How The @#$% To Buy a House
WELCOME!
NAT NOOKS REALTY
About Nat Nooks Realty & this presentation
Market stats in three Michigan cities (plus how to find more)
Phase One: Plotting
Phase Two: Pursuing
Phase Three: Polishing
Q & A
Agenda
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03.
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06.
Hey! I’m Nat
About this presentation
Please feel free to stop me for questions anytime!
You can speak, raise your hand, comment in the chat, anything
If you can’t stay, schedule a phone call with me on natnooks.com
How can I learn about my local housing market?
Let’s look at some recent numbers for Detroit, Ferndale, and Ypsilanti...
Detroit
Ypsi
Ferndale
Median SOLD price: $92,850
Homes for sale: 2,318
DOM average : 48
Median SOLD price: $275,000
Homes for sale: 32
DOM average: 41
Median SOLD price: $255,000
Homes for sale: 67
DOM average: 25
The buying process!
Let’s get in to it
PLOTTING
PURSUING
POLISHING
CLOSING
Phase I: PLOTTING
General numbers: down payment & closing costs
FHA - usually higher, from 3.5% - 10%
Conventional - usually around 3%, can go lower, shop around!
Closing costs? cost to close?
often ranges from around 2-6% of your purchase price
Example: Nat gets offer accepted on home for $200,000.
She’s preapproved for a conventional 30-year loan at 6.3% with 3% down.
3% down = $6,000
Her closing costs total to $5,000
She needs to bring $11,000 to close
How do credits and grants affect your closing costs?
Nat can afford the monthly payment for this loan, but she doesn’t have $11k she can bring to close. Nat has $5k in cash saved that she can use. Her realtor and lender suggest that she try asking the seller for 3% “seller concessions”
Seller concessions are applied at closing. Nat would have needed to bring $11k, but the 3% concessions ($6k) are taken off her bill, she now only needs to bring $5k.
What the PLOTTING phase might also entail for you
Phase II: PURSUING
Let’s ...
Phase II: PURSUING
Nat got her offer of $200,000 purchase price and 3% concessions accepted!
Now she’ll pay her EMD - “Earnest Money Deposit” of $2,000
Then, get an inspection for around $500
Timeline: 5-7 days
Phase II: PURSUING
Five days after getting her offer accepted, Nat paid the EMD and got the inspection done and the report in hand.
She reviews the inspection report with her realtor.
She finds two flaws she has issue with:
Phase II: PURSUING
Five days after getting her offer accepted, Nat paid the EMD and got the inspection done and the report in hand.
She reviews the inspection report with her realtor.
She finds two things she has issue with: the furnace is 15 years old, and the roof needs a patch in one area.
Phase II: PURSUING
Nat talks with her realtor about the property & the seller to assess what might be realistic to ask for.
They find that the home, even with those items considered, is priced fairly for the area and has only been on the market for a week.
That combined with the concessions that she’s already getting from the seller make her feel that the seller agreeing to a new furnace and a roof patch is unrealistic.
She asks for the less expensive repair, small the roof patch, & notes that she’ll likely need to save to replace the furnace in the next 5-10 years.
Phase II: PURSUING
Phase II: PURSUING
Nat’s lender instructs her to order the appraisal. 10 days later, the appraisal report is back.
The appraiser found that the home is worth the $200,000 she’s paying for it by comparing the home to 3-5 recently sold comparable homes in her neighborhood.
If the appraisal came back *below* $200k, we would have to go back to the negotiation table.
Phase II: PURSUING
Phase III: POLISHING
Let’s close!!!
Phase III: POLISHING
26 days after they first wrote their offer, Nat’s lender informs her and her realtor that we have a Clear To Close.
Nat’s realtor schedules closing date for 1-2 days from then.
In this 1-2 days, Nat receives her “CD”.
This is the itemized statement of all monies owed minus credits, and culminates with the amount of money she needs to bring to close.
Nat and her realtor review the CD for any errors or question, and Nat can either wire the $5,000 the day of or before closing, or bring a cashier’s check to the closing table.
😁 CLOSING 😁
The day of or the day before, Nat and her realtor do a final walk through of the property where they make sure that the seller completed any repair(s) they agreed to and that everything else is in the same condition as the last time they saw it.
Nat brings a photo ID to closing, signs the docs, and gets her keys!
Because they close on December 8th, Nat makes her first mortgage payment on February 1st.
😁 CLOSING 😁 ...and beyond?
In Nat’s first (and all) mortgage payments is a breakdown showing...
principal payment + interest + property taxes + home insurace = your monthly payment
Nat prepares for home ownership by rereading her inspection report and making notes of items she wants to get repaired and when. She asks for recommendations for contractors for everything she may need as a homeowner: plumber, electrician, HVAC tech, roofer, etc.
Thank you for listening!
Scan here to schedule an appointment so we can plot your purchase!
or text me at
313.548.1809