Give or a take one or two--and depending on the property type and Buyer circumstance--the following examples listed below are 30 typical stages a Buyer in Chicago must go through--from the initial decision to Purchase until the last box is unloaded from the moving truck--before the deal is really done. I make sure my clients have this in hand early on in the process for several reasons--not the least important of which is the fact that just because an Offer is written,a Binding Contract is still several steps away. It definitely relieves a little of the 'writer's cramp' that many novice purchasers experience before taking the 'Present the Offer' step. I'm posting this as a piece you can customize and hand to your own clients in your respective markets. And believe me when I say that it makes the actual trip from the passenger side seat of your car to your office conference room a much softer transition. I try to reassure them, especially first time purchasers, that there's "no need for 'buyers remorse' yet. We're just getting started!"
Another thing it points out is the matter of 'Earnest Money'---both 'Initial' and 'Balance.' If there is one point of confusion most first time Buyers have as well as Relocation Buyers from other states, is the difference between Earnest Money and Down Payment. In Chicago it is not unusual for 'Total Earnest Money' to equal 10% of the Purchase Price (5% is the lowest I usually accept for one of my Listings) and be due within 10 business days of a Signed Accepted Contract. I've had a number of out of state clients initially believe that the "Initial Earnest Money" check of $1,000 is all that's needed to 'hold' a property unitl Closing. Rarely---no, very rarely is this ever the case in the Chicago.
We also use Attorneys here. The people at the Title Company will not conduct the Closing. Attorneys pull Title, negotiate Tax Prorations, monitor (extend, execute, and drop) Contract Contigencies, and most importantly explain all paperwork and direct all signatures at the closing table.
Our city Transfer Stamp is paid by the Buyer at closing and is $7.50 per $1,000 of Purchase Price. Example, the '$800,000 House' I wrote about earlier comes with an additional cost of $6,000 at Closing. (Additional to the other several thousand of Closing Cost dollars typically due. Read on) This is consistently the least welcomed surprise I've witnessed over the years--that and the extremely complicated to explain Tax Proration formula. In Chicago, the tax bills are always 18 months in arrears so 'who owes who what' and why is never a pleasure to try and sort out. I make sure my clients know these things from the very beginning or at the very least, direct them to more superior minds (Attorney, Loan Officer, etc) than me on the subject. Still, something always seems to slip through the cracks or go unheard until those final minutes. I strive to be an expert in 'Surprise Management'
at the closing table.
Besides those few exceptions it's pretty much the same everywhere, I suppose. I've personally bought and sold properties up and down the East Coast and without a doubt, Chicago is by far, the most 'Steppy.' Sooo....
*Internet, Other Media Searches and Unaccompanied (by a Realtor, that is) Open House Visits,
* Initial Consultation (Screen/Interview Buyers Agents)
* Mortgage Preapproval
* View Prospective Homes
* Identify a Property
* Present Purchase Contract To Listing Agent
* Initial Earnest Money ($1,000 Made Out To Listing Office)
* Negotiate Offer (Counteroffer, Price, Terms, Close Date)
* Acceptance Of Offer by Seller (Agreement)
* Final Signatures And Initials On Original Contract
* Contact, Fax Documents To Attorneys, Lenders, Etc.
* Contingency Periods Begin (Mortgage, Home Sale--Ususally 30 Days)
* Attorney Period Begins (Usually 5-10 Business Days From Acceptance)
* Acquire Budget And By-Laws (Condominium)
* Professional Home Inspection
* Attorney Approval on Contract (5-10 Business Days After Acceptance)
* Balance of Earnest Money Due to Listing Office (5-10%)
* Appraisal (Lender)
* Loan Committment
* Communicate With All Parties
* Acquire Homeowners Insurance Policy
* Interview With Condo/Co-Op Board (Usually In Highrise Buildings)
* Await Closing
* Transfer Utilities & Change Of Address
* Schedule Movers
* Estimate Of Funds Needed At Closing (Good Faith From Lender including $7.50 per $1,000 City Transfer Stamp to be paid by Buyer)
* Final Numbers and 'Clear to Close'
* Final Walk Through Or Punch List (New Construction)
* Closing
* Celebrate! You're A Home Owner!!
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