By Rich Schiffer, Weichert Realtors

Every homebuyer, whether it is their first home-buying experience, or just their latest one, experiences some level of stress at some point during the process.  Here is a step-by-step outline that I use to guide my clients in understanding the process.  I am with them at each step to make the entire process as stress-free as possible.

1. Choose your Agent.  For an article about why you even need a Buyer's Agent in the first place, see the 5/28/2006 article by Robert Bruss at Naplesnews.com Determine for yourself the type of person you want to be your guide.  Do you want someone who specializes in a particular geographic area?  Do you want someone who has years of experience in the real estate business?  Do you want someone that a close friend or family member highly recommends?  Whatever your preferences may be, I recommend that you keep the following in mind:  You are selecting someone that will be representing your interests throughout the process. 
   
   Select someone who will:
• Help you understand what to expect throughout the process.
• Understand your point of view, and represent you fully in negotiations.
• Communicate openly with you, keeping you informed of updates immediately.
• Return your calls and emails promptly.
• Help you connect with other service providers relevant to your needs.
  
  During the process of selecting an agent, the agents you interview may be required by state laws to review your rights as a consumer, and their obligations to you.  In Pennsylvania, this is done by reviewing and signing the Consumer Notice form.  This is not a contract, just an official notification.  Don’t be afraid of signing this.  It in no way obligates you to work with the agent you are interviewing with.  Also, be sure to ask the agent to clarify things on the Consumer Notice if you have any difficulty understanding it.
  
  Once you have actually selected an agent to represent you, you will need to solidify your decision with what is known as a Business Relationship.  This is a written agreement -- a contract -- between you and the agent.  It specifies several things, the most important of which is exactly what role the agent will be serving in for you. This establishes the agent’s duty to respect your confidentiality.  It is important to note, that prior to entering into a business relationship, any information you give them is not considered confidential.  The agreement will also specify how the agent will be compensated, and what the duration of the business relationship will be.  These terms are always negotiable.  The contract will also describe how deposit money will be handled, and the agent’s responsibility to notify you is a conflict of interests exists, among other things.  If you have any legal questions about the Business Relationship contract, you should consult an attorney.
  
  
2. Define your Wants and Needs.  This step, if done effectively, will save you hours and hours in the long run.  Your agent will work with you to evaluate your needs.  By being as specific as possible at this point, you will narrow your search so that your agent can show you only the homes that meet your needs.  There is no need to waste your time looking at homes that you would not even consider.  Expect to have an in-depth discussion with your agent that may last an hour or more.  Remember, you want your agent to understand your point of view.  Taking the time to let them get to know you will save you a lot of stress in the long run.
   
   
3. Know your Buying Strength.  Your agent should be able to introduce you to a Loan Officer that will be able to quickly give you a mortgage credit decision, or “Pre-Qualification.”  This is not the same as a mortgage commitment.  This comes later, once the property you have selected to purchase passes its appraisal.  This step is important to do before you start viewing homes, because you will get a good idea of what price range you can afford.  Like evaluating your wants and needs, this step will save you from wasting your time, by not looking at homes that are beyond your price range.  It also saves you the emotional stress of falling in love with a house, only to find later that you can’t afford it.
   
   
4. Viewing Homes.  Your agent will research the homes that are available on the market, that match your needs and fall within your affordability range, and provide you with a list to review.  You can then tell your agent which ones you want to see in person, and they will schedule an appointment to see the property.  The sellers of each home may have different requirements.  Some require 24 hours notice, some might require their agent be present at the showing, and some will be readily accessible without an appointment.  You will need to work with your agent to let them know when you are available to view homes, so they can schedule the viewings accordingly.  In addition to the initial list of homes that your agent provides you, they will also let you know if any new listings that match your criteria come on the market.
   
   You may want to attend open houses.  The local newspaper will have a real estate section that lists open houses in the area each weekend.  This is a good way to see many properties in a single day.  If you attend them with your agent, be sure to share your thoughts about each house as you go.  This will further help your agent narrow your search, so that you only view homes that meet your needs.  If you attend an open house without your agent, just be sure to let the host know that you are already working with an agent.  Your agent might even give you a few of their business cards so you can give one to each host.  Remember too, that the agent hosting the open house represents the needs of the seller, not your needs.  Anything you tell them is not considered confidential, and may be revealed to the seller, unless ant until you formalize a Business Relationship with them.
   
