As a buyer, you pay nothing for my services. Why? Because the commission on the sale of a home is paid by the seller. (To accept any money from you would be illegal.) My first responsibility is to give you the official pamphlet on Washington State Agency Law.

STEP 1

So I can do my best for you, I must understand your expectations, limitations, wants and needs.

1. What can you afford to buy? Are you working with a mortgage broker? Do you have a letter of pre-approval?
2. What are your reasons for buying? Still renting, downsizing, adding to family (young or old), job change?
3. What is most important to you in a home? For example: no stairs, fenced yard
4. What is most important to you in a neighborhood? Excellent schools, close to work, walk to stores
5. What is your time table? Do you need to sell your current home first?

STEP 2

Conduct a focused search with a purpose: narrow the search via the web; then visit the most promising homes. Here's how:

1. You can search yourself for homes You can save your criteria and get an email notice when there’s a match.
2. I will set up a search on the Multiple Listing Service (MLS) and notify you promptly of homes that meet your criteria. The MLS notifies me in “real time” of new listings.
3. When we have found a promising home we will visit it together. Often, I will preview it. I will make the necessary calls to arrange a showing.
4. We will discuss the pros and cons; you decide if the home merits an offer. Revisit the questions in STEP 1 above!

STEP 3

Making an offer is not the same as signing a contract. However, for it to be valid, an offer has to be in writing. Here’s how an offer becomes a “mutual agreement”, a contract:

1. Your offer states the offer price, terms and conditions. Terms include the date you would like to take possession. Conditions often include an inspection of the property. We will be using MLS forms. I will go over them with you BEFORE we make an offer.
2. The listing agent must present your offer to the seller. The seller has three choices: (1) ignore your offer, (2) agree to your offer, (3) make a counter-offer. Even the smallest change to your offer amounts to a counter-offer.
3. Only when one party makes NO changes and signs the offer or counter offer as received, do we have “mutual agreement.” However, the mutual agreement is on the price, terms and conditions only. It is not yet a binding contract for the seller to sell or for the buyer to buy.
   

STEP 4

We have reached “mutual agreement” which specifies what needs to be done and by when. We move forward with the goal to comply with the terms and remove the contingencies.

1. Earnest Money is an essential part of the contract (“consideration”) It is held/deposited with the buyer's broker or the escrow company.
2. General Inspection of the property (ordered and paid for by you, the buyer).Special inspections may follow, such as pest inspection. I will be present during all inspections.
3. Title search is conducted; commitments to title insurance are issued. As the buyer you need to get title “free and clear.” Your lender also has a vested interest in this.

STEP 5

Inspection-related issues have been settled and title is held "free and clear." The purchase is now “pending” approval of financing.

1. You have applied for a loan as agreed in the mutual agreement. You must notify the seller if you are unable to procure financing!
2. Your mortgage broker must provide you with a “Good Faith Estimate”. The broker/lender will conduct an appraisal to make certain that the home is worth the price.

STEP 6

The escrow company, collects every document generated in the process of the transaction. As a neutral party, the escrow company is charged with bringing the transaction ot a close.

1. You and the seller meet separately with the escrow company to sign the documents, such as the HUD-1 settlement statement. I will be present when you sign.
2. The escrow company manages the distribution of funds, and prorates payments such as taxes. It is done deal when the transaction has funded and recorded. Normally, the buyer takes possession at 9 pm on the day the transaction closes.

The six steps serve to illustrate the buying process. Your circumstances are unique and your home purchase will present its own challenges and opportunities. My goal is to make your home search and purchase a pleasant experience from start to finish.

 

© 2006, Gerhard N. Ade