Considering Buying a Home or Investment Property?

Advantages | Process | FAQ | List of Services (PDF)

• Over time, real estate has proven to be an excellent investment, even considering the current housing market.

• Relatively few new places to build houses in the Bay Area, coupled with a growing area population leads to higher prices for existing properties.

• Mortgage interest, property taxes, and many closing costs are tax deductible.

The process of purchasing a property is a fairly involved one, so listing everything we do here would make for a very long list. Click here to view a comprehensive list of services that we provide to buyers (opens as a PDF). To touch on the major points, you can be sure that your Platt Inc. Real Estate agent will:

• Educate you about current market conditions, trends, and available properties

• Offer continued client service beyond close of escrow

• Conduct regular targeted searches for appropriate properties

• Schedule immediate showings of appropriate properties

• Provide experienced and knowledgeable counsel when constructing an offer

• Recommend reputable lenders with loan programs suited to your unique needs

• Recommend pre-screened, reputable service professionals for inspections and improvements

• Help you to visualize completed cosmetic updating

• Provide Utilities Phone List and Change of Address forms prior to close of escrow

• Provide a complete file at close of escrow

• Be present every step of the way, from submitting offer to escrow signing appointment

What are the costs associated with buying a home?

The answer depends largely on your individual circumstances, but the common components are:

• Home price: This is the sum of your down payment (can be as little as 3% with some loan programs, but is most often 10% to 25% of the purchase price) and the loan amount (again, typically 75% to 90% of the total price).

• Inspections: In California, inspections are the buyer's right and responsibility. General home inspections generally run $350-$550 depending on the property's size, structural pest inspections are $250-$300, and an appraisal (required by your lender) will run $400 or so.

• Closing costs: Depending on the purchase agreement and the apportionment of costs to a buyer or seller, costs can vary. In the East Bay, buyers should estimate that their closing costs will be 2.5% to 3% of the total sale price of the property. These costs include escrow fees, loan fees, prepaid property taxes, prepaid homeowner insurance, city and county transfer taxes, prorated loan interest, and inspection fees.

What is 'escrow'?

Escrow refers to the process whereby a neutral third party (typically an Escrow/Title company) handles the financial portion of the transaction, ensures that the proper documents have been provided by all parties, and oversees the transfer of deed from seller to buyer.

How long does escrow last?

Escrow can last any duration that is agreed to by the parties to the transaction. A typical escrow takes 30 to 45 days, but there are many exceptions. For examply, in the case of a short sale transaction, the total time can extend to a few months while negotiations are taking place. In the case of an all-cash offer, escrow can take only a few days. For most transactions, however, 30 to 45 days is the norm.

How are real estate agents compensated?

When a seller lists their property for sale with an agent, the seller agrees to pay a percentage of the sale price to that agent's brokerage as a commission. The brokerage, in turn, agrees to split the commission with the brokerage representing the buyer of the property. Commissions are paid at the close of escrow from the seller's proceeds, and are typically only paid if and when the transaction is successfully completed.

Do I have to work with the agent that is on the sign or at the open house?

No -- in fact, we recommend that buyers work with a different agent than the agent who is representing the seller, due to concerns surrounding conflict of interest. This concern can be addressed as simply as having another agent in the same brokerage represent you, or by selecting your own agent to work with. The information on the MLS (Multiple Listing Service) is available to any licensed agent who subscribes to it.

I have a question that you have not addressed here.

That's okay -- please contact us by phone (510-261-1661) or email with your question. We love talking about real estate, and strive to be your trusted advisor in the home-buying process. You will get lots of information from us, but never high-pressure sales techniques. So go ahead, contact us!

^ return to top