Steps in the Process - For Buyers
In most cases, sellers with Keller Williams Realty Grand Rapids also become buyers.
This outline of steps describes the process when you are buying a home. For Sellers,
we provide a handy round-up of steps to prepare your house for listing. Visit our
Resource Center to view, or talk to an agent for a detailed
home marketing plan.
1. Define your needs.
Congratulations on your decision to purchase a new home! It is important to select
a professional real estate agent to work with you before you begin house hunting,
so that your agent can help you define what kind of home and neighborhood would
best suit your desires and needs. The finer the details on your wish list, the more
effective your home search will be. To further define your needs, you may want to
divide your lists into negotiable and non-negotiable items, so your agent can operate
with some flexibility when scouting for homes on your behalf.
2. Get preapproved.
Now that you know what you want in a home and neighborhood, you need to find out
what you can afford. The best way to do this is to get prequalification or preapproval
for a home loan. Your real estate agent can refer you to a mortgage broker to begin
the process. In most markets, preapproved buyers are preferred by sellers over those
who are prequalified. Your preapproved status lets the seller know:
- You have gone through an extensive financial background check.
- A lender is willing to do business with you.
- The likelihood of unexpected obstacles regarding financing is minimal.
3. Let the house hunting begin!
Now you are ready to embark on your home search — an endeavor that can prove
overwhelming if not approached with some forethought. The most efficient route is
to allow your real estate agent to do the initial scouting for you. Using your wish
list as a guide, he or she will alert you of new and existing listings that have
strong potential. If these listings pique your interest, your agent will arrange
home tours at your convenience. Many agents send alerts via email — sometimes
as often as daily, depending on the available inventory in your market. Let your
agent know how you’d like to receive these alerts, whether by phone, email
or fax.
You also can do some research on your own. Read local real estate publications,
contact your local neighborhood associations, visit the local chamber of commerce,
surf the Internet, or drive around your favorite neighborhoods. While these methods
certainly can lead to your dream home, it’s important to note that 82 percent
of home sales are the result of agent connections.* That means it’s more likely
your agent will find your dream home through being in the real estate business than
you driving around on the weekends.
* National Association of REALTORS®
4. Make an offer.
When you’re ready to make an offer on a home, your real estate agent will
help you determine the offer price by reviewing recent sales of homes similar in
size, quality and amenities. With your input, your agent will draft a written contract
that outlines what needs to be done by both parties to execute the transaction.
If the seller accepts the offer, the document becomes a binding agreement, so it
is imperative that you carefully review it with your agent and speak up if anything
is not clear to you. It’s important to note that if the seller changes any
aspect of the offer, it is not a binding agreement until the buyer agrees to the
seller’s changes.
5. Strike a deal.
Sometimes, you get lucky and the seller accepts your offer as is. However, in most
instances, the seller will make a counteroffer. This is where your real estate agent’s
experience in negotiations will be invaluable. Keep in mind almost everything is
negotiable when you are buying a house. This can give you a great deal of leverage
in the buying process — that is, if you have adequate information and you
use it in an appropriate manner.
Some items you may negotiate
Price
Financing
Closing costs
Move-in date
Repairs
Appliances and fixture
Landscaping
Painting
Remain in close contact with your real estate agent so you can quickly review any
changes from the seller. Remember: Bargaining is not a winner-take-all deal. It
is a business process that involves compromise and mutual respect.
6. Prepare for the closing.
When an offer becomes a binding agreement, your real estate agent will help you
tackle the checklist of action items that you, as the buyer, have agreed to perform
prior to closing. Depending on how the responsibilities are divvied up in the agreement,
this is typically when you will:
* Conduct a home inspection.
* Get an appraisal and finalize your financing.
* Secure title insurance.
* Shop for a home warranty.
Having these procedures done in a timely and professional manner is a must, as any
delays could threaten a successful closing. A first-rate real estate agent should
be able to serve as your “one-stop shopping” referral source for service
providers. Your agent also should serve as your advocate, helping to coordinate
activities and making sure the vendors have access to the property to perform their
jobs.
7. Close the deal.
Congratulations! The moment you’ve been anticipating has arrived. The closing
is where home ownership is legally transferred from the seller to the buyer. It
is a formal meeting that most parties involved in the transaction will attend. Closing
procedures usually are held at the title company’s or lawyer’s office.
The closing officer will coordinate all the document signing and the collection
and disbursement of funds.
In advance of your closing date (24 hours at minimum), your lender will send a final
closing statement that outlines your closing costs, if applicable. Your real estate
agent will review this document with you to ensure its accuracy, as well as help
you gather any necessary documentation that you’ll need to bring to closing.