Buyers Tips

Rent or buy?
Buying Tips

Ten Steps to Buying
Working With an Agent
Finding The Right Sales Associate For You
How Much Can I Afford?
The Benefits of Equity
That Wonderful Thing Called A Tax Break
Pre-Qualification vs. Pre-Approval
Making the Right Offer
Home Inspection and Insurance
Title Insurance and Closing

Seller Tips

Six Steps to Sell
Working With an Agent
How We Help Sell
Tips for Selling Your Home
Accepting an Offer
Closing

Rent or buy?

With every rent check you write, you’re helping to build equity in your landlord’s property. That money could be going toward building equity in a home of your own. Today’s rates are low enough that your house payment could be lower than your rent payment!

There are many advantages to owning a home, including:

Security: A feeling of security that comes from owning a home and the knowledge that your home is a safeguard against inflation.
Investment: Payments on your mortgage loan mean you are acquiring a major possession; instead of rent, you own more and more. The garden you plant, the permanent improvements you make - all enhance your way of living as well as the value of your home.
Tax Advantage: Your real estate taxes and the interest on your mortgage are deductible from your income tax.
Financial Independence: Most people start on the road to financial independence through home ownership. Your principal and interest payments remain the same for the full term of your mortgage while your rent usually goes up as the cost of living increases.
Environment: Your children grow up in the neighborhood of your choice.
Cash Equity: Better than a savings account, your home can appreciate to keep pace with inflation.
Satisfaction: Home ownership offers special advantages that make life more enjoyable - backyard barbecues, large family gatherings during holidays, a home workshop, a chance to enjoy your family's companionship in the privacy of your own home.

How much home can you afford?

Our handy calculators or a Southern Group Mortgage Consultant can offer you valuable assistance in determining how much home you can afford and how much you can borrow.

First Time Home Buyer? Go to Southern Group’s 10 Steps to Buying A Home.

BUYERS TIPS

Ten Steps to Buying

Here’s a quick look at the steps you’ll take when buying your first home with Southern Group:

Determine how much home you can afford. You can do this by using our Finance Center Tools.
Conduct a preliminary search with Southern Group’s Home Search. You may even want to save some of your searches and schedule home showings online.
Contact a Mortgage Consultant and get your mortgage pre-approved.
Contact a Southern Group Sales Associate to look for a house that meets your needs.
Once you find a home on which you want to make an offer, you’ll sign a purchase agreement and give the seller earnest money to seal the deal. If your offer is accepted (sometimes with contingencies), determine a date you wish to close.
Have your new home inspected to ensure there’s nothing seriously wrong with the property. It’s also a good idea to get homeowner’s insurance to protect yourself against any unforeseen calamity.
Notify your loan officer that you’ve found a property so they can begin the appraisal and title process. And, lock in your interest rate. Your loan officer will send you a new good faith estimate which shows your monthly mortgage payment as well as your estimated cash needed for closing. The title company will notify you of the time and date you close on your home and the items you'll need to bring to closing.
Notify your phone company, utilities (don’t forget water and sewer), moving company, post office, newspaper and magazines, friends and family (see our moving checklist) and change your mailing address.
Pack and move!
Relax!

Working With an Agent

Sure, you can do your home search by yourself. But why? With an experienced Southern Group Sales Associate at your side, finding the perfect home is easier, faster and a lot more fun. A good Realtor® can show you more suitable properties, offer valuable advice, and coach you through the entire home buying process. And you’ll save time. Yet many buyers still spend endless hours pouring through classified ads, driving all over town, and viewing dozens of unsuitable properties - simply because they haven’t connected with a Realtor®.

Some people think that if they have several agents looking for homes on their behalf, they’ll find a house more quickly. Like most relationships, the buyer-agent relationship thrives on communication, loyalty and trust. By working exclusively with one agent, you’ll improve both the process and the results.

Finding The Right Sales Associate For You

Chemistry is important. So are credentials. Above all, you’ll want a well-trained agent who has the resources of a leading real estate firm behind him or her - a firm such as Southern Group.

Some helpful hints on finding and working with a Realtor®:

Ask friends, family members, neighbors or co-workers for referrals.
Trust your intuition.
Share with your Sales Associate as much as possible about your lifestyle, tastes, needs and dreams for your home.
Focus your search on a few geographic areas.

How Much Can I Afford?

Figure Out What You Can Spend – Then Start Home Shopping!

