Step by Step Buying Guide
Because a real estate purchase is one of the largest investments in your life, it is important that you select the right agent, know the neighborhoods, and thoroughly understand the real estate transaction process.
1.WORK WITH MONA
Nowadays, it is easy to locate properties through a combination of open houses and online searching. It may not, however, be in the clients’ best interests to wait until they locate a house to select a specific agent.
Our experienced agents can help identify the right neighborhood, coordinate financing, explain the tax consequences of home ownership, filter out inappropriate properties, identify off-market opportunities, and answer questions that come up along the way. Additionally, our agents will help screen properties during broker tour and notify you when suitable properties come on the market.
2.Know the Neighborhoods and Marketplace
Clients generally have an initial idea of what cities and neighborhoods appeal most to them. However, you should examine your criteria to determine the areas within the neighborhoods you feel are a good match.
Our agents will personally take you to some of the neighborhoods, give you an overview of the area, and show a few representative homes. More importantly, our agents will provide you with information about local schools, parks, and appreciation potential of each area. Generally, clients should not purchase a home until they are familiar with the neighborhoods and have seen enough properties to truly recognize an excellent fit.
3.GET PRE-APPROVED
Getting pre-approved by a local lender or mortgage broker is one of the first things you should do for many reasons. In Silicon Valley, a pre-approval letter is a prerequisite for serious consideration of your offer. Knowing the available loan amount will aid in determining how much you intend to spend on your home and which neighborhoods to consider.
Generally, you should begin the pre-approval process immediately after meeting with your agent. If any issues come up, such as inaccuracies that make your credit score lower than expected, you will have time to resolve them. Our agents can help you through this process and recommend excellent lenders and mortgage brokers. Our recommendations are completely free of any conflict of interest; our agents do not benefit monetarily from providing recommendations.
4.FIND A HOME AND REVIEW DISCLOSURES
Once you have located the desired property, carefully review the disclosures that the seller and listing agent provide.
Disclosures contain many important items, most notably the property and pest inspections, the seller’s disclosures, and the title report. Our agents will provide you with a summary of the important issues to help in your review of the disclosures.
5.MAKE AN OFFER
Next, our agent will work with you to draft an offer. Our agent will speak with the listing agent ahead of time to ascertain the seller’s desires and to see if you can offer any items of value to the seller with little cost to you. This shows your desire to work with the seller and can optimize the situation for both you and the seller. Regarding what price to offer, our agent will provide you with a comparable market analysis, showing the selling price of recent comparable properties and what the market value is of the current property. Additionally, our agent will update you on the interest level of other parties and whether you may be in a multiple-offer situation.
6.ACCEPTANCE, REJECTION, OR COUNTERS
Once an offer is made, it can be accepted, rejected, or countered. A counteroffer accepts all the terms of the contract, except the terms that are mentioned. For instance, a counteroffer may increase the purchase price or shorten the escrow period. A counteroffer can be made to one party or multiple parties. If there is only one counteroffer and that counteroffer is accepted, then a binding contract has formed. On the other hand, if there are multiple counteroffers, which may all have the same or different terms, the counteroffer must be accepted by the buyer and reaccepted by the seller, ensuring that the home sells to only one party.
7.DURING ESCROW
After the parties formed a contractual agreement, the escrow period begins. An escrow company is a neutral third party that acts as an intermediary between the buyer and seller. In Northern California, title companies handle both the title and escrow duties of the same transaction. The most important job of the escrow company is to properly take the buyer’s money in exchange for the seller’s property. An average escrow period is 30 days, with the vast majority ranging from 15-45 days.
If your purchase contract has contingencies, such as a property contingency, then your agent will find inspectors to view the home during the contingency period. During this period, you can determine whether you want to proceed with the purchase. If you back out of a contract for a reason related to a contingency during the contingency period, then you are entitled to a full return of your “good faith deposit.” Our buyer agents can assist you and ask the seller to credit you for any new problems. Usually, an agreement can still be reached if the seller accepts your requests. If your findings uncover a major issue, such as bad foundation, then you will likely want to back out of the deal without seeking a credit, as this involves a lot of risk. If you have a loan, as most homebuyers do, then an appraiser will appraise your home. Also, our agents will work with your loan officer to ensure that the loan proceeds arrive on time and with little hassle.
8.DAY OF CLOSING
AND
ENJOY YOUR HOME
On the day of closing, the escrow company transfers your funds to the seller and records the deed in your name with the county. Once you are on record with the county, our agent will provide you with the keys, garage opener, and access codes, if any. Other information, such as manuals for appliances, are usually left at the property. While you are the owner of record when escrow closes, you generally will not receive the official deed from the county until three months later.
Enjoy your new home! Mona is here to serve you for all of your housing questions or issues during the escrow period and even after you close.
