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Exclusive Buyer Representation Agreement:

The agent / client relationship is normally paid for by the Seller from the listing agreement cooperative compensation agreement terms. There is a buyer’s agent percentage allocated for the compensation of your Exclusive Buyer Representative. The LBBA Group will always recommend a Home Buyer to seek out and engage an exclusive representative to act in your best interest during the transaction process. We hope that YOU will allow The LBBA Group the opportunity to represent your interest during the home buying process.

BUYING A HOME!

Searching for and purchasing a home is an extremely exciting life event. We want your home buying process to be as transparent and stress free as possible. We are home buying experts, so allow us to help make your experience as smooth as possible!

Before we start your home search ask yourself some questions:

  1. Are you familiar with your target area? Where would you like to live?
  2. Are there any community, neighborhood, medical facility, or school zones influencing your decision in the target search area?
  3. Describe the type of house you want or need? Style? Number of Bedrooms? Number of Bathrooms?
  4. Do you work from home? Do you need a home office?
  5. How do you currently commute to work?
  6. Do you need to be close to an airport for out-of-town commute?
  7. Do you need a bonus room for in-laws or a flex room?
  8. Do you entertain often?
  9. What amenities are important to you?
  10. Are you working with a lender? Who?
  11. Have you determined your pricing range?

Your home search can be a time-consuming process.  The LBBA Group can make the experience much more efficient.  A good start for a pleasurable home search is by reviewing the steps below:

Identify and select an Exclusive Buyer Representative. The Tennessee Association of Realtors recognizes the Exclusive Buyer Representation Agreement.  This document formally records the relationship between us, as your designated real estate agent (acting on behalf of our brokerage firm, The LBBA Group of Wallace Real Estate), and you, as our client.

EXCLUSIVE BUYER REPRESENTATION

The LBBA Group promises (As an Exclusive Designated Agent for the Buyer):

  • Adhere to the Tennessee Real Estate Commission Code of Ethics and all lawful instructions as defined by the Exclusive Buyer Representation Agreement.
  • Act in your position of “the Buyers’ intent” and be loyal to your interest throughout the buying process.
  • We will promptly present all offers as instructed, and we will promptly receive all counter offers for presentation to you.
  • Provide any information to the transaction process you require within the scope of the agreement.
  • We will advise of proper forms, procedures, and steps, which will be needed for a successful closing of the home buying process.
  • The LBBA Group agents will be available to you by phone, text, or email 24/7.  In the case of a voicemail, we will promptly return your call as soon as available.
  • We will set up ALL showings for homes of interest to you (including For Sale by Owners).
  • We will provide new daily “hot sheet” searches from your designated buying parameters until a home, or homes of interest, has been identified during the pre-qualified home search period.

How you can help us HELP YOU!

  1. Let us know if there are any changes in your ability to purchase a home.
  2. Engage a lender to be pre-approved as soon as possible. If you need assistance, we can help by providing multiple references of our Strategic Lending Partners. Our goal is to get your qualified funds and/or letter of credit available BEFORE the negotiation process.
  3. Always contact our office FIRST, to avoid a confusion with the selling office agent or owners.
  4. Allow The LBBA Group to schedule showings and conversations for you. After all? This is what we do daily and are extremely effective in the process. Let us work for you!

Need a Mortgage?

Most Buyers need a lender to purchase their home. The financing process is the key to successfully finding your new home, as well as a satisfying WIN/WIN negotiation process. There are many factors that affect your purchasing potential.  Information is Power!

  1. Income
  2. Tax returns
  3. Credit rating
  4. Expenses (debt-to-income ratios)
  5. Down payment
  6. Prevailing Interest rates

Only your lender can determine your ability to purchase a home. They will consider the above factors either by a simple conversation, requiring minimal documentation, or a more detailed and involved process. They will also gather the proper information and credit history. After this process is calculated, your lender will provide a letter of credit, so we can begin your house search. Be sure to include the property taxes, homeowners’ association fees (if any), and the monthly mortgage payment.

This step is critical in this hot market and, as we have seen time and time again, can be the difference-maker when submitting an offer!

Types of Homes
Area MLS Listings

Search HOMES >

New Construction

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For Sale by Owners

SEARCH HOMES>

Find a Rental Property

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Please call our office for a more descriptive definition and property report of your home-type interest.  We can provide the necessary Realty Research required on a specific address and property types.  The report will include the transparent feasibility comments of the transaction process.

Remember, the type of mortgage loan product you select is the biggest factor for your home purchase!

What do I take to my lender?

A lender will not only be able to give you information on the best rates and terms available in the current market, but they can also explain what options are available because of your unique financial position.

Your lending institution will need a complete profile of your financial situation. In addition to your income, your existing assets and debts will be used to determine how much money you can borrow. They may advise you to adjust your debts to qualify you for better rates or better loan types.

Provide our contact information to your lender. They will need to send us your pre-qualification or pre-approval letter, so that we can submit it with any offer you make.

