The Homebuying Process

Select a Realtor

If you are not working with a Buyer’s Agent, your interests are not being represented. Unless a realtor is acting exclusively on your behalf, they are legally obligated to represent the seller’s best interests– not yours.  Buyers do not pay any broker’s fees or commissions. Working with a Buyer’s Agent is a free service for YOU.

 

Lender Pre-approval

Your Buyer’s Agent can refer you to a local lending institution. You will speak with a loan officer who will pre-approve you for a loan. All prospective home buyers must be pre-approved by a lender before looking at property.

 

Needs Assessment

Your Buyer’s Agent will discuss your needs and preferences and search for properties that meet your criteria. A Buyer’s Agent can show you any property on the market listed by any real estate company or individual.

 

View Properties

Your Buyer’s Agent will set up appointments and accompany you on a tour of selected properties. Normal times for viewing properties are between 9am and 7pm daily and on weekends.

 

Making an Offer

When you have found your dream home, your Buyer’s Agent will prepare a contract and all necessary paperwork to make the offer. When making an offer you will need an earnest money deposit. This can be a personal check made out for an amount of at least $5000. This is legally required. Higher earnest money deposits show the seller how serious the buyer is.

 

The Contract

Your buyer’s Agent will present the contract to the seller and negotiate on your behalf. The seller has several options: to accept your offer as written, write a counter offer or reject your offer.

 

When the Offer is Accepted

The property is taken off the market and considered under contract.  Your earnest money check will be deposited into an escrow account until the closing where it will be credited toward your down payment.

Home Inspection

If the contract has been written with a home inspection contingency, your Buyer’s Agent will set up an inspection with a licensed inspector. Usually the cost is about $250-$600 depending on the sales price. An inspector will check systems, appliances and structure of a property looking for damage and potential problems. At the end you will be provided with a written report.  If any major defects are found you may ask the seller in writing to correct them. If an agreement cannot be reached between buyer and seller, the buyer may be released from the contract and the earnest money will be returned.

Termite and Appraisal

Your Buyer’s Agent will coordinate a termite inspection and bank appraisal of the property prior to settlement.  The property must appraise for the sales price. Otherwise the price will have to be lowered. If the seller refuses to lower the price, the buyer may add the difference between appraised value and sales price to their down payment or cancel the contract and get their deposit back.

 

Final Walkthrough

On the day of settlement, your Buyer’s Agent will accompany you on a walkthrough of the property. The purpose is to make sure that everything is in normal working order and in the same physical condition it was in at the time of the contract acceptance.  The attorney at the settlement will address any problems or issues that arise.

 

Settlement/Closing

Buyer, Buyer’s Agent, seller and seller’s agent will meet at an attorney’s office to sign paperwork and hand over keys.  The Buyer will need a certified check for any remaining down payment or closing costs.  After settlement is completed the buyer is free to move into their new home