10 STEPS TO BUYING REAL ESTATE

Posted on by askdenisesutton

For most people, buying a home or investment property represents the largest purchase they will make in a lifetime.

For that reason alone, being prepared so you can make educated decisions is critical. 

Here’s how you do it:

Step 1 CAREFULLY SELECT YOUR AGENT and understand who legally works for whom.  Ask lots of questions!

Is your agent knowledgeable about the area?
Is your agent active in the real estate market or dabbling part-time.
Is your agent available to you at reasonable times?
Does your agent have testimonials?
Is your agent someone who you can trust with your confidential information?
Has your agent ever had a complaint filed against them?
Do you really like this person? 

Step 2 BEFORE YOU LOOK AT ANY PROPERTY Get Pre-Approved with a REPUTABLE, LOCAL LENDER

  1. Your agent likely has a good relationship with several LOCAL reputable, lenders so it’s advised you interview who is recommended.
  2. There are many reasons to use a LOCAL lender.  Primary among them is their knowledge of the unique issues that arise during the inspection/escrow period.  These can be issues regarding flood insurance, or even local disasters, survey and appraisal issues. 
  3. If you’re using a lender your agent recommends you can rest assured that your application will be at the top of the stack and you’ll get service and information in a timely manner.  Otherwise, you may risk losing out on a great property.
  4. Compare lenders and shop for your loan program. We recommend you take about 30 days to interview lenders and their programs and get a FEE SHEET from each one to compare line by line. This sheet tells you the interest rate, the anticipated insurance, taxes, closing expenses and an estimated monthly payment.

A SELLER is NOT likely to consider your offer unless you’re pre-approved for a loan.  Just looking at a property to see the inside without money in your pocket to buy it is a waste of everyone’s time and you may get your heart broken in the process.

Step 3 COMMIT TO WORKING WITH US.  WE ARE YOUR AGENT and WE ADVOCATE FOR YOU!

  1. The law dictates what we can and cannot do in real estate and the law requires us to have a signed Buyer Agency Agreement in place BEFORE we show you property.
  2. This agreement can be for one day, one property, multiple properties, long term, etc.  We will work with you to accommodate your situation and preferences. 
  3. This agreement also outlines our compensation package.  Once we agree on the terms of our agreement, we can work with you to find the perfect match.

Step 4 LET’S GO HUNTING!

We will set up a custom, automatic search of available properties to help you find the perfect one based on available criteria! NO MORE digging through 3rd party websites and being disappointed because they were under contract to another person two weeks ago!

Step 5 MAKING AN OFFER

We will walk you through each term in the offer to structure it to fit your needs and budget.  We take a step by step approach to each term of the offer and explain how all these parts together make up the entire picture. Our goal is to help you get your offer accepted!

Step 6 INSPECTIONS; CONDITION OF THE PROPERTY

We can recommend vendors for any of the inspections you may need for your purchase.  We will coordinate dates and times with all parties involved in the process to meet your timeline and contract restrictions.

Step 7 NEGOTIATING REPAIRS

If repairs are needed, and upon your request, we will negotiate with the seller to make all or some of them on your behalf.

Step 8 APPRAISAL (VALUE FOR LENDING PURPOSES)

Your lender will order a formal appraisal, also known as a valuation, of the property to determine if the agreed upon sales price supports your request for a loan.

Step 9 CONDOS, HOA’S, POA’S, CO-OPS

If your property is part of a common-interest community, you will have the opportunity to review the governing documents—BEFORE you move forward with your purchase.

Step 10 CLEAR TO CLOSE!!!

Once all the contingencies for your purchase have been removed, including the appraisal, your loan will be fully approved.  You are now ready to “sign on the dotted line!”

Step 11 GET READY TO MOVE!

You coordinate your utility transfers, set up your movers, and we schedule the final walk-through and your appointment for settlement. Once you have signed—it’s yours! 

Congratulations!
You’ve Made It!

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