Real Estate In Digital Age

In the past, when anyone wanted to buy a home, their process started by going through the yellow pages to find a real estate agent / broker or asking their friends if they knew someone they recommended. Of course, this limited the options, as there were almost no reviews on these services. Once you decided on an agent, you had to set up a meeting with them to inform them of your budget, the type of house you are looking for, and the location where you want the house to be. Then the agent would shortlist homes based on your criteria, make appointments to see those homes, and show those homes to you. Once you found a home, you had to find a mortgage lender through the same process and secure the loan to buy the house. Finally, to close on the house, you had to spend your whole day waiting at the title company to complete the paperwork, sign, and receive the keys to your new home. The entire process could take months to complete.

With the advent of the internet, a lot of these tasks have been made easy, starting with finding a real estate agent with a good review online, and a mortgage lender with the lowest rate. Also, you can make appointments to see prospective houses online. Let's look at the options available to buyers.

With Google and other online real estate resources like Zillow, Redfin, Trulia, Zerorets and many more, searching for a property for sale could not be easier. All you need to do is enter your search criteria, and you will get a full list of properties that meet your criteria. You may search only based on location, your budget (minimum / maximum listing price), number of beds and baths, size of property, schools, etc.; the list goes on.

There are several online resources for estimating your budget. This simple rule can go a long way toward figuring out our affordability:

✔️ You monthly mortgage payment shoule be less than 30% of your gross montly income
✔️ You should bave at least 30% of your home value saved up in cash or semi liquid asset
✔️ You are not paying more that 3 time your annual gross income to buy your home

Play with the mortgage calculator to get sense of your mortgage payments and affordablity

The first step to buying a home is to estimate your budget. If you are a cash buyer, this is straight-forward. If you are looking to finance the purchase of your home, you will need to figure out the type of mortgage you should get. Most buyers in the US get a conventional mortgage because they are easy to qualify for and have lenient conditions on credit scores and down payments. There are several other choices for a mortgage, like federal government insured loans, VA loans, and conforming loans. A buyer should consult a mortgage agent to research the type of loan that fits their situation and works best for them. After identifying the type of mortgage they can get, a buyer must figure out if they can afford the mortgage they can get. This is more complex than just figuring out if you can make the monthly payments. One must consult a financial advisor to review their financial situation and figure out the maximum mortgage that is right for them. Making bad financial decisions can lead to financial hardships, including not being able to make monthly payments and potential foreclosure on your house.

The location of your new home depends on several factors, like affordability, type of housing, safety, schools, and community. There are several online tools that can help you narrow down your ideal location. Great Schools is one such resource that lets you search for schools that are associated with a particular neighborhood or a house you are interested in. You can also find ratings of these schools there, and many schools have received reviews from parents and students.

Knowing how safe a neighborhood will also help narrow your location. Resources like Neighborhood Scout and Crime Grade are some of the resources to filter out high crime areas.

Real estate market analysis can be broadly divided in two categories.

• Market Trends - This gives you an idea of the general outlook for the real estate market. If home prices are rising, there is high demand, or there is a scarcity of homes, it is generally considered a sellers' market. In this market, a property in good condition and listed at a fair price will be under contract in a few weeks. In a hot, competitive market, sellers will likely receive multiple offers and usually get offers above their asking price.
• Comparative Market Analysis (CMA) - A CMA gives a buyer and seller an idea of how other homes in the location they are interested in buying or selling. As a rule of thumb you are looking at properties that have sold in the location within the last 3 months. A CMA is generated by analyzing sold and currently listed/active properties that are within a one mile radius of the property. The properties should be within plus-minus 500 square feet of the property for which the CMA is being prepared. Also, the number of beds and baths should be in the plus-minus 1 range. The CMA should also consider currently active properties with similar parameters. If there are not many properties in the desired parameter of your property, the search criteria could be relaxed; however, it should be noted that the estimate based on the CMA might not be accurate, and adjustments need to be made to get a reliable estimate.

Buyer Forms:
One to Four Family Residential Contract (Resale)
A one to four is a legally binding contract between a buyer and a seller of real estate property in the state of Texas. It approves the resale of residential real estate residential properties.

Third Party Financing Addendum
A third-party financing addendum is an addendum to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that the buyer is willing to accept in order to close on the property. This sets the contingency of the sale of the property upon the buyer receiving the loan with the minimum terms as detailed in the addendum.

Addendum for Property Subject to Mandatory Membership in a Property Owners Association
This addendum is used when there is a required membership in a property owner's association tied to the property and allows the buyer to elect to receive or not receive information concerning the details of the owner's association.

Residential Buyer/Tenant Representation Agreement
A buyer's representation agreement (BAR) is a contract signed between a home buyer and a real estate brokerage for the right to represent them in a real estate transaction. The BAR outlines the terms of the agreement, including the period until which the brokerage agrees to render services to the client generally 3 months. Many real estate agents and brokers will require a signed buyer's representation agreement before showing houses.

Seller Forms:
Seller's Disclosure Notice
A Seller's Disclosure is a legal document filled by sellers detailing information the property's they are listing. This includes condition of the property, any repairs inspections and property features and appliances that are part of the property.

Residential Real Estate Listing Agreement Exclusive Right To Sell
An exclusive right-to-sell agreement is agreement between a seller and a real estate agent that grants the broker exclusive rights to collect commission when their property sells.

Almost all real estate transactions can be done electronically. Starting from making an offer on a home listed for sale to closing the deal.

Zerorets.com has made efforts to transform the real estate experience by creating a unique platform for real estate transactions. Here, buyers can search listed properties, do a complete and thorough market analysis, and make offers. Sellers, on the other hand, can list their properties in minutes. All the forms listed above can be downloaded/ viewed, and signed on the dashboard