About the buying process
Working with an agent
Title information
Home inspection and home warranties
Upcoming seminars
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There are several steps involved in purchasing your home. Each Dressel Meadows Buyers' Specialist wants to insure you have the best home buying experience possible. Below you'll find the steps that our professional agents will guide you through on your path to home ownership!
 
1. The Meet and Greet - You may already have a personal relationship with your Dressel Meadows Buyers' Specialist, but this is an opportunity for you and them to further familiarize yourselves with one another, perhaps over a cup of coffee and a scone.
 
2. Agency - No we're not spies, but our professional agents will take the time to explain and define agency representation and their relationship to you in the real estate transaction. We want to be sure our clients have all the knowledge they need to make informed decisions, and we're happy to provide it. Not to mention it's Minnesota state law! Take a look: Agency Disclosure Form (PDF)
 
3. Your wants, needs and desires - It's your turn, you've got the floor! Each Dressel Meadows Buyers' Specialist will evaluate your wants, needs and desires so that they can best serve you and fully understand your real estate goals.
 
4. The Contract - No, it's not a death sentence and you're not signing your life away! It's your way of saying, "you're hired", and our way of guaranteeing that you have 100% mindshare from your Dressel Meadows Buyers' Specialist and that they are working for you and your best interest! Take a look: Exclusive Right to Represent (PDF)
 
5. Let's talk Money! - You probably have an idea of how much you want to spend and can afford. But let's have a mortgage professional help us with the numbers. After all, this is what they do best!
 
6. Let the fun begin! - The part you've been waiting for. After evaluating your wants, needs and desires, your Dressel Meadows Buyers' Specialist will wade through the multitude of homes available, presenting you with the homes most closely matching your criteria. After you select some or all of the homes presented to you, your Dressel Meadows Buyers' Specialist will arrange a showing so that he or she can personally preview each home with you.
 
7. It's Go Time! - So you've found the perfect home! It's time to let the seller know. To do this, we write up a purchase agreement. The purchase agreement conveys your interest to purchase the seller's property and the terms you've chosen with the guidance of your Dressel Meadows Buyers' Specialist and mortgage professional. With paper in hand, your Dressel Meadows Buyers' Specialist will do whatever it takes to present the offer to the seller and the seller's agent.
 
8. Wrapping it Up! - After your purchase agreement has been signed, sealed and delivered so to speak, your Dressel Meadows Buyers' Specialist will coordinate and carefully monitor the steps leading up to your closing day. He or she will ensure that each party involved is following through so that you have a successful closing on your new home! Hey, it's what you hired us to do!
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Buying or selling a home is probably the most important and potentially rewarding financial transaction you'll make in your life. Therefore it is a good idea to take a moment and consider the kind of relationship you might be entering into with a Realtor®. The more you know, the more satisfied you will be with the results.
 

The Agency Relationship
Realtors® work within a legal relationship called agency. The agency relationship exists between you, the principal , and your agent , the company under which the individual salesperson who is representing you is licensed. The essence of the agency relationship is that the agent has the authority to represent the principal in dealings with others.

Agents and their salespeople are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the agent has the following duties:

1. Undivided loyalty. The agent must protect the principal's negotiating position at all times and disclose all known facts which may affect or influence the principal's decision.
2. To obey all lawful instructions of the principal.
3. An obligation to keep the confidences of the principal.
4. The exercise of reasonable care and skill in performing all assigned duties.
5. The duty to account for all money and property placed in an agent's hands while acting for the principal.
 

You can expect competent service from your agent, knowing that the company is bound by ethics and the law to be honest and thorough in representing a property listed for sale. Both buyer and seller can be represented by their own agents in a single transaction.

Dual Agency
Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation if both parties consent.

If you find yourself involved in a dual agency relationship, before making or receiving an offer, both you and the other party will be asked to consent in writing to this new limited agency relationship. This relationship involves the following limitations:

a. The agent will deal with the buyer and the seller impartially;
b. The agent will have a duty of disclosure to both the buyer and the seller except that;
i. the agent will not disclose that the buyer is willing to pay a price or agree to terms other than those contained in the offer, or that the seller is willing to accept a price or terms other than those contained in the listing;
ii. the agent will not disclose the motivation of the buyer to buy or the seller to sell unless authorized by the buyer or the seller;
iii. the agent will not disclose personal information of either the buyer or the seller unless authorized in writing;
c. The agent will disclose to the buyer defects about the physical condition of the property known to the agent.

