David R Homes Team
David Rakowczyk
651-730-2511651-730-2511

Resources

DAVE’S “THREE SHEETS”

SHEET #1: FREQUENTLY ASKED QUESTIONS

  • What is agency and why is it important? Agency is the different types of representation you can have with a real estate agent. Agency is important because you want to have an agent with fiduciary requirements working for you.
  • What are fiduciary duties? Fiduciary duties refers to the legal and ethical obligation Dave has to take care of his client’s money or other assets and act in the sole benefit of that client.
  • How long does the buying process take?
  • How many properties does the typical buyer look at?
  • When should I make an offer?
  • How much should I offer?
  • Should I lock in my interest rate or should I float?
  • When will I get the keys?
  • What happens at the closing?
  • Is the closing date on my contract guaranteed?
  • How much earnest money should I put down?
  • What happens to my earnest money?
  • Will I get my earnest money back if the contract is not accepted?
  • What is the process to get my earnest money back if the contract is accepted and the home inspection finds an issue?
  • How often do you find the perfect property on the first day (80-10-10 rule)
  • What is the likelihood of a multiple offer situation?
  • What monies will I need to come in with?
  • How long does the home inspection take?
  • Do I really need a home inspector?
  • Can you recommend an attorney, home inspector or a lender?

SHEET #2: THINGS YOU ABSOLUTELY SHOULD NOT DO!!!

  • Don’t quit your job
  • Don’t change your job or type of job
  • Don’t buy any large ticket items (like five dollars or more, opening a Kohl’s card, buying furniture before closing)
  • Don’t make David Copperfield deposits (all funds need to be traceable and mattress money needs to be deposited at least three months in advance of looking)
  • Don’t talk to sellers or the seller’s agent directly (loose lips sink ships)
  • Not getting a gift letter and a bank statement for funds
  • Not telling the person who is giving you the gift that you will probably need a gift letter and some proof (usually a bank statement) that they had the money to give
  • Not telling me if you are allergic to animals, afraid of dogs, don’t like sunlight…
  • Not being completely honest with the lender about child support, alimony, wage garnishments or any other payroll reduction
  • Getting advice from anyone that has not purchased a home in the last year (the rules change almost daily)
  • Waiting to see everything else that is on the market
  • Don’t trash the property in front of the owners
  • Calling the other agent on “For Sale” signs
  • Attending open houses and new construction without me
  • Not telling me if you have a house to sell
  • Delaying paperwork because you are irritated by the frequency and number of request from the Mortgage Company
  • Finding a lender on the internet that offers a 0.001 interest rate
  • Not realizing it is possible to find what you are looking for the very first day you go out (this happens more than you think…)
  • Going home to sleep on it (in a hot market, if you sleep on it, you might not get to sleep in it)
  • Waiting to find the absolute PERFECT house. You will always be limited by income, zoning, inventory at the time, and/or legislation and or property taxes.
  • 80/10/10 Rule If you find a house that has 80% of what you are looking for, 10% of things you can change and 10% of things you can live with, it’s a keeper.
  • Do not co-sign for even a candy bar!
  • Don’t schedule a vacation before we close (especially a cruise)
  • Don’t order Direct TV, Cable, Telephone or any utility that will pull a credit report unless you want to write a letter of explanation about the credit report to the mortgage company
  • Don’t change your name during the mortgage process
  • Not being up front with your loan officer (hiding information)
  • Not realizing the clock starts ticking from the time the loan officer get the contract, not the date the offer was written
  • Unreasonable expectations
  • Not getting a home warranty (depends, ask Dave)
  • Giving away your negotiation power by speaking in the house (always assume you are being recorded)
  • Posting your real estate thoughts on social media sites (If you are savvy, this can easily be viewed)
  • Not getting a home inspection
  • Not being FULLY approved BEFORE you go looking (nothing hurts as much as finding the house you love and you lose it when someone else beats you to it because you were not completely ready)
  • Believing what you see on HGTV and reality television (the majority of that stuff is scripted)
  • Not shopping the lender’s closing estimate
  • Not telling me what is MOST important to you (tier 1, tier 2, tier 3)
  • Calling at the very last minute to cancel appointments
  • Finding a lender on the internet that offers a 000000.1 interest rate and is from outside of the area or a 100% online lender
  • Not using name on driver’s license for mortgage docs (use Jr. and Sr. if required)
  • Not telling your lender if you lose your job before you close
  • Do not go window shopping and let people pull your credit
  • If it can’t be written on the front page of the contract because it’s being done “under the table,” it’s probably mortgage fraud
  • Do not look at a short-sale if you need to move immediately
  • Do not consider a short-sale if you need to be in control of the process

SHEET #3A: THIS WILL MOST LIKELY HAPPEN…(Buyers)

  • You will not be told how much money to bring to closing until the day of your closing and many times only hours or minutes before the closing
  • The dates on your contract will change, perhaps multiple times
  • You will become anxious or nervous
  • You will become irritated or annoyed about frequent and last minute paperwork request with seemingly impossible deadlines
  • You will likely negotiate 2-5 times on this transaction. We will negotiate at purchase agreement, the inspection, potentially the appraisal and the final walk-thru
  • You will want to tell your friends and family about your experience on social media sites – Don’t!
  • The Mortgage company will most likely pull another credit report on you days before or even the day of your closing

SHEET #3B: THIS WILL MOST LIKELY HAPPEN… (Sellers)

  • The date on the contract will most likely change, it is a guesstimate and subject to many variables (attorneys timetable)
  • The property might not appraise at what you are selling it for
  • Buyer agents will miss showing appointments and not call or show up
  • Appointments will be made and cancelled at the last minute
  • Showing agents will pretend to be in witness protection and not return any phone calls or give feedback
  • Some showings will last about five minutes and some showings will last 3 hours
  • There will be a day when I call you and say someone wants to see your house, and you are going to ask me “when?” And I will say: “pull back the curtains, they are sitting outside now!”
  • Agents are going to call me 3 minutes before your showings and cancel, sometimes it may be 20 minutes after
  • Agents are going to make appointments at the very LAST minute
  • Agents are going to knock on your door or even drive by, see you in the yard and ask if they can see your house (if this happens, call me)
  • Expect lots of lowball offers (at least it is a starting point)