How Following My Home Buying Process System Saves You Time & Reduces Stress
Whether you are downsizing, need more space or this will be your first purchase. It is a big decision and can be scary at times. That’s why I developed a step-by-step system that I follow with every person we take on as a client.
Robin’s Home Buying System reduces your stress and creates a faster transaction.
Congratulations on Your Decision to Buy a Home
But, we believe when it is done right, home ownership becomes a great investment that lays the foundation for a life of financial security and personal choice. In Southern California, home values go up over time.
There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.
If you are paying rent, you very likely can afford to buy. I have a list of 3 loan officers and a set of questions to ask them. I will give you this list when we meet at our Home Buying Meeting.
There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run.
What About My Credit?
A less-than-perfect credit score won’t necessarily stop you from buying a home. The best way to get closer to buying your ultimate dream home is to buy your first home now. Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way.
Does it Cost Money to Hire a Real Estate Agent to Represent You?
The typical Southern California real estate transaction involves at least two dozen separate individuals vendors including real estate agents, escrow companies, an appraiser and home inspectors just to name a few.
It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
8 Items that your buyer’s agent, Robin Auwerda, does:
Educates you about your market.
Analyzes your wants and needs through a home buying consultation meeting.
Guides you to homes that fit your criteria.
- Evaluates the TRUE market value of a home that you fall in love with through local property sales just like an appraiser does. We do not use the simple Zestimates of Zillow to determine values. Those values can be off by as much as 30% and I want you to know the TRUE Market Value before you write an offer.
Coordinates the work of other needed professionals.
Negotiates on your behalf and together with you
Checks and double-checks paperwork and deadlines.
Solves any problems that may arise.
Let’s Talk About Money and Securing the Best Financing Options for You When it Comes to Home Buying
While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.
From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.
Six steps to Financing a Home
Choose a loan officer (or mortgage specialist).
Make a loan application and get pre-approved.
Determine what you want to pay and select a loan option.
Submit to the lender an accepted purchase offer contract.
Get an appraisal and title commitment.
Obtain funding at closing.
Your Exciting Home Buying Adventure to Finding a Home to Fall in Love With
You may think that shopping for homes starts with jumping in the car and driving all over town. Nowadays, after our home buying meeting, I will create a list of properties that fit your requirements to save you time.
You can look here on my real estate website and save your favorite properties too. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process.
However, driving around is fun for only so long-if weeks go by without finding what you’re looking for, the fun can fade pretty fast.
That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.
I have a list of 30 questions to help you that we will go over together in the Home Buying Meeting. Here are a few questions to ask yourself ahead of time:
What do I want my home to be close to?
How much space do I need and why?
Which is more critical: location or size?
Would I be interested in a fixer-upper?
How important is home value appreciation?
Is neighborhood stability and priority?
Would I be interested in a condo?
Would I be interested in a new home construction?
What features and amenities do I want? Which do I really need?
Making an Offer to Purchase
Now that you’re writing an offer, you need to shift gears and become a businessperson. You need to approach this process with a cool head and a realistic perspective of your market.
This is an emotional purchase. I understand that. That’s why we are working together as a team to make the best offer possible.
3 Basic Components of an Offer: Price, Terms, and Contingencies
Pricing: this is where determining the TRUE Market Value research is critical to understanding pricing.
Terms-the other financial and timing factors that will be included in the offer.
Terms fall under 6 basic categories in a real estate offer:
Schedule-a schedule of events that has to happen before closing.
Conveyances-the items that stay with the house when the sellers leave.
Commission-the real estate commission or fee, for both the agent who works with the seller and the agents who work with the buyer. Commissions are typically paid by the seller.
Closing costs-it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
Home warranty-this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this. I have several home warranty companies brochures that you can review.
Earnest money-this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.
Home Inspection Time for Your New Home
The home inspection takes place after your offer has been accepted. Get it done as soon as possible. The home inspector will check your future home out just like a mechanic for a car. This is a cost that you typically pay during escrow. The costs vary based on the type of home inspection.
So budget $300 to $500 for a home inspection. I have several home inspection companies that can help. You just need 1.
Your major concern is structural damage.
Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
If there is a big problem at the house, it shows up in your inspection report. You can ask the seller to fix the items but they are under no obligation to do so. All property is sold in”as-is” condition.
Closing the Sale of Your New Homes
This is the final stage of the home buying process. Yippe you made it.
Your agent will keep you posted on how each if progressing, but your work is pretty much done.
You just have a few preclosing responsibilities:
- Stay in control of your finances. Do not buy any major purchases during escrow.
- Return all phone calls and paperwork promptly. There are lots of disclosure documents to review.
- Communicate with your agent at least once a week.
- Several days before closing, confirm with your agent that all your documentation is in place and in order.
- Conduct a final walk-through on the property that you are purchasing
On closing day, with the guidance of your escrow officer, you’ll sign documents that do the following:
- Finalize your mortgage.
- Pay your closing costs.
- As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.
Protect your investment.
Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.
Even after you close on your house, I can still help you:
- Handle your first tax return as a homeowner.
- Find contractors to help with home maintenance or remodeling.
- Help your friends find homes.
- Keep track of your home’s current market value.
- Attention to your home’s maintenance needs is essential to protecting the long-term value of your investment.