The Buying Process

This website was created to provide all the information and tools that every buyer is looking for, so please take a look around your "tool box" and arm yourself with lots of information you're looking for and don't hesitate to call or email with any questions. Take a look and enjoy the custom search page to view not only homes, but the streets they are on with the "street view" button.

The buying process has been outlined below and it really is a smooth process, but sometimes there are bumps in the road. An experienced realtor® will smooth out the bumps.

1) Get started by choosing your realtor®-one that is preferably an Accredited Buyer's Rep. (ABR®) Less that 4% of all realtors hold this designation and choosing an ABR® will assure you that you are in the hands of an agent that is professionally trained in working with specific buyer's needs. There are many variables in the process and while it should be a smooth transaction, a lot can go wrong. Why would you put the most important purchase you'll ever make in the hands of an inexperienced agent? Doesn't cost you anything, so why not choose to have the best!

2)Assess your financial situation- Assuming you've examined your credit report (you're entitled to one free report per year) and checked for errors, take a look at the mortgage calculator see what you can afford. Then, talk to a loan/mortgage broker and get pre-approved. An expert in this field will also be able to advise you on different loan programs. I always recommend talking to a couple and by all means, shop around to see who can get you the best rate and terms. Then get pre-approved so you are now fully prepared to make an offer on your new home when you find it!

3) Create a wish list- discuss with your realtor, what you are looking for in a neighborhood, home, amenities etc. A good realtor will know just the right questions to ask. Buyers are savvy and more than 80% of you have been looking online and researching for months before you choose your agent. Your agent will email you properties that fit your criteria and hopefully you'll have lots to see in person with him/her so go out and enjoy the fun part!

4) Now you've found your perfect home- Your agent will help you make an informed and rational offer based on recent sales in the area and market conditions. Remember, all real estate is local so market conditions in some areas of the country may be quite different from other areas. Unless the home is under priced, here in Texas it is normal to offer less that the asking price. Exceptions to this rule would be a home that has multiple offers and in this case, you will be bidding against other buyers. Multiple offers also can occur with a house that's just come on the market and is exceptional for the area and priced competitively. To proceed with the offer your agent will write up a contract that includes your offering price and other terms. Most of the time, there will be a counteroffer from the seller so there may be some going back and forth until the offer is agreed upon. Once you are "under contract" you will enter the option period which is usually around 10 days long and this option period is your "option" to terminate the contact within the 10 days. This option has a fee and it's usually a nominal fee of $150-$500 or more depending on the sales price of the home. This fee is paid to the seller and will be credited to you at closing, or if you terminate the contract, the seller retains the fee. During the option period, you will hire an inspector to do a mechanical and structural inspection of the property. Your agent will provide you with a list of licensed home inspectors to choose from. The inspection and the negotiations for repairs should be completed within the 10 days. At the start of the option period, Earnest money in the form of a check goes to the Title company that will hold the money in escrow. The Title company will also handle the transaction. Earnest money, around 1% of the sales price, shows your "good faith" and intention to buy the property. This money will be refunded to you if you terminate the contract during the option period. If you back out after the option period, the seller has the right to retain the earnest money as a sort of "damages". Not a situation you want to be in.

In the period between the end of the option and the closing, the title company will handle the documents, title search and various other duties. You, the buyer, will obtain homeowner's insurance for your lender and start arranging your move.

5) Closing date-one of the most important terms of a real estate contract is the closing date - the date when ownership changes hands. On this day, you will be given the keys to your new home!