PURCHASING POWER!
Buying a Home

for Residential Real Estate in THE WOODLANDS,
Spring, Conroe and Kingwood areas of Greater Metropolitan Houston.

The Drummond Team would love to work with you! Please take time to read the following information. It will help you to become better acquainted with buying a home in Texas.

After finding the house you wish to purchase, an offer is written on forms designated by the Texas Real Estate Commission. An Earnest Money check is written at this time, but held by the selling agent until the offer is accepted. An Option Money check is also written at this time, and given to the seller at the time that the contract is signed.

Your offer is presented by the selling agent to the listing agent, who in turn presents the offer to the seller. A seller may negotiate one offer, or several offers at the same time!

In practice, offers are often negotiated "verbally" until  agreement is reached, at which time they are finalized in writing and signed by all parties. There is no contract until all signatures have been obtained.

The contract and earnest money check are sent to the title company, where the earnest money check is now DEPOSITED into an escrow account, and a title search is begun. (Within 20 days from the date of contract, the title company will mail a title commitment to all parties, indicating if there are any problems to a clear title.)

Per the contract, you (the buyer) will have approximately 5 days to initiate your loan process. You will pay for several items at this time (e.g. credit application and appraisal) and the balance will be paid at closing.

A buyer in Texas may either accept a home in "as is" condition, or he may (for an option fee) request approximately a week to ten days to have the home inspected before he finalizes his agreement to purchase the home. The buyer chooses the inspection companies (usually mechanical/structural and wood-destroying insect reports are requested), and pays for the inspections.

Designated repairs are generally completed by the seller after the loan has been approved, but before closing. The survey is ordered after loan approval. A closing date and time are scheduled.

In general practice, lawyers are normally involved in real estate sales and closings only by virtue of the papers they prepare for the title company. A buyer or seller may use a lawyer if desired. All paperwork is prepared by the Texas Real Estate Association and cannot be altered by the Realtor. Realtors serve as the liason between the buyer and the seller, the listing agent, inspectors, mortgage companies, title companies, appraisers, etc.

"Closing" takes place in Texas at a Title Company. Often, all parties are present at the same table. Funding usually occurs the same day.

Possession of the home usually occurs upon funding, although "special provisions" in the contract may be made for the seller to rent the property back for a short period of time.

In order to be totally satisfied that you have made a wise choice in your home purchase, you will want to look at both "resale" and new homes, comparing bottom line prices, condition, areas, etc. As a courtesy to the Realtor that you choose to work with, please be sure to let new home builders know with whom you are working, and give them the Realtor's card, if you have one. (Commission paid to your Realtor by the new home builder is built into the price of the home. If you are not working with a Realtor, that "commission" is budgeted by the builder for other aspects of his business. Builders in the Houston/Woodlands/Kingwood area do not consider the Realtor's commission an item to be negotiated.)

After finding the house you wish to purchase, an offer is written and an Earnest Money check is presented at this time. (Should your plans change, this check will be refundable.) As representatives of your interest, Jean and Mike will help you negotiate the best price possible.

You should be prepared to make many major decisions at the time you sign the paperwork in the new homes sales office. In order to finalize the contract, they will request that you choose your "upgrades" at that time. Depending on how soon you will be moving into the house, you may also be asked to choose your carpet, wallpaper, paint, tile, linoleum, etc. As REALTORS who work with new home builders and are familiar with local styles and preferences, Mike and Jean will be there to assist you in your choices.

The new home offices may offer to pay some of your closing costs, etc., if you choose to use one of their mortgage companies for your transaction. This is not mandatory for the purchase of the home, but is an incentive that many builders offer. When large numbers of families with one company are relocating to the same area, new home builders, through their mortgage companies, frequently offer attractive interest rates to entice the newcomers to buy their homes.

Before working with a Broker/agent, you should know that the duties of an agent depend on whom the agent represents. The Texas Real Estate Commission (TREC), classifies real estate agency in three ways:

1. Broker/agent represents the seller. (Note: All contracts are with the Broker, with the agent working in the Broker’s behalf.) The broker who lists a home for sale is the owner’s agent. A broker who works as a subagent represents the owner in cooperation with the listing broker, and must place the interests of the seller first.

2. Broker/agent represents the buyer. The broker becomes the BUYER’s agent by entering into an agreement to represent the buyer, usually through a written Buyer’s Representation Agreement. A buyer’s broker does not represent the owner, and MUST PLACE THE INTERESTS OF THE BUYER FIRST.

3. Broker/agent represents both the seller and the buyer. This, of course, is when a broker has contracts with both the seller and buyer. This is covered by "intermediary relationship," wherein the broker must appoint a suitable agent representative for each party. All parties must be treated honestly, but confidentialities may not be disclosed.

It becomes obvious that buyers should require their agents to offer them a written buyer’s representation contract, clearly establishing the broker’s as well as the buyer’s obligations. We do this gladly, because as Buyer’s Representatives we can represent you, the buyer, and offer the following additional services:

Our company’s duty of confidentiality allows the buyer to fully disclose their needs without fear of harming their negotiating power.

We can show you, the buyer, everything available, including homes for sale by owner, so that the buyer can have the broadest selection available.

We can assist you in making an objective evaluation of a property, including both positive and negative features.

We will present and analyze detailed market information, to guide you in making an informed decision.

We can determine the length of time a home has been on the market, plus any changes in pricing, re-listings, or previous sales.

We will enhance your competitive bargaining position by packaging your offer in the most favorable terms.

We will provide strategic advice and counsel regarding counter offers and negotiations.