September
1

Here’s the next installment of The Washington State Bar Association’s info on the Real Estate Process. This section provides some helpful insights into the different types of Financing Agreements available.

Financing Agreements
Banks, savings and loan associations, mortgage or insurance companies, some credit unions and other institutions are in the business of lending money to finance the purchase of real estate. Some financing, such as FHA-insured and VA-guaranteed loans, is insured by the federal government and may offer lower financing charges or extended terms of repayment.

As an alternative to a conventional lending institution, a buyer may find a seller who is willing to finance the transaction. Under these arrangements, a seller receives a promissory note from the buyer and uses a mortgage, deed of trust, or similar instrument to secure payment and guarantee performance.

Other financing options, such as the use of a land sales contract, assumption of the seller’s mortgage, graduated payment plans, and adjustable-rate loans may also be worth investigation.

Specific terms and requirements for loans vary widely and are influenced by money market conditions, the quality of the borrower’s credit, income sources or assets, and other factors. Loan costs can also vary, and may include service charges, appraisal fees, survey costs, title insurance, escrow and legal fees.

If financing is required to complete a transaction, a buyer should be sure the purchase and sale agreement specifies that requirement as a condition of the purchase. Furthermore, the buyer usually has the responsibility for finding a financing commitment by a certain date.

The agreements used to secure a debt with real property are usually lengthy and complex. Such agreements affect the payment of money to a seller, a lender, or both, and establish a security interest in your real property or home. Even with a “standardized” form, legal advice may be necessary to fully understand the details, obligations and legal consequences of the documents. It may also be necessary for your lawyer to tailor certain items to meet your requirements.

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The last segment of this information from the WA State Bar Association will cover the process of Closing the Sale… Stay tuned!

August
25

J.D. Power and Associates, the global firm best known for its customer satisfaction research on new-car quality and long-term dependability, recently announced the results from its 2009 Home Buyer/Seller Study. The study announced Coldwell Banker as the top-rated agency for home sellers across the country.

JD Power logo

Coldwell Banker Top Among Sellers
This year’s research consisted of feedback from 2,801 respondents who bought or sold a home between April 2008 and June 2009. Coldwell Banker ranked highest among consumers in the four factors examined for the home-selling experience: agent (34%); marketing (34%); office (17%); and package of additional services (15%).

Keller Williams Top Among Buyers
Keller Williams ranked first in terms of customer satisfaction for home buyers. Overall satisfaction for home buyers was determined by examining three factors: agent (47%); office (28%); and package of additional services (25%).

Agent Most Important Factor in Satisfaction
According to this year’s research, both buyers and sellers still identify their agent as the most important driver of overall satisfaction. However, the importance of additional services has increased significantly: up 12 percentage points among buyers and 8 percentage points among sellers.

Proportion of First-Time Home Buyers Up
The study also found that the proportion of first-time home buyers has increased considerably: up to 56 percent in 2009, from 44 percent in 2008.

More information on this year’s findings can be found here, or you can watch the video summary on this year’s study from JD Powers here.