The Buying Process

 

1) Choose The Right Agent

 Exclusive Buyer’s Agents represents the buyer 100% of the time

2) Get Pre-Approved

Banks, mortgage companies, mortgage brokers, credit unions…all will issue you a written pre-approval for financing, usually at no cost. It’s important to understand the difference between “pre-qualified” and “pre-approved.” Lenders pre-qualify buyers based on information received by them that is subject to verification. This is helpful, but it has no “teeth.” A pre-approval, however, is a commitment to make a loan subject to a satisfactory appraisal and a fully-executed Purchase & Sale Contract. It is the strongest position for you to be in when negotiating with a seller.

3) Find The Property

The search begins…you’ve chosen an agent, you know how much you can afford to spend, and you’ve found a lender who has committed to loaning you the money. Meet with your agent to discuss your needs and wants, geographic areas in which to look, and a price range that is comfortable. We ask our buyer clients to “paint a picture” so that we have an understanding that goes beyond the technical specifications of square footage, number of bedrooms and baths, and location. We program our MLS computer with your customized search criteria, scour the papers and magazines for unlisted properties (For Sale By Owners), and initiate other creative methods of locating properties that meet your needs.

Properties that meet your criteria are forwarded to you immediately via email, phone, fax, or mail for your review. If time and market conditions permit, it’s best if you drive by the properties prior to making appointments to view them. This enables you to screen locations and neighborhoods to make sure they meet your qualifications. And, we understand that your goals and objectives can change – constant communication helps us stay focused on your needs so that we can find the property that is right for you.

As your search continues and we make appointments to view properties, both pros and cons will be pointed out and discussed. Weighing all the facts--good and bad, from one property to the next--is the best way to arrive at a sound buying decision.

Finding the “right” property can take days or months. Supply and demand in our market at any given time and the scope of your search criteria will have a profound effect on the number of properties we explore. As long as you are realistic in your expectations, though, patience and diligence are the keys to success.

4) Make An Offer

Once we have found a property you wish to buy, we will complete a Comparative Market Analysis (CMA) which is an objective comparison of similar properties that have sold in the recent past. This analysis helps us determine whether or not the property is fairly priced and to then develop an overall negotiating strategy. It’s at this point that we formalize your interest in the property by making an offer – with a Purchase & Sale Contract signed by you.

This is among the most important components of the entire process, as it is crucial that you be adequately protected with the inclusion of terms, conditions, and inspection clauses that minimize your risk. All required disclosures must be included and signed. Dates and deadlines must be realistic and carefully considered. It’s a “big picture approach” that requires experience and diligence.

4) Satisfy Conditions

Once the negotiations are over and you and the seller have come to an agreement, it’s time to take care of the conditions or “contingencies” in the contract. Examples of a few typical contract contingencies are; home inspection, radon or water test, identification of property boundaries, review of covenants or easements, septic inspection, attorney review, mortgage appraisal and financing approval.

Making sure all the contingencies are satisfied, as well as coordinating, scheduling, attending, and follow-up of all inspections is part of our job…you are not expected to take care of all these details on your own. In addition, we make sure all contracts, addenda, notices, and paperwork are properly signed and/or initialed, and that all appropriate parties receive copies. The paperwork and follow-up requirements for a real estate transaction can be quite complex, thus staying on task until every "i" is dotted and "t" is crossed is critical.

4) The Closing

Just prior to the closing, there are a few final details to tend to: contact utilities to arrange for future billings to be sent to you, purchase a fire and hazard insurance policy (Homeowner’s Policy),  and make sure you have the necessary funds needed to close in the form of a certified check. A pre-closing walk-through of the property–usually the day before or the day of the closing–is an important last-minute detail to ensure that the property is in substantially the same condition as when you contracted to purchase it, and that any agreed upon repairs have been completed.

The closing takes place once all the contract contingencies have been satisfied and the lender has issued you a formal commitment for financing. On average, it's about 30 days from the original offer.

The actual closing usually takes place at a bank or a real estate office. Your agent will attend the closing. All "Closing" documents will be explained in detail. And, once all these papers are signed, you are the official new owner.