Steps Involved In Buying A Home
Steps Involved In Buying A Home
The Initial Step
Here are a few questions you need answers to prior to meeting with an agent:
¨ When do you want to be settled?
¨ If the closing date had to be sooner or later than this date, would be a problem?
¨ Who will be involved in the decision making process?
¨ Do you have a lease or any other long-term obligation that needs to be reviewed?
¨ What are your financial strengths and weaknesses?
¨ If you currently own a home do you need to sell it first or buy first`?
Arranging a Meeting with a Real Estate Agent
The purpose of this meeting should be to learn about the various forms of representation available to you. Once you have decided how you want to proceed, you should allow us to qualify your financial ability and discuss a price range you feel comfortable with.
We can then:
¨ Acquaint you with the homes on the market and those they know of coming on the market
¨ Acquaint you with housing values
¨ Help you make selections
¨ Make arrangements to see the properties you select
¨ Assist you with the paperwork
¨ Present the offer
¨ Manage all the details through the closing
Real estate agents sell 83% of all the homes sold. You should prepare to interview your real estate professional to assess their knowledge of the market area you are interested in. If the interview is successful, be prepared to make a commitment to work exclusively with that agent.
What you really want is a relationship. Your agent will then represent you as a client where Confidentiality, Loyalty, Care, Accountability and Diligence are required. Now you can feel free to discuss any and all matters regarding your real estate transaction with your agent.
Be sure to ask for a written agreement with your agent.
Establishing Your Price Range
This is one of the most important items to be addressed. While we do not want to sell you a home at the top of your price range, we do not want you to fall in love with something that is beyond your current means. We understand that your financial situation is personal, so we will provide you with some lenders we have had great success with in the past to answer your questions expertly and help you determine the price range that you qualify for as well as one that fits your budget.
We will discuss the following with you :
¨ The Advantages of being Pre-approved
¨ The Difference between Pre-Qualified and Pre-Approved
¨ Choosing the Correct Loan for you
¨ What a Lender Requires
Many buyers have a wish list that extends well beyond their means. The most successful buyers pick a primary feature they cannot live without and add several more features they would really like to have.
¨ What do you want in a home?
¨ Why do you want these things?
¨ What is your lifestyle like?
¨ What equipment, cars or other items do you need to store?
¨ What about children and pets?
Selecting and Looking at Homes
How many homes should you see? Keep in mind we do not own any of the homes you will see so feel free to discuss what you like and don’t like about each home. That way you can narrow the search down and find the home that’s right for you quicker.
¨ If you are buying an existing home you can’t expect perfection. Most of the problems you see are going to be cosmetic and can be changed. Focus on the permanent characteristics and the condition of the home.
¨ When you find the home you want to buy, you will have the right to have the home inspected by a qualified professional of your choice.
¨ The most important area of concern should be the homes location in relation to your lifestyle and needs. Location is the only thing that can not be changed.
¨ When you finally find the home you get a feeling for, be prepared to make a decision. You can be sure that no matter how long a home has been on the market, someone else will probably want to write an offer at the same time you do.
¨ Once you make the decision to purchase it’s time to move on to one of the more important steps in the process.
Preparing an Offer
We will help you with this process, serve as an advisor and provide solutions that will lead to an agreement.
¨ Keep in mind the final decisions that lead to an agreement should be made by you.
¨ It’s not the REALTORS role to make decisions for you. We should only provide you with the facts, feedback and anticipated outcomes.
¨ As you prepare to offer price, terms and conditions remember your goal is to secure the home and establish a win-win situation that will result in mutual satisfaction.
¨ It is possible that other buyers may submit other offers at the same time you do. In a situation like this you are competing against other buyers. We will make you aware of this fact so you can structure your offer accordingly.
Items to Consider when writing an Offer
¨ Earnest Money Earnest money is a sign of your commitment level and 1 of 3 most important items from the Seller´s Perspective.
¨ Personal Property Always specify, never assume. Remember you are attempting to purchase a home, not it’s contents
¨ Closing and Possession Dates and Financing Terms Sometimes timing may be more important than money.
¨ Other Conditions Contingencies such as selling your home first, home inspections, provisions for a home warranty, etc.
Presenting Your Offer
We will make all the arrangements with the Selling Agent concerning presenting the offer.
¨ It’s normal to feel some anxiety at this point, but remember the better your offer, the better chances are that the seller will accept it.
¨ The ball is now in the seller´s court. The following page illustrates the possible outcomes of your offer.
¨ Be aware of the Pendulum Theory. An aggressively low offer could emotionally involve the seller causing a return to or near full price counter.
Once the offer is accepted
We will begin a long complicated process that will end in a successful closing. During this phase an average of 46 people will become involved and generate over 100 documents. It is important that everyone including you know what to do and perform your tasks quickly and accurately. We will keep you updated and current on events that could affect your closing
¨ Schedule closing date
¨ Home Inspections
¨ Repairs (if required)
¨ Final Loan Approval
¨ Schedule a final walk thorough
¨ Your job is to be at the closing table on time with the proper amount of certified funds.