Finding the Home & Getting Prepared for the Offer Process

Transcription

1 Sequence of Events in Buying a Home Finding the Home & Getting Prepared for the Offer Process 1. Agent meets with Buyer to determine Buyer needs, wants, timeframe, and financial options 2. Agent explains how the home search and buying process will work, reviews current market conditions, explains Agency and how brokerage commissions are paid, and determines the best ongoing method of communication between Agent and Buyer 3. Agent and Buyer sign Agency Disclosure and Buyer-Broker Agreement 4. Agent works with Buyer to secure loan pre-approval 5. Agent sets up systems to automatically alert Agents and Buyer to prospective properties coming on market that match Buyer s parameters 6. Agent and Buyer tour properties: via appointment tours, broker tours, open houses 7. Agent and Buyer review benefits and drawbacks of properties 8. Property is identified that Buyer wants to purchase

2 Preparing, Writing & Presenting the Offer 1. Agent obtains and reviews property disclosure package from Listing Agent and provides to Buyer for Buyer s review 2. Agent questions Listing Agent further on property issues, Seller situation and preferences, past offers, existence of other current offers and offer presentation guidelines 3. Agent provides comparable sales for subject property to help determine offer price. 4. At Buyer s instruction, Agent may facilitate setting up inspection and appraisal appointments before the offer is presented or accepted, creating a bargaining platform 5. Agent alerts Loan Officer and obtains loan pre-approval letter 6. Agent and Buyer review the property disclosures, the property Comparable Market Analysis, current market conditions and the prospective offer 7. Buyer checks online Megan s Law database, and if concerned, local crime statistics with neighborhood police station 8. Agent carefully reviews offer and negotiation strategies with Buyer, including the options for offer price, due diligence contingencies and other terms, and close of escrow 9. Offer is written and Agent collects initial deposit check from Buyer to be deposit in escrow 10. If very short contingency periods are being offered for inspections and/or financing, Agent to coordinate scheduling of tentative inspection and appraisal appointments

3 11. Agent schedules offer presentation with Listing Agent 12. Agent prepares offer for presentation to Seller and/or Listing Agent which includes: agency disclosure, offer letter, loan pre-approval letter, copies of Buyer signed disclosures, etc. 13. Agent negotiates offer and counter-offers on Buyer s behalf and at Buyer s instruction 14. After the offer is accepted: Agent receives back from Listing Agent a fully executed and legible copy of the purchase contract including all addenda and counter-offers. 15. Agent carefully reviews contract documents to ensure they are executed by all parties as required. 16. Agent provides Buyer with fully executed contract copy

4 Due Diligence, Contingency Removal & Closing the Transaction 1. Agent opens escrow, delivers the initial deposit check into escrow, a copy of the executed purchase contract is delivered to Escrow Agent, and Preliminary Title Report is ordered 2. Agent provides accepted contract to Designated Broker in Charge for review and signature 3. Agents provides escrow information and copy of accepted contract to Loan Agent 4. Agent prepares, and delivers to Buyer and Listing and Escrow Agents, a Timeline for the Removal of Contingencies and Close of Escrow 5. Agent provides Buyer with Resource list of inspectors, contractors and other vendors and professionals. 6. Agent coordinates appraisal appointment with Lender and Listing Agent 7. Agent coordinates Buyer-specified inspections (pest, contractor, structural engineer, roof, soils, city/county, etc. see CAR Buyer s Inspection Advisory) with Listing Agent 8. Agent monitors the timely receipt of Seller and Listing Agent provided disclosures, reports and other documents, as statutorily or contractually required, for Agent s review and for Buyer s review, approval, or request for clarification 9. Agent coordinates visits by Buyer renovation, repair or decorating professionals