It’s a good idea to figure out how much you can afford and get pre-approved for a mortgage before you start home shopping. Before you go out looking for a home, you can get an idea of what you can afford by using our Finance Center Tools. This handy tool will help you estimate how much mortgage you can handle.

Another thing to consider is your down payment amount. Think you can’t buy a house without a 10% or 20% down payment? Thanks to more lenient government guidelines and new mortgage products, many people can now get into a house for as little as 3% down-or less. There are even some special programs for first-time buyers that help with closing costs.

The Benefits of Equity

Equity is the principal part of your monthly payment that you can use as a down payment on a new home, or collateral for a home equity loan. You can use a home equity loan to finance home improvements, a child’s college tuition, or a new car.

Real estate is also a great way to keep a hedge against inflation. While some homes do appreciate in value more quickly than others, real estate usually keeps pace with inflation. In fact, homes in general have been appreciating at a steady 3% a year.

That Wonderful Thing Called A Tax Break

As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment, and that can mean big savings. You can deduct your property taxes, too.

So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it’s about the same as-or sometimes even less-than a rent payment!

Pre-Approval vs. Pre-Qualification

Be aware that the terms “Pre-Qualify” and “Pre-Approval” do not have a standard definition in the mortgage lending industry and are many times uses interchangeably. In some cases, a “Pre-Qualification” with Lender A is the same thing as a “Pre-Approval” with Lender B or vice versa. Because of this, our information below combines the terms into “pre-approval/pre-qualification” in order to lessen confusion for you, the consumer.

In general terms, it means a lender feels you can borrow a given amount under the rules for a particular loan program.
People interested in buying a house can often approach a lender, who will check their credit and verify their income, and then can guarantee they would be able to get a loan up to a certain amount.
When shopping for a home, a letter from the lender stating how much you are approved or can qualifiy to borrow can possibly give you an advantage over others because they can show the Seller that you are not only serious but guaranteed to be able to buy the house.
The process determines how much money a prospective homebuyer or refinancer will be eligible to borrow prior to application for a loan. A pre-approval/pre-qualification includes a preliminary screening of a borrower’s credit history.
You want to pre-qualify before you enter the marketplace so you know how much house you can afford.
The pre-approval/pre-qualification process helps Buyers better understand what they can afford, and it also helps in the negotiating process.
Now is the time to get as much of this process done. Waiting until you have already engaged into a contract only puts more unwanted and unneeded pressure on an already potentially stressful situation.
If you pre-approve/pre-qualify with a lender, you do not have to use that lender.
Some lenders charge to pre-qualify, most do not.
In a pre-approval/pre-qualification, lenders will look at your income, debts, available cash, and credit.
Many lenders will run a credit check as part of this pre-approval/ pre-qualification process.
To give you a firmer commitment to your lending, a lender may contact the borrower’s employer, bank and other places to verify all claims of earnings and assets. In return, the borrower receives a letter stating the lender is willing to grant a mortgage for a specified amount, within a limited period of time.
A lender will then provide a pre-approval/ pre-qualification letter showing how much it is believed that you can borrow. Most pre-qualification letters are NOT absolute loan commitments, but instead show that you have spoken with a lender and now have a reasonable estimate of your borrowing ability.
Information submitted during pre-approval/pre-qualification is subject to verification at application.
The more guarantee a Mortgage Lender can give you, in most cases, means more scrutiny into your personal credit related information in order obtain your ability to borrow in advance. This simply mean that more of the researching into your personal credit related information is done sooner (in advance) rather than later.
The better guarantee a lender can offer you the better advantage you will have over other Buyers from the Sellers perspective.
Show the Seller a pre-approval/pre-qualification letter and it's clear that you have a reasonable ability to finance a given level of debt.
No matter what it is called, pre-approval or pre-qualification, the better guarantee a Mortgage Lender can provide you, the better guarantee you can provide a Seller that you can and will buy their house.

Making the Right Offer

Time for nervous anticipation. You’ve found the home you want, and your Southern Group Sales Associate says you need to act fast. Yet you want to be as calm and objective as possible. The expertise a Southern Group Sales Associate can give you at negotiating time is priceless.

Be prepared for counter offers. Don’t let the pressure get to you. Remain patient, and let your Southern Group Sales Associate act as your liaison with the seller or the seller’s agent. You may need to be flexible on price, closing date, appliances and repairs.