When there is No Agency Relationship
You may also choose to use the services of a Realtor® without having any kind of agency relationship. This might occur, for example, when you are being shown a property by the seller's agent.

The Realtor® you choose to work with in this manner has a legal and ethical duty to provide you with accurate, honest answers to your questions and can provide all these services:
 
• Explain real estate terms and practices
• Provide and explain forms used
• Assist you in screening and viewing properties
• Inform you of lenders and their policies
• Identify and estimate costs involved in a transaction
• Assist you in establishing your range of affordability
• Prepare offers or counter-offers at your direction
• Present all offers promptly
 
 

A Realtor® who is not your agent cannot

• Recommend or suggest a price
• Negotiate on your behalf
• Inform you of his/her principal's top/bottom line
• Disclose any confidential information about his/her principal unless otherwise authorized.
 
You should not provide a Realtor® who is not your agent with any information that you would not provide directly to his or her principal.

 
 
  Your Responsibilities as a Buyer or Seller
As a buyer or a seller, you should:
 
• Carefully read all documents and understand what you are signing.
• Seek other professionals such as lawyers, notaries, accountants, home inspectors, contractors, engineers and surveyors if you need special or expert advice.
 
 

Definitions
The Agent is the real estate company under which the individual salesperson who is representing you is licensed.

Realtor® is often used interchangeably with Licensee, Real Estate Agent or Salesperson. A Realtor® can use the term Realtor® if he/she belongs to a local board or association that enforces a strict code of ethics.

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The Buyer is often referred to as the Purchaser.

• The Seller is often referred to as the Vendor.
• The Principal is someone who has engaged an agent to act for and on his or her behalf either to buy or sell a home.

This information has been provided to explain various types of agency relationships and to help you understand what it all means. If you are still unclear about these concepts, feel free to seek legal counsel.

Members of the public are aware that in most cases properties offered for sale by members of the real estate industry have a commission or fee that the seller has agreed to pay the listing agent. The listing agent traditionally shares this commission/fee with the selling agent. Commission and fee may vary.

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Closing on your new home can be a very confusing time. Our staff of experienced professionals are ready to serve you and assure that your closing goes as smoothly as possible. At the closing, you and the seller will verify and sign the various documents required to complete the transfer of ownership from one party to the other.

Whether you're purchasing your first home or your fifth, the day of closing should be a time of celebration. While you're busy packing, ordering phone service and scheduling movers, it's comforting to know that skilled title professionals are busy working behind the scenes to make sure you receive clear title, and your closing runs smoothly.

Your first look at the settlement process may be on the day of closing, but the process itself begins much earlier. Come along for a look behind the scenes at the settlement process in action!

 

What is a Title?
Title is the lawful ownership of real property or in this case real estate. Title is the deed or other document that provides evidence of your ownership to your home.

Here are a few terms that may assist in your understanding of title.
 
• Abstract of Title
A short account of what appears in the public record affecting the title of a particular parcel of real property; ordinarily includes a chronological summary of all grants, conveyances, wills, transfers and judicial proceeds that have in any way affected title together with all liens and encumbrances of record, showing whether or not they have been released.
• Clear Title
Title free and clear of objectionable liens, encumbrances or defects, so that a reasonable prudent person with full knowledge of the facts would not hesitate to purchase the property. This is from a legal point of view in regards to the title of the property.
• Title Search
An investigation of the public record to determine all rights and encumbrances affecting title to a piece of property.
• Title Report
A report issued by a title company, disclosing the condition of the title to a specific piece of property, before the actual title insurance policy is issued, often called preliminary title report.
• Title Insurance Policy
Insurance that protects against losses resulting from undiscovered title defects. An owner's policy protects the buyer, while a mortgagee's policy protects the lien position of the buyer's lender.
• Joint Tenants
A form of concurrent ownership in the co-owners have equal undivided interest in the entire property and the right of survivorship.
• Tenants in Common
A form of concurrent ownership in which two or more persons each have a undivided interest in the entire property, but no right of survivorship.
 
 

What to expect at your closing?
Many people may attend the closing: you, your Dressel Meadows Sales Associate, the buyer and their real estate agent, and an escrow agent (closer) from the title company.

During the meeting, which usually takes an hour, you and the buyer will review and sign all of the relevant closing papers. Then, after the buyer provides a cashier's or certified check for the down payment and closing costs, you pass the keys to the new owner and the net proceeds of the sale are yours.

