Jeffrey J. Katz is a full-time, full service licensed professional who will assist you throughout all phases of the buying process. 

Role of a Buyer's Agent

Steps to a Successful Purchase

Buyer's Cost of Making a Purchase

Obtaining a Loan

The Appraisal Process

Moving Timeline

Glossary of Terms Useful to Buyers

Disclosures

Testimonials

All of this is provided with service parallel to none.  My clients are my success...and my success is based on a caring, sensitive response to your needs and objectives.  Just ask some of my clients.

Please call me today at (561) 496-2000 for a no-cost, no-obligation consultation.

My Role

Preparation

• As your agent, I will ensure that you are fully prepared to embark upon your search for a new home.  This means:

• I will conduct an initial buyer counseling session to discuss your particular situation and needs and plan your search for a new home.

• I will ensure that you are pre-approved with a lender (if required). Pre-approval makes you a very strong buyer in the eyes of the seller.

Education

After determining your needs and translating them into a criteria for your property search, I will assist you in learning as much as possible about the areas and/or communities that offer suitable homes. This is done to ensure your confidence in making an informed decision when you select a home.  This process will involve:

• Providing you with information regarding the real estate market conditions in the areas in which you plan to search for a home and how you should respond to these factors when making an offer to purchase.

• Providing you with information related to your particular needs such as advice on schools, communities, shopping and recreation.

Presentation

• As your buyer’s agent, I will present to you a range of properties that meet your needs.  This means:

• I will check the market daily for new listings that meet your needs.

• I will present you with viable properties as they debut on the market and ensure that you have the first available opportunity to view desirable new listings.

• I will discuss with you the pertinent factors concerning each property viewed and alert you to any issues which may affect resale or future value.

Negotiation

• I will conduct a detailed comparative market analysis of the home you have selected in order to advise you as to what would constitute the offer most likely to be accepted.

• Once you have found a home and wish to make an offer to purchase, I will prepare, present and negotiate your contract according to your specific needs and instructions.

• I will present your offer in the way that best represents your interests and ensure that the seller is provided with any supplemental information about you as a qualified buyer so that they will feel comfortable and confident working with you.  This will include your pre-qualification to purchase the home. 

• I will carefully protect your interests and provide you with expert advice and counseling throughout the negotiation process from presentation to contract acceptance.

Escrow and Close

• Once you have an accepted offer, I will coordinate and expedite the transaction to a successful close.

• I will review with you all of the various inspections, disclosures and reports pertaining to the condition of the property.

• I will thoroughly review with you the Seller Property Disclosure Statement ("SPDS") and advise you as to known conditions pertaining to the property.

• I will work with you to prepare and present a request for any remedies or repairs that you deem to be the responsibility of the seller and that need to be addressed prior to close of escrow. 

• I will explain to you the option of a home warranty to reduce your risk of repair costs in your first year of ownership.

• I will accompany you on a detailed walk-through of the property prior to close of escrow in order to ensure that all agreed remedies and items of repair have been properly completed by the seller.

• I will monitor the escrow process and keep you informed of its progress through to the close of escrow.

 

Steps to a Successful Purchase

1.  Select a Realtor

2.  Get Pre-Approval Letter from Lender if a Loan is Needed

3.  Meet with Agent to Discuss Needs and Goals

4.  View Homes

5.  Select Home and Submit Contract

6.  Acceptance of Contract

7.  Escrow Opened

8.  Order and Complete Various Inspections

9.  Mail Loan Application and Complete Appraisal

10. Secure Homeowner's Insurance Policy

11. Obtain Final Loan Approval from Lender

12. Loan Documents Prepared by Lender and Sent to Title Company

13. Closing Documents Compiled by Title Company

14. Buyer Deposits Required Funds in Escrow

15. Lender Sends Funds to Title Company

16. Escrow Closed - Keys to Buyer

17. Funds Released to Seller by Title Company

18. Final Documents Mailed to Interested Parties

 

Whether you are buying your first home or selling your home and moving to another, it is important that you budget for the costs associated with buying a home.

In addition to the purchase price of the home, these are some of the additional costs which may apply:

Appraisal Fee:  If you are obtaining a loan, this is one of the up-front costs you will incur during the course of your transaction. The appraisal will normally cost $350+. The fee is usually based upon the size of the home and complexity of the appraisal itself. For buyers obtaining a jumbo loan above $900,000, the lender might require two appraisals.

Inspections: When purchasing a home, it is very important to have the home inspected. The extent of the inspection will be determined based upon the age and general condition of the home. At the very least, you will want to hire a qualified home inspector to perform a general and termite (WDO) inspection ($400+). Once the general home inspector delivers the report with the results of the initial inspection, additional inspections might be required. These could include a mold inspection or a pool inspection to name a few.

