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Buying your first home or investment? We are here for you.
When you are ready to buy a home in New England, you may find yourself overwhelmed with information and decisions. Let the NEBDG team put your mind at ease. A real estate purchase is one of the largest investments you will ever make, which is why it is very important that you have the best team to help you thoroughly understand the real estate transaction process and thereafter. Our team at NEBDG is here to take care of you from first thought of real estate to the final signature, and we will be there alongside you afterward to support you in anyway we can.
To enhance our clients' experience and provide them with the right tools, unbiased advice, and trusted agents, we established a company structure unlike other traditional real estate companies. NEBDG specializes in the entire investment vertical and provides real estate services from beginning to end, with our in-house real estate brokerage firm, investment company, and property management team. Providing you with a clear roadmap of what it takes to make a successful purchase real estate in Maine, New Hampshire, and Vermont, we are here to make your journey as a real estate investor or first time home owner as easy and streamlined as possible.
Read more about first time home buying and homes as an investment. Then contact us to see how our advisors can help you understand everything you need to know about your future real estate transaction.
Step-by-Step Guide for the Buyer
STEP 1: Choosing your team The first step in finding a home or investment property is to select the right real estate agent and investment advisor. Purchasing real estate is a major investment, with many legal and financial ramifications, so choosing an agent based on personal connections or because that agent is nice is not the best decision. Like lawyers and doctors, the best agents tend to specialize in certain types of real estate, market segments, or specialties. At NEBDG, we offer exactly that. specialize in investment real estate in the Maine, New Hampshire, and Vermont market, whether it is a single family home or a multi-family property.
In today’s technologically advanced world, you can easily locate properties through a combination of open houses and searching online. However, it may not be in the client’s best interest to wait until they locate a house to select a specific agent. You wouldn’t perform surgery on yourself before going to a board-certified surgeon, right? Your advisor is there to help you through the whole process, so don’t go at it alone. The real estate agent you work with on our team will be a member of the NATIONAL ASSOCIATION OF REALTORS®, a real estate trade association regulated with a highly enforced Code of Ethics. We will explain to you agency relationships and representation, and the difference between customers and clients. NEBDG enforces a policy of transparency, so we will ensure you understand how commission is distributed and review the costs of buying to you. Our experienced team can help you identify the right neighborhood, coordinate financing, explain the tax consequences of real estate ownership, filter out inappropriate properties, identify off-market opportunities, and answer questions that come up along the way.
STEP 2: Get Pre-Approved The process of buying real estate begins with determining your buying power. If financing is needed, getting pre-approval by a local lender or mortgage broker will help you narrow down the eligible properties. For many sellers, a pre-approval letter is a prerequisite for serious consideration of your offer. Knowing the available loan amount will help you determine how much you intend to spend on your home and which neighborhoods to consider. Since financing is a major consideration, we advise clients to begin the pre-approval process immediately after meeting with your agent.
Our trusted advisors will work with you to recommend excellent lenders and help you in credit repair, if desired. For seasoned investors, we can advise on creative acquisitions and other rare financing options, such as seller financings, notes and lease options. Our recommendations are completely free of any conflict of interest; our advisors do not benefit monetarily from providing referrals.
STEP 3: Decide Where To Invest Most clients have an initial idea of what cities and neighborhoods appeal most to them. However, you should examine your criteria and ask specific questions in order to find to the perfect property for you and your future. How quick does the properties in this area appreciate? What is the income that you could earn from this piece of real estate? Are there planned developments that may affect the area home values? What are the typical vacancy/occupancy rates and cost of turnover? Will the property provide the environment I want for a home or investment? Is the property going to have a high resale value when I am ready to sell? Recent improvements, crime rates, school systems, unemployment rates, and more.
Our advisors will analyze the data for you and personally take you out for property tours. We will visit the neighborhoods, give you an overview of the area, and show a few representative homes. More importantly, our agents will provide you with all the information you will need to make the decision in where to choose the right property. We generally advise clients not to purchase a home without familiarizing themselves with the area and have seen enough properties to truly recognize an excellent fit.
STEP 4: Identify and Review Property When you have located the property you want to move forward with, carefully review the disclosures provided by the seller and listing agent. Disclosures contain important information, such as water supply system, waste disposal system, heating sources, any hazardous material, encroachments, structural information, improvements or remodeling, material defects, and more. If you are considering a townhouse or condominium, we will want to look at any Homeowners Association (HOA) Documents as well. Our advisors will spend time to review all disclosures and documents with you and provide you with a summary of the important issues.
