Home buying step by step
Choose & Meet Your Realtor
Building a solid relationship with a realtor is important. He or she will
be working closely with you in finding the perfect home to meet your
unique needs. Professional realtors have extensive market knowledge and
will provide guidance in your buying process.
Finding the Perfect Home
Your realtor will show you homes based on the criteria that you have
given him. The more precise and direct you are with your realtor, the more
successful your search will be.
Determine the Seller’s Motivation
Once you have found your perfect property, your realtor will research
the homeowner’s motivation for selling, helping leverage your negotiating
power in an offer to purchase.
Offer to Purchase
Your realtor will draft a purchase agreement, advising you on customary
practices, local regulations, and protective contingencies. You will need to
provide an “earnest money” deposit at this time, usually ranging from 1%
to 3% of the purchase price (deposit amount is not cashed until your offer
is accepted by the seller).
Your realtor will present your offer to the seller’s realtor. The seller will
then either accept your offer, counter your offer or reject your offer.
Seller’s Response
You and your realtor will review the seller’s response. Your realtor’s knowledge
of the process and strong negotiating skills will help you reach an
agreement you feel good about.
Open Escrow
Your realtor will open escrow for you once the purchase agreement is
accepted and signed by all parties. Your “earnest money” will be deposited
at this time. All funds associated with your transaction, either held, received,
or distributed, will be handled by your escrow or title company.
Contingency Period
This time period is determined by your purchase agreement and is used
to obtain and perform the following items:
• Physical Inspection of Property
• Property Pest Inspection
• Property Appraisal
• Secure a Lender
• Obtain Loan Approval
• Approval of Seller’s Transfer Disclosure Statement
• Preliminary Report Approval from Title Company
• Satisfy Purchase Contingencies
Homeowner’s Insurance
Your realtor will work with your escrow officer and insurance agent to
ensure your policy is in effect by the close of escrow.
Down Payment Funds
Prior to the closing date of escrow, you will need a cashier’s check or
wire transfer.
Close Escrow
You will sign all loan documents and closing papers when all conditions
of the purchase agreement have been met. After you deposit the
balance of your down payment and closing costs to the escrow officer,
your lender will deposit the balance of the purchase price. The County
Recorder’s office will record the deed, and you will take ownership of
your home.
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