The Home Buying Process
Buying a home is an exciting experience! There are many moving parts, but as experts in the home buying process, we’re here to guide you home! The guide below is a general outline of your typical Real Estate transaction in New York.
1 – Get Pre-Approved
The first and most essential step in buying a home. The pre-approval will help you determine your price range. Many people think they know what they can afford but without the pre-approval, you don’t really know how much buying power you have. In todays market, many sellers will require a pre-approval or proof of funds before they allow a showing of their home. Need a lender? We highly recommend Anthony Forte of Quintessential Mortgage Group.
2 – Find a Home
This is the fun part! Partnering with your agent, they will set you up with a property search in your preferred neighborhoods. When you find a home you like, your agent will set up tours of the properties for you. You can start your property search here! Click here to create your account!
3 – Make an Offer
When you find a home you want to offer on, your agent will help you determine how much to offer. The agent will look at the “comps” which are the comparable sales. Once you decide on how much you want to offer, your agent will draw up the paperwork and submit your offer. After the offer is submitted, the seller will either accept, counter or decline your offer. If your offer isn’t initially accepted, your agent will negotiate on your behalf until an agreement is reached.
4 – Accepted Offer
CONGRATULATIONS! Your now one step closer to you becoming a homeowner, but the work isn’t done yet! We recommend doing a Home Inspection on the property within 24 – 48 hours. In New York, accepted offers aren’t binding so the seller will most likely still entertain other offers. You want to move as fast as possible!
5 – Home Inspection
Although you might think everything is ok with the house, you should have a Licensed Home Inspector inspect the house to ensure there aren’t any safety issues (structural, mold, Radon, etc). If any issues are found, you have the opportunity to negotiate the repairs or negotiate a credit at closing so you can complete the repairs to your liking!
6 – Contract
After the home inspection has been negotiated, the sellers agent will draw up the Memorandum of Sale. The “memo” outlines the specifics of the deal for both the buyers and sellers attorney. The sellers attorney will write up the contract of sale and send it to the buyers attorney. There is normally a negotiation period with the contract and it should be ready for signatures in 3-7 days on average. When the buyer signs, part or all of the downpayment is required which is held in an escrow account by the sellers attorney. After the buyer signs, contracts are sent to the seller for signature. Once the seller signs, you’re officially in contract!
7 – Appraisal & Title Search
The appraisal is ordered by your lender after you’re in contract. The appraisal is an independent opinion of value. The bank wants to make sure you’re not over paying for the home! If the home doesn’t appraise, we have a chance to renegotiate the sales price. While your lender is working on the appraisal, your real estate attorney will order a Title Search. The title search is an examination of public records to confirm a property’s legal ownership, and find out what claims or liens are on the property. A clean title is required for any real estate transaction to be completed.
8 – Final Walkthrough
Before closing, you walk through the home one more time to ensure repairs have been made and see if the home is in the same condition as when you offered! You need to make sure nothing major has happened to the home before you close! If anything seems wrong, you have the opportunity to fix the issues before the home become yours.
9 – Closing
Time for the Champagne! The closing will be held at a mutually agreed upon location between the attorneys (normally at one of their offices). If you’re getting a mortgage, be ready to sign a large stack of papers! Once the sellers attorney receives all of the funds, you receive the keys and the home is yours!
