Where do you want to live (work, build, play, or till the land) today?
It’s not quite as “easy as 1,2,3”, but let’s put it in those terms anyway . . .
the BUYING process
1. Planning and Preparing
- define what you want, need, and can afford and your timeframe
- understand your hopes, dreams, and aspirations in light of your pocketbook – - - this is the “getting real” part of acquiring real estate
- CASH?/CREDIT? – CASH is always King, but a MORTGAGE LOAN is, likely, your Ace!
- Cash? – have a “financial capability” letter handy from your private banking officer
- Mortgage? – obtain a pre-approval* from your mortgage loan officer - *an expedient but non-committal assessment of your income, debt, and credit to define your loan capacity
If the hopes, dreams, and aspirations parts don’t fit with the cash or credit capabilities parts, it’s totally OK to start/keep searching anyway and to continue preparing to bring those parts into realistic balance. Patience and hard work to get into the “let’s go shopping” position can be rewarding in itself and oftentimes results in success before one realizes it. And, whether it’s a house or a lot or a farm or a commercial building, owning real property can still be a very good thing. Don’t you think?
If your real property acquisition objectives are already in alignment and in balance with your financial capabilities, great!
Let’s Go Shopping ! !
2. Shopping
- a real and intense SEARCH for PROPERTIES “on the market” until you find the right property from your “A-List” of properties to consider
- efficiently and productively TOUR “A-List” PROPERTIES
- identify the property you want to try to buy
- it’s a good idea to have a 2nd and/or 3rd property in mind on your “A-List”, if the 1st choice is not to be had
- carefully consider the SELLER’s DISCLOSURE STATEMENT(s), if available
- MAKE AN OFFER to buy
- NEGOTIATE A SALES CONTRACT between seller and buyer
Let’s Close the Deal ! !
3. Closing the Deal
- initiate Title, Survey, and Escrow functions
- carefully review again Seller’s Disclosures
- initiate the Inspections functions
- Municipal inspection, if applicable, focusing on essentials and life-safety items for permitting human occupancy
- Gas inspection, if applicable, for proper/safe functioning of all gas service and appliances
- Buyer’s inspection, always highly recommended, to access conditions and status of the property by inspectors skilled in accessing items such as: roof, sewer, plumbing, electrical, heating/air conditioning, termite, radon gas, presence of toxics, and other items where repairs or maintenance intervention my be indicated either before or after closing or termination of the contract dependent upon resolution (or not) of the INSPECTION NOTICE* process. (*a whole other process tied to “the deal” that we can later discuss face-to-face as things develop)
- arrange for INSURANCE and HOME OWNERS WARRANTY* coverage for the property – (* if 1st year HOW coverage is not provided by seller in contract)
- arrange for MOVERS
- arrange for UTILITIES and other SERVICE PROVIDERS (tv, internet, security, waste pick-up, etc)
- resolve TITLE and SURVEY issues, if any prior to closing date
- approve and sign CONTRACT AMENDMENT(s), as initiated by either buyer or seller and as necessary, during the ‘closing process” to insure fidelity to and “both-party performance” of all original contract provisions while taking into account “amendable matters’ such as changes to loan commitment and closing dates due to changing circumstances beyond control of buyer and/or seller during the closing period.
- obtain final MORTGAGE LOAN COMMITMENT following APPRAISAL, LOAN PROCESSING, and FINAL LOAN APPROVAL. Receive/review/approve final HUD SETTLEMENT STATEMENT and arrange bring required money (cashier’s check) to Closing table
- conduct a FINAL WALK-THROUGH of the property to verify that all closing related contracted issues have been completed or that arrangements for completion subsequent to closing, if any, are properly in place.
- attend the CLOSING to sign all DEED and MORTGAGE related documents to be subsequently recorded with the appropriate governmental Recorder of Deeds. Title Company to issue Title Insurance Policy and make all the closing related disbursements including the net purchase proceeds to the Seller upon funding.
- receive KEYS to TAKE FULL POSSESSION of the property
. . . . . Start enjoying the Benefits of Ownership
