Buyers

Find a REALTOR®

Nothing can substitute for the broad market knowledge of a REALTOR® when it comes
to buying a home. A REALTOR®’s expertise, experience, commitment to a code of ethics, and promise to keep up-to-date on the latest industry news and changes in real estate practice ensure an opportunity to negotiate the best price on a home. In addition, a REALTOR® is able to offer impartial and unemotional advice as you navigate the road to homeownership.

Get Pre-Approved

Work with a qualified lender and obtain a pre-approval letter that will give you a clear
picture of your borrowing and buying power. The pre-approval letter tells a seller that you
are a serious buyer, and can save you time during the home-search process.

Shop Around

The current real estate market is not impacting all neighborhoods equally.  A qualified REALTOR® can break down
this kind of data by neighborhood and provide other critical information about homes in your area. For example, did
you know that in today’s market, homes are listed for an average of between six and eight weeks, in some cases
longer, before they are sold.  You have more time to consider your options today, and more homes from which to
choose.

Make an Offer

The bidding wars that prevailed as recently as a two years ago have subsided considerably in many
areas. Roughly 55 percent of the sellers of homes on the market in 2007 received multiple offers.
Today, the number is roughly 17 percent. Once you have found the home you would like to buy,
a REALTOR® can help you complete a written offer to purchase the home. This crucial document
should include your initial offer on the house and a comprehensive list of terms of the sale, including
the price you are offering; deposit amount; escrow closing date; termite work; loan terms; inspection
schedules; and other fee arrangements to be promised by either you or the seller.

The Deposit

Once you and the seller have a signed purchase agreement, your “good-faith” deposit may be sent to escrow, and
credited toward your down payment.  The U.S. Dept. of Housing and Urban Development (HUD) advises that a
good-faith deposit typically be a minimum of between 1 to 3 percent of the purchase price.

Have the Home Inspected

Arrange for the home to be inspected for termite damages and construction and
mechanical soundness, as well as the functionality of the home’s plumbing, heating,
and electrical systems, among other things. The buyer sometime pays for his or her own
inspection, so prepare to pay these fees either directly to the inspector or through escrow,
unless you are able to negotiate with the seller to cover a portion or all of them.

Get a Copy of the Appraisal

Once you’ve made an offer to purchase a home, your lender may order an appraisal of
the home. An appraisal is an estimate of your home’s value based on the current housing
market, the home’s age, condition, and other factors. An appraisal amount is not the
same as a listing price, but rather an estimate of what a professional believes a home
is worth. Your appraisal will likely include comparables for a minimum of three similar
properties in your buying area; an evaluation of the overall market conditions nearby; and
detailed comments about the characteristics and features of the home.

The Escrow Process

Once your offer has been accepted by the seller, you and the seller may open an escrow account
with an escrow company to coordinate your sales transaction. The escrow agent’s role
is to serve as an independent monitor of the sales transaction, helping to keep your deposit
safe until the sale process closes, typically between 30 and 90 days, depending on the terms
of your contract.  You also may want to conduct a “final walk-through” of the home during the final stages of the
escrow process prior to signing your closing documents. This is your opportunity to make sure
that all of the repairs you’ve requested have been completed, and that no unauthorized changes
have been made to the home since you signed your initial purchase agreement.

Close the Deal

A day or two before closing, you should review your final closing statement, or HUD-1 Statement,
which outlines the fees and details originally agreed upon in your purchase agreement. You
should review this document carefully to make sure that all of your deposits have been fully credited,
and that escrow and title fees are accurate. At this point, all or most of the conditions of the
purchase agreement have likely been settled between you and the seller, and the escrow officer
should be coordinating the official recording of the grant deed to your home with the county recorder’s
office. Once all closing documents are signed, and your loan is funded, you should be ready to take
ownership of your home.