- Wants & Needs Analysis
- Find Property
- Offer & Deposit
- Counter-Offer
- Negotiation
- Go to Contract
- Apply for Mortgage
- Additional Deposits
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- Inspection
- Hazard Insurance
- Title Insurance
- Re-inspection
- Final Walk-through
- Review Closing Statement
- Close
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| 1. Meet with your buyer's agent for a Wants & Needs Analysis |
| It's important before beginning your property search to sit down with your buyer's agent to discuss your wants and needs. Your buyer's agent is trained to listen and advise you on which properties and financing options will best fit your circumstances. Knowing these things ahead of time puts you in the best possible position when looking at properties. You may also want to contact a financing institution or professional to discuss possible financing.
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| 2. Find your property |
| Using your Wants & Needs Analysis, your buyer's agent will be able to narrow the vast choice of properties available to only those that best fit your criteria. She (or he) will then take you inside each property you want to consider until you find one on which you would like to place an offer.
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| 3. Place an offer on the property & put down an earnest money deposit |
| Together with your buyer's agent, you will put together a written offer for your desired property. This offer will include all your required contingencies (i.e. sale of your current home, passing inspection, etc) and your preferred closing date. You will also give your buyer's agent an earnest money deposit to hold in escrow until closing. This money shows the seller you are serious about purchasing the property. The customary earnest money deposit is $1000. You may also pledge additional earnest money for some point in the near future (i.e. "additional $5000 within 10 business days from contract execution").
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| 4. Receive acceptance of your offer, or a counter-offer from seller |
| Within 24-48 hours you will receive an answer to your offer from the seller's representative (through your buyer's agent). This answer will either be an acceptance of your offer as written, or a counter-offer containing the seller's requirements for accepting your offer. You may accept a counter-offer as written, or counter again with your own new offer.
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| 5. Negotiation of contract terms |
| Your buyer's agent will continue to negotiate with the seller's agent, on your behalf, until an agreement is reached. There is no limit to the number of counter-offers that can be passed between buyers and sellers.
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| 6. Go to Contract |
| Once the offer or counter-offer is signed by both you (the buyer) and the seller, showing an agreement of terms, a contract is formed. ie - you signed a counter-offer from the seller, or the seller signed your original offer or subsequent counter-offer. At this point, both you and the seller are bound by the agreed terms in the contract.
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| 7. Apply for your mortgage (if applicable) |
| Once you have a signed contract, you must apply for your mortgage. It takes about 30-45 days from the time you apply until you can close on the property. Your lender will review your application and give you an approval. An appraisal of the property will be ordered by the mortgage company, and your loan will be contingent upon the appraisal. Your buyer's agent can help you find a lender who will meet your needs.
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| 8. Give your buyer's agent or broker any additional earnest money deposits required in the contract |
| If required by your contract, you will give any additional earnest money deposits to your buyer's agent or broker within the time frame specified in your contract. Offering to put down additional deposits before closing is another way to show the seller you are serious when you first send the offer. All deposits will be held in escrow by your broker and will be credited to you at closing.
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| 9. Order an inspection of the property |
| Once you have a signed contract, you will order an inspection on the property. A professional property inspector will disclose any seen or unseen structural and pest-related issues with the subject property. You may also want to consider a mold inspection and/or a free energy survey by FPL at this time.
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| 10. Secure hazard insurance |
| Before you can close on the property, you must obtain hazard insurance. Be sure to get several quotes. You will be required to pay a year's premium in advance of closing. This amount may be required before obtaining the policy or may be debited at closing (depending on the insurance company).
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| 11. Select Closing/Title Company (if applicable) & obtain title insurance |
| It is critical that you opt to purchase an "owner's title insurance policy" to protect yourself should someone step forward (anytime within 30 years) with a claim to the property. (This is in addition to the bank's title insurance policy that your lender will require as well). At the time of contract, it is determined who (buyer or seller) will be paying for your title policy. If you pay, you get to choose the place & time for the closing (on the pre-determined date in the contract). If the seller pays, they get to choose. Title insurance is optional, but going without it puts you at grave risk to not only lose the property, but to still owe the total amount of your mortgage. Title insurance premiums are debited at closing.
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| 12. Order re-inspection (if necessary) |
| If the property inspection uncovered items to be fixed by the seller prior to closing, it is advisable to pay the inspector to come back (usually only $100-$200) and make sure the repairs were done right. This should be done a few days before closing.
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| 13. Final walk-through |
| The day before closing you are entitled to walk through the property to ensure it is in acceptable move-in condition and that the seller has removed their personal property. Your buyer's agent will schedule this and go with you.
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| 14. Review Closing Statement with your buyer's agent in advance |
| The day before closing, your buyer's agent will review the closing statement with you to explain all the relevant line items. Any discrepancies uncovered now can be fixed, ensuring a smooth closing the next day. You will be informed at this time how much money (in the form of a cashier's check) to bring to the closing for pre-paid items and closing costs.
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| 15. Close |
| Bring your driver's license and a cashier's check for the amount of your pre-paid items and closing costs to your closing. Your buyer's agent will attend the closing with you to ensure everything goes smoothly. You will leave the closing with a pile of documents to keep and the keys to your new house! Congratulations - you are a homeowner!
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