I have been asked the same question often in the last 6 months: what is involved in buying a home in today’s market? It seems a lot of folks are frustrated by a real estate market that is constantly shifting, and by a lack of available information. I work closely with clients to make sure expectations are set, and each step in the process is explained in detail. Informed buyers get the best sales! I will review the basic aspects of buying a home in today’s market, and expand on each of those points in future blog posts, so be sure to check back for more information.
This is where it all begins. Once a Buyer is financially pre-qualified to purchase a home, they can begin the home search process. With the rise of property search engines on numerous websites, the manner in which people purchase homes has completely changed. While no individual search platform is perfect, or has ALL the information necessary to make an informed decision, it is a great place to start. It’s fairly easy to get a general idea what is available in different areas and different price points. Zillow and Trulia have invested a lot into creating an information platform, and while much of the school/neighborhood information is accurate, they do not always have the most up to date listing information for individual homes. That is where www.MetroListMLS.com comes into play. They do not have the extra “fluff”, but they have the most accurate property pricing and status information. So between the two, it’s easy to compile a great list of homes. This is in addition to receiving updated listings from your exceptional real estate agent, ME! I will review all the information and make appointments to tour selected homes, and help my clients determine which home is right for them. Read my blog Home Buying Step 1: The Home Seach
for a detailed breakdown!
Once you have viewed available homes, it is time to make an offer on the right home. Many different factors influence whether an offer could be considered “strong” or “weak” in the eyes of the seller. Purchasing power of the buyer, the current real estate market, and the motivation level of the seller can all impact terms of an offer. Choosing the right offer price is just as important as choosing the terms of the sale. Certain contract terms can result in thousands of dollars difference in the bottom line! Knowing how to properly structure an offer/contract can save buyers a significant amount of money when buying a home in today’s market! Read my blog Home Buying Step 2: Making an Offer
for more detail!
Negotiation is defined as “discussion aimed at reaching an agreement”. This is the next step once the Seller has received an offer from a qualified Buyer. The price and terms can be open for discussion and amendment at this point. This may be the most important stage of the process of buying a home in today’s market! So many factors influence the direction of negotiations that Buyers must pay close attention to this step. The motivation level of BOTH buyer and seller, the quality and production level of BOTH agents, and the negotiation experience level of the parties involved and influence the outcome drastically. Read my blog Home Buying Step 3: Negotiation
for more detail!
Once negotiation is finalized and Buyer and Seller have agreed on price and terms, it is time to begin the inspection period. This can be referred to as “due diligence,” “inspection contingency,” or “inspection period” among other things. This is a set period of time in which the buyer has an opportunity to inspect the home, verify it’s value, review provided Seller disclosures, and negotiate any potential repair issues. This is also a protection period for the Buyer. If there are major defects, and the Buyer chooses not to proceed with the sale, they are entitled to a refund of the deposit (the cost of inspections is not refunded).
This may be one of the most simple and complicated aspects of buying a home in today’s market. The idea is simple; apply for a home loan, find a home, and wait for the bank to loan you the funds to purchase. However, the execution and the detailed steps in this portion of the process is much more involved. The bank or mortgage broker you choose can have a BIG impact on the process, your rate, and even whether or not you actually close the purchase. Choose your mortgage representative with care! I would be glad to provide referrals to some outstanding lenders that can lend all over California. An outstanding lender will know the right questions to ask, suggest the best loan options, set proper expectations, and keep their clients informed every step of the process.
I hope this information is helpful, and gives a general overview of the process. Please feel free to contact me for more detailed information, or with questions about a specific situation. Happy home buying!
“Your local professional for South Placer Properties.”
I will assist you in purchasing a home for sale, or help you sell a home for the best possible price. I have an established record of satisfied clientele, and I personally have over a decade of real estate experience in the Placer County region.
Contact me directly (916) 677-9813 for a private consultation