Buying

Buying a property, especially for the first time, can be a smooth and positive experience when you are fully prepared for each of the steps. The agents of Properties 2000 have the knowledge with real experience to help you through the entire purchasing process from beginning to end.  Below are the steps in buying real estate, please feel free to review them and make sure you are on the right track to buying success!

Steps in the Home Buying Process

1. Find a Great Real Estate Agent

            Initial interview with Realtor defining your real estate needs and wants.

1. Pre-Qualification or Pre- Approval:

A letter from a Loan Officer verifying that you spoke to them about purchasing a house and they certify, based on some general information with restrictions, that you can purchase a property up to a certain amount.

1. View Properties:        

Get to know the homes in the price range and areas of your interest. Viewing properties help will help you defining your wants and narrowing your choices. Also, you become more aware of home values by comparing properties. When viewing homes remember to:

1. Avoid looking at homes you can’t afford
2. Prioritize! No property has everything you want, so make sure the one you buy has the at least the top 2 or 3 items on your priority list (ex. Location, house size, price range, lot size, garage, room for expansion, etc.)
3. Think about what it will be like to re-sell this home years from now.
4. Take your time, think things through, ask questions and get answers.
5. Choose the right mortgage and purchase the right amount of insurance.

Find a property - Make an Offer – Negotiate - Close

Initial Offer:                Present terms satisfactory to your situation.

Counter Offer:            All terms from original do not change unless specified in the Counter Offer.

Accepted Contract:     Earnest Money Deposited into an Escrow Account.

Contingencies:           

1. Inspection:    Buyers perform their Due Diligence on the property and pay for the inspection out of their pocket – the cost is not part of the Buyer’s closing costs!  Not only get a home inspection, but inspect the property as well. Is there a well or septic on the property? Water rights? In the Flood Plain,Flood Way, Flood Fringe? What’s the Zoning and what does the designation mean? Are there Covenants? Easements? Encroachments, encumbrances, liens? Where are the property lines, are the corners marked? Underground storage tanks / hazardous wastes? Wood burning stoves? Have building improvements been permitted by the city or county? Check for Radon Gas, lead based paint, mold or asbestos? Is the property you’re interested in a Short Sale, Foreclosure or part of a 1031 Exchange? What are the tax consequences of this purchase? Check where the underground gas, water and sewer lines are in case you intend to build at a later time. (Also, refer to Zoning to make sure any building is permissible).
2. Financing: Make sure you understand the difference between closing costs and pre-pays, that you lock in your interest rate on time, that you have enough money for the down payment and closing costs and that your earnest money is incorporated into the purchase.
3. Appraisal: Make sure you order the appraisal after the Inspection Contingency is released.
4. Title: review the Title Commitment with your Realtor and the Title Company examiner if you don’t thoroughly understand everything.

Title Search:                Title Commitment (performed by the Title Company); review with your Realtor®

Appraisal:                    Order Appraisal: can take up to 2 weeks for lender to get an approve the appraisal

Home Insurance:         Notify lender of your Home Insurance agent or company

Loan Approval:           Loan docs go to Underwriting, Loan Approved!

HUD Statement:         The HUD Statement (aka the Closing Statement) delivered within 48 hrs of closing and reviewed by Buyer for accuracy.

Closing:                       Usually at the Title Company and usually the Buyers and Sellers sign docs at separate times, although on the same day. Bring a Cashier’s Check and your Drivers License (or I.D.).

Recording:                  Buyers & Sellers sign at the Title Company, but the Deed needs to be recorded at the Clerk & Recorders office. It’s best to sign early in the day to ensure same day transfer of ownership.

Realtor Fees:               Buyer Agent Realtors get paid from the Listing Agent who offers to split their commission through an agreement with the MLS.

ForSaleBy Owners:   Many For Sale By Owners (FSBO) will work with a Realtor® (i.e. pay him/her a commission or fee) if they believe the Realtor has a ready, able and willing client. Most FSBO’s will not pay a fee if they believe the Buyers want the house badly. Please allow the Realtor® to talk to the FSBO first, so they may negotiate a fair fee and receive compensation for their work.