THE HOME BUYING PROCESS

If you are planning on financing your home then being pre-approved with a lender is truly one of the most important parts of this process. 

A pre-qualification is REQUIRED to begin your home search. After you are pre-qualified, you will know your price range down to the dollar. This will allow you to shop with confidence, save time, & be a competitive buyer.

3 REASONS YOU CANNOT SEE HOME (until you are pre-approved or provide proof of funds)

TO PROTECT YOU:  How terrible would it be for you to walk into a home and fall completely IN LOVE just to later find out you the home is outside your budget? That heartbreak is completely avoidable by spending 30 minutes getting pre-approved with a lender. I want to protect your time & emotions.

TO PROTECT THE SELLER:  Sellers work HARD getting their home ready to go on the market. Is it fair to ask the seller to leave their home for an hour or more (READ:  get dishes out of sink, put up laundry, make the beds, & possibly pack up the kids and pets) just for someone to see their house “for fun”? Sellers expect serious, pre-approved buyers to walk through their door. Many listing agents require proof of your pre-approval prior to confirming showing appointments to protect the seller’s time & investment.

TO PROTECT ME:  I receive a lot of calls to view properties. While most people sound genuinely great, unfortunately there are some not so great people in the world who have taken advantage of realtors & put them in dangerous situations. (READ:  Beverly Carter’s Story.) Providing a pre-approval letter is an extra layer of security. It shows me you are a serious buyer & verifies via a 3rd party you are who you say you are! Does it provide complete security? No, but it’s a step in the right direction. I want to protect my time & my safety.

In response to recent changes in the real estate industry, it's now required that buyers enter into a written agreement with their agent before touring homes listed in the MLS (Multiple Listing Service). This can be a Touring Agreement or a Buyer’s Representation Agreement. These documents will clarify the services you’ll receive and any associated costs.

WHY IS THIS AGREEMENT IMPORTANT?

CLARITY & TRANSPARENCY:  The agreement outlines the exact services provided by the agent and the terms for compensation, which are fully negotiable.

PROTECTING YOUR INTERESTS:  As your dedicated agent, I’m committed to helping you understand every aspect of the home-buying process. This agreement ensures that we’re aligned on your needs, goals, and what I’ll do to help you achieve them.

UNDERSTANDING COMPENSATION:  The agreement will also include details on how I will be compensated—whether through direct payment by you, a portion of the seller’s commission, or any other method.

HOW DOES THIS AFFECT YOU AS A BUYER?

WRITTEN AGREEMENTS:  Before you tour a home listed on the MLS, you will need to sign a Touring Agreement or Buyer’s Representation Agreement with your agent. This agreement details the services and compensation terms, ensuring you're fully informed.

WHAT DOES THIS MEAN FOR YOU?

If you are serious about buying a home, having a conversation with your agent about the new rules and agreements is an important step. I’m here to guide you through the process, answer any questions you may have about the agreement, and explain how it benefits you.

This agreement not only helps protect your interests but ensures you have a dedicated advocate every step of the way. I’m excited to work with you and look forward to making your home buying journey a smooth and successful experience!

Now that you’re pre-qualified, pre-approved, or have provided proof of fund), and we’ve signed the Touring Agreement or Buyer Representation Agreement, you’re ready to hit the ground running with house hunting! Here's how we’ll navigate the process:

SHOWINGS:

When a property pops up on your CollabCenter that you want to see, reach out to me via text, email, or phone to schedule a showing. Most showings require at least 24 hours' notice, so it’s essential to be proactive. Keep in mind that many sellers have audio/video surveillance at their property, so let's be mindful of our conversations during showings.

RULES FOR THE HOUSE HUNTING PROCESS

OPEN HOUSES:

If you come across an open house that you’d like to attend, feel free to go—but make sure to let them know you have a Realtor, and give them my name. This ensures I can continue to guide you through the process.

