The Process of Buying a Home

You are ready and committed to move out of your current situation whether you are renting or living with mom, friend, or ... First thing to be aware of is this is not exactly like buying anything else.

Understanding these steps will help you gracefully move to your own home. Let's get started! Video version above for those of you that prefer watching/listening. Reading version below...

1. Let's Meet! Yes, it's takes a chunk of your life to meet up, but it's important to sit down and discuss your goals. At this meeting, we will focus on what you are hoping to find on the market and time for you to ask questions about the home buying process. Hiring an agent does NOT cost you money for representation. Depending on who you hire... it will cost you a broker admin fee which you pay during closing. But, the 2.7% of the price of the home is currently being paid for by the SELLER. However, there are always exceptions and you want to make sure the agent you hire explains any fees before you move forward with them. You want to hire someone you feel is going to represent you. They not only write the contracts, but help you with issues that arise (if they arise) during inspection, appraisals, title or any other concerns. 

2. Get pre-approved: Yes, unless you plan to buy a house in cash (I mean the whole price, not a monthly payment)...then you are going to need a loan like most of us. There are a few factors lenders take into consideration to qualify you for a loan. As a real estate agent, I do not pretend to know the full details, but there are many, many lenders to choose from. I would recommend talking to 3 before choosing 1. 

Contact me if you want a few lenders. It's hard to house shop if we don't know your max dollar amount.

Most agents are not going to show you homes simply because you want to shop. Agents are busy. You are busy. Open houses are best if you are just exploring the idea of moving. And more importantly, remember every single time an agent opens the door...a few things have happened to make that possible:

- Most likely the seller cleaned and prepped the house for you.

- Had to leave (maybe with a baby or dog or both in hand)

- Most importantly, they are making a proper assumption that you are ready to move and are financially qualified to come into their private property. Apart of my job is to respect sellers homes and time.

3. Shop. Most agents are going to want to meet you at the address for a variety of reasons. It's nice to focus on a certain location and see more than 1. However, inventory, pressure of time, etc will dictate these details of how many homes you can see at a time.

4. Write an offer. This is a legal document that your agent will fill out on your behalf. Most agents will have you sign electronically unless you can't. These days we work via email, so once you sign all docs...it's sent with your pre-approval letter from your lender OR your proof of funds (if you are buying with cash).

5. Negotiations. Everyone has 3 choices. Accept, refuse, or counter. You write the best offer you can and feel is fair. Your agent will guide you on current market conditions so you know how aggressive you should be to "win" the house.

6. Inspection: As soon as we get a "yes" we set up an inspection. Typically the inspector needs a few hours and we meet them at the tail end. You can ask questions & determine which issues are concerning. Hopefully you won't want to walk away from the house at this pt, as the inspection can cost $300-500+. You want to only focus on issues that were not obvious when you did a walk through and/or safety issues. So for example, if there was a hole in the wall. You don't ask for that repair because it was obvious when you did the walk through, but if there is a major HVAC, roof or plumbing issue the inspector reveals...we potentially discuss that with the seller before moving forward.

7. Behind the scenes your lender is ordering an appraisal to evaluate if the home is worth what your accepted offer states. Title is doing searches to see if there are any issues on the address. And the seller might be doing requested repairs if they came up during your inspections.

8. Appraisal: You will not attend this as a buyer. An appraiser will physically go out and check out the home. They will decide what they feel the home is worth. IF there is a discrepancy between what the agreed upon offer was and what they decide the house is worth; it now must be addressed between you and the seller. Sometimes the seller will drop the price to match the appraisal. Sometimes the buyer pays the difference. Sometimes buyer and seller meet 1/2 way. It could be another set of negotiations. It is nothing to worry about, but when houses are going 10-20K above asking...it is something to be aware of as a smart buyer.

9. Closing - Typically we meet at a title company with the seller and their agent. This is where a monster pile of paperwork is signed, keys are passed over and sometimes last minute discussion about the home are shared. 

10. Moving day - Sometimes people move on closing day. Sometimes not. The house is yours! Paint, get new flooring...it's all yours to make those decisions.