What To Bring to Closing
In the rush of selling your home, don't forget to bring the following items with you:

 
If you're the buyer:
• A photo ID
• A list of your addresses for the past 10 years
• A certified check, made payable to yourself, for the amount specified in your most recent Good Faith estimate you received from your loan officer or lender. This usually includes the balance of your down payment (subtract the earnest money you paid when your offer was accepted), and fees for other services.
• Your personal checkbook so if other charges come up, you can write a personal check to cover them.
• Your new homeowner's / hazard insurance binder with proof of one year's payment (usually a receipt).
 
If you're the seller:
• Keys and garage door opener(s)
• Code compliance
• If more than one owner, both owners need to attend
 
 

The Closing Process
Once an order is received by the settlement agent, the countdown to closing begins. Timing is essential to make sure all the ingredients for a successful closing are in place for your arrival. When the contract or escrow agreement is received, the settlement agent will review it for completeness and accuracy. If an earnest money or deposit check is received, the settlement agent will see that it is promptly deposited into an escrow account, where the funds will remain until the time of closing.

One of the first things the settlement agent does upon receipt of an order is to request preliminary title work. The title company searches and examines the title and prepares a title commitment or other form of title evidence. This is then forwarded to the settlement agent.

Upon receipt of the title commitment, the settlement agent checks the information for completeness and accuracy and makes note of any requirements which must be satisfied. The agent compares the commitment to other documents, such as the contract and loan closing instructions, making sure all information is consistent.

While the title evidence is being prepared, the settlement agent is busy coordinating other matters. If the contract calls for a prior mortgage to be paid off, the agent will order payoff figures from the existing lender. If the buyer is assuming the loan, an assumption package will be ordered showing the current status of the loan.

While each closing is as unique as the people attending it, much of the behind-the-scenes work leading up to the closing is fairly commonplace for the skilled professionals performing it. Ordering property inspections, surveys and termite reports are typical of what's happening behind the scenes at this point in the settlement process.

The settlement agent brings any problems or discrepancies that may be discovered to the attention of the appropriate parties so that they can be corrected. It is his or her job to facilitate cooperation, coordination and compliance between all settlement service professionals involved with the transaction. Everyone working together helps make the closing a cause for celebration!

Once the preliminary work is complete and all information on the contract, loan closing documents and title commitment have been compared and complied with, the settlement agent is ready to prepare the HUD-1 Settlement Statement.

All costs must be shown on the HUD-1. This includes costs paid at closing as well as pre-paid costs, such as earnest money deposit or loan application fee. If you are a buyer and are obtaining a loan to purchase residential property, your lender has three days from the time of the loan application to provide you with a Good Faith Estimate of your loan costs.

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We like surprises just as much as the next guy, except when it involves the purchase of your new home. Your Dressel Meadows Sales Associate will recommend that you purchase a home inspection by a qualified professional inspector.

A professional home inspector surveys the foundation and structure, roof, exterior, major systems (electrical, heating, cooling and plumbing), and appliances that will stay with the home.

Take a tour! Your inspector wants you there, so do we. Go through the house with the inspector. He or she who will point out the good, the bad and the ugly when it comes to your new home. Take notes along the way and don't be afraid to ask questions!

Your professional inspector will provide you with an inspection report in writing. This report will support or deny the contingency addendum to your purchase agreement. You can add a home inspection contingency to your purchase agreement. This requires the seller to make legitimate repairs, should any problem areas "pop up" - or if the seller is unwilling to do so, it allows you to cancel your purchase agreement.

A home inspection may take a few hours and cost a few hundred bucks, but it can definitely save you time and headaches in the long run, as well as spare you from those unwanted surprises. Your Dressel Meadows Sales Associate can recommend a professional inspector or you may want to look into homes that are inspected prior to sale and are warranted through a Dressel Meadows Home Warranty.

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At Dressel Meadows Realty we believe in educating our clients and helping them fully understand the home-buying process. That's why we periodically offer first-time home buyer seminars. We bring in a group of professionals, from mortgage officers and title closers to home inspectors. We want to make sure your questions are answered and you leave with a peace of mind and confidence in our AWESOME team of professionals. Not a first time buyer? No worries! You still have questions and we've got answers. You too are invited to join us!

Stop back periodically to see when the next seminar is coming to a location near you!
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