1. Select Me As Your Realtor and Start Communicating!
Your home purchase is a process, one which can have bumps in the road. We establish a solid foundation of trust so you can count on me during times of problem solving.
2. We Evaluate your Home Requirements
You tell me your goals and needs of your desired property. Together, we discuss the current market so you have a realistic idea of what is available.
3. Establish your financial resources; obtain pre-approval for financing
You must be pre-approved to make an offer. I can recommend reputable local lenders. Local lenders are part of an attractive offer in a competitive market and know State financing laws.
4. Identify Properties to Review
I will show you homes, and you let me know additional neighborhoods you might be interested in seeing. As the process progresses, some of your search criteria and priorities can change.
5. Determine Seller’s Motivation and understand Presentation of the Property
Once you have found the home you wish to purchase, I will do all the necessary research to help you structure an effective offer. Some properties are presented to encourage offers with specific terms. Fine tuning your offer can make the winning difference!
6. Good Faith – What is it?
Making an offer to purchase a home is a serious investment of everyone’s time as well as a financial investment of the Seller. It is important that an offer to purchase a home is made with good faith and the full intention to purchase, based upon the conditions in the purchase contract.
7. Write Offer to Purchase
I will draft the Purchase Agreement for you, advising you on protective contingencies, customary practices, and local regulations. I review the contract with you and answer your questions.
8. Present Offer
I present your offer-normally to the Seller’s Agent. The Seller has three options: they can accept your offer, counter your offer, or reject your offer. My personal knowledge of your needs and qualifications will enable me to represent you in the best way possible. The fine points of presentation are another aspect of the winning offer!
9. Review Seller’s Response
I will review the Seller’s response with you. My negotiating skills and analysis of each property will benefit you in reaching a final agreement.
10. Open Escrow
When the Purchase Agreement is accepted and signed by all parties, I will open escrow for you at a title and escrow company. At this time your earnest money will be deposited. The escrow, or title company will receive, hold, and disburse all funds associated with your transaction.
AN ESCROW COMPANY IS A NEUTRAL THIRD PARTY
The escrow is a legal procedure for handling the details of the transaction from the time the purchase agreement is ratified until the title is transferred and the sale is completed. A title company manages the escrow. The escrow officer, a neutral third party in the transaction, must complete specific instructions, received from the buyer’s and seller’s agents, before title is transferred and funds are disbursed. The escrow is usually opened within 48 hours after mutual acceptance of the purchase agreement and the buyer’s earnest money is deposited into the escrow.
Preliminary Title Report – The title company searches the public records for pertinent information about the property. Who is the owner of record? What liens exist against the property? What easements affect the property? Are there any judgments that might have to be cleared before title cane be transferred? Any such items must be resolved during the escrow period.
Title Insurance – The title insurance policy is protection for the buyer against forgeries, errors in public records and other specific items.
11. Begin Contingency Period
The contingency period is the time allowed, per your Purchase Agreement, to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject. Typical contingencies include:
o Approval of the Seller’s Disclosures
o Approval of the Preliminary Title Report
o Loan approval, including an appraisal of the property
o Physical inspections of the property
o Pest inspection (wood destroying organisms)
o Other inspections possible (such as foundation, roof, etc.)
o Other conditions possible (such as contingent upon sale of house or contingent upon acquisition of down payment)
o Insurance quote
o Investigating neighborhood, city records, and all matters pertaining to the property
THE INSPECTION PROCESS
The property inspections will educate you as to the condition of a property. If the inspection results are unsatisfactory and you have an inspection contingency, you have the option to withdraw your contract.
Termite Report – The Pest Report will indicate any type of wood destroying organisms that may be present. This includes termites, fungus, dry rot, etc. We will review the report and discuss the results.
Physical Inspection – Usually done by a General Home Inspector, a Physical Inspection is a thorough inspection of the house. The inspection results in an overall assessment of the present condition of the property.
If conditions warrant, the Home Inspector may recommend additional inspections. You will conduct further investigations as applicable, such as reviewing city records, checking out the neighborhood, getting estimates for repairs. I will help you with recommended reputable resources.
12. Acquire Homeowner’s Insurance
You select an insurance company, which is required if you are financing the property and recommended to protect your investment.
13. Review Results of Inspections, Appraisal, and Other Contingencies
Depending on the results of inspections, appraisal, and other contingencies in the contract a further round of price negotiations and/ or request for repairs may be made. There are no guarantees nor obligations of the Seller to reduce the price if deficiencies are found in the property.
14. Contingency Removals
Up until the contingency removals, buyers can “back out” of the purchase. After buyers “sign off” on contingencies, depending upon the contract, buyers may forfeit their deposit money if they do not complete the transaction.
15. Make down payment
You will need a Cashier’s Check or money transfer several days prior to the closing date of escrow.
16. Close Escrow
When all the conditions of the Purchase Agreement have been met, you will sign your loan documents closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price. The Deed will then be recorded at the County Recorder’s office and you will take ownership of your home!
17. After the Closing
I am a complete housing resource for my clients, before, during and after the sale. I maintain relationships with professionals, tradespeople and others to assist you in maintaining your property. Unlike some larger companies, which form “strategic alliances” for profit, we never receive any financial compensation from the tradespeople or companies I recommend.