The Home Buying Process
1) What’s on the Market?
I can show you homes that are listed with Realty Executives Cooper Spransy or with other firms. Sometimes people are under the impression that I can only show Realty Executives’ homes, however I have access to show homes that are listed under any broker.
2) Educate You on Current Market Conditions
The real estate market can be volatile. It’s important to know what kind of market we are in so that we can act accordingly. It’s very important to be aware of the different conditions each market creates for buyers and sellers.
In a buyer’s market the inventory exceeds the demand for homes. There are a large number of homes for sale and not enough buyers to buy them all! In this situation, buyers have many homes to choose from and are often in a better position to negotiate a good price.
In a seller’s market, the opposite is true. The demand for homes exceeds the amount of inventory. There are a small number of homes for sale and when a home becomes available, it is snapped up immediately. Sometimes a higher price is paid than was originally asked. Buyers should be ready to act when shopping for a home in this market.
A market is called balanced when most homes priced for sale at market value sell within a normal period of time. A “normal” or “reasonable” period is 60 to 90 days.
A Realtor® who attaches a pre-approval letter with the offer adds value to the offer. The seller feels assured that this buyer can obtain a mortgage. If you are competing with other buyers on a home, this letter may be one of the deciding factors for the seller to accept your offer first.
Check with your lender on more details about getting pre-approved. A pre-qualified or pre-approved buyer is in the best possible situation:
- You can shop with confidence knowing what you can afford and what you are comfortable with
- It shows you are a serious buyer and it gives you an advantage in competitive bidding
- Since financing is secured, it reduces your stress by letting you focus on finding the right home
4) Provide You with a Market Analysis on Your Current
It is important that you know the value of your home in today’s market so that you can better determine the price range of your next home. I will do a Comparative Market Analysis (CMA) on your current home and prepare a Seller net sheet for you. This is a summary of all the costs involved in the sale of your home.
In addition, I will do a CMA on the home you’d like to purchase. I will research the area where your subject property is located and find comparable properties that have sold recently. This will educate you on the price similar properties have sold for and can help determine the value of the home.
5) Explain Contracts and Contingencies
I will help you understand contracts and forms in the real estate buying process. It is important that you understand all the forms involved in a purchase. For example:
- Offer to Purchase
- Buyer Agency Agreement
Before you decide to write an offer on a home that you have chosen, you should be aware of items that you would likely want in your offer. Not only would I want you to be aware of these, but as your Realtor® I would want you to understand “contingencies” so you are comfortable with your decision.
Most “contingencies” in an offer have to do with:
- Sale of your current home
6) Negotiate for You as a Third Party
I can negotiate for you as a third party, never alienating the seller nor weakening your position.
When negotiating an offer, whether I am a seller’s agent or a buyer’s agent, it is important that you make your offer strong. Not only is the price you offer important but also there are other strategies we can employ to make your offer acceptable. This is important with any offer you write, whether you are competing with other buyers or not.
7) Manage Details and Meet Deadlines
I will make sure all contingencies are satisfied within the time frame stated in your offer.
Once we have an accepted offer on a home, my job is to see to it that all contingencies are satisfied. It is important that we address these issues in a timely manner so we don’t risk losing our offer.
8) Schedule and Attend Your Closing
We will work out a closing time with the seller that works with your schedule.
Prior to closing, here are some documents your lender and the title company may need from you to ensure the closing goes smoothly. These documents usually include:
- Your homeowner’s insurance certificate, which must be pre-paid for one year
- A cashier’s check for amount of closing costs
- Confirmation that utilities have been transferred into your name
In addition, I will schedule and attend a final walk-through with you to verify that the condition of the property has not changed. If you are using an Attorney, I will make sure your Attorney receives copies of your offer and the title insurance policy.