Property Taxes:  Your property taxes are due annually and are paid in arrears. Your lender will probably require that you deposit a portion of your expected annual taxes in an Escrow account at closing.

Survey Fee:  The lender will request an updated property survey.  The cost of this report will cost $375+.

Property Insurance:  Your lender will require you to have insurance covering the replacement value, structure and contents of your home.  This is an annual charge.  Your lender will probably require that you pay 1 year in advance and deposit a portion of the following years premium in an Escrow account at closing.  If the house is in a high risk flood zone, the lender will require you to take out additional insurance.

Service Charges:  This charge is applied by the various utility companies to connect or change the services to the home.

Private Mortgage Insurance.  If you are putting down less than 20% of the purchase price of your home as a down payment, you will be required to pay private mortgage insurance ("PMI") on the portion of your loan that is over and above 80% of the value of the home.  Payments are made monthly in addition to your mortgage payment. This payment may no longer be required when the borrower's equity in the home reaches 20%. Usually, the borrower must keep track of this achievement and then notify the lender, in writing, asking for the PMI payments to cease.

Mortgage Broker's Fee or Origination Fee: The lender is entitled to charge you a fee for generating your loan. This will vary and is not an automatic charge to the borrower. Since not every lender charges this fee, it is worth shopping around. The fee does not normally exceed 1% of the loan amount.

Moving Costs:  Professional movers cost between $50 and $100 per hour for three movers (individuals). It could be 10%-20% higher during peak moving season.

Homeowners Associations:  Many communities have common areas and facilities and have Homeowners Associations in place to manage them and also to maintain the covenants and restrictions of that community.  These associations commonly charge a monthly fee and you should be aware that this is in addition to your monthly mortgage payment. These costs vary greatly depending on the community.

Assessments:  If improvements have been made and homeowners have been assessed a fee, this could mean an additional monthly payment that you will be responsible for as owner of the home.

Document Preparation Fees: These fees are charged by both the title/escrow company and the lender.

Lender’s Title Insurance Policy. The seller of the home usually pays for the basic title insurance policy on a home purchase in Palm Beach County. However, the buyer’s lender will require the borrower to take out an extended policy that usually runs about one-third of the cost of the title policy.  If the Buyer will be paying cash, the extended policy is not required.

Miscellaneous Costs: During the escrow period, there are usually additional costs charged to either or both the buyer and seller for recoding fees, delivery charges, administration fees etc. Many of these costs are variable and it is worth shopping around.  As your real estate agent, I will inform you of the costs that will apply to your transaction and insure that your costs are kept to a minimum.  

If you will be acquiring a loan, your lender will provide you with a "Good Faith Estimate" which should give you a good idea of the all closing costs associated with your loan.

 

Obtaining a Loan

There are many sources for home loans including banks, credit unions. mortgage companies and mortgage brokers. I am happy to provide you several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it’s very important to know what you can afford before you begin looking for your new home. It can give you more bargaining power when negotiating with a seller, especially in today’s market where multiple offers may occur. A lender can pre-qualify you for a certain price range and help you avoid disappointment later.

Your lender will mail out verification requests and order an appraisal on the property you are buying. Remember, if your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval.

 

Next, you should order hazard insurance. Hazard insurance covers the dwelling itself and is required by the lender to protect their risk in your home. Your lender will explain the necessary hazard insurance coverage to you.

 

Contact your insurance agent early in the process because this coverage information must be provided so the lender can release the loan funds to the title company. Hazard insurance is one of the items frequently postponed until the last minute and this can result in delaying the closing. Order your insurance as soon as your loan is approved and then furnish the escrow officer with your insurance agent’s name and phone numbers.

 

After loan approval and just prior to the closing date, the lender will send the loan documents to the title company and the escrow officer will prepare an estimated settlement statement. This statement indicates what funds go where and, at this time, your escrow officer can tell you exactly how much money you need to bring to your closing appointment. Be aware that this amount may be higher or lower than previously estimated due to changes in items such as prepaid interest, prorated fees, impound accounts and any other applicable charges.  You must bring a certified check to closing, or have the funds wire transferred.  Personal checks will not be accepted by the title company.

