When shopping for a home, there are several important details that you will need to know about the property before placing an offer. This information can almost always be found in the sellers disclosure. A sellers disclosure is a notice of the sellers knowledge of the condition of the property as of the date signed by the seller and does not substitute for any inspections or warranties the purchaser may wish to obtain. Every seller in the state of Texas is required to have a sellers disclosure to sell a home. There are 11 exemptions to this law, the most common being a builder of a new home, a trustee or executor of an estate, and a foreclosure home.

The sellers disclosure is broken into eight parts to ensure all factual information is disclosed about the home. These eight parts are General Information, Information About Equipment and Systems, Information About Structure/Other, Miscellaneous Information, Information About Foundation, Information About Drainage, Information About Termites/Wood Destroying Insects and Information About Environmental Conditions,

General Information will report factual information about the home (when it was built, was it a rental or homestead, is there currently any active warranties on any items on/in the property, has the seller ever placed an insurance claim for damage to the property, etc.).  Also, if the property has had an inspection within the last four years, the inspection will be stated here and a copy of the report will be attached.

Information About Equipment and Systems includes items such as appliances, sprinkler system, garage door, electrical system, plumbing system, gas lines, etc. and will be reported as “Working Condition”, “Has Been Replaced” or “In Need of Repair”.

Information About Structure/Other discloses information about ceilings, doors, windows, floor, fireplace, roof, foundation, etc. These items will be answered the same way as the section above, and any items repaired/replaced will have the date they were repaired and the details of the repair.

Miscellaneous Information is where you will find much of the background information about the home. Pending bankruptcies that could affect the sale of the property, if the property is located in a flood plain or Corp of Engineers, any easements on the property, knowledge of lead based paint, etc. Please pay special attention to this portion of the document because it discloses information that may be a deal breaker for some buyers.

Information About Foundation, Information About Drainage, Information About Termites/Wood Destroying Insects and Information About Environmental Conditions all disclose facts that the seller is aware of in these particular areas. Note that if the seller is not aware of default in these areas, it will not be disclosed but does not mean it will not show up in an inspection report.

If at all possible, try to have the sellers disclosure in hand when visiting the home. When you place an offer on the home, sellers will have signed the sellers disclosure stating they have answered the questions to the best of their knowledge and have not received any instruction from their agent or broker on how to answer any of the questions. Buyers, when placing an offer, will also initial and sign, stating they have received the disclosure.

As always, if you have any questions about this information, please contact me at kperryhomes@gmail.com.

Life is always so much easier when you know what to expect. When purchasing a home it can seem overwhelming, especially at the beginning, because there are so many unknowns (especially if you are a first time home buyer). So today I am going to try and paint the picture of what the home buying process looks like, as well as identify key things to expect during the process.

1. Find a Realtor and Mortgage Lender– The first person to contact is your realtor (hint hint Kristin Perry). We will sit down and discuss all the fine details of what your looking for in a home, location, etc. Then we will get you set up on an e-mail portal which will send you all the homes for sale, the minute they hit the market (this is different than Zillow, Trulia, etc. which have homes listed for sale, but with a few days delay from the time they were actually listed for sale). The next person you will speak with is a mortgage lender, who will quickly get you pre-approved/qualified so we can begin looking at homes together.

Avg. Time Spent: 2-3 hours

2. View Homes– Once you are pre-approved/qualified and have met with your realtor, we will begin looking at homes. There are several things to be looking for in a home, which we will discuss in depth at a later date. But a few key points to consider; do you like the layout? does it have all the amenities you are looking for? does it have a solid foundation? roof? plumbing? electric? Having a good realtor will help immensely in this process.

Avg Time Spent: 15-45 minutes per viewing

3. Write an offer/have offer accepted– Your realtor will write and review the offer with you so you will know exactly what to expect. There are several contingencies in a contract, so reviewing with your agent is essential to success. When your offer is accepted, you will need to submit earnest money (typically 1% of the sales price) and option fee (commonly $50-$100) to the listing agent and Title company. Your realtor will give you instructions on all of this. The first 5-10 (on average) days are called the “option period”. This is your time to have an inspector review the property for potential repairs (keep in mind that any home, whether pre-owned or new, is not going to be perfect. So expect repairs, but having a good agent will help you discern what repairs are necessary and which are not).

Avg. Time Spent: 1-3 hours to write contract, 5-10 days for option period

4. Under Contract– This can take anywhere from 30-45 days, sometimes sooner. We touched on this above, but the first 5-10 days of being “under contract” (aka the seller has accepted your offer) are the option period. During the same time as option period, your mortgage application will go into the underwriting process. In a nut shell, this means that someone else (called an underwriter) is reviewing your application and the property you would like to purchase, to make the final decision on approving the loan. An appraiser will visit the property and give their opinion on the value of the home which is required by the lender. You will want to make sure that during this time you are supplying your lender with everything they need to process your application. At least three days before closing, you will be sent final closing documents from the lender/Title company. You will want to review these documents with your lender to make sure all the numbers are correct (sales price, interest rate, etc.).

Avg. Time Spent: 30-45 days

5. Closing Day– This is the day you will receive the keys to your new home! Closing day, contrary to popular belief, is actually a pretty smooth sail. When you show up to the Title company to sign for your new home, the documents you will be signing will have already been reviewed by you, your lender and your realtor (see #4). You will know exactly what is on each document. Expect your realtor will be at closing with you, as well as the escrow agent (works for the Title company) and possibly your mortgage lender.

Avg. Time Spent: 1 hour

In a nut shell, this is how you can expect the home buying process to work. It is actually a really fun and exciting journey, especially when you know what to expect! If you are interested or have additional question, feel free to contact me at 972-740-3531 or kperryhomes@gmail.com. If you would like to speak with a mortgage lender, Kim Kurak is the bomb.com! You can reach her at 972-965-9098 or kkurak@highlandsmortgage.com.