I would like to provide home buyers with a summary of the home buying process in order for them to gain more knowledge on the complexities of a home buying transaction.
Meeting the Buyers
At the first meeting we will discuss the different types of agency relationships. If buyers are not working with another agent we will discuss the forms for Agency Relationships, Exclusive or Non-Exclusive Buyer Representation, or Facilitator agreement. We will discuss compensation and how cooperative fees are paid among real estate brokers.
Pre Purchase Counseling and Education
We will discuss expectations such as:
What is time frame for finding a new home?
Have buyers looked at homes previously?
What are buyers looking for in an agent?
What are buyers housing needs? Price? Style? Number of Beds/Bathrooms? Drive Time/Vicinity to work? School requirements? Recreational requirements?
What is buyers preferred method of communication?
Have buyers obtained pre-approval from a lender? Is pre-approval important?
We will discuss the different home search options available.
We will discuss the need for home inspections and possibly radon and lead testing and disclosure issues such as Sellers Property Disclosure Statement, Well and Septic Issues, and Code compliance issues.
At buyers request we will sign a exclusive buyer contract of facilitator agreement.
Preview Properties
After narrowing our search we will schedule appointments and view homes. Buyers will be instructed on what to look for and educated on mechanical systems and other house specifications . The homes will be evaluated and analyzed and the differences discussed. Forms will be reviewed such as Sellers Property Disclosure Statements, Truth in Housing Reports, Contingency Agreements, Inspection Contigency agreements, and the difference between these and other forms discussed. We will narrow the choices and discuss re-sale values, pros and cons of home features and location, and prepare comparative market analysis on properties under serious consideration.
Drafting the Offer to Purchase
We will discuss the process and consult on the following topics:
Contingencies (risks and rewards)
Clauses
Multiple Offers
Financing Issues
Earnest Money
Price
Inspections
Closing Date
Possession
Presenting the Offer:
Discuss ways in which the offer is presented (buyer present, offer faxed to listing broker).
Provide advice on how the offer may proceed in different scenarios (counteroffer, etc.)
Negotiate on behalf of the buyer.
Perform due diligence as time is of the essence
Obtain all proper signatures.
Provide copies of purchase agreement to the buyer
After the Purchase Agreement Has Been Signed:
Follow through is crucial
Arrangements are made for a property inspection
Advice and counsel to be provided for any issues arising from inspection
Follow up on all other inspections and contingencies if need be
Purchase agreement documents need to be provided to buyers lender
Verify that appraisal of new property has been ordered
Good Faith Estimate needs to be provided to the buyer
Guard against fraudulent activities and explain buyer liability
Closing date, time, and location will be arranged (early to avoid delays).
Title work needs to be verified and completed
Preparation for closing including ordering of insurance binder, possession of required paid receipts
Arrange for final walk through before closing
Negotiate any last minute problems
Advise buyers on what to expect at the closing
What buyers need to bring to closing (drivers license with photo ID, social security numbers, addresses of residences from the last ten years, certified funds and or personal funds as verified by lenders requirements)
Explain the importance of title insurance
Verify that all terms of the Purchase Agreement have been met.
Closing The Sale:
Attend the closing with buyers
Go through the HUD1 settlement statement with the buyers
Handle any last minute issues with all known conflicts to be resolved by written agreement, including escrow agreements to avoid adverse consequences.
Pre Purchase Counseling and Education