The Home Buying Process
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"10 Deadly Mistakes" that buyers make.
Info at the bottom of this article.
My clients always ask me to walk them through the process of purchasing a home, so I have developed a presentation that helps them understand the Home Buying process. I'd like to share excerpts of the presentation with you in hopes that it will help you understand what purchasing a house looks like and, in turn, make better decisions.
1) Find the right real estate agent.
The first step is to find an agent you can trust. One of the best ways to do this is to ask your friends, relatives or co-workers to recommend an agent with whom they have worked successfully in the past.
2) Make an appointment with the agent.
Once you pinpoint a trusted advisor/agent, make an appointment to meet the agent so that you can share all your "wants and needs" with him/her: from the area where you want to look, to the size, condition, and features of the home you wish to buy. Look to your agents expertise to guide you through your wants and needs and set realistic expectations about the feasibility of finding what you want within your price range.
3) Get pre-approved by a reputable lending institution.
Most sellers will not even consider an offer to purchase their property without a written mortgage pre-approval letter, so obtaining one should be high on your list of priorities. You can ask your real estate agent to recommend a reputable lender.
4) Find the right house for you.
Now that your basic financing is in place, and you have your "wants and needs" list, it's time to start looking. Your real estate agent can offer you a property update report: a daily email of information and pictures for any new listings that meet your criteria. You will be able to choose the homes you want to see from these updates. Remember, finding a home is a process of elimination. You can't possibly see all the homes that are for sale...so eliminate the ones that don't meet your needs and give a list of the rest to your agent so he/she can set up the showings and coordinate the times. Also remember that your list of "wants and needs" is a good guideline, but keep an open mind when your search so you can make adjustments based on what you see in your price range.
5) Discuss a game plan with your agent for getting the best price and terms.
Once you have narrowed it down to your top 2-3 homes, ask your agent to do an analysis of the value of each home based on "recently sold" and "for sale" properties. There is no standard for how high or low sellers price their home, so it is important that you base your negotiation strategy on the market value of a property, and not go by what the seller is asking. In some instances, the property may be priced below market value, (for example some bank owned properties, or "REOs"). After you have determined the value of the home, your agent can help you come up with a strategy for getting the best price and terms. Many buyers also make the mistake of comparing the asking price to the "Assessment value".
The City Assessment is set to determine the taxable value of the property and not the market value.
6) Obtain the services of an attorney.
Neither your real estate agent nor your mortgage officer can advise you in legal matters, so I highly recommend that you retain a real estate attorney. You are probably making the largest purchase of your life, so you want to protect your legal interest by having a trusted attorney by your side. Look to your real estate agent or mortgage officer for a referral in this area also.
7) Perform due diligence.
Ok, you've put the home under agreement, and now you need to do your due diligence which includes home, structural, pest, lead, radon and maybe even mold inspections. During this time, your attorney will also get involved in structuring the document by which the purchase is bound, the Purchase and Sales agreement.
8) Secure your loan.
It is now time to work closely with your loan officer to make sure you provide all the documentation the loan officer needs to finalize and secure your financing. There may be several stages where you will need to provide documentation. This is not unusual as the loan goes to several levels of approval so don't get frustrated wondering why they don't ask for everything up front.
9) Enjoy a happy ending.
A happy ending is one in which buyers and sellers come together to sign the final paperwork and exchange money for keys. If you have trained professionals on your side, this last step should be relatively easy. But, last minute things do come up from time to time, so don't panic...and trust in the team of professionals that you have assembled to help you through it.
But it doesn't really end at the "happy ending"! You can count on your real estate agent for a lifetime of great referrals to vendors and tradesmen, from electricians to landscapers, plumbers, insurance, roofers etc.
Elias Papadopoulos
RE/MAX Unlimited
420 Harvard St
Brookline, Ma. 02446
617-566-0300 x 201
For a list of "10 Deadly Mistakes" that buyers make, or for a copy of my "Moving Guide" with links to the RMV, post office (for mail forwarding), utility companies, moving companies, etc., email me at eliasp@remax.net.
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