STEPS OF HOME PURCHASE

Phase One - Shopping

 

Choose A Local Professional Real Estate Agent 

  • Advantages of working with a Buyer’s Agent:
  • An extensive network of contacts for new listings
  • Knowledge of local markets and values
  • Personalized guidance in all aspects of home purchase
  • You pay nothing!  Agent’s fees are paid through seller’s agent at close of escrow
  • Meet to ascertain goals
  • Time line & price
  • Decide on areas
  • Establish needs & desires

Prepare

  • Interview lenders and mortgage brokers
  • Get pre-approved (usually telephone conversation)
  • Submit loan application, required paperwork
  • View current listings
  • All parties involved will want to participate in order to develop market savvy
  • Attend Sunday Open Houses if possible (sign in Agent’s name to avoid unwanted solicitations)
  • Do “Home Tour” with Buyer’s Agent
  • Be available to view new listings
  • Make use of Internet searches if so desired
  • Call Buyer’s Agent for information on yard signs or internet listings

 

The Offer

  • Determine an offer price
  • Evaluate Current Market Analysis (CMA) of property
  • Decide on Escrow period
  • Writing the Offer
  • Agent will explain each clause and provide guidance
  • Contingencies:
  • Buyer’s Inspections
  • Loan contingency
  • Appraisal contingency
  • Provide Deposit check (to be held un-cashed until escrow opens)
  • Agent will present the offer to Seller and Seller’s Agent(s)
  • Agent will receive and communicate all counter offers; time is of the essence
  • Agent will assist in negotiation of the purchase

Phase Two - Escrow

 

First Two Weeks

  • Contact lender, start formal loan process
  • Agent will provide contract documentation to lender
  • Arrange inspections
  • General Home Inspector ($350-$450)
  • Geological inspection ($700-$1200)
  • Chimney (one story: $65-$125)
  • Survey (if desired: $300-$400 per line)
  • Sewer line scan ($250)
  • Permit search (free from City, or $65-$99)
  • Follow up with any other inspections deemed necessary
  • Agent will attend all inspections
  • Agent will assist in any needed re-negotiations
  • Sign Escrow Instructions
  • Decide on vesting
  • Receive and sign seller’s Disclosures
  • Agent will provide guidance and context
  • Receive termite report
  • Procure Fire insurance and Homeowner’s insurance

 

Second Two Weeks

  • Agent will review all documents and requests
  • Agent will track all contingency periods of both buyer and seller
  • Agent will monitor progress of escrow, title, and lender.
  • Appraisal of property
  • Receive formal loan approval
  • Seller will schedule retrofits for water conservation, impact hazard glazing, smoke detectors and water heater strapping
  • Seller will schedule termite work if applicable
  • Agent will assist in solving any problems that may arise during the course of the escrow
  • Home Warranty Policy will be ordered if applicable

 

Just Before Closing

  • Do walk-through of property to verify condition
  • Lender will draw up loan documents and send them to escrow
  • Buyer will sign loan docs in Escrow and bring in balance of funds
  • Docs go back to lender for verification (24-48 hours)
  • Lender funds the loan, it is verified by Title Company
  • County records the title…

 

Congratulations!

 

If you would like further information, please call or email me anytime.

 

Carol Stewart

Sotheby’s International Realty-Los Feliz

1801 Hillhurst Avenue

Los Angeles, CA  90027

(323) 255-3800

Carol.Stewart@sothebysrealty.com