Finding a Realtor

In the home buying process it is important to find an experienced Realtor that you can trust and sign a Buyer’s Agent Agreement. This guarantees, by the laws of the state, that your needs are met professionally and represented throughout the entire process.

Pre-Qualification

Visit with a lender or a mortgage broker to run a credit report and find out how much home you can afford. Keep in mind that it is solely your decision on what price you feel comfortable with.

Looking for a Home

Tour all available homes in your search criteria to find your dream home.

Offers

When you find your dream home, you should present a competitive offer immediately. Realtors have extensive experience in contract negotiations. A Realtor will ensure you get just what you want for a fair price – a transaction in your best interest.

Contracts

When the seller accepts your offer, you then have an executed contract or “go under contract”. Your agent then takes the contract to the Title Company and the earnest money is deposited. The option check is then given to the seller for deposit.

Inspections

A state licensed home inspector will inspect the property for general soundness. If a specialist is needed to further investigate any area of the home, you will be advised and can choose to hire one for further inspecting. After inspections are done it is time to countdown to closing the sale. Please refer to the worksheet enclosed in this booklet for deadlines and actions that need to be taken.

Closing

The Title Company will contact you with the amount you will need to bring to closing in the form of a bank or cashiers check to finalize the sale. Make sure to bring your checkbook just in case, as you can only write a personal check for up to $1,500.

Choosing Your Neighborhood

There are many things to consider when choosing a neighborhood that is right for you.

Neighborhoods have characteristics that best suit single people, growing families, two-career couples, or retirees. You must try to determine what type of neighborhood matches your lifestyle and personality. Once you decide what the best area is for you, we will work hard to find what you need.

It is important that you scout the neighborhood in person. It is as important to feel comfortable in your neighborhood, as well as your house. Be sure to visit with the people who live there. Drive through the area at different times of the day, even late at night, during both the week and weekends. Be sure to look carefully at how well other homes in the area are being maintained.

Look for things like access to major thoroughfares, distance from work, shopping, schools and places that you like to frequent. Look at traffic patterns around the area during different times of the day and drive from the area to work. Listen for noise created by commerce, roads, railways, public areas, and schools. If the home is located near a school, be sure to check out the traffic patterns and noise during hours of operation. Check with local civic, police, fire, and school officials to find information about the area.

Client "Wants & Needs List"

When touring homes you will find that there are many wonderful homes on the market. There are a few things you must do before looking at homes.

• Find out from your lender how much you can qualify for to spend on the home. It is very easy to fall in love with a home out of your price range. Before you set your heart on a specific home, you need to pin down your financial details.
• Complete the home information worksheet located in the back of this booklet. Decide what features are needs (requirements) and wants (the extras). It is easy to get caught up in the excitement of a beautiful home loaded with amenities. It is important that you select a home that truly meets all or most of your requirements. Have your Realtor make a copy of this worksheet as a reference to help in the process of finding homes for you to view.
• As you look at homes, check back to the worksheet to make sure the home meets your requirements. The extras should only come into play when you make your final decision between homes that meet all or most of your requirements.

Home Warranties

Many home purchasers erroneously assume that the Seller is always somehow liable when there is a defect or failure found in the home’s cooling, heating, plumbing, electrical and/or appliances after the Buyer takes ownership. Unless otherwise documented in the contract, the risk of loss often falls on the Buyer. Even when the contract provides that heating, plumbing, pool & equipment, electrical, etc. be “operative” on or until date of possession, disputes can arise as to when the breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be made.

Home warranty plans can alleviate these risks and concerns. For a modest price (currently basic coverage is $299 to $385, slightly more for optional coverage), Sellers can provide a one year warranty covering specified heating, plumbing, electrical, water heater or appliance breakdowns. Coverage under most plans commences at closing (although some can be made to commence during the listing period, as well). In all cases, there are important limitations and exclusions (example: appliances must be operative at commencement of coverage) stated through the warranty.

Next : Guide to Buying a Home, Part III
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