Hold up, slow down. Wait a minute. Before you buy a home in the rapid city area, there's six things. You got to know

Hey everybody I'm Tristan Emond with mindful living Realty, a realtor right here in rapid city, South Dakota. Welcome back to my YouTube channel, where I talk everything about moving to rapid city and the wonderful things about rapid city and the black Hills. Today we're gonna talk about a few things that you need to know before buying a home in the state of South Dakota, state laws, federal laws, things you need to know and understand before you signed that dotted line.

Number one, and really the heart of all of this is don't assume. Real estate varies by rules and regulations, state by state, by state. So don't assume that the way your home is sold or your home is bought in the state that you're in is the same itself. Dakota, for example, here in South Dakota, it's called dual agency is allowed.

That's when I, as a real estate agent can represent both a buyer and a seller and some states that's not allowed, but that doesn't mean that it's a bad thing here in the state of South Dakota. It is still legal at this moment. The other thing to consider is like real estate taxes here, or South Dakota, real estate taxes are paid in arrears.

So when you're paying taxes in 2021, actually paying the taxes of 2020 that were assessed in the fall of 2019. Always ask questions, ask again, verify, ask questions, make sure that you understand that, you know, the procedure that, you know, the processes that you know that everything's in place so that you don't get yourself in trouble by signing something and then realizing, oh, wait, I don't want to do that. Number two get pre-approved.

Don't assume that. Yep, no problem. I've got great. This I've got great credit. Mike comes off the wall. There'll be deal. I'll have it. No problems. Make sure you make the contact with the lender. I've got local lenders. I love to work with that will help you through the process to make sure that all of the boxes are checked.

I hate for you to find the property that you love or you realize, oh wait, we've got a five-year process to get really pre-approved here because there are some hiccups along the way that you didn't realize were an issue. Make sure you get pre-approved first. And then once we're pre-approved. Have the right attitudes and the present market of spring 2021, things are nuts.

Things are a bit crazy. You might be putting offers on a number of different properties before you actually get one accepted. Come with the right attitude. Be persistent, be patient, and be ready to hit the ground running. Number three, we can't tell you everything. I know, I really don't like this part either, but fair housing rules and regulations forbid us from talking about certain things in the area to make sure that we're not scaring you to one area or to another based upon our perception of what is good or what is bad.

As you can imagine, back in the day, there were certain neighborhoods that certain real tours where it start to shift people away from, by saying, well, the blacks are coming in. You better move. So as you can imagine, Uh, it wasn't a wonderful thing. So the fair housing acts, which are a federal national thing, came into effect to make sure that we as real estate agents, don't say, Hey, this is a good neighborhood in, this is a bad neighborhood.

I can tell you how safe a neighborhood is. I can't tell you how good the schools are. I can't tell you about the demographics of a certain area. Those things. I can point you in two directions of resources to find things, but personally, I can not tell you. Yeah, you should stay away from that area. That sucks.

Let me tell you this story to illustrate what I mean, I had a buyer in my car a few years ago and we were driving through a part of town that not every nobody appreciates or feels like it's the best part of town. And as we were driving around, he was like, this is still a big deal. I have no problem with this.

I'm from inner city, New York. So this, this is no big deal whatsoever. Now, if I would have just assumed that he didn't want to look at certain areas because. Well, you know, that's that area, then I'd be making the decision for him right now. You're giving him the opportunity to make the decision for himself on what areas he liked and what areas he didn't like.

One of the best things you can do is go to the area that you're considering at night at dark. And just turn off the car and sit in the darkness and see how you feel. Get a little bit walk around. How do you feel in this area that you're looking at? That's a great practical way to kind of get a feel of the neighborhood that you're considering.

Number four, the buyer agreement. South Dakota law says that we as real estate agents have to let you as the customer, know how we can help them. Now, if we show you more than one home, one time we are required to have you sign documents and these documents are to be what the disclosure of how we can help you.

And it also is a agreement. For us to basically, you got to hire us to work for you. This document contains a timeframe, an area, and a price point to help define where you want to look. Typically, what we're going to do is have you signed this document for a period of six months to make sure that, that we are in contract, basically with you during the whole process.

