Buyers overview

So, you may be interested in buying a home or property huh? I imagine you are a little nervous when you think about the process...or rather, what you don't know about the process. How about if I make it a little easier for you. Remember, just like in life, every situation is a little different so this is intended for an overview.

-So where to start...I will advise that you start the way I did when I purchased a home. The internet. This is the IT place and 90% of people start their search there. Why? Because you don't have to even leave your house to do it.

Realtor.com is a fantastic place to start...so is Re/Max.com by the way. Spend a few weeks looking through the listings paying special attention to features and prices in the areas you want to love in. You will be surprised at how much you know about the neighborhood homes when you start actual viewings.

-Open houses in your desired neighborhood is also a great way to see what is out there. Sunday is the most popular day for Realtors to hold them. Stop in even if you know you are not interested in the homes itself. You can see what is being offered for the money. Be prepared to sign in as a safety measure but also know that Realtors want you to sign in in hopes that you will choose them when you are ready to purchase. Expect a phone call if you leave a number.

-lets say you have found a few homes that you really really want to look at. Most people think this is the time to call the Realtor but Wait!!!

The better phone call would be to a loan officer. If you are serious then getting pre-approved is the best thing that you cal do at this point. Why? Well, lets say you call a Realtor...say me for instance. So you call me and say "Stephanie, I want to look at 1234 home St". I take you to see the home and you love it. You want to put an offer. You need to know that you can qualify for the loan first. Most offers to purchase can not even be submitted without a pre-approval letter included.
I don't want to waste your time, I don't want to waste my time, and I don't want you to fall in love with a home you can not afford to purchase. So call a loan officer. If you do not know who to call, you can ask your Realtor (if you have already called). We work closely with many great companies that we can refer you to.

-Called the loan officer and have the loan ball running? Great. Now you can call the Realtor. Ah but where to find one. Well, I found my first Realtor because her sign was in my neighbors front year. It turned out to be a good experience and she even got me started in this business.

The best advice I can give you is this. Work with someone you feel comfortable with. They will be involved with you financially and emotionally for several months. Check out the agent with all the signs in the neighborhood, go to the open houses and meet with them, chat with friend referrals.

• Some red flags when choosing an agent-a busy agent may mean someone with experience but it can also mean someone who may not be able to give you the time you need.
• Are they always late?
• Do they call you back and check in regularly?

If you ever come across an agent who says they know everything about Real Estate...Run. There is no way possible to know it all. Besides the fact that there is so much to learn that we are required to take continuing education classes, laws are constantly changed. A good agent is someone who can say "Ya know what, I am not sure but I will find out for you." and then does. I have access to some great agents in my office and I rely on them as they do me.

-Now that you have chosen and agent you like, it is time to sit down and talk about what you are looking for. This can also be done while viewing homes. You may be asked at this time to sign what is called a form called a Information About Brokerage Services. This form explains more about the duties of a broker to different parties in a Real Estate transaction. This really should be something you are given very early to sign.

-When you find the home you wish to purchase, Your agent should do a CMA (comparative market analysis) on the home to help determine a fair purchase price. You can certainly offer whatever you wish and your agent will be obliged present it but it is best to listen to your agent so that you do not overpay and end up spending more that you should have, or underpay and risk angering the sellers so that they no longer want to work with you. When you decide on your offer, you will submit an offer to purchase along with Earnest money (usually $500 or more) and possible option money. Earnest money is a way of showing the buyer that you are serious about your offer to purchase. The higher the amount the better and this money will be credited back to you when you close. However, if you do not close for certain reasons, that money may be given to the seller to recover losses. It depends on the situation.

Option money is like buying extra time to change your mind and is a good idea. Never buy a home without and inspection. The extra $100's you spend can save you thousands in the long run. This is the most common use of option money. You may spend $100 for an extra 7 to 10 days while you do inspections so that if a red flag comes up on the inspection, you can either back out of the contract (you will loose that $100 but keep the Earnest money) or re negotiate the contract taking repairs into consideration. If the option period passes with no issues, you will be credited the option money back at closing.

If all goes well, you will then be under contract to purchase your new home. At this point, your agent and loan officer will start working with a Title company to get all documents and get you closed. This can be expected to take anywhere from 30 days to as much as 60...sometimes longer depending on the circumstances. All you will really have to do at this point is wait and let the process happen. If you have chosen a good agent, he/she will be in constant contact with the title company and with you so every one is up to date.

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