 

What You’ll Need for your Loan Application

 

Loan applications might require personal and financial information. Be prepared to provide the following, for the borrower and co-borrower, to the lender:

 

• Addresses of residences for the last two years

• Social security number and date of birth

• Driver’s license or other valid identification

• Names and addresses of employers for the last two years

• Two recent pay stubs showing year-to-date earnings

• Federal tax returns for the last two years

• W-2’s for the last two years

• Last two months of statements for all checking, savings and other accounts

• Real estate loans: names, addresses, account numbers and payment amounts on all loans for other real estate you own

• Loans: names, addresses, account numbers and payment amounts on all loans

• Credit cards: names, addresses, account numbers and payment amounts on all your credit cards

• Addresses and values of other real estate owned

• Value of personal property . . . your best estimate of the value of all of your personal property (autos, boats, atv’s, furniture, jewelry, televisions, stereos, computers, other electronics, etc.)

• Necessary funds to pay for the credit report and appraisal

 

 

When you purchase your home, your lender requires a licensed appraiser to estimate the market value of the property. After the mortgage company receives a copy of the purchase contract, they will order the appraisal.  An appraisal is a professional, non-biased opinion of the current value of your property and is usually honored by most lenders for six to twelve months.

To estimate the market value of your property, an appraiser researches the homes that have sold in your subdivision and in your immediate market area (within 1 mile if possible).  Only homes that have sold in the past six months and are similar to your house with regard to livable area, age and amenities (i.e.  swimming pool, fireplace, etc.) can be considered.

The appraiser will then prepare a written report and submit it to the mortgage company for their review. 

 

Moving Timeline

Research your new city through its Chamber of Commerce and through online websites. Contact your mover to make arrangements for moving day. Make certain that estimators are aware of everything that must be moved. Don’t “forget” the lawn furniture, etc. The charge for interstate moves will be based on actual weight and distance; not on estimates, unless you have requested and received a binding estimate.

A binding estimate specifies in advance the cost of your move. It includes all transportation charges plus any additional services, which you might request. It does not include items that are later added to the shipment or any additional services that may become necessary after the computation has been prepared.

Determine what degree of legal protection is needed for the safety of your goods. From acceptance to delivery of your goods, the carrier is responsible for your shipment. Responsibility is not the same as liability, however.

 
Start to use up things you can’t move, such as frozen foods and cleaning supplies.

 
Six Weeks Ahead

 

Contact the IRS and/or your accountant for information on what moving expenses may be tax-deductible. Begin to inventory and evaluate your possessions. What can be sold or donated to a charitable organization? What haven’t you used within the last year? Make a list of everyone you need to notify about your move: friends, professionals, creditors, subscriptions, etc. If some of you goods are to be stores, make the necessary arrangements now. (Your moving counselor should be able to help.) Contact doctors, dentists, lawyers and accountants and obtain copies of your personal records. Ask for referrals where possible.

 

Four Weeks Ahead

 

Obtain a change-of-address kit from the post office and begin filling out cards with the effective date of the move. Fill out a change for each family member receiving mail. Arrange special transportation for your pets and plants. Take pets to the veterinarian for required health certificates and rabies shots. Notify the principal of your children’s school about your intended move and arrange for transfer of school records and credentials. Contact utility and related companies (gas, electric, water, telephone, newspaper, cable TV and trash collection) for service disconnect/connect and your old and new addresses. However, remember to keep phone and utilities connected at your current home throughout moving day. Contact insurance companies (auto, homeowner’s or renter’s, medical and life) to arrange for coverage in your new location. Plan a garage sale to sell unneeded items or arrange to donate them to charity. If donating, get receipts for possible tax deductions.

 

Three Weeks Ahead

 

Make travel arrangements and reservation for your moving trip. Collect important papers (insurance, will, deeds, passport, stock, birth records, etc.). Arrange to close accounts in your local bank and open accounts in your new locale.

 

One Week Ahead

 

Have your car serviced and checked for problems. Transfer your fire insurance on household goods or other insurance on personal possessions, so that they will be covered at your new home and in route. Arrange for sufficient cash or travelers checks to cover cost of moving services and expenses until you make banking connections. The moving company requires cash or certified check. They will not unpack the van without it. Don’t forget to withdraw the contents of your safe deposit box, pick up any dry cleaning, return library books and rented videotapes, etc.

 

Two to Three Days Ahead

 

Defrost your freezer and refrigerator. Block doors open so they can’t accidentally close on children or pets. Have your major appliances disconnected and prepared for the move. Pack a box of personal items that will be needed immediately at your new home. Have this box loaded last or carry it with you in your car. Organize and set aside those things that you’re talking with you so that they don’t get loaded on the van in error.

 

 

Moving Day

 

Make sure that someone is at home to answer the van foreman’s questions. Read your bill of lading and inventory carefully before you sign them. Keep these – and all related papers – in a safe location until all charges have been paid and all claims, if any, have been settled. Leave keys (and electronic garage door openers) with your Realtor.

 

Glossary of Useful Terms

Amendment - A change (either to alter, add to, or correct) a part of an agreement without changing the principal or essence.