MODEL HOMES:

Thinking of building? If you’re interested in a new construction property or subdivision, call me first before visiting any model homes. I’ll accompany you to make sure you’re fully informed and that I can negotiate on your behalf. If you visit on your own, tell the sales agent that I’m your Realtor right away. Do not sign anything without consulting me first! If you feel pressured to sign, call or text me immediately, and I’ll handle it.

FOR SALE SIGNS:

See a home with a "For Sale" sign that catches your eye? Don’t call the sign directly. Instead, reach out to me for more information. I can assist with any listing, including For Sale By Owner (FSBO) properties, and ensure that you’re getting the full picture of the property.

When you finally find a house that feels like home, it’s time to make an offer! Here are a few key items you’ll need to decide on for your offer:

PURCHASE PRICE:

How much are you willing to pay for the property? This is a key decision, as it will be the starting point for negotiations.

ITEMS INCLUDED:

Which items would you like to remain with the home? Typically, built-in appliances (stove, oven, dishwasher, microwave) are included. However, items like the refrigerator, washer, and dryer are negotiable and should be addressed in your offer.

LENGTH OF INSPECTION PERIOD:

How long do you want to have to complete inspections? This typically ranges from 7 to 10 days, depending on the property.

CLOSING DATE:

This is the date you will officially sign the papers to transfer ownership of the home. If you’re financing the home, expect the closing process to take approximately 30 to 45 days from the date your offer is accepted.

DATE OF POSSESSION:

This is the date you will receive the keys and take possession of the property. While it’s common for possession to happen on the same day as closing, the seller may need a few extra days after closing to vacate the property.

CLOSING ATTORNEY:

You get to choose the attorney who will represent you during the closing process. I can provide recommendations if needed.

While there are many more points when writing an offer for a home - these are some of the most important.

Once your offer is submitted, there are a few potential outcomes. Here's what might happen next:

SELLER ACCEPTS THE OFFER:

If the seller accepts your offer, congratulations! We will celebrate, then quickly move forward with the next steps in the contract.

SELLER DECLINES THE OFFER:

If the seller declines your offer, we have options. We can submit a revised offer based on feedback or continue our search for the perfect home.

SELLER COUNTERS THE OFFER:

In many cases, the seller will counter your offer. This is where negotiation comes into play. We will review the counteroffer, assess our options, and respond accordingly. During this process, the seller may still entertain other offers or make further counteroffers.

MULTIPLE OFFER SITUATION:

In some markets, multiple offer situations are becoming more common. If we find ourselves in this scenario, it's important to submit your highest and best offer. In these cases, the seller is not required to disclose the highest offer or share specific details about the competing offers they have received. This is your opportunity to put forward your most competitive offer.

Once your offer is accepted, congratulations – you are officially UNDER CONTRACT! 

This is a big moment, but the work is just beginning. From here, every deadline will be based on the Binding Agreement Date, which is the date the contract is signed by all parties.

Immediately after you go under contract, there are a few key tasks we need to handle:

SEND THE CONTRACT TO YOUR LENDER:

I’ll make sure the lender has all necessary documents to begin the financing process.

SEND THE CONTRACT TO YOUR CLOSING ATTORNEY:

You’ll need an attorney to assist with the closing process, and I will make sure they have the contract.

SCHEDULE THE INSPECTION:

We will schedule your home inspection, typically within the first week of being under contract. This helps identify any issues that might need attention. There are other inspections you might want to have completed during the Inspection Period. These might include a termite inspection, a sewer line inspection, a pool inspection, or even a septic tank inspection. As a buyer you are able to complete any inspections you want on the property as long as it falls within the Inspection Period. All inspections are your cost.

Rest assured, as your agent I’ll be there to guide you through each step and ensure these tasks are taken care of in a timely manner.

The Inspection Period is one of the most important phases in the home-buying process. ALL inspections must be completed within the agreed-upon timeline outlined in the contract, which is typically 7 to 10 days from the Binding Agreement Date.

Once all inspections are complete, you’ll have three options:

PURCHASE "AS-IS":

If the inspections reveal no major issues, you may choose to purchase the home in its current condition, with no repairs requested from the seller. 

