Everything You Need to Know About Buying a House

Buying a home is one of the most important and significant financial commitments that most of us will ever make. At times it may seem overwhelming and confusing. From finding your dream home, to navigating financing options – here is everything you will need to know about buying a house.

• Firstly, it’s important to use a trusted realtor. Bear in mind that the listing agent (the agent representing the seller) doesn’t look out for your interests specifically – if you work with a realtor to purchase a property you’ll have somebody on your side to protect your interests and guide you through the process. Working with a knowledgeable and professional real estate agent can help make the process much less stressful and much more enjoyable.
• Buying a house involves many things to sign. And many of these contracts can be negotiated, so don’t be afraid to discuss this with your realtor. Check out our helpful resource on contracts here.
• Planning and Commitment. This is likely to be a long-term investment. You’ll want to think about your long term plans, as well as your current circumstances. Plus, if you are entering in to to the purchase with a significant other you must consider the commitment that this involves.
• Consider the potential of a property – look beyond the cosmetic but keep in mind the costs involved in updating a house. It’s likely that when you purchase a home you will want to make updates and changes – and you must factor in the cost (including expensive labor costs) of making the changes you dream about.
• Only spend what you can afford. This may be a different figure than your mortgage company approves, but you must consider changes in the economy, and changes in your personal situations in the future etc. Think carefully about the payments you will feel comfortable making. Click here for our mortgage calculator
• The purchase price is just one of the costs of homeownership. There are other costs that you need to consider including insurances, taxes, HOA fees, and property maintenance costs. It’s a good idea to research the costs of upkeep of various aspects of the property including the pool, roof, heating and cooling systems etc. Find out more about financing here.

I’ve found a house – what’s next?

Firstly you’ll encounter the Purchase and Sale Agreement: This is a legal contract between the buyer and the seller that outlines the agreement between them.

The Negotiations: 

Items considered in the negotiation phase often include:

• Market value of the house
• Condition of the house
• Financing terms
• Circumstances surrounding the sale
• Loan pre-approval at the time of the offer
• Earnest money
• Closing date
• Once your offer has been presented to the sellers, they will either accept it, counter it, or reject it. Often times, sellers accept portions of the agreement but counter other portions. Once the contract is mutually accepted by both buyer and seller, the rest of the purchase process begins.

Inspections & Approval:

After your new home has been put under contract, certain contingencies will come into play:

• Inspection period – This will vary depending on the type of contract agreed upon. An As-Is contract will typically have a 10-day as-is period whereas a typical Contract for Sale will have a 20-day period
• Remaining escrow deposits
• Financing Contingencies – Typically 30 days
• HOA and Membership Approvals
• Insurance
• Walk-through

Title Insurance / The Closing Process:

The closing agent:

• Requests a title report and policy
• Drafts the deed and/or other necessary documents
• Arranges to pay off existing loans when necessary
• Prorates taxes and insurance between buyer and seller
• Computes interest in loans
• Records the appropriate documents
• Disburses the documents and monies to each party involved

Frequently asked questions

WHAT IF I NEED TO SELL MY HOME BEFORE I BUY A NEW ONE?

To put yourself in the best negotiating position before you find the new home you want, the Echo Fine Properties Team will help you put your current home on the market.

Once you write an offer on a new home, your offer will be “contingent” on the sale of your home. A buyer in this position may not have the same negotiating power as one whose home has already sold (or at least has an accepted offer).

ONCE I HAVE FOUND A HOME, HOW DOES MY OFFER GET PRESENTED TO THE SELLER?

The Echo team will call the agent who is the listing agent for the home you have chosen and will make an appointment with the seller to present your offer.

The Echo Fine Properties Team is there to explain the details of your offer and negotiate on your behalf.

WHAT HAPPENS IF I OFFER LESS MONEY THAN THE ASKING PRICE?

If you offer less money, the seller has three options. They can accept the lower offer, counter your offer, or reject it completely.

Remember that there could be another buyer out there who is also interested in the home you’ve chosen. If they happen to write an offer at the same time you do, the seller will have two offers to compare. There are usually many aspects of each offer to consider, but ultimately the seller will want to accept the best price and terms.

In active real estate markets, homes often sell near their listed price. In hot markets, there may be many buyers vying for the same house, which sometimes drives the final sale price above the original listing price. Jeff can help you plan your strategy, based on the current real estate market in our area.

DOES IT COST ME MONEY TO MAKE AN OFFER?

When you write the offer on the home you’ve chosen, you will be expected to include an earnest money deposit, typically a total of 5-10% of the purchase price. The deposit is a sign of your good faith that you are seriously interested in buying the home.

See more of our frequently asked questions here.