STEP 5: Make Offers After deciding on the property you want to purchase, our agents will work with you to draft an offer. Our agents will speak with the listing agent ahead of time to ascertain the seller’s desires and to see if you can offer any items of value to the seller with little cost to you. This will show your desire to work with the seller and can optimize the situation for both parties. Regarding what price to offer, our advisors will provide you with a comparable market analysis, showing the selling price of recent comparable properties and what the market value is of the current property. We are also there for you to help you negotiate everything from price, financing, terms, to date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. Additionally, our agents will update you on the interest level of any other parties and whether you may be in a multiple offer situation so that you can make an informed decision, and whether to include any contingencies in your offer. We are on your team and we are here to represent your interests, respect your confidentiality, and work diligently to help you reach your goals.
Once an offer is made, it can be accepted, rejected, or countered. A counteroffer accepts all the terms of the contract, except the terms that are mentioned. For example, a counteroffer may increase the purchase price or shorten the escrow period. A counteroffer can be made to one party or multiple parties. If there is only one counteroffer and that counteroffer is accepted, then a binding contract has formed. On the other hand, if there are multiple counteroffers, which may all have the same or different terms, the counteroffer must be accepted by the buyer and reaccepted by the seller, ensuring that the home sells to only one party. Our advisors will work with you through the entire process and be with you the whole way.
STEP 6: Complete Inspections We advise all clients to complete any necessary inspections of the property. A building inspection is the inspector’s opinion on the home’s plumbing, electrical systems, foundation, roof, and overall condition. The building inspector will provide a detailed report listing all issues readily identified. A pest inspection will identify any damage to wood, most likely caused by termites, as well as any water damage that may be found in the home. Unlike the building inspection report, the pest report will usually list the costs required to alleviate these issues. Other inspections may include: chimney, plumbing, electrical, lot size, water, septic, radon, etc. We will schedule inspections for you and attend with you to be along your side the entire team.
STEP 7: Escrow & Contingencies After the parties formed a contractual agreement, the escrow period begins. An escrow company is a neutral third party that acts as an intermediary between the buyer and seller. The most important job of the escrow company is to properly take the buyer’s money in exchange for the seller’s property. An average escrow period is 30 days, with the vast majority ranging from 15-45 days. During this time, it is said that you, as the buyer, have equitable title in the property. We will ensure the opening of an escrow when your offer is accepted and schedule the events that will lead to a successful close of escrow.
If your purchase contract has contingencies, such as a inspection contingency, our team will help you find inspectors to view the home during the contingency period. During this period, you can determine whether you want to proceed with the purchase. If you back out of a contract for a reason related to a contingency during the contingency period, then you are entitled to a full return of your earnest money deposit. Our buyer agents can assist you and ask the seller to credit you for any new problems. Usually, an agreement can still be reached if the seller accepts your requests. If your findings uncover a major issue, such as bad foundation, then you will likely want to back out of the deal without seeking a credit, as this involves a lot of risk. If you have a loan, as most homebuyers do, then an appraiser will appraise your home. Also, our agents will work with your loan officer to ensure that the loan proceeds arrive on time and with little hassle.
STEP 8: Title Search The title search and report is issued by a third-party company that specialize in title work and insures that the seller can convey clear title without any liens preventing a smooth conveyance. All liens that may be on the property, such as unpaid property taxes, are listed in the title report. Title insurance can also be purchased for a one-time fee to cover any title defects that may arise in the future.
STEP 9: Finale! Days prior to closing, you will receive all closing disclosures; our advisors will plan to do a final walk through of the property with you along with a review of all final disclosures. On the day of closing, the escrow company will transfer your funds to the seller and record the deed in your name with the county. Once you are on record with the county, you will be provided with the keys, garage opener, and all other belongings. Other information, such as manuals for appliances, are usually left in the property. While you are the owner of record when escrow closes, you generally will not receive the official deed from the county until later due to processing.
After the closing, you’re finished! Enjoy your new home or investment property! The NEBDG team is here to serve you for all of your real estate questions or issues during the process and after you close.
STEP 10: Return On Investment Whether you are looking to purchase your first home or second investment property, it is important to manage your finances properly. For the first time home buyer, you will be paying down your loan every mortgage payment. It is recommended to know how much equity you have built due to loan paydown and appreciation. For investors, there is a bigger ROI as tenants pay rent which generate cash flow from excess income each month, along with special tax incentives that result in major tax savings! We can help you manage your own property, or our experts can manage it for you!
When you are ready to buy your home or investment property, NEBDG is only one call away. Let us assist you in your real estate purchase and support you throughout the transaction.
Mail to us.
125 Forest Avenue Suite #11166 Portland, Maine 04101