How it Works

How it Works



“I wanna buy realestate.”

Process

As a buyer, the real estate process can be very stressful if you do not receive proper guidance from your Buyer Agent at the start. As long as you are willing to learn how real estate works upfront, and follow our “5 Step Buying Process,” your stress level will go down drastically: 1) Get pre-qualified/pre-approved for a mortgage, or have your proof of funds ready to go, 2) Start your home search both online and in-person with your Buyer Agent, 3) Come to an agreement on terms with a seller, 4) Follow through on inspections, contingencies, and dates, and 5) Go to closing and pick up your keys.

Commission

Who pays whom? As a buyer, representation from your Buyer Agent is traditionally at no cost to you; although, it can be situational. What this means is that your Buyer Agent receives his/her commission from the seller; this is only after the real estate transaction has closed. In the real estate world, this is also known as “Single Agency,” and it offers you the most protection as a buyer. Your Buyer Agent will show you any/all properties that you’re interested in seeing, schedule all of your in-person showings, provide all of your real estate education/advice, draw up all necessary paperwork, and handle all negotiations.

Purchasing and Payment

As a buyer, there are 2 ways to purchase a home: 1) Get a mortgage, or 2) Pay with cash. Since most people opt for the former option, understanding the mortgage process is critical, and it’s also the best first step to take. Once you provide all required documentation and are issued a commitment from the lender, you will know the exact amount of each fee, how much money you will need at closing, and what your future monthly payments will be (Monthly Payment = Principal + Interest + Taxes + Insurance).

Timeframe

As a buyer, the timeframe from when you first find a home to physically closing on that home can range anywhere from 2 weeks to 6 months. It will largely depend on things like: personal timeframe (when you need to move), financial eligibility (mortgage or cash), type of transaction (seller owned, short sale, foreclosure, etc.), and terms of the agreement (dates, contingencies, etc.). Your best bet is to first get a clear idea of your personal timeframe, and then work on the remaining steps with your Buyer Agent.


“I wanna sell realestate.”

Process

As a seller, the real estate process can be very stressful if you do not receive proper guidance from your Seller Agent at the start. As long as you are willing to learn how real estate works upfront, and follow my “5 Step Selling Process,” your stress level will go down drastically: 1) Speak to a Seller Agent and schedule a time for him/her to view your home and review recent comparables (i.e. “comps”) to understand the current market value of your home, 2) Sign a listing agreement, commit to your agent’s marketing strategy, and stay up-to-date on traffic data/feedback, 3) Come to an agreement on terms with a buyer, 4) Follow through on inspections, contingencies, and dates, and 5) Go to closing and deliver your keys.

Commission

Who pays whom? As a seller, commission paid to your Seller Agent’s Broker is traditionally 6%, and based on your home’s sold price. Your Seller Agent will market/advertise your property, schedule all in-person showings, provide buyer/agent feedback, draw up all necessary paperwork, and handle all negotiations. If another agent brings in a buyer and represents him/her on the sale of your home, the 6% commission would then be split: 3% paid to the Seller Agent’s Broker, and 3% paid to the Buyer Agent’s Broker. Having your own Seller Agent Representation means that a licensed agent is looking out for your best interests only. In other words, he/she has no fiduciary responsibility to the buyer unless it’s a Dual Agency transaction. Dual Agency is when a Seller Agent finds a buyer on his/her own, and represents their interests as well. In this case, the entire 6% commission would be paid to the Seller Agent’s Broker.

Showings and Offers

As a seller, there are 2 ways that buyers can purchase your home: 1) Get a mortgage, or 2) Pay with cash. Since most people opt for the former option, understanding the mortgage process upfront is critical. Before an offer comes in, you will most likely have multiple “showings” for your home. Showings will be scheduled at a reasonable time, 7 days a week. Weekends tend to be busier because most people are not working, so be prepared. Your Seller Agent will keep track of showings/foot traffic as well as feedback, and present any/all offers to you.

