Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude
Jul 18 2016 What Can You Expect When Purchasing A Home
I was thinking today about what a new home buyer would like to know when purchasing there home. Even a seasoned buyer may want to have list of what to expect in the purchasing process.
Here is the order of what you need to do to get the perfect home:
1) Get pre- qualified. Why? In this market when you find something you like you will need to move fast to get it. In this market speed counts if your not prepared to submit an offer more then likely the house you want will be gone while your getting your PQ letter. When submitting an offer you need one of two things. Either a PQ letter showing your pre approved for a mortgage or proof of funds if your paying cash.
If you are not already working with a lender I can recommend a lender to you. Over the years I have put a great team together. I have found when working with lenders one size does not fit all. What I like to do is discuss with my clients exactly what there goals are and then recommend the right lender to them to help the attain these goals.
2) If we get a PQ letter from the lender then what I do is find out exactly what your looking for and then do a custom search for you. This process can save you time and a lot of energy. What the public does not know for the most part is most of the search engines out there are showing you homes that have already sold. This means if your not working with the right search engine you could be waiting a lot of precious time.
If for some reason you do not qualify we then create a game plan on what you are going to have to do to get yourself to be able to purchase.
3) This is the fun part after you have picked out the homes you like from your custom search we go house hunting. During the house hunting process one of the most important things to do is keep your cool do not get to excited about a home even if you love it. Many things can happen during the purchase process. So don't fall in love till I tell you were clear to close.
4) After Picking a home we will submit an offer. After negotiations we will have 48 hours to submit your earnest money and option fee monies.
A) Earnest money is normally 1% of the sales price. This check is made out to the title company and is part of your down payment..
B) Option fee is normally $50 to $100 this fee will buy you 5 to 7 days to get the home inspected. If for any reason in this 7 day window you can back out of the deal and get your earnest money back but your option fee will be forfeited.
5) What happens if the inspection shows that there is work to be done to the home before it closes?
A) At this point we would review what you want to have done to the home prior to closing. We would then prepare a repair Amendment and submit it to the sellers Realtor within the option period.
At this point the seller will have to decide what they want to do. They can do any of the follow or any combination.
A) Refuse to do anything to the home and say take it or leave it.
B) Repair what is requested from the buyer
C) Give some kind of cash allowance for the repairs. At this point there would be some kind of reduction in the sales price.
6) At he end of the option period the lender at this time orders the appraisal. The appraisal is for the bank and the buyer pays for it. The appraiser comes out to see if the home is worth what the bank is going to lend.
A) If the home appraises for the amount to be lent then we all just move forward and wait for a clear to close from the lender.
B) What if the home does not appraise for the amount needed? At this point the buyer has a few choices.
1) The buyer can back out of the deal and still keep there earnest money as long as it is within the stipulated time period laid out in the third party addendum.
2) The buyer can request that the seller reduce the price do to the appraisal value, witch he may or may not do.
3) The buyer can come up with the cash difference.
C) On all these examples it is up to the buyer to determine on witch way he wants to go.
7) Now its time to get your home owners insurance in place and get any additional documentation that your lender may need.
8) Do a final walk around and inspection of the home. Make sure any repairs requested are completed.
9) Proceed to closing at title company. Collect your keys shake your Realtors hand and live happily ever after.
Experience: • Bryan McCarte Currently has been a Realtor in the DFW Metroplex for close to 5 years now. • Prior to that Bryan was a Director of operations where he supervised a team of Realtors ....