| Owning a home has proven to be one of the best and safest investments we can make.
Being knowledgeable about the purchasing process is crucial to insure the safety of this investment.
Let's look at what's involved. |
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| Start with a good Realtor® who knows the area |
| All of our agents are certified in-house to work with buyers and must meet our stringent guidelines.
Our job is to find you the best possible home and save you as much as possible. |
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| Making an offer |
| This is the first step you and your agent will take in the negotiation process.
Our agents will provide you with a market analysis on the home prior to the offer being written.
This analysis looks at recently sold properties in close proximity to the home in question.
A serious offer takes this analysis into account along with other factors such as amenities, and the property's general condition. |
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| Counter offers |
| In most cases, the original offer is returned with changes or items the seller doesn't agree with.
This is called a counter offer.
The seller may want more money, more time to close, or other changes to the contract.
This process can go back and forth several times before an agreement is reached.
Most reasonable offers are accepted at some point and the process proceeds. |
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| Acceptance |
| Once your offer to purchase is accepted, the seller will expect proof of financing to ensure your commitment.
Additionally, earnest money, or a "good faith deposit" is offered by you to the seller.
This money is held in an escrow account until the contract is closed.
At this point the house is considered to be in Sales Pending status. |
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| Inspections |
After acceptance, a variety of inspections take place.
We always recommend a thorough home inspection by a trained professional.
Your lender will require an appraisal on the property to assure its value.
This is not a home inspection; the appraiser is only looking at the home's value.
What does a Home Inspector do? click here to learn more |
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| Contingencies |
When you make the offer to purchase, most will include certain contingencies which must be met to satisfy the contract.
They include things like financing, appraisal, home inspection, or even the sale of your existing home.
Contingencies must be satisfied in a timely manner to ensure a smooth closing.
How are they satisfied?
- Appriasal: These are required from your lender to ensure the value of the home meets or exceeds the amount you will borrow.
If you use RGMI for your mortgage, we order and satisfy this contingency for you.
- Financing: Once you receive your approval letter from the lender and all stipulations are satisfied including appraisal, this contingency will be removed.
Most sellers will require a lender commitment within 20 days of the binding contract.
- Home Inspection: A satisfactory home inspection contingency is often added to purchase contracts. This contingency usually covers structural or dangerous items found in the home.
This does not mean a homebuilt in 1970 must be updated to meet present standards.
Most sellers will want a prompt home inspection to remove this contingency.
There are other items such as Termite inspection, surveys if applicable, the sale of an existing home, and more.
Your agent is responsible for guiding you step by step through the process to ensure all contingencies are satisfied.
From contract to closing, we are there for you and you only.
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| Avoid Mistakes! |
- Use an agent familiar with the area Our agents work in the market every day and know the area thoroughly.
- Consider resale always: Even the best made plans can change. Ask? is the area growing in population?
Is the subdivision or area well maintained? Are future developments planned which may affect my home's value?
You have heard the saying "LOCATION, LOCATION, LOCATION." There's a reason for it!
- Convenience: Is the home in a convenient location for work, shopping, and entertainment?
- Amenities: Is the home comparable to other homes in the area? Avoid having the largest or most expensive home.
It should fit well with the community, not stand out.
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