Purchasing a home is one of life’s most important investments and exciting adventures, but even experienced buyers can find the process complex and a bit overwhelming.
The state-of-the-market:
- The current housing market offers a unique window of opportunity for savvy buyers
- Mortgage rates remain at historic lows
- Prices are fairly stable in this very desirable area
- There are a large selection of homes to choose from
- Yet the prospects for long-term gains in the market remain strong
- There has been only five times since 1968 that the median price of single-family homes have dropped in California, according to the California Association of Realtors. Five times out of 38 years. And the average annual price increase during that time has been just about 9%.
Choosing the right broker to represent you
- Find you the right property
- Negotiate the best price and terms for you
- Handle the details and keep you informed
- Ensure the entire process is smooth, efficient and satisfying
- Provide the level of service that is desired
Establishing your purchasing power
- The first step in establishing your purchasing power is to get pre-approved with a proven lender or obtain financial products from several financial institutions. This allows the company to control the underwriting and funding process, while also giving it the ability to match your unique needs with the best solution.
- Determine How Much Home You Can Afford: Your lender will show you a variety of different types of financing (Fixed Rate, Adjustable, Interest Only, etc.) and how much you qualify for with each time.
- Determine What Your Down Payment Will Be.
- Determine What Your Monthly Payment Will Be.
- Before picking a price range, you should be sure that you are comfortable with your total monthly payment: Principal, Interest, Taxes, Insurance (Mortgage Insurance and Home Owners Association Dues)
- These are some of the current documents you’ll need to get started: Income Statements, Current pay stubs, W-2s or 1099s, Tax returns, usually for two years, Assets, Bank statements, Investments/brokerage firm statements, Net worth of businesses owned (if applicable), Debts, Credit card statements, Loan statements, Alimony/child support payments (if applicable)
- Financing a home is an involved process through each step of the way:
- Loan application is completed and submitted to lender
- Lender orders appraisal, credit report, verification of your employment and assets
- Lender provides a good faith estimate of closing and related costs, plus initial Truth In Lending disclosures
- Lender evaluates application and support documents, approves loan and issues letter of commitment
- Closing is held, loan documents are signed and the loan is funded
- Lender disburses funds to the settlement or closing agent, seller is paid and title to the home is yours
- Required documents are recorded at the County office of records
Determining the characteristics of a home that are important to you
- LOCATION
- Convenient to work
- Convenient to transportation Convenient to schools
- Convenient to shopping
- Near recreation facilities
- Neighborhood
FEATURES
- Preferred style (colonial, ranch, townhome, etc.)
- Number of bedrooms
- Number of bathrooms
- Family room
- Bonus/Game room
- Fireplace
- Home office
- Kitchen amenities
- Garage (no. of cars)
- Central air conditioning
- Lot size
- Pool
- View
The home-finding process
- Several real estate websites offer a glimpse into the homes currently available for sale. Visit the following:
- CaliforniaMoves.com and/or CaMoves.com
- MLSListings.com
- ColdwellBanker.com
- OpenHouse.com
- Realtor.com
- NYTimes.com
- Google.com
- Trulia.com
- Zillow.com
- Yahoo.com
Work with the Brokers:
- You can ask about any properties that are advertised, no matter who the broker is
- The broker will provide you with detailed information and show you the homes that interest you
- If you see an “Open House” or “For Sale” yard sign, the broker can arrange a private showing
- When visiting an open house on your own, give the Agent your broker’s card to tell them that they are your Agent
- Based on your wants and needs, we will schedule property tours in which you view the homes that are currently on the market and meet your needs
- Have the Broker pre-screen all of the properties in your price range so that they may properly communicate the home’s value
- Have the broker share their evaluation of the homes you see, including factors that may affect their value
Making an offer
- Prepare an offer that will meet your needs and provide a solid base for negotiating with the seller
- Carefully review each of the terms of the purchase offer
- Review and explain each clause and contingency of the contract
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Buyer’s Packet – Review and sign all documents
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Cover sheet for upfront disclosures
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Advisory regarding written reports
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Agent Authorization to order reports
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Buyer’s approval of parking and storage
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Advisory regarding home owner’s coverage
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Agency Disclosure
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Sample PRDS Purchase Agreement
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PRDS Purchase Agreement
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Counter Offer
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Environmental Hazard and Earthquake booklet
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Residential earthquake hazards report
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Acknowledge receipt of homeowners guide to earthquake safety
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Lead Paint Disclosure
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Affiliated business arrangement disclosure
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Contingency Removal Schedule
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Market condition advisory
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Just Listed/ Just Sold Postcard
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CAR Buyer’s Inspection Advisory
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CAR Verification of Property Condition
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CAR Disclosure Representing More than one
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Mold disclosure
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Regional disclosures
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Clue report addendum
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Custody of Earnest Money Deposit
Review reports:
- Structural Pest Inspection
- Property Inspection
- Roof inspections
- Chimney Inspections
- Pool/Spa Inspection
- Structural/Foundation Inspection
- Soils/Geological Report
- Heating/Radiant Heating Inspection
- Carpeting, Painting, Repair etc. Estimates
- Environmental Reports
- Asbestos Investigation
- Lead Investigation
- Sewer/septic
- Building permit
- Homeowners Assoc documents
Make sure the purchase offer reflects your wishes and needs
- Complete purchase contract and all statutory addendums
- Negotiating the Offer/Acceptance - The sellers will have the choice of:
- Accepting your offer as presented
- Rejecting it completely
- •Countering offering it
- Your Agent will communicate to you the seller’s response and, if necessary, suggest further negotiating options
- Your Agent will present your written offer to the sellers and negotiate on your behalf, including any post inspection findings