Contingencies

Beware of putting contingencies in your purchase agreement. They weaken your offer. However, if you currently own a home, your offer may need to be contingent on it selling. Or, if you’re uncertain about the structural integrity of the home, you may want to have a home inspection contingency. Just be aware any contingency could take you out of the running if a non-contingent offer is presented.

Negotiating The Buy

The expertise a Southern Group Sales Associate can give you at negotiating time is priceless. Be prepared for counter offers. Don’t let the pressure get to you. Remain patient, and let your Southern Group Sales Associate act as your liaison with the seller or the seller’s agent. You may need to be flexible on price, closing date, appliances and repairs.

Beware of putting contingencies in your purchase agreement. They weaken your offer. However, if you currently own a home, your offer may need to be contingent on it selling. Or, if you’re uncertain about the structural integrity of the home, you may want to have the contingency of a home inspection. Just be aware any contingency could take you out of the running if a non-contingent offer is presented.

Earnest Money

Once your offer is accepted, be prepared to seal the deal with earnest money. Earnest money is usually a percentage of the home’s purchase price that indicates you’re serious about the purchase and indicates your good faith. It’s generally applied to the purchase price when you complete the purchase, but may be forfeited to the seller if you fail to complete the purchase. Contact your Sales Associate to determine the amount of earnest money you should be prepared to pay based on your target home price.

Many first-time buyers are taken by surprise when it comes to earnest money, especially if they have to make a fast offer. Be sure to discuss with your Sales Associate the appropriate amount of earnest money you should be prepared to pay based on the price range of properties you’re looking at. You should have this amount available in your checking account so you can write an earnest money check on the day you sign your purchase agreement.

View some of our Home Buying Tools and get started on your home search.

Home Inspection and Insurance

“Beauty is only skin deep” is especially true for houses. A fresh coat of paint or new carpeting may disguise serious flaws. That’s why you want to make sure a professional inspects your new home. And to protect your most valuable investment, be sure to have homeowner’s insurance.

Homeowner’s Insurance

Your home typically is the single biggest investment you’ll ever make and by protecting it with homeowner’s insurance you’ll have financial protection against the unexpected. Aside from protecting your home and your possessions, it provides you with liability coverage.

Obtaining quotes for homeowner's insurance is easy with HomeServices Insurance!

Home Inspection

A professional home inspector surveys of the foundation and structure, roof, exterior, major systems (electrical, heating, cooling and plumbing), and appliances that will stay with the home.

Tour the house with the inspector, who will point out potential trouble areas, as well as what’s “sound.” If the inspection does turn up some flaws, a seller is often willing to make repairs, but it may depend on market conditions.

Take notes as you tour. Get the inspection report in writing. This document will support or deny the contingency addendum to your agreement.

You can add a home inspection contingency to your purchase agreement. This requires the seller to make legitimate repairs - or if the seller is unwilling to do so, it allows you to cancel your agreement.

An inspection may take a few hours and cost a few hundred dollars, but it can save you time and headaches in the long run. Your Sales Associate can recommend a professional inspector or you may want to look into homes that are inspected prior to sale and are warranted through Southern Group Warranty.

Title Insurance and Closing

A title is the document that verifies your legal right to your new home. Closing (also called the settlement) usually takes place at a title company. Your real estate professional will help coordinate a convenient date for you and the seller.

Understanding Title Insurance

There are two kinds of title insurance - a lender’s title policy and an owner’s title policy. To protect their interest in your property, mortgage lenders require buyers to purchase a lender’s title policy. But a lender’s title policy doesn’t protect your interest as the homeowner.

For this you need an owner’s title policy. This policy pays for all court costs and related fees associated with any claim that might come up. Also, if a claim is found to be valid, your actual loss-up to the face amount of the policy-is covered.

What To Expect At Closing

Many people may attend the closing: you, your Southern Group Sales Associate, the seller (or builder) and their real estate agent, and an escrow agent (closer) from the title company.

During the meeting, which usually takes an hour, you and the seller will review all of the relevant closing papers, many of which you'll sign. Then, after providing a cashier's or certified check for the down payment and closing costs, the keys are passed to you and the house is yours!

What To Bring to Closing

In the rush of excitement of owning a new home, don't forget to bring these following itemswith you:

A photo ID.
A list of your addresses for the past 10 years.
A certified check, made payable to yourself, for the amount specified in your most recent Good Faith estimate you received from your loan officer or lender. This usually includes the balance of your down payment (subtract the earnest money you paid when your offer was accepted), and fees for other services.
Your personal checkbook so if other charges come up, you can write a personal check to cover them.
Your homeowner’s / hazard insurance binder with proof of one year’s payment (usually a receipt).

