Whether you are buying your first home, or up-sizing or downsizing, here are twelve easy steps to buying a home- and how I can help you along the way.
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Check Your Credit
Get with your mortgage person/bank (I have a list of brokers I deal with) , and have them check your credit before the process begins. Ask them to go over your finances to determine what kind of payments you can afford. Have them give you a good faith estimate. Have them include all the taxes and insurance on the NEW purchase price. Ask for a pre-qualification letter which many sellers request you have before you look at their homes.
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Find a Good Realtor
When I work with a new client I show them my results and testimonials. Beware! Your friends and family may have someone in mind, but you want a full time agent who has experience, and who will be there for you when you need them to be. Moving to a new city? Ask your former Realtor to help you find a new Realtor in your new town. This is called a referral, and I would be more than happy to do it for anyone moving out of town. Remember, there should be no cost at all for you to have a buyer's agent representing you. That cost is picked up by the seller so why shouldn't you utilize a professional like me to help you with your search?
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Make a List
Start your search by sitting down and determining your daily lifestyle. I ask my new clients to make a list. For example: Do you work from home? Like to cook? Need a wall for a gigantic flat screen TV? Is a pool a must? Write it down – Think of everything you would want to be in your new home. If you have kids let them be a part of the process- make it a family project! Start with everything you can think of that is important to you (you can always cut down the list later), and place items in order of importance. This process will help me help you.
- Start the MLS Search
Now this part really depends on how involved you want to be in the process. You can begin looking at homes on the internet, or leave the work to me. Either way, you will become educated on what is available in your chosen market area, and what is actually going on in the market. Pay close attention to how long a home is on the market, which ones sell, and for how much.
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Look at as Many Homes as You Feel Comfortable
Look until you find the right one for you. A good Realtor should never "sell" you on a home. The Realtor is there to present properties. There may be something quirky about a house that you like...or that you cannot live with. Don't rush it. After all, if I am your Realtor I am going to want you to be happy because I want you to refer me to everybody you know.
Get to Know the Market
When you have found one or two homes you really like, sit down with your Realtor and get the facts. I like to double check a number of small items that sometimes others forget to do. For example, does the square footage of the home listed in the county records match what the seller is representing the sq ft. to be? Make sure you have a good understanding of what homes have been selling for in the area, how many days have they been on the market, and what were the features from one home to the next. Get to know the market.
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Make the Offer
Some home prices have a "cushion" built in so that a spirited negotiation can take place between buyer and seller. Others are priced very close to what the seller wants (or needs) to be able to close on the deal. Don't assume that each offer should be a set percentage off the asking price. When I am preparing an offer for a client, I look at a number of things including how long the home has been on the market, what does the seller owe on the property still, what homes have been selling for in the market etc. I am a tough negotiator but I always try to remember that everyone in the transaction feels like they win. There is no reason to get emotional. Hopefully, you and the seller will come to terms with a price that works....if not, there are other homes. If you feel strongly about a certain property, make sure you are not so rigid that you walk away over something that might not be that big of a deal in the long run. Put your faith in your Realtor... he should be a pro who specializes in bringing buyer and seller together with terms they can both agree on.
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Home Inspection
Once your offer is accepted have a certified home inspection done even if you are buying a property "as is". The inspector is trained to see past the paint and frills. Regardless of the terms, Florida law states that a buyer can walk away from the deal if there is anything wrong in the home based on the results of the home inspection. I like my buyers to feel comfortable going into the final stretches of the process and a home inspection usually does the trick.
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Appraisal and Final Paperwork
Your lender will order any surveys or appraisals that you will need. At this point the lending officer will be looking over your file to determine if everything is in order. Since an appraiser can be assigned from anywhere in the state to determine the value of the home you are purchasing, I always always always meet with the appraiser personally....whether I represent the buyer, the seller, or both...to make sure they understand the value of the property. The sooner you get a commitment from the bank the better off you are.
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Week Before Closing
Be sure to lock in your home owners insurance- you cannot close on any property without insurance in place. I have a list of agents that I work with that I can provide for my clients. Also, call to have utilities turned on or transferred into your name. I give a list of all service providers and their phone numbers to my clients so they can get in touch regarding power, cable, internet, gas (if necessary) etc.
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Day of Closing
I insist that we have a final walk-thru on the day of closing. We want to make sure that the home is in the state it was at the inspection, and that everything is in order. At this point I make sure the seller has provided us with all receipts of the work that we agreed in writing previously has been done to buyer's satisfaction. Also, might sound strange...but we want to make sure the sellers have moved out before you move in! Sometimes you won’t know the exact amount of money to bring to the closing until the morning of the closing. We will check with your lender for that amount so you can have a cashiers check drawn at your bank. There is no point in doing this earlier than the day of closing because that final figure can change (even if it is ever so slightly) up until the time of closing. Don’t panic, no one can do this without you there. By this time I have already reviewed your pre- HUD statement, making sure that you are not being over charged for anything and that everything looks in order. We want to avoid any "hiccups" when we get to the title company office. I make sure that I have all the keys, garage door openers, manuals, warranties, and service providers such as lawn care people, pet groomers etc. so that you are ready to start enjoying your new home from day one.
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After the Closing
Are you smiling? You should be. You have purchased the home of your dreams. If I can be if assistance, do not hesitate to call me with any questions whatsoever. If buying this home was a good experience please recommend me to all your friends and family :)