Timeframe

As a Tenant, the timeframe from finding a suitable rental to actually moving in ranges anywhere from 2 days to 2 months. If you’re move-in date is more than 2 months away, you may want to hold off on in-person appointments for now and stick to online research. Your rental search will largely depend on things like: rental eligibility (on your own, or with a co-signer) and lease terms (e.g. other tenants moving out, moving trucks, pets, etc.).


Qualifying and Payment

As a Tenant, there are 2 ways to qualify for a rental: 1) On your own, or 2) With a co-signer. Since most people opt for the former option, understanding the qualification process upfront is critical. Once you provide a completed rental application containing all required information (e.g. job description, income/debt information, etc.), your Agent will have the Landlord/Landlady review it. Because most Landlords/Landladies also require credit history, as well as background and employment checks, a non-refundable application fee may be due upfront (usually ranging from $25 – $50). As long as everything checks out, a lease will then be drawn up. If for some reason everything does not check out, you will need to secure a co-signer (e.g. parent, sibling, guardian, roommate, etc.) who is qualified. If everything does check out, you will typically provide 1 month’s rent upfront (to secure the property) and 2 more months due closer to move-in. This follows the “First-Last-Security” standard for rentals: first month’s rent, last month’s rent, and security deposit.


“I wanna own and rent-out realestate.”

Process

As a landlord/landlady, the real estate process can be very different from both buying and selling. Finding a suitable tenant can seem overwhelming at first. Speaking to many different people, picking the right one, worrying about the condition of your property, getting a monthly rent check on time, etc; it’s completely normal to feel this way. As long as you are willing to learn how real estate works upfront, and follow our “3 Step Leasing Process,” your stress level will go down drastically: 1) Decide whether you want to manage the property on your own (as an on-call Landlord/Landlady), or hire a Property Manager, 2) Select a Licensed Agent to work with. Your Agent will market the property, schedule all appointments, handle tenant screenings, review all paperwork, and oversee the entire process, and 3) Approve a suitable tenant for your property.

Commission

Who pays whom? As a landlord/landlady, representation from your Landlord/Landlady Agent is traditionally equal to 1 month’s rent; although, it can be situational. Your Landlord/Landlady Agent will market your property, schedule all showings with tenants as well as Tenant Agents, provide feedback from your showings, draw up all necessary paperwork, and handle all negotiations. If another agent brings in a tenant and represents him/her on leasing your home, the 1 month’s rent commission would then be split: ½ month’s rent paid to the Tenant Agent’s Broker, and ½ month’s rent paid to the L/L Agent’s Broker. Having your own L/L Agent Representation means that a licensed agent is looking out for your best interests only. In other words, he/she has no fiduciary responsibility to the tenant unless it’s a Dual Agency transaction. Dual Agency is when a L/L Agent finds a tenant on his/her own, and also represents their interests. In this case, the entire 1 month’s rent commission would be paid to the L/L Agent’s Broker.

Timeframe

As a landlord/landlady, the timeframe for putting your property on the market to finding a suitable tenant ranges anywhere from 1 day to 6 months. Your best bet is to have a clear idea of your personal timeframe, understand your best/worst case financial scenarios, and then work on the remaining steps with your L/L Agent. That way, you are prepared for the road ahead.


Qualifying and Payment

As a landlord/landlady, there are 2 ways for a tenant to qualify for a rental: 1) On your own, or 2) With a co-signer. Since most people opt for the former option, understanding the qualification process upfront is critical. Once the tenant provides a completed rental application containing all required information (e.g. job description, income/debt information, etc.), your Agent will have you review it. Because most Landlords/Landladies also require credit history, as well as background and employment checks, a non-refundable application fee may be due upfront (usually ranging from $25 – $50). As long as everything checks out, a lease will then be drawn up. If for some reason everything does not check out, the tenant will need to secure a co-signer (e.g. parent, sibling, guardian, roommate, etc.) who is qualified. If everything does check out, you will receive 1 month’s rent upfront (to secure the property) and 2 more months due closer to move-in. This follows the “First-Last-Security” standard for rentals: first month’s rent, last month’s rent, and security deposit.