SELLERS TIPS

Six Steps to Sell

Just Six Easy Steps and You’re Moving Out!

Here’s a quick look at the steps you’ll take when selling a home with Southern Group:

Contact an Southern Group Sales Associate to list your home. He or she will be able to expertly assess its current value so your return will be optimized.
Fix and clean up those items or areas that need improvement to maximize your home’s exterior curb appeal and interior charm.
Get your home warranty and inspection done up front. When your home sells, it’s likely that the sale will be subject to an inspection. By providing an initial inspection and warranty with Southern Group’s Warranty program, the buyer can feel confident and worry-free about buying your home-and you selling it.
You and your Sales Associate will work together to consider - and then negotiate with potential buyers - purchase offers on your home. Once an offer is accepted, you will both work with the buyer’s agent to schedule a closing date and time.
Notify your phone company, utilities (don’t forget water and sewer), moving company, post office, newspaper and magazines, friends and family. Check out our Utility Directory of service providers to help you with this process.
Pack and move!

Working With an Agent

Finding The Right Sales Associate For You.

Chemistry is important. So are credentials. Above all, you’ll want a well-trained agent who has the resources of a leading real estate firm behind him or her - a firm such as Southern Group.

Some helpful hints on finding and working with a Realtor®:

Ask friends, family members, neighbors or co-workers for referrals.
Trust your intuition.
Share with your Sales Associate as much as possible about your lifestyle,tastes, needs and dreams for your home.
Focus your search on a few geographic areas.

How We Help Sell

Capturing Qualified Buyers and Creating Effective Marketing!

Selling your home is a team effort. Go over the marketing plan your Realtor has designed for your property and the special programs and services he or she has to offer. By exposing your home to the broadest possible audience through a coordinated marketing plan, you’ll have a better chance of attracting a qualified buyer.

Special Programs to Help Your Home Sell

AHS Warranty - This program protects the seller during the term of the listing and offers both the buyer and seller future peace of mind.

Marketing with Results - Southern Group offers you better sales tools, more marketing muscle, and a more personal approach to business than any other company.

Here are just some of the marketing tools a Southern Group Sales Associate can offer you:

Internet: Home buyers can conduct a customized search for their dream home at their convenience, save property searches and even get email notifications of new listings.
ShowingTime: Home buyers can schedule home showing appointments online.
Property Photos: Southern Group's web site offers sellers the option to load many more property photos than offered in the regular MLS software.
Advertising: Southern Group pioneered the concept of advertising online, in major newspapers and magazines throughout the state property and when necessary billboard advertising. Our approach is to ensure your property is presented to thousands of potential buyers.
Open Houses: Sometimes people want to look on their own. Our open houses are a perfect way for them to be introduced to your home.
MLS: Your home is entered into the MLS - a computerized service for Realtors® - that provides up-to-the-minute information about thousands of listings to all area agents and their qualified buyers.
“For Sale” Signs: Our red and white yard signs are prominently displayed throughout the metro Birmingham area - a well-recognized endorsement of the company’s commitment to quality and integrity.
Home Profiles and Direct Mail: Professionally produced marketing tools will highlight key selling points of your property.
Extensive Network: Includes more than 20 offices in Alabama. We represent more buyers and sellers than any other company in our market.

In short, all of our benefits to you add up to one word: “Sold.”

Find the right Southern Group Sales Associate – one who is an expert in your ideal neighborhood and fits your lifestyle.

Tips for Selling Your Home

Curb Appeal and Neatness Counts!

A mowed, trimmed lawn and weeded garden create a good first impression. Inspect the exterior of your property: Shutters, windows, front door and steps. If the house needs painting, buyers will notice and may consider it a major objection to purchase.

Neatness Counts

Scrub each room thoroughly. Give special attention to the entryway, kitchen and bathrooms. Shampoo the carpet if necessary. If carpet is worn or old, consider replacing or removing it if hardwood floors are underneath. And don’t forget cobwebs in corners, basements and attics!

Eliminate Clutter

Buyers will open closets and cupboards, so make sure they’re as tidy as possible. Get rid of items you don’t use. Remove unnecessary furniture to help make each room appear more spacious.

If It’s Broken, Fix It

Easily fixable items such as loose doorknobs, a broken dishwasher, a dripping faucet, and squeaky doors all detract from your property’s value. An afternoon spent making needed repairs now can eliminate a buyer's objections later.

