Buying a Home
Buying a Home—What to Expect
Buying a home involves several steps. Below is a list of steps most people will go through in purchasing a home.
Finding an Agent
- For most of us, purchasing a home is the most important financial decision that we will make. Finding the right agent can make all the difference between a smooth, successful transaction and bumpy, difficult journey.
- Those experienced in real estate may decide to go it alone when buying or selling a home.
- A good agent can ask all the right questions to determine you needs and wants in a home purchase.
- One of the most important parts of this process is not only understanding the list of requirements but also their order of importance. Which are non-negotiable? Which are nice-to-haves?
- Another important part of determining scope is understanding your financial eligibility. If you are paying cash this is not an issue, but, if you are like most of us, you will need a loan to purchase your dream house.
- Once you have determined the scope of your search and what kind of loan you can afford, it’s time to shop for a loan and get pre-qualified.
- There are many factors in choosing a bank for your loan. A good agent can help guide you to experienced and trustworthy lenders.
Find a Home
- Now it’s time to find that house of your dreams. Your agent can setup daily searches based on your criteria that let you know of houses that match your criteria. These can be delivered in your email daily so that you can see how the market is moving in your area of interest.
- It’s always a good idea to watch and study the market in the area of interest. Know how long houses stay listed before offers are accepted. Know the difference between a good deal and something that is overpriced.
- Select an affordable property that fits your needs and discuss offer details with your agent.
- Discuss offer with agent
- Buyer reviews contract with agent
- Agent presents offer to selling side
Present and Negotiate Offer
- Your agent can prepare and present your offer to the seller.
- As part of your offer, the buyer will submit an earnest money deposit with the offer. If accepted, this deposit will be deposited into the escrow that is opened for the transaction.
- The seller can accept, reject or counter your offer. It is important that this process be formal with the appropriate documents so that the details of the terms can be captured later when an escrow is opened.
- Once you have an accepted offer, it is time to open the escrow.
- Congratulations! You have made it to the critical step of opening an escrow on your transaction.
- To learn more about the escrow process, please see The Escrow Process—10 Easy Steps to Understanding Escrow.
Comments or suggestions about this page? Click here now.