A Simple Look at the Home Buying Process.

What does (or should) the home buying process look like?

Below is a Step-By-Step breakdown of a "typical" real estate transaction from a buyer’s point of view. Before I go on, however, it's important to know that ‘typical’ is a word I tend to run from.  I’ve closed hundreds of deals over the past 9 years, and if one thing stands true, it's the fact that each transaction is unique and brings with it its own challenges and rewards. 

Notice too, that I didn’t say that this is a ‘Day-By-Day’ breakdown of a real estate transaction. Buyers and sellers (and I) would love to know a day-by-day schedule, but that's just not realistic.  The number of days necessary to complete each stage, safely, effectively, and efficiently changes from one transaction to the next. With that out of the way, here we go!  

Think first about the lifestyle you want to lead,
then start your search.

1. Find the best real estate agent you can. Find a Realtor that is going to advocate solely for you. Don't use an agent who's going to simply fill out paperwork in hopes that you and one of their other clients will meet at some arbitrary price that’s half way between what you want and what they want. Each team in the Superbowl has it's own coach.  Don't you deserve one too?
2. Meet with your lender and establish your maximum budget as well as what type of financing you’ll be using.  The result of this meeting should be your Pre-Approval Letter.  This letter is your golden ticket.  It enables you to submit offers to sellers, expressing not just your interest and willingness to buy, but your ability to buy as well.
3. Discuss your Needs, Wants, and Budget.  With whom? Your spouse? Your friend? Your Realtor? Your grandparents?  Yes to all of the above.  Each will have a different perspective and help. Keep in mind that what you “Need” is different from what you “Want”, and what you “Can afford” is different from what you “Should afford”.  
4. View homes.  Much of this process can be done online, but there are benefits and pitfalls with
   using the internet to aid in home shopping.  The benefits of this is that you’re not spending days and weeks driving around from place to place when you can easily rule out 75% of active listings with a virtual tour.  A major pitfall is that anxious and eager buyers often depend on Zillow, Redfin, or Trulia type apps more then they depend on their Realtor.  Simply put, too much of the information on these apps is either inaccurate or outright wrong.  
5. Submit the smartest and best offer you can. Notice I did not say the highest offer.  "Best" and "Highest" are not necessarily the same.
6. Negotiate all of the terms of your contact.  Price, Time-frames, Contingencies, etc. if your real estate agent is a true pro, he or she may be able to learn the seller's motivating factors.  This is like know your opponents' cards in a game of poker.  

   

   Make sure that your wants don't come before your needs. Is your life glamorous, or is it practical? Can you afford both?
7. Congratulations, our offer was accepted! Now, your contingency time-frames begin. Typically these would be inspections, appraisal, and loan contingencies.
8. Tell your lender that you’re in contract so that he or she can start the necessary lending tasks. Appraisal is ordered by your lender.
9. Investigate and inspect the property.  Unless you’re buying a brand new home, I always recommend having your home inspected by a professional home inspector and pest inspector.  Those professionals may suggest that you have additional inspections done as well: roof, foundation, pool, etc. These are not a condition of the agreement, but more of a security strategy.  You want to know what you're buying...not what they're selling!
10. Discuss, draft, and submit a Request for Repairs, Addendum, or a Modification of Terms.
11. Closing and Title activities are initiated.
12. Order homeowners insurance.
13. Verify that all agreed upon repairs are completed properly.
14. Once you’re certain that repairs were completed properly, the appraisal came in at or above your purchase price, and your lender advises you to do so...it's time to remove all contingencies.  At this point you're all in, and going forward. Your earnest money deposit may be at risk if you back out.
15. Sign loan and closing documents.
16. Documents are reviewed for final loan approval.
17. Your loan funds.
18. Title of your home records with the county.
19. You receive possession of (and keys to) your new home.
20. Maintain access to the property you’re living in for at least a week after your proposed close date in case there are closing delays.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  Cell ~ 909.539.3292
BRE#01826135
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E-mail me on Andy.Blasquez@gmail.com