   
5. Make an Offer.  So, you have discovered the home you want to purchase.  Now it is time to make an offer.  Your agent will help you draft your offer.  There are many points to consider when preparing your offer, and your agent should be able to walk you through each point.  Some of the key points will include the amount of “earnest money” (which is an initial deposit given to the seller to show that you have serious intentions to purchase the property), inspection contingencies, mortgage contingencies, and the proposed settlement date.  Your agent will present your offer to the seller’s agent, and they will accept it, reject it, or make a counter-offer.
   
   
6. Negotiating the Agreement.  Your agent should keep you informed of any updates in the negotiation process, and work as your “go-between” between you and the seller or the seller’s agent.  The goal is for you and the seller come to an agreement. 
   
   
7. Now it is a Contract.  Until now, your offer was just that -- an offer.  Once the seller agrees, and signs the offer, it becomes a Contract.  The earnest money and any additional down-payment are put into a Trust Account, or Escrow Account, as specified in the Contract.  In some states an attorney review of the contract is customary or possibly even required by law.  Your agent will certainly know the requirements for your state.
   
   
8. Appraisal.  If you are getting a loan for the purchase of the property, the lender will likely require an appraisal.  Your agent will schedule this for you, so that it happens in a timely manner, in accordance with the terms of the Contract.
   
   
9. Home Inspections.  Any inspections that you have reserved the right to conduct under the Contract must be scheduled and performed in a timely manner, under the terms of the contract.  Your agent will handle all this for you.
   
10. Title Insurance.  Your agent (or your loan officer) will order Title Insurance.  This protects you in the event someone comes forward in the future with a claim to the property, and will likely be required by your lender.  In Pennsylvania, Title Insurance rates are standardized by law, and are tied to the value of the property being insured.
    
    
11. Homeowners Insurance.  Your agent (or your loan officer) will help you arrange for a Hazard Insurance Policy to be in place as soon as the property is successfully transferred at settlement.
    
    
12. Home Warranty.  You may want to discuss purchasing a “Home Protection Plan” or “Home Warranty” with your agent.  These types of plans protect you if some system (electrical, heating, plumbing, etc) in the home should fail, and will pay for the repairs (often with only a minimal deductible for you to pay). Sometimes, the sellers will have already purchased such a plan, and sometimes, they may be willing to pay for one in lieu of updating systems that your inspection report may call “unsatisfactory.”
    
    
13. Time is of the Essence.  All inspections, reports, contingencies, etc. will have a time requirement specified by the Terms of the Contract.  Once these requirements are met, your deal is ready to proceed to the scheduled settlement date.
    
    
14. Get Connected.  Your agent may be able to assist you in getting everything from mail forwarding to utilities set up and ready to go for you.  Some agents will have special discount offers available for you for local service providers (like movers and alarm companies, for example).  You can also take some time to get to know what will soon be your new neighborhood.  Check out some local restaurants, shops, parks, etc.  If you have children that will be going to school, check out the local Parents' Organization (PTA, PTO, etc).  Make a list of all magazine subscriptions that you will want delivered to the new house.  Make a list of all your credit cards, banks, or other businesses you have accounts with.  Once you move in, you will need to refer to these lists to update them on your new address.  Ask if your bank will issue new checks for you free of charge once the transaction is settled.  (If they are the lender also, they are more likely to do this for you)
    
    
15. Know the Bottom Line.  Your agent, your lender (and possibly your attorney) will have provide you with an estimated list of closing costs.  This will outline everything you will be expected to pay at the actual settlement table.  You may need to get a certified check for the anticipated closing costs.
    
    
16. What to Bring to the Table.  When you go to the scheduled settlement, you should be sure you have your Homeowners Insurance policy, the certified check for the anticipated closing costs, and your checkbook for any incidental costs that may have been overlooked.  Prior to the actual settlement, you or your agent will conduct a final walk-through of the property to confirm that the property is in the condition you contracted for.  Don’t worry, because your agent will have a list of things to check for.
    
    
17. At the Settlement Table.  Documents will be reviewed and signed by all parties.  Prorated adjustments will be made for certain items (taxes, prepaid heating oil, annual homeowners’ association dues, etc.)  The seller receives their proceeds, the title to the property is transferred to your name, and you are ready to move in!
    
    
18. Move in.  This is what the whole process has been leading toward.  Congratulations!  Take a deep breath, and enjoy your new home.  Make sure your friends and business contacts know how to reach you at your new home.  Invite them all over for a housewarming party, and don’t forget to invite your agent!

(This article can be found at http://activerain.com/blogsview/16789/The-Home-Buying-Process)