bpatterson's Blog: Buying a home

In Texas, the Termination Option, or the option period as it is typically referred to, provides buyers with an unrestricted right to terminate a contract to purchase property, for a specified fee within a specified number of days after the contract is signed by all parties.  In layman’s terms, the buyer has the right to say, “No thanks, I decided I don’t want to buy your house after all.”  Since this is an unrestricted right, there need not be a reason for terminating or cancelling the contract.  The buyer does pay for this unrestricted right to terminate.  Some of the more typical amounts I see are in the $50 - $75 range, but I have seen both larger and smaller amounts.  The fee can be credited to the buyer or seller at closing, generally buyers are…

You finally did it, you found the home of your dreams.  Since you’ve already shopped around and pre-qualified, you know that you can afford it and approximately what the payments will be and how much money you’ll need to bring to closing.  Now you’re ready to make an offer.  Many first time homebuyers have no idea how this is actually done.  Often, buyers call in on a property and ask the agent to make a verbal offer to the seller.  Usually this is an extremely low, often ridiculous offer, referred to as a “lowball” offer.  More on lowball offers later, let’s look at why verbal offers are shunned by agents and sellers. In Texas, offers are formally made by filling out a contract, specifically a One to Four Family Residential Contract (Resale).  This…

Finding a House - The Agent & Agency

OK, so you’ve read through Real Estate 101 and you’re pre-approved and you know how much you’re qualified to borrow.  You’re ready to start shopping for houses!  And you have found an agent with whom you feel comfortable working – by the way, this agent should be ME, if you’re in the Waco area.  Why get an agent, you ask?  Don’t they cost extra? You could always just get those nice, color real estate magazines and/or drive around neighborhoods you like and just call the agents in the ads or on the signs.  You have to call all those agents anyway since they NEVER put the price in the ads or on the flyers.  Besides, once you call them, they’ll get you all fixed up and look out for your interests. 

OK, time for dirty…

(or How to Buy a House in Waco)

As a Realtor, I frequently get calls from people that want to own a home, but have no idea of how to go about buying one.  They might say, “I think I want to buy a house but I don't know what to do.”  Or, “I saw a house I would love to buy but I’m not sure where to start or how to do it.”  Or even, “Can I afford to buy a home?”  If you are thinking, “Yes!  That’s me!” you’re in the right place.  The question you should be asking is this: Can you afford NOT to buy one.  OK, here is dirty little secret number #1:  If you can afford to rent a house in Waco, you can afford to BUY one.  Let’s be honest, landlords don’t buy a house and then rent it for less than the payments, insurance, taxes and upkeep cost them.  They are…