MY DUTIES AND RESPONSIBILITIES AS A SALES REPRESENTATIVE TO YOU

I will...

work on your behalf

disclose all pertinent facts that may or may not affect you

find the proper answer from another source if required information is beyond my competence and knowledge

obey you within the law

research qualified property to assist you in locating the right property

advise you on matters that may protect your interests (i.e. neighbourhood, influences, patent defects, stigmatized property, grow house disclosure, etc.)

advise you on the need for obtaining the assistance of experts and professionals (i.e. home inspectors, lawyers, etc.)

assist you in obtaining competent financial personnel to provide financing (if required)

assist in evaluating the market to help determine a negotiating position and provide you with facts that may influence decisions

maintain the confidentiality of all personal information unless otherwise instructed to disclose (i.e. money, motivation and agreements)

use my knowledge and skills to protect your interests

provide you with sample forms that will be used in the buying process and explain them to you in plain language 

advise you in the drafting of the Agreement of Purchase and Sale on properties that you decide to make offers, including all terms and conditions that protect your interests but always in accordance with your final instructions

negotiate on your behalf with the Seller through their Sales Representative

provide further assistance in the completion of the transaction after the Agreement to Purchase has been completed

Qualifying

“Mr. and Mrs. Buyer, have you talked to anyone about what you can afford in the purchase of your new home? There are several reasons this is important to you as Buyers:

1.         To fully understand how much money is required to close your house deal. You don’t want any surprises or legal hassles.

2.         To make sure Salespeople are showing you homes you can afford. For example: mortgage lenders will use 30% of your gross income. Let’s assume you make $100,000 a year.

            30% of $100, 000                 $30,000
            Taxes                          -           $ 6,000
            Balance                      —       $24,000

Or $2,000 a month for mortgage payments. This will allow us to establish the amount of mortgage.

Then taking the mortgage information and amount of money you have minus closing costs we can establish the price range you can afford.

As part of this equation the lenders also consider your monthly debts. Example: car lease payments, credit card payments, loan payments. They really are only interested in your monthly payments not the total amount of the loan. The lenders use 37% to 40% of your gross income for this calculation:

            40% of $100,000       =         $40,000

            Taxes                          -           $ 6,000

            Monthly Debt in year -          $10,000
            Leaves                                   $24,000

Or $2,000 a month for mortgage payments.

The $2,000 a month at 6% interest with 20 year amortization will carry approximately $280,000 mortgage loan.