StartYourHomeSearch
17 Establishandadheretoascheduleforhousehunting,mortgageapproval,andclosingto meetyourdesiredtimeline.Ifyoumissanymilestonedeadlines,youcouldbeatriskof losingyourdownpaymentorlosingthehomeforpurchase
18. Learnhowlocalmarketscouldaffectyourbuyingandowningprocess.Fewerhomesfor sale,futuredevelopmentplans,schoolratings,accesstotransportation,andcommunity amenitiesareallelementsthatmayaffectdemandinagivenmarket
19. Scoutlistingsandonlinemarketplacesforsuitableproperties.
20 Setupreal-timealertsonhomesearchmarketplacestogetnotificationswhenmatching homeshitthemarket,andforopenhousesandpricereductions
21 Comparepropertiestoyourwantsandneedslisttoensuretheyalignwithwhatyou’re lookingfor.
22 Tapyourpersonalnetworktouncoveradditionalpropertiesofinterestthatarenotyet publiclylistedandmaybecomeavailableforsalesoon
23. Contacthomeownersindesiredareastoseeiftheyareconsideringselling.
24 Gatherinformationaboutanyhomesthatmightbeforsalebutarenotactivelybeing marketed.
25 Virtuallypreviewpropertiesthatyou’reinterestedin
26. Selecthomesforviewingthatalignwithyourspecificneeds.
27. Schedulemultiplein-personhomeviewingsbycontactingeachhome’slistingagent. Scheduleseparateappointmentsattimesthatsuitthelistingagentbutmaynotalways suityou.
28 Periodicallyreevaluateyourneedsandrefocusyourpropertysearch,asnecessary
29. Exploreallavailableresourcestolearnmoreaboutprospectiveneighborhoods.Besureto speaktolocalexpertswhounderstandtheneighborhoodandwillgiveyouhonest feedback
30. Tourtheamenities,schools,andpointsofinterest,andtestcommutetimesinyourchosen searcharea.
31 Cross-referencelocalcrimeregistriesfortheneighborhoodsyouaresearching
32. Educateyourselfonwhattolookforinpropertydisclosuresofhomelistingswhileyou searchtomakeinformeddecisions Requiredpropertydisclosuresvarybystateandmay include,butarenotlimitedtorightsofway,upcomingspecialassessments,whetherthe homeisinafloodzone,pasttermitedamage,andthepresenceofleadpaint.
33 Staycurrentwiththelistingmonthsofmarketinventory Aswithdaysonthemarket,this indicateshowcompetitiveagivenmarketisandshouldinformyouroffer.
34 Considermeasuresofhomevaluebeyondpricepersquarefoot Theseinclude neighborhood,proximitytoworkandcommunityamenities,andcommunitydevelopment plans.Besuretoconsultwithalocalexperttogetthemostcomprehensiveinformation.
35 Researchmunicipalservicesandotherrelevantneighborhoodinformation
36. Beinformedaboutpotentialneighborhoodnegativessuchasnoiselevels,venues,or operationsthatcouldimpactyourpropertyvalue.
37 Checkapplicablezoningandbuildingrestrictionsifyouplantorentoutyourhomeoradd aunittogenerateshort-termormonthlyrentalincome.
38 Understandpublicpropertyandtaxinformationforpotentialhomes It’simportanttobe informedaboutthepossibilityoffuturetaxincreasesandpropertyassessments,whichwill affectthepropertytaxesyouowefromyeartoyear.
39 Gatherandconsiderimportantdataonutilityavailabilityandcosts Forexample,you’ll wanttoconfirmifthehomehasgoodhigh-speedinternetaccess
40. Researchanyenvironmentalfactorsandrisksthatcouldaffectyourhome,suchas flooding,wildfire,heat,airquality,andnoise Someofthesefactorswillaffectthecostof ownership Forexample,ifthehomeyoupurchaseisinafloodzone,youwillneedtoobtain floodinsurance.
41 Narrowdownyourtophomechoicesforacloserlookbeforeconsideringmakinganyoffer
PrepareFinancing
42. Analyzeyourfinancestodeterminethetotaldownpaymentandclosingcostsyoucan afford.
43 Gatherandassessqualitylenderresources
Askfriendsandfamilyforrecommendations.
44 Consideratleastthreemortgagelendersduringthepre-approvalprocess Mortgage rates,terms,andeligibilitymayvaryfromlendertolender
45. Familiarizeyourselfwiththemortgagepre-approvalprocess.Pre-approvalmeansthata lenderhasverifiedyourincome,creditbackground,andotherfactorsandhasprovideda conditionalcommitmentforanapprovedmortgageamount.Withpre-approval,youroffer willbeconsideredfarmoreseriously.
