Real Estate Buyer's Guide DEA N BA DESSA
The Home Buying Process
1 4 7
Considerat ions Needs, Wants, and Priorities
2
Preparat ion Financing Pre-Approval
3
Search Listing Information Review
Purchase Timeline
Assess Market Conditions and Values
Home Tours and Open Houses
Financial Parameters and Costs
Explore Property Types
Exploring Options/ Learning the Market
Buyer-Agent Relationship
Neighborhood Pros and Cons
Find the Home You Wish to Buy
The Offer
5
Escrow
6
Due Diligence
Review Property Documents
Create Timeline of Events
Comparative Market Value Analysis
Open Escrow Account
Property Inspection & Investigation
Negotiation of Best Terms and Price
Buyer Good-Faith Deposit
Review of Disclosures and Reports
Offer Acceptance
Preliminary Title Report
Removal of Contingencies of Sale
Week Before Closing Final Walk-Through
8
Day of Closing Recordation of the Deed
Review and Sign Closing Documents
Close of Escrow
Buyer Final Deposit
Delivery of Keys
Funding of Loan
Move In
Lender Appraisal
GETTING STARTED
Identifying Your Goals
Financial Parameters
We will meet to discuss your timeline,
Loan Pre-Approval: Financing your
price range, needs, preferences, special
purchase begins by reviewing your
circumstances and other criteria for the
options with a qualified mortgage
property that will best suit you, your
professional. I can provide a list of great
lifestyle, and goals. We?ll review options
lenders I?ve worked with successfully to
in property type, neighborhood,
help you with a loan pre-approval so that
architectural style, amenities, and more.
you fully understand your financing options and costs associated with the purchase. Assess Market Condit ions & Value: We?ll also look at current market conditions and trends and how they will affect your search.
BUYER' S GUIDE
Property Search Online Search Tools: Many people start with
Broker?s Tours: I may not always be able to see the
Zillow/ Trulia, but these may not be your best
homes on the weekend with you, but it?s important to
sources. I?m often able to access off-market listings
give me your thoughts so I can tour the homes on
as well as more timely data by taking advantage of
the weekly Broker?s tour. If there are any you?ve
our company?s private network, my personal
missed, this is a great time to catch up. I also explore
contacts, and other industry and
other ways to connect with agents and learn about
subscription-based services.
homes on the market. Among other resources, the proprietary Sotheby's International Realty Exchange
Feedback: Each time you see a property, consider
network allows me to connect with other
how it might work for you and then let?s discuss
high-performing agents across the region and state
your thoughts. The more we communicate about
to learn about new listings.
what works and what doesn?t, the better chance we have of getting you what you want.
Sat urday and Sunday Open Houses: Many homes will be open during weekend open houses. It?s
Market Knowledge: As you share properties of
important that you make time to see homes on the
interest with me, I will share with you my thoughts
weekend.
on the value of the property. I can offer insight into the neighborhood, the current market climate, and
Open House St rat egy and Et iquet t e: Open houses
specific nuances of the property.
are the agent?s first impression of you. Let the agents know I am representing you, and feel free to share
Viewing Houses Virt ually: Increasingly, homes are
any positive feedback you have about the home.
also available to tour virtually whether through
Save your concerns for me to address with the agent
Zoom calls, Facebook Live events, or other
directly. Agents will remember you come offer time,
services. 3D tours such as Matterport also provide
and leaving a positive impression can help.
a more immersive experience of the home than traditional photos.
CONTRACT & DUE DILIGENCE
Making an Offer
Before Closing
Comparat ive Market Analysis: I will put
Homeowner?s Insurance: Prior to closing, the lender
together a comparative market analysis to help
will require you to purchase an appropriate
you determine how much to offer on the
homeowners insurance policy for your home, whether
property.
a single family home, condo/ TIC, or multi-unit building.
Offer St rat egy: We will discuss possible offer strategies to give you the best shot at getting
Final Walkt hrough: Within 5 days prior to the closing
your property.
of your purchase, you will be able to conduct a final walkthrough. This is not an additional inspection, but
Negot iat e t he Best Terms and Price: I will
allows you to ensure the home is in substantially the
work hard to negotiate the best possible price
same condition as when you last saw it.
and terms for your purchase based on our agreed upon offer strategy.
Loan Document s: After loan approval, the loan documents will be sent to the title company, where
Get Offer Accept ed.
you will review and sign with other closing documents. They are notarized by the escrow agent and returned for lender?s final review and funding. Funding: You will deposit the remainder of your down payment, plus closing costs into escrow. Once these final monies are delivered by wire or cashier?s check, the lender will fund the loan.
Due Diligence Inspections As part of your offer, there is an
Structural Pest Inspection
Contractor Inspection
inspection period. You may
A structural pest inspector will
The inspection covers major
decide to waive your right to
examine the home for evidence
systems such as plumbing,
inspections to strengthen your
of termites, dry rot, earth to
heating and electrical,
offer, or you may have a period
wood contact, water intrusion
structural elements, roof,
of time to conduct any
and beetle infestation. They will
safety features, and building
inspections and investigations
then provide a written report
code compliance.
that are important to you.
and bid for the corrective work.
