What are the steps to buying... Negotiation, Offer Accepted,
Escrow process, and Keys
to your New Home.

Looking at houses is the fun part; dealing with the paperwork less so. This information will help demystify the process. An exciting, yet sometimes challenging process is the buying steps.. 

MAKING AN OFFER
Negotiation  You’ve found a home. When do you make an offer?
Depending on your personal situation and the housing market climate, you may want to make an offer right away, or you may choose to wait. Confirm how much cash you will need in order to purchase the home, such as down payment and closing costs. Your lender can help you determine the amount.

Offer to Purchase We 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). Then we will present your offer to the seller's realtor. The seller will then either accept your offer, counter your offer or reject your offer.

Earnest Money In California, you will need to put down earnest money to show your commitment is serious. we can advise you on how much earnest money to put down-plan from 1 to 3%. This money will be applied toward your down payment or closing costs should the offer be accepted.

The Offer To make an offer, we will contact the seller’s agent and present your offer. The seller will accept it, reject it or make a counteroffer. If your offer is countered, it’s time to negotiate.

Keep in mind that there could be a number of factors in play. Sometimes speed of closing is important to a seller. If this is the case, a seller may choose to go with another buyer’s lower bid that is all cash. Or go with a buyer already pre-approved for a mortgage loan.

In any case, take your time reviewing a seller’s counteroffer. You may need to secure additional financing. Or you may decide to make a counteroffer of your own. Or you may decide to walk away and look for another home. We will to assist you through the negotiation process.

Once you and the seller have agreed on a price, you will need to formalize it in a contract known as a purchase agreement.
 
Seller's Response  We will review the seller's response. With our knowledge of the process and strong negotiating skills we will help you reach an agreement you feel good about.

OFFER ACCEPTED
Purchase Agreement  Once the seller has accepted your offer, we will help you prepare a purchase agreement, also known as a sales agreement or "offer to purchase."
It describes the following:
•Description of the property and its location
•Items that come with the home (appliances, lighting fixtures, etc.)
•Items the seller will remove
•Purchase price
•Down payment
•Earnest money
•Financing details
•Buyer and seller information
•Desired closing date
•Date the purchase agreement expires
•Contingencies

Open Escrow  We 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.

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Contingencies This time period is determined by your purchase agreement and is used to obtain and perform the following items:
•Your ability to secure financing 
•Zoning clearance (if you want to add on to the property in the future, check local zoning regulations before you close) 
•Closing costs (if you’re in a buyer’s market, a motivated seller may agree to pay for certain closing costs!)
• Physical Inspection of Property
• Property Pest Inspection
• Property Appraisals
• Secure a Lender
• Obtain Loan Approval
• Approval of Seller's Transfer Disclosure Statement
• Preliminary Report Approval from Title Company
• Satisfy Purchase Contingencies
A contingency also gives you a way out of the purchase agreement when your conditions are not met. Make sure your purchase agreement clearly states that the sale is contingent upon a successful inspection. For example, if problems were found, but you’re still interested in buying, you may negotiate with the seller to either lower the price or have the seller pay for repairs before you close. Or if the problems are more than you’re willing to handle, you can legally cancel the agreement.

Homeowner's Insurance  We 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.

Importance of Home Inspection

As a buyer, you are entitled to know exactly what you are getting. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.

Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.

You have to demand an inspection when you present your offer. It must be written in as a contingency; if you do not approve the inspection report, then you don't buy. Most real estate contracts automatically provide an inspection contingency.