46 Prepareandcollectpersonalfinancialinformationlikepaystubs,creditcardstatements, andotherexistingloans/debt,andsharethatinformationwiththelendersyou’re considering.
47 Collectandcomparemultiplefinancingoptions Beyondtraditionalmortgages,lookinto lesser-knownalternativeoptionslikesellerfinancingorrent-to-ownprograms.
48 Explorevariousfinancingoptionstofindthebestfitforyourneeds Manypeopleusea conventional,fixed-rate30-yearmortgage,butmortgageswithotherterms(e.g.,15-and 10-yearfixedrate,adjustablerate,andassumable)mightalsobeoptions.
49 Coordinatewithyourlendertodiscussdiscountpoints,whichyoucanpaytolowerthe interestrateonyourloan.
50 Analyzeloanestimates Loanduration,sizeofyourdownpayment,fees,andotherloan termscanaffectyouroverallmortgagecosts
51. Obtainapre-approvalletterfromyourlender,whichismorecomprehensivethan pre-qualification Pre-approvalisawrittencommitmentfromalenderthatstipulatesthe amounttheywilllendyouforahomepurchase
52. Carefullyreviewthepre-approvalletterfromyourlendertounderstanditscontentsand asknecessaryquestions
MakingYourOffer
53. Reviewstatisticstoseewhatpercentageofthelistpricesellersinyourareaarecurrently receiving.Thiswillhelpyoudecidewhethertooffertheaskingprice,oradjustyouroffer beloworabovetheaskingprice,tomakeyourbidmorecompetitive
54. Considerthecurrent,localaveragedaysonthemarkettogaugepropertypricingand marketcompetitiveness.Fewerdaysonmarketindicatesgreaterdemand,whichmeans youmayneedtoraiseyourofferorofferadditionalincentivestomakeyouroffermore competitive.
55 Payforaprofessionalcomparativemarketanalysis(CMA)beforemakinganofferto ensureit’scompetitive ACMAisareportthatdetailsrecenthomesales,localmarket activity,andsalespricestohelpyoucraftasuccessfuloffer.
56 ResearchindependenthomevaluationinformationfromonlineresourceslikeRealtorcom toassessanofferpricethatconsidersthesaleofsimilarhomesinthearea It’simportant tomakeanofferthat’sinlinewithlocalmarketconditions.Youdon’twanttooverpayfora home,ormakeanofferthat’ssolowitwon’tevenbeconsidered,soit’sgoodtotalktoan independentadviserwhohaslocalmarketknowledge
57. Considerhiringarealestatelawyerforlegalrepresentationasyoubuildyourofferandfor legalduediligenceasyoureviewcontractualdocumentation
58. Reviewasamplesalescontracttopreparetomakeanoffer.Thisdocumentoutlinesevery facetofthetransaction,butitmaynotincludeeverythingyouwantinthetransactionor fromtheseller,sodon’tassumeeverythingisthere
59. Understandcommoncontractcontingenciesandtheimportanceofincludingprotective clausesinyouroffer.Thesemayincludebutarenotlimitedtoyourabilitytosecure
financingthatcoverstheappraisedhomevalue,inspections(home,radon,lead,etc), closingdate,dateofpossession,andownerlease-backterms.
60 Learnaboutanypurchasingincentivesthatyoumightbeeligiblefor Homesellersmay offerconcessionslikeapre-paidhomeownerwarranty,closingcosts,orallowancefor homeimprovements/repairsasindicatedbyahomeinspection.Youwillneedtonegotiate theseasyourownrepresentative.
61 Ensureyourofferwillstandoutasthemostattractiveinthecurrentmarket Bereadyto compete manyhomestodayarereceivingmultipleoffersandbiddingwarsarecommon.
62 Craftanofferthatiswellpositionedtobeaccepted,andsubmitittotheseller’sagent An offertypicallyincludeshowmuchyouarewillingtopayforthehome,howmuchearnest moneyyoucanprovide,whenyouwanttocloseonthehome,andthedeadlineforthe sellertorespond
NegotiationsandOfferAcceptance
63 Identifyandprioritizeyourmaingoalsforcontractnegotiations
64. Familiarizeyourselfwithnegotiationbestpractices. Bemindfulofhowyourbodylanguageandfacialexpressionscaninfluenceasuccessful negotiation.