5 10. Preliminary Title Report is reviewed by Agent and Buyer (and Loan Agent) if any of the exceptions on the Report are unclear, Agent requests full written text of the exception from Escrow Agent for Agent s, Buyer s and possibly Buyer s lawyer s careful review. 11. Agent attends all inspections with Buyer; Agent completes Selling Agent portion of RETDS after careful walk-through of the property and signs disclosures regarding the acknowledgement and feedback regarding inspection. If unable or unwilling to attend, the Buyer must sign a waiver VERY IMPORTANT! 12. Agent and Buyer carefully review inspection reports for Buyer s approval, further clarification, objection or rejection 13. Agent and Buyer review county/city, natural and environmental hazard and other required reports for Buyer s approval, further clarification, objection or rejection 14. Agent counsels Buyer and facilitates Buyer s collection of additional information additional inspections, contractor quotes, legal advice, etc. necessary for Buyer to understand/quantify issues pertinent to the property s condition or circumstances 15. Agent puts any new information not already included in reports and disclosures, and additional important advisories in writing for Buyer s approval 16. Buyer s Home Owners Insurance Agent contacts Escrow Officer with required policy information 17. Buyer consults with Buyer s accountant, attorney or escrow agent to determine how they wish to hold title to the property 18. Agent verifies funding arrangements with Lender and Escrow Agent

6 19. Agent re-negotiates the contract at Buyer s instruction 20. Contingencies are removed or contingency removal dates are extended as needed 21. Agent prepares appropriate addenda or contingency removal documents 22. Buyer increases deposit in escrow if applicable, Agent prepares the Receipt for Increase Deposit under Liquidated Damages for Buyer and Seller signature 23. Agent delivers any addenda to Designated Broker, Escrow Agent and Loan Agent 24. Agent provides Buyer with information on utilities and moving 25. Agent reviews purchase file for completeness 26. All Seller repairs are completed and verified 27. Agent reviews Home Warranty coverage with Buyer 28. Agent provides final instructions to Escrow Officer, and confirms Seller s The Foreign Investment in Real Property Tax Affidavit (FIRPTA) and Cal FIRPTA affidavits 29. Agent schedules appointment for Buyer to sign loan/closing documents 30. Appointment Date 31. Agent reviews Estimated Closing Statement and provides to Buyer

7 32. Agent arranges for delivery of complete loan and closing documents to Buyer prior to signing appointment for Buyer s review. 33. Buyer and Agent perform final walk-through of property 34. Buyer makes arrangements for final funds to be delivered into escrow by wire or cashier s check within 2 days BEFORE CLOSING 35. Agent and Buyer meet Escrow Agent at Title Company for signing of closing documents 36. Buyer makes moving arrangements, schedules change of utilities and alerts any Homeowner s Association of pending change of ownership 37. Agent confirms with Escrow Agent that everything is set for scheduled close of escrow 38. Buyer presents loan funds 39. Close of Escrow After Close of Escrow 1. Agent procures and delivers keys, alarm codes, garage door openers to Buyer 2. Agent prepares Buyer for receipt of Premier Service evaluation survey 3. Agents follows up with Buyer regularly in weeks and months after closing to 4. check in, offer help and solve any problems that might have arisen

8 Buyer s General Timeline and What to Expect 1) Obtain Buyer s Agent (no cost to buyer since commission is paid by seller) 2) Get pre-approved (obtain price range/budget/deposit or down payment needed) 3) Research cities, neighborhoods, schools, transportation, etc 4) Tour homes select Dream Home 5) Submit purchase offer (copy of deposit check, pre-approval letter from bank) 6) Counter offer or the offer is acceptanced 7) Open escrow (1-3% deposit due to escrow within 3 days) $$ 8) Review Disclosures 9) Do Home Inspections (paid by buyer) $$ 10) Get final loan approval 11) Waive contingencies (deposit increase check due if initial deposit lower than 3%) $$ 12) Obtain Home Insurance 13) Sign final loan documents/final escrow documents 14) Final property walk-thru 15) Loan funds $$ 16) Close Escrow 17) Obtain keys and final documents 18) CELEBRATE!