Amortized Loan - A loan that is paid off (both interest and principal) by regular payments that are equal or nearly equal.

Appraisal – A professional opinion of the value of a property based on a factual analysis.

Appraisal Methods – There are 3 appraisal methods used on residential property:

• The cost approach which determines the cost to build a new structure

• The replacement approach which determines the cost to replace the existing structure

• The market value approach which uses the sales price of comparable properties

Appreciation – An increase in the value of a piece of real estate.

Assumption of a Mortgage – Some loans are assumable.  This means that on taking title to a property, the new owner can assume the existing loan on the property and become liable for this lien against the property.

Beneficiary - The recipient of benefits, often from a deed of trust (usually the lender).

Close of Escrow (Closing) – The final settlement of the real estate transaction between the buyer and seller.  This is usually the recording of the title to the property in the buyer’s name.

Comparable Sales - Sales that have similar characteristics as the subject property, used for analysis in the appraisal. Commonly called "comps".

Conventional Mortgage – A mortgage securing a loan made by investors without government underwriting; i.e., non-FHA or VA insured or guaranteed.

Counter Offer – A response to an offer or a preceding counter offer, which changes or adds terms that supercede the terms offered in the preceding offer or counter offer.

Deed – Written instrument which, when properly executed and delivered, conveys title.

Deed Restrictions - Limitations in the dead to a property that dictate certain uses that may or may not be made of the property.

Discount Points – Additional charges made by a lender at the time the loan is generated.  Points are measured as a percent of the loan with each point being equal to one percent.  A buyer may pay more points and assume a lower interest rate for their loan.

Earnest Money Deposit – A down payment made by the buyer as a statement of intent and good faith.

Easement – A right, privilege, or interest which one party has in the land of another (such as with right of way).

Equity – The interest or value which the owner of a piece of real estate has over and above the value of all the liens on that property.

Escrow – The deposit of instruments and funds with instructions with a neutral third party, the escrow agent, to carry out the provisions of an agreement or contract.

F.H.A. Loan (Federal Housing Administration) – A loan which has been insured by the federal government guaranteeing its payment in case of default by the owner.

F.M.H.A. Loan – Similar to F.H.A. but for residential property in rural areas.

Hazard Insurance - Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.

Impound Account – An account held by the lender on behalf of the owner in order to pay annual tax and insurance costs.  The owner contributes monthly to this account along with the payment of the principal and interest on the loan.

Joint Tenancy – A form of joint ownership which insures right of survivorship in the event of the death of one of the owners.  All owners have equal ownership and equal rights to the property.

Legal Description - A description of land recognized by law, based upon government surveys, spelling out the exact boundaries of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.

Lien – This is an encumbrance or debt levied against the property and makes the property security for its discharge or payment.

Marketable Title – A title free and clear of liens or encumbrances which would prevent its being transferred to a buyer.

Mortgage – An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation.

Mortgage Insurance – Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price. (Sometimes referred as Private Mortgage Insurance or "PMI".)

Origination Fee – A fee charged by a lender to create a loan.

Personal Property – Any property which is not real property and would not be considered part of a real estate transaction such as furniture.

PITI - A payment that combines Principal, Interest, Taxes and Insurance.

Power of Attorney - A written instrument whereby a principal gives authority to an agent.

Purchase Agreement – An agreement between a buyer and seller for the purchase of real estate.

Quitclaim Deed – A deed that releases a party from the title of a property.

Real Property – Land and whatever by nature or artificial annexation is part of it.

Recording - Filing documents affecting real property with the County Recorder as a matter of public record.

Special Assessment – A legal charge against real estate by a public authority to pay the cost of a public improvement, such as street lighting.

Sub-Division – A part of a parcel of land that has been divided into smaller parts.

Term of Mortgage – The period through which a mortgage is payable.

Trust Account – An account separate and apart from the broker’s own funds, into which the broker is required to deposit all funds collected on behalf of clients, such as earnest deposits.

V.A. Loan – A loan guaranteed by the Veterans Administration.

Warranty Deed – A deed used to convey real property which contains warranties of title and quiet possession and wherein the grantor agrees to defend the premises against the lawful claims of third persons.

1031 Exchange – Also referred to as a nontaxable sale. Enables property owner to trade one investment property for another "like" investment property without paying capital gains tax on the transaction.  

 

Disclosures

Click on the disclosure name to view the disclosure.  All disclosures should be read carefully.  If you have any questions, do not hesitate to ask!

For Buyers

• Transaction Broker Notice

• Buyers Real Property Disclosure

• Energy Efficiency Brochure

• EPA Lead Paint Information Pamphlet