65 Developanegotiatingstrategytosecurethebestterms Inadditiontoprice,consider termssuchasrepairs,closingcosts,orthetimelineforclosing
66. Negotiatethebestpricewiththeseller’sagent. Theseller’sagentwillbenegotiatingonthehomeowner’sbehalf Youwillbenegotiating withaprofessionalwholikelyhasextensiveexperienceinthisarea,andyoumaybeata disadvantage.
67 Bepreparedformultiple-offersituations Don’tgetdiscouraged,andhaveyournegotiation strategiesready
68. Considerusingofferstrategieslikeanescalationclause,whichraisesthepriceyou’re offeringbyacertainamountoverthepricethatanotherbuyerisoffering;offeringflexibility onmove-in/possessiondate;orwaivingvariouscontingencies.
69 Exploreoptionalcontingencies,andunderstandtheiradvantagesanddisadvantages If youagreetowaivetheinspectioncontingency,forexample,youareacceptingtheriskof purchasingahomethatmayhavemyriaddefectsorrequireadditionalfundstorepairor bringuptocode.
70 Beawarethatallknownmaterialdefectsshouldalwaysbedisclosedtoyou Knowwhat questionstoask,andensureyoureceiveandcomprehendallrequireddisclosureformsby stateandfederallaws.Theseformsvarybystate.
71 Agreetofinaltermswiththeseller,andsignthecontract Insomestatesanattorneymay berequired.
72 Verifythefinalofferissignedbyallparties
73. Prepareyourlenderforlistingagentcalls.Theagentrepresentingthehomesellerwill contactyourlendertoconfirmpre-approvalandarrangeothersettlementdetails.These detailswilllikelyfavorthehomeseller,sincethatagentisrepresentingtheirinterests,so youmaywanttoparticipateinthosecallstonegotiateonyourbehalf
FacilitateClosing
74. Coordinatecommunicationseffectivelyamongallparties,includingyourlender,the seller’sagent,theclosingattorney,andanyadditionalthirdparties
75. Seekadditionalguidancefortransactionsinvolvingshortsales,foreclosures,or bank-ownedproperties.Thesetransactionsofteninvolveadditionaltitle,ownership,and financingconsiderations,andtheymaybeas-is meaning,thepropertiesmaybedamagedorrequirecostsforrepairsthatthebuyeris acceptingasaconditionofpurchase.
76 Estimatethegrossout-of-pocketcostofcompletingthetransaction Thismayinclude,but isnotlimitedto,closingcosts,atitlesearch,financingpoints(to“paydown”themortgage interestrate),andtransfertaxes.
77 Acquaintyourselfwithfloodinsurance IfthehomeyoupurchaseisinaFEMA-identified floodzone,youmustobtainfloodinsuranceasaconditionofownership.Youmayalso consideraddingfloodinsurancetoyourregularhomeinsurancepolicy,becausemost regularpoliciesdonotcoverdamagefromflooding
78. Learnabouttitleinsurance,andconsultaqualifiedinsurancebroker.Titleinsurancecovers anypre-existingtitleproblemsthatyoumaydiscoverafteryou’vepurchasedthehome (eg,taxliens,unpaid/outstandingmortgages,previousownershipclaims)
79. Fullyinvestigateyouroptionsforahomeinspector,titlecompany,appraiser,andother services Forgoingahomeinspectionisnotadvisedastheseprofessionalinspectorswill provideacomprehensiveassessment ofahome’scurrentconditionandrisks.
80 Createalistofrequiredandoptionalhomeinspections,includingenvironmental,roofing, andmold.Thiswillhelpyoudeterminewhatinspectioncontingenciestoincludeinyour purchaseoffer.
81 Ensurethatnecessarypropertysurveysareordered Apropertysurveywillhelpyou understandwhereyourpropertybeginsandends,anddetermineanypotential issues suchaseasementsorencroachments beforeyoutakeownershipoftheproperty.
82 Discussanyconcernsarisingfromthehomeinspection Useanynegativefindingsfrom yourhomeinspectionreportasleverageforrepairsorcredits.
83 Trackandmeetallcontractdeadlines Dependingonthetermsofyouroffer,thesemay includedeadlinesforinspections,finalfinancing/loan,downpaymentandearnestmoney depositsintoescrow,titlesearches,andsettlementdate.
84 Ordertheappraisal Confirmwhetheryourlenderwillacceptanindependentappraiseror requireanappraisalmanagementcompanytoconducttheappraisal.
