Whether it´s your first home or your last home, here are a few important things to know as you start the Buying Process:

Step 1

n      Find a good, experienced Realtor that you feel comfortable with. Why?
n      As a Buyer, having your own Agent does not cost you anything. Sellers pay commissions and they pay the same amount whether the Buyer has their own Agent or not. Also, your Realtor is legally responsible for representing you, not the seller. So, having an Agent represent you is not only free but it guarantees you the best possible representation as you go through the buying process.

 
Step 2
n      Before you look, find a mortgage banker and get pre-approved. Why?      This provides you with a price range for your new home. This will let you know how much you can comfortably afford to pay for your new home.
n      You will know whether or not you will need a down payment.
n      You will know which financing program is best for your situation.
n      You know approximately what your payment will be for the new home.
n      When you are looking at homes, you will be prepared to complete a Purchase Agreement should you find that "ideal home".

Step 3
n      Upon locating an Agent you feel comfortable working with, you should sign an Agency Relationship contract to solidify the working relationship with the Agent.

 

n      This contract is called an Exclusive Right to Represent

n      This agreement is a legal contract that outlines the duties owed to the Client by the Agent and the loyalty owed to the Agent by the Client.

n      Duties owed to the Client by the Agent under this agreement are:

·              Loyalty

·              Obedience

·              Confidentiality

·              Disclosure

·              Accounting

·              Reasonable Care

Step 4
n      Arrange for a meeting with the Agent you have selected.  Explain to them exactly what you are looking for in a new home, i.e. style, number of bedrooms, number of bathrooms, location, size, price range and any special requirements you might want in the home.

 

n      This information will help the Client by reducing the number of homes they will look at. This ensures that the Agent shows you homes that are as close to what you are looking for as possible, and therefore, saving you time.

n      Schedule a time with your Agent to view prospective homes that fit your criteria.

n      Look at enough homes with the Agent that you feel confident making a decision on a new home.

n      Don´t be afraid to call your Agent with any questions that you have, to set-up showings, or for any other reason. Remember that your Agent is getting paid (by the Seller) for doing whatever it takes to find you the home that you want and they want to hear from you!

n      Once you find a home you would like to purchase, sit down with your Agent and write up a Purchase Agreement for that house. Since a Purchase Agreement is a legal contract, it is very important to have an experienced Agent working on your behalf. You will have a number of options on a Purchase Agreement that you should understand and your Agent can help you write the best Agreement for you. Since each option has its pros and cons, it is very important for the Buyer to be fully informed before they make a decision on what to write in the Purchase Agreement. For instance, you may want to write the offer contingent on the sale of your current home or if there are several offers on the home, it may be more beneficial to not write a contingent offer; however it is crucial that you know what benefits both options provide you

 


n      After completing the Purchase Agreement (Offer) it is then the responsibility of your Agent to present the Offer to the Listing Agent and Seller of the property. It is very important to have a Pre-Approval letter and documentation supporting the Offer, i.e. information on comparable properties in the area that have been sold and closed.

 

n      Your Agent will act as your negotiator in this process, presenting the offer to the Seller and their Agent and fielding any counteroffers and additional issues that come up.

n      Once the Offer has been accepted and all the terms have been agreed upon by both parties, your Agent should notify you that you have tentatively (but legally) purchased the home pending the closing.


n      The next step should then involve your Agent explaining what needs to happen between the acceptance of the Offer and the Closing to assure a smooth and successful closing. The Closing process may include inspections, appraisals, contingencies, and other issues that require your attention. Closing can take from 30 ? 90 days, typically.     Your Agent can help you keep track of the progress and help you coordinate with the Closing Agent.


More questions about:

Interpreting Your Credit Score?
Want to know what to look for when you're ready to look?
What is Closing and how do I get through it?

Just let us know. E-mail us your name and address and we'll send you out our free Buyer's Guide to help you get started.  

 


Good Luck!