Andrea Osmond
The Equestrian Realtor
Buying Process
The Road To Your New Home
Below you will find each step of the buying process with details. In addition, blank agreements, contracts, and disclosure are listed under each stage of the process.
Preparations
Meeting with the Realtor
It is best the Buyer works with someone they feel comfortable around, who proves to have their best interest, whom they find easy to communicate with, and who is in real estate full time with an understanding of the market and current trends in offers.
Choose Lender & Get Pre-Qualification Letter
It is important for the Buyer to have all of their financials in order and have a full understanding of costs, interest rates, closing costs, and what they are approved for before starting the shopping process. If this is not completed it tends to result in disappointment. The lender letter also provides reassurance to the Seller, they are going under contract with a well-qualified Buyer.
Identify Homes Of Interest
It is often a fear of Buyers they will miss something that comes on the market. Andrea gives each client a custom search website where everything in their price range funnels through, giving the Buyer the opportunity to see it and communicate with Andrea directly on the listing if they are interested, request a showing, or ask questions. From here Andrea and her client can identify priority properties that fit the needs and wants of the Buyer.
Showings
Once a property or several properties have been identified and are qualified based on the Buyer's wants and needs, Andrea will schedule showings. It is only in special circumstances that is it appropriate to see more than 4 homes in one day. More than 4 homes tend to blend together making it difficult for the Buyer to make a decision on how they feel about the homes. It is also best all decision-makers are present at all showings. If the Buyer is wanting outside input, it is best to only seek one person's input. Opening this door to many family and friends can lead to frustration and confusion.
Submitt The Offer
Once a home is chosen to submit an offer, Andrea will guild the Buyer through the options to include in the offer, meeting their timeline, and price. Once the offer and lender letter are submitted the "ball" is then in the Seller's court. The Seller can accept, counter, or decline the offer. If the Seller counters the offer with new terms they desire, the "ball" then returns to the Buyer's court. At this point, the Buyer has the same choices. Once the offer is executed (signed,) it becomes a contract.
Earnest Money
Once it is a contract the Buyer has 3 business days to deliver the earnest money, typically to a title company, to be held in an escrow account. This is usually around 1% of the list price. If the Buyers terminate outside the designated terms, the Buyer forfeits their earnest money to the Seller. This money is applied towards closing costs and down payment at closing.
Schedule, Perform Inspection, Submitt Inspection Objection
In most cases, the Inspections are scheduled to be completed within the first 2 weeks of the transaction. This is a negotiation point all parties want to get past as quickly as possible. It is most common to have a physical home inspection, radon testing, sewer scope, and well portability and flow (if applicable.) Once the inspections are complete the Buyer identifies what they want and either terminates, sends the Seller an Inspection Objection, or chooses to not address anything. The Seller has a set amount of time to respond to the Buyer's Inspection Objection. If an agreement is not met, the contract terminates and the earnest money is returned to the Buyer.
Due Diligence
Due Diligence Documents are records the Seller has kept through their years of ownership. Some Sellers are very good record keepers and some have nothing. Typically this request is for receipts on appliances, mechanicals, maintenance, new roof, windows, siding, etc.
Apprasial
Once inspections have been completed the Lender will order the appraisal. It is done in this order to avoid the Buyer losing money on the appraisal should the inspection cause termination. An appraisal is a licensed 3rd party appraiser who identifies the value of the home to ensure the lender is not over-extending liabilities to the borrower. If the appraisal comes in low, this becomes a negotiation point between the parties. If an agreement is not met, the contract terminates and the earnest money is returned to the Buyer.
Title Commitment
Title Insurance is the policy for the Lender. The Owner's Policy is for the Buyer.
Clear to Close
The Buyer's Lender gives the Clear To Close and releases the final figures to the Title Company to complete the Settlement Statement. This is the statement that shows each party's credits and debits to the transaction.
Final Walk Through
This Final Walk Through is the Buyer's opportunity to view the home within 24-48 hours of closing to ensure the terms of the contract are complete. An example might be making sure the correct appliances were left, furniture and items were fixed per the Inspection Resolution, or the Sellers did not cause any damage while moving out.
Closing
Closing Time! This typically takes place at the Title Company. It is 50/50 if the parties close together. The transaction is complete once all documents are signed and funding is complete.