WALK AWAY:

If you’re not comfortable with the findings from the inspections, you have the option to walk away from the deal and have your earnest money refunded, as long as this decision is made by the last day of the Inspection Period.

NEGOTIATE REPAIRS:

If the inspections uncover any issues, you can negotiate for the seller to complete repairs. If you choose this route, we will submit a detailed list of the requested repairs by the last day of the Inspection Period. 

After this, we will enter the "Resolution Period", as outlined in the contract, during which we can negotiate with the seller. This is when the seller may also obtain repair quotes. If we cannot come to an agreement on repairs during this time, you can walk away and have your earnest money returned.

Once the inspections are complete and the necessary decisions are made, I will notify your lender so we can move forward with the next step—ordering the appraisal.

The appraisal process can be one of the more challenging aspects of a real estate transaction. After your offer is accepted, the lender will order the appraisal, and it’s important to understand that we do not have control over which appraiser is selected for the property.

The appraiser’s job is to ensure that the home meets the lender's specific criteria, including the safety, sanitation, and condition of the property for the loan type (Conventional, FHA, VA, USDA, etc.). Additionally, the appraiser will compare recent sales of similar properties in the area to determine if the agreed-upon purchase price is supported by the market value.

Once the appraisal is completed, there are a few possible outcomes:

HIGH APPRAISAL:

If the appraisal comes back equal to or higher than the agreed-upon purchase price, this is a positive outcome! It means that the property is valued at or above what you're paying. You will only need to pay the purchase price, and in some cases, it might indicate that you're getting great value by purchasing below the appraiser’s estimated market value.

LOW APPRAISAL:

If the appraisal comes in lower than the agreed purchase price, this is not the end of the road. We will enter into negotiation. The seller is not obligated to reduce the price to meet the appraised value. However, the seller can negotiate with us, lower the price, or decide not to sell if you are unwilling to cover the difference in cash. You also have the option to walk away from the deal and have your earnest money returned.

MEETS VALUE:

In some cases, the appraisal may come back exactly at the agreed purchase price. While this may seem unusual, most appraisers are aiming to match the market value of the property to the sales price without exceeding it. In these cases, the appraisal confirms that the agreed price is accurate based on recent comparable sales in the area.

In any scenario, we will discuss the best course of action for your situation. Keep in mind that all of these situations are negotiable, and I will be by your side every step of the way to ensure the best possible outcome.

Once inspections, the appraisal, and any agreed-upon repairs have been completed, we will schedule your "Final Walk-Through" within 1 to 3 days of the Closing Date.

During the final walk-through, we’ll ensure that the house is in the same, or better, condition as it was when you first made the offer. Additionally, we’ll confirm that any requested repairs have been completed to your satisfaction. If you'd like, we can re-hire the home inspector to verify that repairs have been made correctly.

If, for any reason, the repairs have not been completed as agreed, we will work with the seller to resolve the issue before proceeding with the closing. This could involve asking the seller to complete the repairs before closing or negotiating a credit or price reduction at closing.

This is your opportunity to double-check everything before closing and ensure that all terms of the contract have been met.

Finally, we’ve made it to the finish line!

Closing day is the moment you’ve been waiting for! It will take place at the closing attorney's office. Be sure to bring two forms of I.D. with you, as this is a requirement for the closing process. The entire closing will usually take about 1 hour.

GETTING YOUR KEYS:

Please note that keys are not typically handed over at the closing table. After closing, it may take a few hours for the "swap" to happen. The attorney must receive the signed deed, and the Seller’s attorney must receive the funds for the purchase price. Once that happens, the Seller will be required to release the keys to you.

If your closing is on a Friday, or the day before a holiday, you may not receive the keys until the next business day, typically Monday. So, please plan your move accordingly.

While I’ll do my best to avoid scheduling closings on Fridays or days before holidays, it’s important to be aware of these details when planning your move.

Once everything is complete and the keys are in your hands, you can officially start your next chapter!