"The Steps"
or
I don't know what to do, where do I start?
1. Get Pre-Qualified
The
first step in buying a new home is to find out exactly what you can afford. You
need to speak with a mortgage professional to determine your buying power to insure
that you will be able to follow through with your purchase as well as make the
payments in the years to come.
2. Find The Right Realtor
A common misconception is that all Realtors are
equal. Finding a professional Realtor that fits your needs is very important.
They should be knowledgeable of the local market, a skilled negotiator, have
experience with contracts and be willing to assist you in every aspect of
finding a new home.
3. Determine What Your Needs Are
Have a meeting with your Realtor and determine
what your needs for a new home would be. Some examples of things to consider
are:
a.
Location.
Which neighborhoods appeal to you and your family.
b.
Proximity To Work. How far would you like to
commute to work each day.
c.
Neighborhood Amenities. Playground, Pool,
Walking Trails, Clubhouse, Golf, Etc.
d.
Schools. Probably the number one reason that
people select certain neighborhoods.
e.
Area Attractions. Do you want to be close to the
beach? Shopping? Restaurants?
An experienced Realtor will know which
questions to ask to assist you.
4. Familiarize Yourself With The Local Market
Having
access to the local Multiple Listing Service is very important. Your Realtor
should be able to provide you with a web site where you can look at available
properties at your leisure in the comfort of your home.
5. View
Available Homes
You should make a list of homes that you would like
to see and have your Realtor show them to you. If you look at too many homes in
one day it will actually inhibit your ability to find the perfect one. Take
your time, don’t rush. Look at no more than five in a single day.
6. Select The Perfect Home And Do The Research
After you find a home that fits all or most of your
needs, have your Realtor research the home and local area. Look into the sales
history of the home that you are looking at as well as other homes in the
neighborhood. Make sure that the asking price is fair and decide what price you
would like to offer.
7. Submit An “Offer To Purchase”
An Offer To Purchase should be made in writing. Never
attempt to make a verbal offer as the seller may not consider you to be a
serious buyer and may not give the offer proper consideration. Make sure that
the Offer To Purchase is completely filled out and that all of the terms fit
within the parameters that you have specified.
8. Negotiate
Very
few offers are accepted on the first presentation. It is very likely that the
seller will counter your offer. This is where you must have an experienced
agent that will communicate your needs and wants effectively. Strong negotiation
skills are sometimes strong and sometimes soft, depending on the situation.
9. Satisfying Contingencies
A
contingency is a want or a need of the buyer that must be completed or
satisfied before the Offer To Purchase can be completed. Almost all offers are
contingent upon the property appraising for the agreed upon purchase price.
Other contingencies could be for financing, a home inspection, the sale of the
buyer’s current home or pretty much anything that is important to the protect
the buyer in making the purchase. For instance, you might not want to go
through with the purchase of a home if you found out that it has serious
problems the week before the closing is scheduled.
10. Mortgage Approval
Getting a preapproval from the mortgage company does
not automatically mean that you will be approved for the home that you choose.
In today’s mortgage market most companies will require additional information
about the home that you intend to purchase before they will loan you the money
to actually buy it. Often there are additional items or information that must
be obtained prior to closing. Keep in close contact with your Realtor to insure
that everything stays on track.
11. Closing
In
most real estate transactions there are issues that arise at the last minute
that must be resolved before the deed can be transferred. Make sure that your
agent stays on top of and helps to resolve any issues that may arise.