85 Questiontheappraisalreportifitaffectsyourfinancing Checkforerrorslikesquare footage,inadequatehomecomparisons,orincorrectdescriptionsofthehomeor neighborhood.
86 Orderthetitlesearch Acleanpropertytitlemeansthebuyerandlenderagreethereareno claimsonthepropertythatcouldbecomeanissueafterownership istransferred.
87 Regularlycontactyourlendertoensuretheloanprocessisontracktomeettheclosing requirements.
88 Ensureanynecessaryfunds,likeearnestmoneyordownpayments,arereceivedbythe stateddeadlines toavoidanyriskofthesellerterminatingyourcontract.
89 Ensureallpartieshaveallformsandinformationneededtoclosethesale Missingorlate paperworkcancausedelays
90. Checkaddendumsandalterationsforagreed-uponterms.
91 Takenoteofthelocationanddetailsofyourclosingmeeting
92. Confirmandcommunicatetheclosingdateandtimetotheseller’sagent,notingany changes
93. Scheduleandconductafinalpropertywalk-through.Createacomprehensivechecklistof yourconcernsregardingthehome,andthenconfirmthatanyagreed-uponrepairswere addressedorfixedbytheseller
94 Confirmtheclear-to-closestatus,indicatingalldocumentsandconditionstoapprove yourloanhavebeenmet,withyourlender.
95 Reviewyourclosingstatement Itexplainstheterms ofthemortgage,theprojectedmonthlypayments,andhowmuchyourfeesandclosing costswillbe.
96 Double-checkalltaxes,dues,andprorationsrelatedtoyourpurchase
97. Requestthefinalclosingfiguresfromtheclosingagent.Thisisthetotalamountofmoney thatyouwillhavetobringtotheclosingtable.
98 Reviewyourtitleinsurancecommitmentcarefully toensureallinformationisaccurate.
99 Beawareofwirefraudrisks,andverballyverifyallwiringinstructionswiththeseller’sagent beforetransferringfunds Getthedetailedinstructionsfromyourclosingcompany,andbe leeryofanymessagesyoureceivethatrequestchangestotheoriginalinstructions.
100Providereceiptofescrowdeposittotheseller’sagent/brokertoverifythisfinancialstep hasbeencompleted.
101. Gatherallrequiredformsanddocumentsforclosing.Typically,you’llneedaphotoIDand acashier’sorcertifiedcheck(orreceiptofawiretransfer)
102.Performanyremainingclosingactivitiestocompletethetransaction.
103 Reviewallclosingdocumentswiththeclosingagentorattorney Bepreparedtosignaton ofpaperwork.
104 Distributefinaldocumentstoallinvolvedpartiesfortheirrecords You’llwanttokeepthis importantpaperworksafe
105. Verifyreceiptofallkeys,accesscodes,garagedooropeners,andmanualsforall equipmentandappliances
Post-ClosingActivities
106Priortomoving,considerrekeyingyourlocksandchangingaccesscodesasanextra precautiontosafeguardyourhomefromanyonewhomayhavehadaccesspriortoyour ownership
107. Remembertotransferallutilitiesandservicestoyournewresidencesoyoudonotincur costsonyourformerresidence.Thisensureseverythingisupandrunninginpreparation foryourmove-indate
108Turnyourhomeinspectionreportintoamaintenanceto-dolist
109.Fileclaimswithyourhomeowner’swarrantycompanyasneeded.Ahomewarrantyisa policythatcoversthecostofmajorrepairsorappliances
110 Stayengagedandproactivelyfollowuponanypendingitemsorconcernspost-closing Keeparunningchecklisthandytoensureyoustayontopofanypotentialwarranties, includingtheirexpirationdates
111. Arrangeforthemove-indayinyournewhomebycontactingmovers.Buyyourselfabottle ofchampagne.Congratulations,you’reanewhomeownernow.
Or,do1thing.Findabuyer’sagent.
Nooneisbetterqualifiedtorepresentyourinterestswhenbuyingahomethanaprofessional buyer’sagent
Becausetheyworkforyou.
Theyrepresentyourinterestsinnegotiationswiththeseller’sagent,inprobablythebiggest financialdecisionofyourlife.
Isitanysurprisethatnearly9outof10**homebuyerssaythey’duseabuyer’sagent whenpurchasingahomeagain?
*Actual services or to-dos will depend on the needs of the buyer and the transaction - not all 111 things will need to be done in every transaction **Based on a 2023 proprietary survey among recent home buyers and sellers