Some actions you make will negatively affect your credit score and could affect your home purchasing power. You should avoid making major purchases or changing your job if you’re seriously considering buying a home in the next 12 months.

Items they may need:
  • Social Security Number
  • W2 Forms for the past two years
  • Pay Stubs (most recent months)
  • Employment History Summary
  • Bank statements for checking and savings accounts (past 3 months)
  • Child Support Payments
  • Identification

Making an Offer

When The LBBA Group has found THE home you want, it’s time to make an offer. As your designated Buyer agent, we will work with you to determine what contingencies you will need in your contract. We will also help you determine a fair offer price and draw up the contract to present to the Seller. This contract will set the terms of the sale between the offer date and closing date—when you receive your keys and take ownership of your new home.

When considering your offer, remember you will have out-of-pocket costs before closing.

Usually Required:
  • Earnest or Trust Money – Often $1000-$5,000 due within 2-10 days but this varies per your contract. This money is applied toward your closing costs at settlement (check payable to your title company). This is usually refundable if items of concern are found during a home inspection, or your financing is denied, and you choose to terminate the contract.
  • Appraisal Fee $400 to $600 (paid to your lender).
Optional:
  • Home Inspection – $400 to $700 (based on location and scope). Please see our Strategic Partner Program.
  • Property Survey – $350 to $1000 (based on location and scope). Please see our Strategic Partner Program.
  • Other Possible Inspections:
  • Pest/Termite: $50 to $100 (based on location and scope)
  • Structural Engineering Assessment $400 and up
  • Water/Well Price Varies
  • Radon Testing $75 to $150

Together we will construct the offer, but you should review it carefully to make sure it states your terms exactly. Once the offer is accepted and signed by a Seller, it becomes a legally binding agreement, so make sure you are prepared to move forward with your purchase. Optional costs for each transaction vary upon location and scope of the report.

As part of the offer, you will need a commitment of funds, called earnest / trust money, as a deposit towards the purchase. We will need a timeline from you for when the title company can receive these funds (normally, it is within 2-10 days of your offer). These funds will be deposited in an escrow account and held for you until closing, when it will be credited toward your closing costs. In the event, that you choose to use a contingency to terminate the contract (value issue found during the appraisal report, for example), you will normally get these funds returned to you, if you have a financing contingency.

Earnest Money (or Trust Money) is a good-faith deposit, which will be credited toward your closing costs. The amount of earnest money can vary with your comfort level. Discuss with your lender if you will have any problems providing a check. All funds related to a house purchase must be traceable according to U.S. banking laws. Checking accounts make this trace easier for the mortgage companies.

After you’ve made your offer, the Seller’s options are:
  1. Accept your offer
  2. Reject your offer
  3. Execute a counteroffer

As a Buyer, you will be in a better negotiating position if your offer is not loaded with other contingencies, i.e., Seller pays closing costs, personal items in the home, contingent on the sale of your current home, etc.

Typical counteroffers include modifications to:
  • Purchase price
  • Closing date
  • Possession date
  • Inclusions (may pay some of your closing costs or refuse to pay any)

When you make an offer on a house, it is a negotiation and may take several counteroffers to conclude. You may have to compete with other interested buyers in certain market conditions. This will require your offer to be “serious and solid” from the very first to beat your competition. Personal items in the home normally cannot be included in the purchase and sales agreement unless you are paying cash.

Once an agreement is reached on all issues, and all parties have signed the offer, you are both under a legally binding contract. This means you cannot exit the contract without using either the inspection contingency, appraisal contingency, financing contingency, or any other contingency written into the contract. To exit the contract and have your earnest money released back to you, you must follow the terms of the contract. This is often possible due to the contingency terms in place; please have an open dialogue so that we can protect your interests and make sure you receive your earnest money back.

Closing Costs

What are the closing costs?  These are calculated by the lender and title company and will be provided to you when applying for your mortgage. These include:

  • Title Insurance
  • Document Fees
  • Processing Fees
  • Property Taxes
  • Homeowners Insurance
  • HOA Fees

Getting to the Finish Line

Home Inspections (Optional but Highly Suggested when Possible)

An inspection contingency may be included in your contract. This allows for an objective, independent, and comprehensive analysis of the physical condition of your potential new home, conducted by a qualified professional. If you do not know a professional inspector, we can provide referrals from our prior customers.

A professional inspector will inspect the structure, construction, and mechanical systems of the house. We recommend that you are present for each of your inspections (if possible, perhaps at the end), so your inspector can review any concerns with you. Your home inspector will provide a written report of the inspection with a section highlighting repairs they consider most important.

IMPORTANT NOTICE REGARDING WIRING INSTRUCTIONS:

As a REALTORⓇ, The LBBA Group will never be involved in providing wire transfer instructions. Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.

Thank you for reviewing our Buyer Guide Information

We hope that you allow The LBBA Group to guide you through the Exclusive Buyer Representation process. Our expertise began in 1996, and we are excited to continue providing our professional real estate services to Homebuyers in East Tennessee well into the future! Let Us Find You a Home Soon!