4. Identify Properties Which Match the Criteria we have Defined
You may know exactly the type of property you are seeking, or you may be starting with only a few vague preferences. In either case, we will prioritize the criteria that you have defined and create a search profile specifically for you. For many people, the process of looking at properties is an integral part of clarifying their needs and wants, so this profile may very well change as we go along.
Based on your profile, I will perform a search and deliver appropriate listings via e-mail for you to review at your convenience. The large majority of listings will come from the Multiple Listing Service (MLS), the official property database of RI Realtors, where 85-90% of all residential property sold is listed for sale. I do also monitor other sources (e.g. Craig's List, various "For Sale By Owner" sites), but encourage you to do your own prospecting as well if you have the time and desire to do so.
While it is by no means a requirement, most people prefer to drive past prospective properties to check out the exterior, the lot, and the neighborhood before scheduling actual showings. Once you have identified those properties that you wish to see, I will make arrangements for us to go view the properties together at a time that fits your schedule.
5. Visit Properties Together and Perform Relevant Research
As we view properties together, I like to give you as much space as possible to look at your own pace and without too much distraction, though I may point out special features or potential problems that you might have missed. Often, the listing agent or seller may be present; while this offers a great opportunity to ask any questions you might have about the property, it is a good idea in this circumstance to try to maintain a "poker face" so as not to compromise your negotiating position should you decide to bid on the property.
Once we have identified a property which seems to be a good fit for you, you may have questions or concerns that need to be addressed before you are ready to make an offer. By making the appropriate inquiries through the listing agent or researching the public records, I will be able to resolve many of these issues for you. In some cases, particularly when a subjective assessment is involved (e.g. "What's the neighborhood like?" or, "How's the school system?"), I may refer you to other resources or make suggestions on how to do the appropriate research yourself.
Prior to drafting an offer on the property, I will gather as much information as possible to help with the decision-making process. This may include public information regarding ownership history, tax records, and recorded liens, as well as data from the MLS about comparable sales and active listings.
6. Negotiate and Execute a Purchase & Sales Agreement
Before putting ink to paper, we will first consider all of the information we know about the property, its market value, and the seller's situation & motivations. We will also discuss the various contingencies that need to be met, including any repairs that must be made, personal property to convey (e.g. appliances, window treatments, furniture), inspections to be performed, existing property that you need to sell, timeframes for closing, and anything else that will affect your ability and willingness to purchase the property. Finally, we will determine a maximum price that you are willing to pay for the property, discuss best strategies, and settle on an initial offer.
After detailing all of the above-mentioned terms in an "Offer to Purchase," we will submit our offer (usually to the listing agent) and wait for a reply. The seller has the following options: accept the offer as written, reject it outright, or (the most likely scenario) make a counter-offer. It is not uncommon for there to be several rounds of negotiation. Assuming that we succeed in reaching an agreement, both parties will then sign a formal Purchase & Sales Agreement (P&S), laying out the terms in detailed legal prose.
At this time, you should expect to deliver a deposit with the Purchase & Sales Agreement, typically 3-5% of the sale price, which will be held in escrow by the listing broker until closing.
To be continued......
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