- Prepare to Buy
- Begin process only when you’re ready to make a purchase
- Resolve issues…including, but not limited to:
- When do you need to be settled?
- Who else needs to be involved in the decision?
- Does your job play a part in the decision to move?
- If renting, does your current lease need to be reviewed?
- If already owning, should you buy first or sell first?
- Make sure all parties involved are committed
- Define your financial strengths and weaknesses
- Meet with a Real Estate Agent
- Ask about agent’s experience, affiliations, and designations
- Select and work with only one agent
- Ask about Buyer Agency
- Gain understanding of representation for your specific transaction
- Sign a buyer representation agreement that outlines your rights and responsibilities
- Have the agent define and explain the buying process
- Help your agent get to know you, your needs and your lifestyle
- Consider inviting them to your home
- Ask a lot of questions
- If you’re considering new construction, let your agent know so he/she can help
- Establish Price Range and Financing
- Obtain a pre-approval letter
- Research and understand various financing options and their associated risks. Examples include, but are not limited to:
- Fixed-rate mortgages
- Adjustable-rate mortgages (ARMS)
- Interest-only loans
- FHA/VA loans
- Balloon mortgages
- Determine Your Housing Requirements
- Begin by examining your lifestyle and dominant motivations
- Motivations: Achievement, Pride, Family, Security, Convenience, Comfort, Independence, Privacy, Love, Self-fulfillment, Social Acceptance/Friendship, Status/Recognition
- Lifestyle Descriptions: Busy, Adventure, Travel, Entertain, Relaxing, Animal Lover, Gardener, Workaholic, etc.
- Translate your motivations to the physical requirement of the home
- Physical Requirements: #Bedrooms, #Baths, Yard, Location, Proximity to Amenities, Fireplace, Basement, etc.
- Remember: you ultimately buy according to how you will feel in the home
- Start House Hunting
- Use technology to define your search
- Preview homes via the Internet at sites such as:
- Your agent’s company site, MLS online and
- Experience homes using online virtual tours
- Your agent will arrange showings
- Imagine yourself living in the home
- Mentally place furniture and family in rooms
- Discuss your reactions with your agent
- Don’t expect perfection with existing real estate; focus on permanent features and characteristics
- If you find a house that feels right, make your decision sooner than later
- If you choose to buy the house, hire a private inspection company to evaluate it
- Complete the Purchase Agreement
- Your agent will serve as an advisor during this process; you ultimately make final decisions on elements of the agreement.
- The goal is to reach agreement and purchase the home; aim for a win-win transaction
- Read and understand the elements of your purchase agreement:
- Earnest money
- Personal property and fixtures
- Price
- Time: closing and possession dates
- Financing terms
- Other conditions (i.e. contingencies)
- Taxes, assessments and escrow
- Remember: quality real estate will command market value. Don’t make a low offer for homes priced at or near market value.
- Present and Negotiate the Purchase Agreement
- Know the sellers options
- Accept your offer
- Reject your offer
- Counter offer
- If multiple offers, they may select a competing agreement
- Negotiate only the items that are most important
- Close the Sale
- Work with agent and lender to provide all necessary items…including, but not limited to:
- Credit report
- Appraisal
- Income and deposit verification
- Finalize loan approval
- Inspections
- Title search
- Homeowners insurance
- Moving arrangements
- Pay the balance of down payment and closing costs
- Receive the keys to your NEW HOME!
Blair Taylor, Real Estate Consultant | Homes for sale Prosper TX
