Buying A Home
Working With Agents
Covenants and Restrictions
Real Estate Glossary
Buying a Luxury Home
1. Agency Relationship - The Realtor® you hire will go over agency relationship with you by explaining the "Working With Agents Brochure" and the "Buyers Agency Agreement"
2. Prequalification - Your next step is to get pre-qualified by a lender of your choice. If you prefer, Beverly-Hanks has a mortgage department that can help qualify you or you can use a lender of your choice. This is the first and most important step, this will help you determine what you can afford, down payment and closing costs that will be needed to close the transaction.Once you know how much you can afford, the next step is to determine and secure your future down payment along with closing costs, home inspection fees and other related fees (your Realtor® can help you determine all these costs).
3. Finding The Right House - You can now sit down with your Realtor and go over what you are looking for and prefer in a house; price, area, size, bedrooms, bathrooms, how far from work, school districts, do you want a fixer-upper, move in condition, age of home etc... If you are short on cash you may not want to tackle a fixer-upper, this could rob you of any available cash on hand (and plus it always costs more than you think).
4. Viewing Homes - Once you have narowed down your viewing list, it is now time to make appointments and start viewing the top priority properties first (the fun part).
5. Submitting an Offer - Once you have found the house you like and would like to put an offer on, your agent will meet with you and discuss everything about the house with you. Including but not limited to HOA fees, the property disclosure, any covenants and restrictions, municipality regulations, bylaws, and what all will go into the offer you are presenting to the seller. The offer will include the purchase price, earnest money deposit, due diligence period and fee, closing date etc... Your closing date has to be well thought out and your closing date should correspond with your mortgage rate lock period, giving you enough time to obtain financing. And any other time restraints on your existing situation e.g., existing lease, deposit tied up in a CD and so on. As far as contingencies the more you add, the less desirable your offer becomes. Our normal closing time about 30 - 45 days (with financing). IMPORTANT, if this is a foreclosure property you can expect a closing time frame anywhere from 2 to 12 months. Your agent will go over all of this with you.
6. Negotiating the offer - Once you put an offer in you may receive acceptance or you may receive a counter offer from the seller, it could be limited to a counter on one item or a combination of items, such as countering the purchase price, the closing date, it could be anything in the offer. The buyer can also counter the sellers counter offer. This can go back and forth until such time as there is an agreement or in some cases no agreement.
7. Under Contract - Once you are under contract you will have certain responsibilities and deadlines to adhere to; application to the lender, providing lender with all necessary items in a timely manner, obtaining homeowners insurance, title insurance, home inspection, radon, water and wood destroying insect report, repair agreement if necessary, communication with the closing attorney. If you find terms on the contract that you need the definition for view our real estate glossary. Once again the agent will help you with all this.
8. Negotiating Inspections - Once the buyer has completed the home inspection and all other inspections and the report shows items that are in need of repair, the buyer can convey this to the seller with a written repair agreement. The seller has the option of agreeing to the repair request or not, or it could be negoiated in any way providing both buyer and seller agree.
9. Closing - The buyer has the option of picking a closing attorney; this can be any real estate closing attorney the buyer wishes to use. Due to the deed and other paper work having to be recorded locally I would definitely suggest using a local one. We can also supply a list for you to choose from.
10. Settlement Statement - A few days before closing the buyer and agent will receive a settlement statement. This statement will list all of the items and funds paid in and out for this particular real estate closing transaction. Your agent will go over this with the buyer prior to closing, if there are any changes to be made, the agent will notify the closing attorney.
10. Ready For Closing - Both parties have agreed to all contract terms and settlement statement, the lender has approved the loan, all contingencies have been met, your deposit is ready to be wired/delivered to the attorney, you have your homeowners insurance in place. We are now ready to close on this transaction.
The above is just a quick summary with some of the key points included. This does not represent the entire contents of an offer or contract, please contact your professional Realtor® and/or attorney and they will go over this with you in its entirety.
If you would like more information please don't hesitate to call Timothy Bosonetto, Beverly-Hanks, 828-712-9088