There’s so much to keep track of when you’re purchasing a home! It can seem a bit overwhelming. Luckily for you, Team TREO’s here to help you simplify the process and avoid mistakes that could disrupt your search.

Here is a quick step by step overview of the purchase process to help guide you along the path to homeownership:

PHASE 1 - Learning & Planning Meeting 

In order to hit the ground running, your agent will schedule a time to get together to discuss:

• Your current living situation and the appropriate timeline for purchasing a home

• Your financial situation, including target price range and whether steps need to be taken now to secure the best loan terms on your future home

• What you are looking for in your next home and neighborhoods of interest  

• The home purchase process and the role we play as Realtors in the transaction

• Any questions you have about buying a home 

PHASE 2 - Home Search

After this initial meeting, your Realtor will take the following steps to begin the home search:

• We will set you up within our MLS portal to begin receiving applicable listings that match your criteria via email, the moment they hit the market for sale

• Refer you to reputable mortgage lenders to get qualified in advance for a mortgage loan - this approval letter will be necessary when we submit an offer to purchase a home

• When a property hits the market that you are interested in touring, your Realtor will schedule an appointment to walk you through the home.  At that time, your Realtor may also provide paperwork about the home’s condition and comparable properties to justify the home’s value.

PHASE 3 - Offers & Contract Paperwork

Once you determine a home you would like to purchase, we must put together a formal offer to purchase and discuss the following terms:

• Purchase price of the home

• How many days you will need to inspect the home to determine the home’s overall condition

• When you would like to officially “close” on the home and become the legal owner (typically between 30-60 days from contract execution)

• Whether the seller should pay any concessions on your behalf, including loan fees and other closing costs, provide a home warranty or offer title insurance protection

• How long do you want to leave your offer on the table for the seller to consider

There may be a series of discussions and negotiations between the buyer, seller, and agents until terms are agreed upon by all parties. This process could take hours or days, depending on how far apart the buyer and seller are from their expectations in the sale. 

In a hot market, it’s likely that a buyer may be competing against several offers to buy an attractive property. Getting to the point where you have a fully executed contract could take longer than expected, depending on your level of motivation. 

PHASE 4 - Contingencies & Closing 

Once you have an executed contract on a home, it’s time to work through the contingencies within the contract and obtain a mortgage loan to buy the home.  A typical purchase contract will contain these contingencies, each one requiring some level of action on your part to satisfy:

• Inspection Contingency - Typically, you will have 5-10 days to have a property professionally inspected by a licensed home inspector. You may also choose to have specialty inspections performed for pools, septic systems, sewer lines, radon gas, mold, etc.  You will receive a professional report and should any defects appear, you reserve the right to request the seller to make these repairs or offer a credit for a future repair after closing.  This process is another negotiation, similar to when you initially offered on the home.  The seller is not required to make any repairs you request and you are not obligated to complete the purchase of the home if the seller refuses to complete your requested repairs. 

• Financing Contingency - There is a period of time after you go under contract that you will need to have your loan “conditionally approved”. This means that your purchase application and supporting financial documents have been reviewed by a mortgage lender and they have agreed to provide you with a loan as long as certain conditions are met (typically supplying additional paperwork, clarifying items, etc).  

• Appraisal Contingency - An appraisal is a 3rd party's opinion of value for a home. The mortgage lender will request an appraiser visit the property you are wanting to purchase to justify the value before formally giving you the funds to use to buy the home. If the appraiser feels that you are overpaying for the home, this will impact the amount of money that the mortgage lender will give you.  Should the home fail to appraise at the sale price, you reserve the right to cancel the contract or renegotiate a new price with the seller. 

Once you resolve all of these contingencies, you will schedule an appointment to meet at a Title Agency that handles the legal paperwork and exchanges money to all parties involved in the transaction.  Your mortgage lender will send the loan amount.  You will wire your downpayment (if any) and the seller will be wired their net proceeds on the sale after all parties have signed the paperwork.  

PHASE 5 - It’s Moving Time!!!

After closing, you are officially a homeowner!  It’s time to celebrate and begin creating memories in your new home!

The outline above makes the home buying process seem simple, which is not always the case. A Realtor can help! It’s important that you align yourself with an experienced Realtor, like a TREO Real Estate Agent, to ensure an amazing home buying experience!