Other Inspections
Review Disclosures
Inspections by other
Sellers are required by law to
professionals may be
disclose any information
warranted based on the
known which would materially
specific property and
affect the value or desirability
disclosures provided by the
of the property. Sellers are also
Seller. These include but are
required to supply a number of
not limited to structural
reports and disclosures which
engineers, surveyors, soils,
will be available for your
roofs, fireplaces, underground
review.
storage tanks, and environmental hazards.
CONTRACT & DUE DILIGENCE
Closing Costs
Signing Closing Documents
Tit le Insurance: You may purchase an Owner?s
Holding Tit le: Decide how you will hold title to the
Policy and a Lender?s Policy to ensure that you are
property. Consult a lawyer or tax consultant to help
protected if any title issues arise after close of
with this decision. (See Holding Title chart in this
escrow.
document for more information).
Escrow Fees: These fees typically include recording
Review Closing St at ement : The title company will
fees, processing fees, notary fees, document
provide an estimated closing statement with all costs
preparation fees, couriers, and other administrative
necessary to close.
fees. Bring Valid Phot o ID: Your signing will be notarized and Inspect ions and Report s: You may have the option
will require your valid photo ID and a fingerprint.
of conducting any inspections to satisfy you to the condition of the home, including home contractors inspections, structural pest inspections, sewer lateral inspections, fireplace inspections, and more. Appraisal Cost , Loan Fees & Point s: Your lender
Close of Escrow Recording: Title will be recorded as you?ve designated.
will provide an estimate of these costs to you based on your loan product.
Funding: You and the lender will deposit all remaining funds into escrow. Then funds will be distributed to the
Homeowner?s Insurance: Just like when you buy a
appropriate parties.
car, you are required to have insurance in place before you drive it off the lot. Similarly, you will be required to purchase homeowner?s insurance prior to close of escrow. The price of title insurance and escrow is based on sales price.
Keys: I will help coordinate an exchange of keys on your behalf.
CONTRACT & DUE DILIGENCE
Holding Title Communit y Propert y
Propert y wit h Right of Survivorship
PARTIES
Husband and wife or domestic partners
Husband and wife or domestic partners
2+ persons or entities (may 2+ persons or entities (may be be spouses or domestic spouses or domestic partners) partners)
DIVISION
Ownership interest is equal. Title is in the ?community? ? each interest is separate
Ownership interest is equal
Interests are equal and Ownership can be divided into undivided, yet each person any number of interests ? controls own interest equal or unequal
TITLE
Title is in the ?community? Ownership is joint. Sale by Ownership interest is equal subject to special survivorship one severs tenancy as to right others
POSSESSION
Both co-owners have equal possession
Both co-owners have equal possession
Joint Tenancy
Equal right of possession
Tenancy in Common
Each co-owner has title to an undivided interest
Equal right of possession
Conveyance by one Each co-owner?s interest may co-owner without others be transferred separately severs his/ her joint tenancy
CONVEYANCE
Both parties must consent Both parties must consent for for valid transfer valid transfer
DEATH
Deceased?s half interest Deceased?s half interest passes Deceased?s interest passes passes to surviving to surviving co-owner. No Deceased?s interest passes to automatically to surviving co-owner unless otherwise separate interest is devisable heirs by will joint tenant devised by will by will
CREDITOR?S RIGHTS
Entire property is liable for debts of either spouse or partner
Entire property is liable for debts of either spouse or partner
Each owner?s interest subject to execution sale to satisfy debt
Each owner?s interest subject to execution sale to satisfy debt
Note: Provided for information only and should not be used to determine how you acquire ownership. Title may also be held in partnerships or trust arrangements. Buyers are advised to consult a financial advisor or attorney as to how to hold title.
CONTRACT & DUE DILIGENCE
Moving Checklist BEFORE YOU MOVE
ON MOVING DAY
Transf er Ser vices:
- Carry enough cash to cover cost of moving services and
- All utilities including gas, electric, water,
expenses
phone, internet, cable, and garbage
- Transport jewelry and important documents yourself or use
Address Change Not if icat ion:
registered mail
- Post office forwarding address
- Make special arrangements for pets on the day of the move
- Magazine and newspaper subscriptions
- Double check closets, drawers, shelves and garage to be sure
(may take several weeks)
they are empty
- Friends and relatives
- Leave all old keys needed by new owner
- Bank and other financial institutions (for example: loans, credit cards)
AT YOUR NEW ADDRESS
Insurance:
- Confirm status of all utility services
- Notify carrier of new location for
- Check pilot light on stove, hot water heater and furnace
coverage of life, health, fire and auto
- Visit Department of Motor Vehicles to update driver?s
Movers:
license(s) and vehicle registration
- Arrange for moving company
TIP: make an appointment online before going; try other
- Plan ahead for the care of small children
nearby DMVs
and pets during the move
- Visit city offices and re-register to vote TIP: Save time and do this when you update records at the DMV
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