Before you start looking for properties:

First take a few moments to figure out what you are looking for. Talk with your partner and make two lists: “must have” features and “would like” features. After viewing a few properties revisit this list, your priorities may change with time.

Next, find out how much you can afford to buy. Letting a seller know you have been pre-qualified demonstrates your seriousness as a homebuyer. If you are interested you can receive a free pre-approval letter from any of the mortgage companies listed in our Service Directory.

If you sign a Buyer’s Agency contract offered by a real estate agent, you may have to pay a commission even if the agent was not involved in the transaction. Eliminating the commission increases the likelihood of the buyer and seller reaching a win-win agreement.

Looking at Properties:

Be efficient! Search for homes in the price range specified by your pre-approval letter. Make appointments to view properties directly with the homeowner. Please be prompt, as the homeowner has gone to extra efforts to showcase the home.

Don’t bring an agent with you or use them to draw up a contract, unless you or the seller has agreed to pay a commission. Agents may charge 2.5-3%, or more for their services.

Making an Offer

You’ve found the home! Call the homeowner to let them know you are interested and want to make an offer. Some of the points to discuss are: price, closing date, mortgage contingencies, and any included personal property (appliances, window coverings, lawn equipment, etc.). Be prepared to put $500-$1000 down.

Home Inspections

Also discuss any inspections you plan to have done. If you don’t know how to assess the condition of the property, don’t worry. You may simply make your offer contingent upon the property having a professional home inspection performed within a specified number of days after agreement has been made with the purchase agreement.

Plan on accompanying the inspector so you can see for yourself any potential problems. You will want to voice any objections to the seller in writing before the inspection contingency date in your contract. Most small items can be overlooked, but the immediate need for a new furnace or roof may put you back to negotiating with the seller. Contact an Inspector.

Alternatively consider the option of sharing the cost of a Home Warrantee  with the seller. This usually covers repairs or replacements of items such as furnace/water-heater/appliances for 1 year after closing.

Finally - make sure to put everything in writing! Do not rely on any verbal agreements.

Final Steps

Feel free to have an attorney represent you at closing. The attorney can:

• Review or draft a purchase agreement
• Accompany you at closing
• Address any legal questions

Notify your mortgage lender as soon as you have an accepted Purchase Agreement. The lender will send out an appraiser, ensuring that the agreed upon price is fair market value, and that you are not over paying.

Request and schedule a personal walk-through inspection 24 prior to closing. This allows you to make sure that any serious faults in the home weren’t covered with furniture, rugs, or wall coverings.

At closing you will sign a few documents and then become a new homeowner!