Property Buying Process
During the initial interview, you’ll share your expectations and learn about the process of buying a home. You’ll obtain valuable market knowledge about areas, prices, financing, your qualifications, and normal procedures. Considering your wants, abilities, and needs, you decide on price, size, style, and area. At this point, we will begin the search to find your new home.
A strategy for a successful purchase is to apply for pre-approval prior to finding a home. Negotiating a contract with a loan commitment can be advantageous to you. There are specific things necessary to make a loan application and assembling them can take some time. I recommend that you organize the required information using a pre-approval list.
3. Formulating an Offer
When you find the right home, you will want to make an offer to purchase it. This is done in writing specifying every detail that is part of the agreement. There are standard forms that your real estate agent can provide you.
4. Home Inspection
Usually, the seller will provide a property disclosure for interested buyers prior to writing a contract. This will declare the material facts about the physical condition of the property. The property disclosure does not take the place of a buyer’s inspection that is usually made after a contract is completed. A provision for a home inspection can be added to the sales contract identifying the areas to be inspected by a professional inspector. The purpose of the inspection is to find major defects in the home before the sale is completed.
The areas of concern include but are not limited to:
- Mechanical – heating, air-conditioning, appliances.
- Plumbing – fixtures, lines, water heaters, sewers.
- Electrical – wiring, out of date systems.
- Structural – doors, windows, roof, foundation, drainage, ventilation, and environmental hazards.
I will be happy to supply a list of recommended inspectors. You are encouraged to accompany the inspector to ask questions and receive a written report itemizing any areas of concern.
5. Who Pays Commission?
In most cases the Seller has signed a listing agreement with his agent specifying a certain fee to be paid for selling the home. It can include provisions for splitting that fee with the selling agent, regardless of agency representation. However, an argument can be made that the buyer indirectly pays the commission even if it comes from the sellers proceeds.
6. Home Protection Plan
Some sellers provide a Home Warranty or Protection Plan for the buyer. They cover certain items for a one-year period like:
- Heating and air conditioning systems
- Interior plumbing
- Built-in appliances
- Electric pool equipment
If a Home Protection Plan is not included with the home you purchase, you can acquire the coverage yourself. The price of programs and coverage will vary between carriers.
7. Last Step (Escrow)
Assemble all of the loan papers at the escrow office. You will need to pay the balance of your down payment and your closing costs at this time. Usually, a cashier’s check is required for these funds.