Frequently Asked Questions
Where did the name Wowza come from?
When Tara and I were researching the name of our new company the name WOW kept popping up, over and over. Tara said how about WOWZA. I agreed but didn't know why. It suddenly occured to me that WOW upside down is MOM. And since my Mother had recently passed it seemed enough of a sign for me.
Why Buyers only?
Nothing against home sellers but we feel more comfortable helping the Buyer discover the best loan, finding the right home, Helping the buyer determine the home is what its supposed to be both physically and value. Home Buyers put a ton of trust that you steer them in the right direction. All of us respect that and decided that was the path for us.
What is a contract?
A Purchase and Sales contract for buying a home is a 7 page document used to clearly state to the seller, the lender and the closing attorney what the Buyer and Seller want to accomplish. An example of how it comes into play
Step 1 Hire me (STRONG CALL)
Step 2 We find the perfect home
Step 3 Make an offer using the Purchase and Sales Agreement
Some examples of items included
- Offer price
- The amount of earnest money and who is holding it
- When you want to close
- Which closing attorney you want to use
- What type of financing if any you intend to pursue
- How many days to obtain financing
- How many days to inspect the property and what you intend to do with the results of the inspection. For example I will inspect and reserve the right to ask the Seller to make repairs or I will inspect and may reserve the right to back out of the deal for any reason or last but not least I will buy the place as it sits.
- How many days to negotiate repairs
- A legal description of the property (This comes in handy in not buying the wrong house)
- Any special stipulations you would like addressed
- Who is your Agent and in what capacity are they representing you. If client is selected the Listing agent knows I am advising you. If Customer is selected the Listing agent knows I am simply typing the contract for you and can not advise you on the offer.
- How long the offer is good for *Typically 24 hours
Step 4 I Present the offer to the Seller
Step 5 We wait. Now the seller has a few options.
They can A) Accept it
B) Counter it*see below
C) Reject it, this typically happens if the terms are so far from what they are asking that they just don't feel a counter would work or simply put we have insulted them.
If they counter it, the ball is now in our court and the clock is reset for you to respond. The counter offer is just a 2 page document and only includes the items that are being countered. This process goes back and forth until both parties agree or disagree. When all parties signatures are on a counter you are whats called Binding and the clock starts for you to obtain Financing and to get you inspections complete.
There may be additional documents included with the Purchase and Sales.
What are some cost I may expect to see other than the cost of the home?
a) The first will be earnest money. Typically $500 will do the trick depending on the cost of the home.
b) Many lenders require that you pay for an appraisal upfront. Typically this will cost
between $375-450. If things go well you may see this returned to you at closing.
c) Home inspections. These cost anywhere from $200-a cost per square foot. Normally not over $450
d) Termite. If you use any loan other than VA. The cost of having a Termite inspection falls on the buyer and typically costs $90-150. This is just to have a clearance letter. If the property needs to be treated this can cost much more.
e) Down Payment. Typically this is a minimum of 3% for FHA and 20% for Conventional. VA and a few other loans may offer 100% financing.
f) Survey. If one can not be located at the Surveyors office or the seller you may very well need to buy one. Typically cost between $380-500.
Some misc. cost may include Perc test, Well and Septic, Mold Inspection. These are test that a buyer may include in their Due Diligence and are typically under $200. *Mold inspections can be quite expensive and may involve travel cost for the inspector
Who pays commission?
The commissions are normally part of the Listing and therefore paid by the Seller. The exception to this rule is if you ask me to represent you to purchase a home that is For Sale By Owner. If the seller will not pay the 3% commission and you still want me to do the transaction you will need to pay it.
What are closing cost and who pays them?
Closing costs may include items like:
- Closing Attorney fees
- Lender Costs for the loan
- Escrow Set up
- Pre-paids like Insurance and Taxes
These are a Buyers cost. Sellers often contribute an amount to help offset the cost.
Are Realtors paid anything else?
Nope, We are Independent Business owners and as such are only paid at the successful closing.
What is a Buyers Brokerage Agreement?
Its an agreement that lays out how you want to work with me. If you want me to advise you then you will be my "Client " other items include 1. How long we work together. 2. Privacy items 3. What you expect from me. 4. What I expect from you. 5. That we work exclusively with each other. 6. What to do if it doesn't work out between us.
Why can't I have many Realtors working for me?
For us to work in your best interest we need to know what you expect from us. This is accomplished with a Document that is called an Exclusive Buyers Brokerage Agreement. Simply put, it lays out the ground rules of us working together. There is no advantage to having multiple Realtors.
What if I pick you as my Realtor and it doesn't work out?
Fire me. Just put it in writing so I have something for the file. The Buyers Brokerage explains this in great detail for you.
Can I inspect the home?
Not only can you, You owe it to yourself. There will be a set amount of time in the contract to perform Due Diligence. Normally 10 days. During this time you will need to have your Professional Inspector, Termite, Mold, Environmental, Structural and any other inspection. Once you have the reports, certain repairs can be negotiated with the Seller. There are provisions in the contract that allow you to opt out if you don't come to agreement with the seller on repairs in the allotted time. I help you negotiate the repairs.
What if I can't get financed, what happens?
The best thing you can do for yourself is be pre-approved. In the contract we will tell the Seller how long we need to verify the financing . Typically this is 10-14 days. What this means is that as soon as you have agreed to terms with the offer. The clock is ticking. If your bank or other lender is going to disapprove you, they need to do it in less time than what we have entered in the "Financing Contingency" period. The reason is that we need a disapproval letter to give the seller. If we fail to give the seller a disapproval letter in the allotted time, it is assumed in the contract that you will simply purchase the home with cash if need be. I help you with all of this.
Will you help me find a lender?
Yes, I have many proven lenders that treat all my clients with respect and take care of them long after closing
What happens to the earnest money if the deal falls through?
The contract needs to be Terminated and Released. What this means is that both parties agree that the contract be terminated and that both parties are out of the deal. The document also clearly states who is entitled to the Earnest Money. If parties simply fail to agree to an item(i.e. Repairs), the buyer had selected the option to Terminate for any reason within x amount of days or Financing was declined at no fault of the buyer and a letter is provided then you the buyer should be entitled to the earnest money. An important note about the earnest money. No party can ever sue for damages and receive the earnest money as well.
Have other questions? Simply email me at jtmcclintock@tds.net or call 1-912-227-1932 and we will get you taken care of.
