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Home Buying - Step by Step
Expect to complete the following steps before you’re ready to send out change-of-address forms:
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1. Select a Real Estate Agent and Establish a Relationship
Choose a full time, professional Real Estate Agent with extensive market knowledge. That agent will work closely with you to find the right home for you by committing to a purchase plan, in writing, tailored to your specific goals.
2. Initial Consultation with your Real Estate Agent to Evaluate your Needs and Resources
Once the agent has established your needs, he or she will provide guidance to financial institutions where you can obtain information in order to get the best financing available. The agent will meet to discuss your needs and analyze your resources.
3. Identify Property to Buy
The agent or someone from the agent's office will show you homes based upon the criteria that have been established. The more precise and direct you are with the Real Estate Agent, the more successful your search will be.
4. Determine Seller’s Motivation
Once you have found the home that you wish to purchase, the agent will do the necessary research to help you structure an effective offer.
5. Write Offer to Purchase
the agent will draft the Purchase Agreement for you, advising you on protective contingencies, customary practices, and local regulations. At this time you will need to provide an “earnest money” deposit, usually from 1% to 3% of the purchase price (the deposit is not cashed until your offer has been accepted by the Seller).
6. Presentation of Offer
The Agent will present your offer to the Seller and the Seller’s agent -or- to the Seller is one of the properties listed by your agent. The Seller has 3 options: they can accept your offer, counter your offer, or reject your offer. Your agent's personal knowledge of your needs and qualifications will enable him or her to represent you in the best way possible.
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7. Seller’s Response
The agent will review the Seller’s response with you. Your agent's negotiating skills and knowledge will benefit you in reaching a final agreement.
8. Open Escrow
When the Purchase Agreement is accepted and signed by all parties, you agent will open escrow for you. 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.
9. Contingency Period
This 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:
a. Approval of the Seller’s Transfer Disclosure Statement
b. Approval of the Preliminary Report from the Title Company
c. Loan approval including an appraisal of the property
d. Physical inspections of the property
e. Pest inspection and certification
10. Homeowner’s Insurance
The agent will coordinate between your Insurance Agent and the Escrow Officer to make sure your policy is in effect at close of escrow.
11. Down Payment Funds
You will need a Cashier’s Check or money transfer several days prior to the closing date of escrow.
12. Close Escrow
When all of the conditions of the Purchase Agreement have been met, you will sign your loan documents and 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.
This information was provided by Carylee Stone - www.StoneHomeTeam.com
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Copyright © 2005 - Joseph A. Tyson - Tyson Promotions - ClickSanDiegoRealEstate.com - All Rights Reserved
San Diego, California - Last Revision - 02 January 2005
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