Buying A Home
Our goal is to help buyers successfully navigate the complexities of buying a home. Whether it be a downtown listing, a single family home in a master planned community, or a ranch house – Rose Real Estate wants to guide you through the process of securing your new home.
The following is the process Rose Real Estate recommends.
- Understand how you will pay
If you plan on purchasing the future property in cash, then you are in a good position to act fast once you find the right one. However, you’ll still want to supply a ‘Proof of Funds’ document in your offer. This will allow the seller to take your offer seriously and feel comfortable entering into an executed contract with you. If you plan on securing a loan to help buy the property, then you’ll want to get pre-qualified. This means you’ll want to establish a relationship with a local mortgage broker who understands your goals and your financial and credit history. The mortgage broker will be able to pre-qualify you for a purchase up to a certain amount. At the point when you extend an offer on a property, you’ll attach your pre-qualification letter.
You may browse several of our client recommendations for mortgage brokers here.
- Use the tools at your disposal
Enlisting the services of a local Realtor is smart – but with today’s market and technology there are many tools that buyers can leverage on their own.
Listing Websites: Realtors are leveraging online technology to bring property searches to their own websites. You can now browse active listings for free on these sites, as well as compare properties against other available listings.
Chambers of Commerce: Check out our links to find the local Chamber of Commerce and you’ll likely find loads of information on local business and events.
County Appraisal Districts: These sites can offer a lot of resources (we call them CADs). Some are more advanced than others, but most allow buyers to search tax assessments, understand property boundaries and recorded subdivisions.
- Choose the right Realtor
For the most part, Central Texas has a thriving real estate market and that means you won’t suffer from a lack of potential agents. Some people aim to navigate this process without representation. What you should know is that this puts you at a serious disadvantage for the following reasons:
Access: Your Realtor will be able to use the MLS to pull the correct information on listings that suit your interests. While there are public sites (think Zillow or Trulia) that can be very helpful for browsing, they are often not updated and can become frustrating. Most importantly, they do not allow for comparisons (‘comps’) from sold listings in the area. This method of comparison is what will allow you to price a competitive offer. Having the right Realtor gives you access to the listings as well as the data required to make informed decisions.
Negotiation: The seller likely has an agent, and as the seller’s agent that Realtor has a legal duty to help his or her client in every way possible. Unfortunately, this puts you at a severe disadvantage during any negotiation process if you aren’t getting the same level of support. Additionally, real estate transactions can become tricky and can lead to some uncomfortable conversations. It’s much better to leave the back-and-forth negotiations to the respective agents in order to keep your process clean and unhindered.
Representation: Having someone working for your interests means you are less likely to make mistakes. Besides access to data, a Realtor will have experience built on hundreds of similar transactions and can guide you each step of the way. Question marks like seller’s disclosures and recent repair work are better answered with the help of an agent.
- Making an offer
There is certainly more to an offer than just the total sales price. Many buyers go into a negotiation with a narrow view of the process and just consider the bottom line – the price being offered. The truth is that there are many finer points to the offer contract that must be considered and structured according to how the buyer plans to submit his or her offer. There are sections on third party financing, surveys, property resale certificates, option periods and others that all effect how the seller will ultimately view the strength of the offer. You’ll want to work closely with your agent to navigate the complexities of the contract and put yourself in the best position to purchase the property on terms amenable to you.
- Closing on your new home
After the contract is signed by both buyer and seller, there are still things to do before closing. Some buyers will opt to pay for a home inspection and specialized contractors to come in and give them a better sense of the property’s condition. If you’re securing the property through third party financing, this will be especially important because your lender will want to rule out things that make the loan risky. Remember, the property is their collateral against the money they are lending you! Once you hear that your loan is officially approved, a last step is to understand how to pay the cash portion required at closing. You can work directly with your escrow officer on this.
You’ll want to stay in close touch with your real estate agent leading up to closing to make sure everything is in place.