A BUYER’S
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Home B uyi ng Ove r vi ew
S h o p
T a l k .
Today’s homebuyers have access to more information than ever before. We specialize in turning massive amounts of information into laserfocused insights that make the process more transparent, get you more for your money, and help you find the home you love. And, while you may only interact with one or two LeGrand agents, rest assured you have a team of experts always on your side.
PRE P _ B u i l d Yo u r Tea m
L e t ’ s
D i g
I n
It’s important to be organized from the get-go. Identify what you need to tackle — starting with selecting your buyer’s agent, and a loan officer you’ll work with throughout the process.
B e n ef i t s O f B uye r Age nt •
Your Buyer Agent represents you and carries out the duties that are important to you—at no cost to you.
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Your Buyer Agent provides you with opinions and pertinent advice.
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You can keep your Buyer’s Agent agreement for as long as you wish.
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With a Buyer’s Agent, you have access to a network of agents greater than any Zillow audiance. That network allows you to see private + delayed listings that won’t be on Zillow.
W h o Pays Fo r What? •
The Buyer Agent’s commission is typically paid by the seller*.
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In a For Sale by Owner situation, it can be negotiated that the seller pays the Buyer Agent’s commission.
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In a New Construction situation, it can be negotiated that the builder pays the Buyer Agent’s commission.
Buyers Agent Name
Lender Options
Ideal Neighborhood
Ideal Home (bed, bath, sq ft)
$$ Saved for Downpayment
*Please discuss the commission with your agent—every situation is unique.
BUILD YOUR TEAM
GET PREAPPROVED
PRE-OFFER
PREP
Timelin e Ove r vi ew
NARROW YOUR SEARCH + SET SHOWINGS
WRITE OFFER(S)
ACCEPTED OFFER! CLOSING MILESTONES JOURNEY BEGINS
THE OFFER
p. 12 for more info
EARNEST MONEY
p. 9 for more info
CONTINGENCIES Financing Inspection Appraisal CLOSING DAY + GET KEYS! CELEBRATE!!
Pre -O ffe r _ Fa c t s + Te r m i n o log y
Pre -A p p rova l One of the first steps in the home buying process is to get your financing preapproved. In doing so it.. •
Gives you credibility
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Helps determine the price range you can afford
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Strengthens your offer and gives you leverage in a multiple offer situation
Things To Remember— As You Begin Your Search Between the time you apply for financing and the time of closing, DON’T... •
Make a job change
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Make any large purchases (vehicle, large furniture, etc.)
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Omit debts or liabilities from your loan application
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Originate any new inquiries into your credit
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Make a change to your bank accounts
Foc u s Your S ea rc h Cross reference your ‘must-haves’ with our local knowledge, be your advocate in the local market, and actively seek new listings. (use our Buyers Field Guide as a workbook to track)
S ea rc h C riete ria /O p e n Ho us e If you choose to attend an open house without your Buyer Agent, bring along his/ her business card to hand out to the open house host or let the host know who you are working with. If you decide you want to submit an offer on the home, contact your agent with questions or to get started on the offer process. Remember that the open house host represents the seller.
Th e Offe r _ Th e Det a i ls
T h e
O f f e r
You’ve found the one — and you’re ready to make an offer. Since pricing and negotiations involve much more than the bottom line, we’ll help you sift through sales and market data to determine an offer that helps you achieve your goals. And, we’ll walk you through the contract so you understand your options and exactly what you’re signing.
1 . Let’s Get Yo ur O f fer Wri t ten •
How to determine the Purchase Price — show definition, comps, etc.
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What does Cash Offer mean...
notes...
2 . O f fe r Acce pted ! 3 . Cl os i ng Mi l esto nes Jo urney B eg i n s (see p . 1 2 fo r mo r e d et ail s)
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A digital portal that guides homebuyers through the many important tasks and deadlines required to navigate a home purchase from contract to close.
4 . E a r n est Mo ney •
When you get an offer accepted, this is the check you write which will be deposited in a trust account for the duration of the transaction. At closing, this amount will be applied toward your down payment.
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In our area, earnest money is typically a minimum 1% of the purchase.
5 . Co nti nge n c i es < < The In - B etween Pha se> > •
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FINANCING •
Downpayment, savings, old vs. new house
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Loan Commitment
APPRAISAL •
Before your lender approves the amount they are willing to give you, an appraisal by an unbiased professional is required to assess the home’s market value. Plan to budget for the appraisal. The appraisal is ordered by your lender.
Th e Offe r _ Th e Det a i ls
Cont i ng e nci es cont ... •
INSPECTION (radon, water/septic, etc.) •
The inspection is to determine defects only.
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A defect is a significant adverse effect that impacts the health and safety of future occupants or value and life expectancy of the property.
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Budget $300-500 for the inspection. The cost varies by the size of the home.
6. S e l e c t Yo u r Cl os i ng Date! 7. Cl ea r to Cl os e •
Means your mortgage underwriter has approved your loan and all conditions for approval have been met. Your lender is also ready to move forward with a closing date with the title company, so you’re more than approved.
8. Cl os i ng Day •
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A cashier’s check, made payable to the title company, for the remainder of the down payment and closing costs, or prearrange to have funds wired. Your driver’s license or official photo ID (i.e. passport).
9. Ce l e b rate + Po p The Cha mpa g ne!
Frequently Asked Q+A’s—
What’s the typical timeframe from contract to closing? Every home purchase follows its own timeline (think building a home from scratch versus a move-in ready condo that a seller has already vacated). Typically, you can expect a 45 - 60 day window for a traditional re-sale transaction.
Th e Offe r_ Cl os i ng Te c h
C l o s i n g M i l e s t o n e s From the moment you sign a contract to the day you close (and beyond), there are seemingly endless tasks to complete as a homebuyer. Add to that everything you have to manage in your daily life, and it’s easy to feel overwhelmed. That’s why we use Closing Milestones – a new digital portal that guides homebuyers through the many important tasks and deadlines required to navigate a home purchase from contract to close. By helping buyers keep track of contract contingency items like the home inspection, attorney approval, earnest money due dates, and mortgage financing, Closing Milestones takes the stress out of homebuying and enhances the overall experience. Buyers can also access transaction documents, and agents can customize the tasks to fit the needs of each client.
Extra Cre di t
W o r k s h e e t + T i m e l i n e To D o — reach out to a lender potential lenders—
go through pre-approval process needs vs. wants list
start searching + focus
notes...
NEST REA LTY M A DI S O N
T h e F i n i s h L i n e In the final days before closing, we’ll be in constant communication with your lender, and the seller’s agent. We’ll review your lender’s Closing Disclosure (CD), double check the inspection, and coordinate your final walk through. Before you know it, you’ll have your keys in-hand. Let the celebration begin!
legrandre.com / 608.438.2130 / @legrandrealestate