A true pearl - Dawna made the selling of our home and buying of our "new" home a truly painless and easy experience. She was involved in everything from help in preparing our home to sell to finding and negotiating the purchase of our new home. Even more amazing, as this is really my first experience in these types of transactions, she was able to keep my nerves at a low rumble.
She is a true expert in managing expectations of both sellers and buyers. I know this because we were involved in a sell and buy simultaneously.
She always seemed to have the right words to manage ruffled feathers between buyers and sellers on both ends of our transactions.
I don't believe anyone could, or would be willing, to take on all of the nitty-gritty aspects of the process, frequently leaving us to simply nod our heads yes or no as all of the myriad decisions were made.
I won't say the entire process was easy, but I will say I've never worked with a realtor who took more responsibility or worked harder to help us achieve our goals than Dawna did.
Would I use her again? You bet! Would I recommend her to a friend? In a heartbeat.
- Loan or gift from family or friends- If you are fortunate enough to have loved ones who want to assist you with your purchase, talk to your lender about the best way for you to receive and/or document financial assistance from them. In some cases this will need to be characterized as a gift and/or it will need less documentation. In all cases, your lender needs to be aware of the actual source of funds and will have specific guidelines for you to follow so you get the best loan program for you. Alternative: You could consider joint ownership in a partnership with your family/friends, so they get some benefits of property ownership as well. There are many things to consider with partnerships; refer to tax and legal counsel for more information and see Davies Top 5 Tips on Owning Property with Friends.
- Proceeds from sale of other property or asset- If you have another property or asset, it may be sellable or financeable so that you can create more cash for your purchase. In all cases, the closing costs for the sale of the property or asset should be considered and deducted from the potential proceeds. Alternative: You can use a tax-deferred exchange from other real estate. This process requires guidance from tax and legal professionals, along with strict time periods and limitations.
- Increased loan amount from your lender- There are some attractive loan programs for as little as 3-5% down. 20% down is not the only way to purchase your property. You might be able to borrow more of the purchase price, through a different loan program with the lender. This could leave more of your current cash assets intact. Some loan programs may allow for no down payment, with restrictions. Loan alternative: Seller financing. See our Davies Top 5 Tips for more info on Seller Financing.
- Seller credit to buyer- The costs for a home purchase are beyond your down payment. We estimate 2% of the price of the property in closing costs, in addition to the down payment. If you expect to get a loan and/or have repairs that you intend to make, there may be an opportunity to negotiate with the seller of the property to give you a credit towards the closing costs. Be aware, your loan provider will have limitations on the maximum amount that you can receive from the seller. Your agent should be aware of this and assist with gathering this information.
- Savings- This is the most traditional way to purchase real estate, but having enough savings will increase your options with other types of purchases.