time in real estate and are accustomed to working evenings and weekends to accommodate the needs of our clients, so you can count on us to be available at the times when you want to be looking! You can always count on prompt and regular communication from a Nola & Associates agent!
4. Team Approach. No matter which agent from our team you are working with, you have the benefits that come with the full team. We regularly interact to support each other, discuss properties, and share ideas. We also can “cover” for each other when we need to be in two places as once. If you want to see a property at a time when your agent is unavailable, another team member will happily step in – no missed opportunities!
5. Rapport. We enjoy getting to know clients. We often say that “we work with buyers and close with friends”. Listening to your goals and needs helps us understand your unique situation and makes us a partner in the outcome of your purchase. Contact us to schedule a meeting to sit down and see if you feel we can strike a good rapport and work well as partners.

When you work with a Nola & Associates agent, you can be assured that we will work hard to make sure you are delighted with the buying process. Read our testimonials to get a feel of what other people’s experiences were!

Once you have obtained your pre-approval letter and selected an agent to represent you, it is time for the fun part – shopping!

Shopping!

Get to know the Towns, neighborhoods, complexes, or subdivisions, which interest you. Drive around and get a feel for what it would be like to own a property in the area. Start getting a sense of the properties available in those areas. If you have already identified some properties you like, share them with your agent, along with the features that appeal to you.

Armed with a clear set of criteria, your agent will get to work finding the right home for you. They have access not only to the up-to-date MLS, but also “coming soon” properties being advertised among agents. Your agent can also set up an automatic email campaign directly from the MLS, giving you prompt notification of new listings. Once you have selected some homes you would like to see, your agents will arrange showings. Then the fun begins as you start to walk through homes and envision yourself living there.

Time to Buy.

Once you have picked out the property you want to purchase, your real estate agent can help you prepare an offer. They will research information of the sale price of similar properties to help guide you toward an offer price. The agent will also discuss the “terms” of the contract, such as inspection periods, deposits, and closing date. Sometimes the terms of the contract can be what makes or breaks the deal – not just the price.

The Process, Step-by-Step

The Initial Agreement and Deposit.

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller. One of those steps is the Earnest Money Deposit. Usually due within a couple of days of the contract being signed, it shows the seller that the buyer is acting in good faith and is serious about pursuing this transaction to fruition. Failure to comply with your contract dates could result in the forfeit of this deposit.

At this point, Nola & Associates will prepare a To-Do list of deadlines that are outlined in your contract. It is important to stick to the schedule. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements.

Inspections.

Once your offer is accepted by the seller, you will have a certain window of time (agreed upon in the contract) to complete any desired inspections. You may wish to have multiple inspectors inspect the property if you wish to obtain professional opinions from inspectors who specialize in a specific area (e.g. roof, HVAC, structure, chimney). We can advise you on what inspections to consider, and can provide you with lists of suitable contractors. You can also use this time to perform other due diligence tasks, such as checking the zoning for any additions you want to add, talk to homeowners insurance company, research costs for repairs of changes you want to make to the property, etc.

Depending on the outcome of these inspections, one of two things may happen:

1. Either the inspection period isclosed and the contingencies will be removed, bringing you one step closer to the close, or
2. You choose to try to re-negotiate the terms of the contract based on information revealed in the inspections that were unknown before. For example, if the inspection reveals that the chimney needs to be relined, you could ask the seller to complete this work, or to reduce the purchase price, or to split the cost of this repair. Your agent will help you with these negotiations.
3. The seller is not required to agree. The seller may refuse to re-negotiate. Your option is to move forward and take on the repairs when you close or terminate the contract and have your deposit returned. You must adhere to the contract dates.

Other due diligence items should also completed during this time. Visit the Town Office and check zoning, etc. Don’t assume you can add a deck or an in-law apartment, etc. without confirming with local officials. Any other issues that may impact your desire to own this house should be researched during the due diligence period.

The Closing Agent.

Either a title company or an attorney will be selected as a closing agent. In Maine and NH, most real estate closings are handled by title companies who have attorneys on staff. The title company will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances. Some properties are subject to restrictions which limit certain building activities, or provide a right of way to a neighboring property. There may also be recorded liens or encumbrances that could prevent you from taking clear title to the property. If such an encumbrance is discovered, it must be resolved before the closing.

You can also speak to the title company or attorney about the different methods of holding title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

Appraisal and Lending.

It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.

Association Approval.

If the property that you are purchasing is conditional upon an association approval (such as with a condominium) there can be an additional step of reviewing rules and regulations of the association. Make sure that the application documents and processing fees are submitted to the appropriate person at the association by the required time. Most associations require a certificate of approval before move-in.

Property Insurance.

If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. We will be happy to recommend experienced insurance agents for every property type.

Closing Day

If you have come this far, then this means that it is almost time for a congratulations . . . but not yet!There are a few loose ends that your agent will guide you through.

Final Walk-Through Inspection.

This is your opportunity to walk through the property to verify that all is in working order, everything is the same as when you last viewed the property, and that everything included in your purchase is still at the house. The property should be empty of the seller’s personal items, and broom swept. The final walk-through generally takes place a day before, or on the day of the closing.

Be Prepared.

We are ready to assist you should an unforeseen glitch pop up, even at this last stage. If something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before so we know how to handle them efficiently and we are still there to help.

Closing.

The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution.. If you are bringing funds to the transaction, you can elect to either have the funds wired electronically into the closing agent’s escrow account, or bring a certified bank check to the closing in the amount specified on the settlement statement.