Small Changes Can Make A Big Impression

Pillow and/or new towels can freshen a tired kitchen or bath. Fresh flowers add warmth to any room. And even a fresh coat of paint doesn’t cost much.

Don’t Forget About Aromatherapy

Make sure your home passes the scent test. Right before an open house, bake some cookies or bread, simmer a pot of apple cider & cinnamon on the stove, or light a few scented candles. Strong odors could send potential lookers running out the front door.

Get Some Help Fixing Up

If your time is limited, but you feel a quick fix could dramatically change a potential buyer’s perspective, call an expert. Invest a little, and go further.

20 Tips to Prepare Your Home for the Market

As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you’ll help your Southern Group Realty Sales Associate sell your home faster, at the best possible price.

The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.

Make the Most of that First Impression. A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
Invest a Few Hours for Future Dividends - Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. If you’re worried about time, hire professional cleaners or painters to get your house ready. Remember, prospects would rather see how great your home really looks than hear how great it could look “with a little work.”
Check Faucets and Bulbs - Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing. Burned out bulbs or faulty wiring leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
Don’t Shut Out a Sale - If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
Think Safety - Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
Make Room for Space - Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
Consider Your Closets - The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
Make Your Bathroom Sparkle - Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats, and shower curtains.
Create Dream Bedrooms - Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
Open up in the Daytime - Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
Lighten up at Night - Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
Avoid Crowd Scenes - Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they’re likely to hurry through. Keep the company present to a minimum.
Watch Your Pets - Dogs and cats are great companions, but not when you’re showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
Think Volume - Rock-and-roll will never die. But it might kill a real estate transaction. When it’s time to show your home, it’s time to turn down the stereo or TV.
Relax - Be friendly, but don’t try to force conversation. Prospects want to view your home with a minimum of distraction.
Don’t Apologize - No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home’s appearance, let your experienced Southern Group Realty Associate handle the situation.
Keep a Low Profile - Nobody knows your home as well as you do. But Southern Group Realty Sales Associates know buyers - what they need and what they want. Your Southern Group Realty Associate will have an easier time articulating the virtues of your home if you stay in the background.
Don’t Turn Your Home into a Second-Hand Store - When prospects come to view your home, don’t distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
Defer to Experience - When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your Southern Group Realty Sales Associate.
Help Your Agent - Your Southern Group Realty Associate will have an easier time selling your home if showings are scheduled through his or her office.

You’ll appreciate the results!

Accepting an Offer

Accept, Don’t Accept, What to do?

Someone has decided your property is just right––and makes you an offer. When your Southern Group Sales Associate conveys the offer to you, you’ll know whether the price the buyer has suggested is fair. It may be less than your asking price. Yet you don’t have to reply immediately if you’re not certain the price and terms are acceptable.

Consider the current real estate market: Are houses in your neighborhood selling quickly, slowly or not at all? Don’t assume that one offer will lead quickly to others. One predictable factor in the real estate market is that it's totally unpredictable

Finding a Compromise

If you and your potential buyer are far apart, you could offer a few concessions such as appliances or a security system, or make some improvements prior to closing. You could also guarantee the condition of your home with a seller’s inspection and warranty program with Southern Group Warranty.

Drawing Up a Purchase Agreement

Your purchase agreement will include:

The total price.
The amount of the down payment.
The date the closing will take place.

When completing the agreement, provide as much detail as you can about what’s being sold and what’s not. The more fully you spell out the details of the sale, the less room there is for problems later.

Most buyers insist that a provision for cancellation without penalties is included to protect them if they’re unable to get a mortgage, or the home inspection uncovers major problems. They might also ask you to make your sale contingent on the sale of their current home. Delays happen frequently, so expect to do a little waiting before your agreement is finalized.

See our Closing information to understand the closing process.

Closing

What to Bring and Who to Bring

Many people may attend the closing: you, your Southern Group Sales Associate, the buyer and their real estate agent, and an escrow agent (closer) from the title company.

During the meeting, which usually takes an hour, you and the buyer will review and sign all of the relevant closing papers. Then, after the buyer provides a cashier’s or certified check for the down payment and closing costs, you pass the keys to the new owner and the net proceeds of the sale is yours.

What to Bring to Closing

In the rush of selling your home, don’t forget to bring these following items with you:

Keys and garage door opener(s).
Code compliance.
If more than one owner, both owners need to attend.
I.D.