Now, this agreement gives us the real estate agents exclusive, right? To help you find a property. I understand the thought form of, Hey, I want to use as many real estate agents as possible. And the one that finds me the home well then is the one that's going to get paid. And I understand that from that perspective, but from a business standpoint, I can't be spending my time with you for 30 days only to find out that one, the one time you went with somebody else, they found you that property.

Now there are options we can deal with. In this agreement, for instance, we can make the agreement for one day. So any home that I show you that one day are the properties that I get paid for. If you purchase this. And then that works because the document then covers me for those homes have looked at that day.

So if you come to town, You started driving around, you see a few homes you want to look at and you just go ahead and call the listing agent right away and they show you those properties. And then they slide some documents at you and ask you to sign them. You could be signing an exclusive buyer agency to work with them, which is fantastic.

There are many great real estate agents here in rapid city, but if your plan was to later, meet up with me and have me show you homes. I can't do anything for you because you've signed buyer  agency with another agent. I can't step on their toes because you've already got that agreement signed with them.

And if you want it out of that agreement, you'd have to go back to them and say, Hey. Can I get out of this agreement? I want to work with Tristian and which case they may say yes, they may say no. I had one scenario where I ended up paying a referral fee to release that buyer so that I could work for them.

So be aware when you're ready to buy a property here in rapid city, you'll need to sign a buyer agency agreement with me or another realtor for us to legally show you. And work with you. Number five, it's time to talk about earnest money. All right. We've got Peter approved. You're getting a pre-approval letter in hand.

We've got our buyer agency sign and we've gone out to look at properties. We've got the right attitude. We're not talking about things we're not supposed to. And we find the property. It's time. You're writing an offer on that property. One of the first things I'm going to ask you about is how much do you want to present to the seller on for earnest money?

Now earnest money, doesn't have to be any percentage. It can be 500 bucks. It can be $5,000. It's up to you to decide how much money you want to present. Now, this earnest money is basically your way of saying, this is how serious I am about the property. So if you put in a hundred bucks, That's pretty easy to get back or lose.

Nobody really cares, but if it was $5,000, well, that's a little more heavier pill to swallow. If you end up canceling the contract and not being able to get it back in South Dakota, this is how earnest money works. It is presented at the time of acceptance and it is then cashed in the trust account of the title company or the listing and listing agency.

Then we go through the process of closing the property. If you want to cancel the purchase agreement based on something that we built into the offer, such as all of the special contingency, a home insurance contingency, or a financing contingency, you have a right to get that earnest money back. If however you decide, yeah, today is Friday and I don't want to buy a house anymore.

The seller has every right to keep that money because you broke the contract. Now, before that earnest money can be released either buyer or seller. Both buyer and seller have to sign off on it. So if there are disagreements between the buyer and the seller about who should keep the interest money and who shouldn't keep them on as money, sometimes that money can be a limbo for a little bit of time.

The bottom line here is to make sure that you put enough earnest money to make sure the seller knows that you're serious about the offer, but not so much earnest money. If that's something actually happens and you need to back out, you're not destitute. You'd have to give that money back to the seller.

Number six, and probably one of the most important ones. There is no get out of jail free card. When we put together a purchase agreement on property and we submit that offer. And it's accepted. You are obligated at that moment to fulfill the terms of the contract. There is no three days of your sin policy.

There is no I'm going to sleep on a policy. There is no get out of jail free card. If the sign, the documents and the seller has accepted, you're obligated to buy the property. I will always recommend that you get a home inspection. So you do have that there to protect you in case something does pop up, that you really feel uncomfortable with make sure when you present that offer to the center, think about how I feel when this is accepted.

If the reality is. Holy cow, I just bought a house. And now all of these thoughts and dreams of actually moving to rapid city are real. Yeah. Halt. Yes. If you get cold feet, we can certainly cancel the first agreement and ask for your emergency money back. But unless you decided to cancel based upon a contingency built into the offer, as I've mentioned before, they can keep your earnest money.

Let's make sure when you present an offer. You know, that's what you want. You know, you're going to move forward and you're ready to buy the property. There everybody there, we have it, the six things you've got to know for buying a home in rapid city, South Dakota. I hope I didn't bore you to death with rules, policies, and procedures, but it's very important stuff to understand and realize.

When you're moving into another state, don't assume ask questions, verify information, and there's no jail free card. Thanks everybody for watching. Have an amazing day to remember love where you live.