A Step by Step Guide to Buying a Home


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A slide share presentation on the process of buying a home. This is the process you'll step through from the time you hire you real estate agent to the time you close on your new home!.

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A Step by Step Guide to Buying a Home

  1. 1. BUYING YOUR NEW HOME Step by Step Provided by: Esther Harnsberger Realtor 10026 W. San Juan Way #200. Littleton, CO 80127 Tel; 303-985-1901 Cell: 303-902-1435
  2. 2. First Understand Agency Relationships in Colorado <ul><li>Fiduciary (Agents) </li></ul><ul><li>Advises and Consults. </li></ul><ul><li>Educates and Guides. </li></ul><ul><li>Involved in Decision Process. </li></ul><ul><li>Uses Judgment and Experience. </li></ul><ul><li>Irreplaceable. </li></ul><ul><li>Seller’s Agent vs. Buyer’s Agent </li></ul><ul><li>Works solely on behalf of SELLER or BUYER, respectively. </li></ul><ul><li>Promotes SELLER’s or BUYER’S interests, respectively. </li></ul><ul><li>Negotiates an advocates for SELLER or BUYER, respectively. </li></ul><ul><li>Written agreement is required for both type of relationships. </li></ul>
  3. 3. Relationships in Colorado (continued) <ul><li>Functionary (Transaction Broker) </li></ul><ul><li>Delivers Information. </li></ul><ul><li>Assists Buyer or Seller or BOTH. </li></ul><ul><li>Is NOT an Agent or advocate for either party. Acts as a referee only. </li></ul><ul><li>Tells and Sells. </li></ul><ul><li>No written agreement required. </li></ul><ul><li>Customer </li></ul><ul><li>Party to a real estate transaction, but no brokerage relationship as either agent or transaction broker. </li></ul>
  4. 4. STEP 1 – Loan Prequalification/Approval <ul><li>Determines your buying power </li></ul><ul><li>Focuses on your home search. </li></ul><ul><li>Shows sellers you are a serious buyer. </li></ul><ul><li>Readies you to close the sale. </li></ul>
  5. 5. STEP 2 – Want vs. Need <ul><li>Price. </li></ul><ul><li>Location. </li></ul><ul><ul><li>Community/Neighborhood. </li></ul></ul><ul><li>Attached/Detached. </li></ul><ul><li>Bedrooms/Bathrooms. </li></ul><ul><li>Basement. </li></ul><ul><li>Kitchen. </li></ul><ul><li>Yard. </li></ul><ul><li>Updates/Condition. </li></ul><ul><li>A/C. </li></ul><ul><li>Architecture/Style. </li></ul><ul><li>Special Features. </li></ul><ul><li>Land/Zoning/Landscaping. </li></ul><ul><li>Proximity to Schools / Work. </li></ul><ul><li>Shopping. </li></ul><ul><li>Transportation. </li></ul><ul><li>New/Resale. </li></ul>
  6. 6. STEP 3 – Property Reviews <ul><li>MLS – Multiple Listing Service. </li></ul><ul><li>Websites. </li></ul><ul><ul><li>www.recolorado.com </li></ul></ul><ul><ul><li>www.coloproperties.com </li></ul></ul><ul><ul><li>www.realtor.com </li></ul></ul>
  7. 7. STEP 4 – Property Previews <ul><li>Scheduling showings. </li></ul><ul><li>Visit five to six homes per session. </li></ul><ul><li>MLS Printouts. </li></ul><ul><li>Rating the property. </li></ul><ul><ul><li>Needs vs. wants! </li></ul></ul><ul><li>Pictures. </li></ul><ul><li>Ranking. </li></ul>
  8. 8. STEP 5 – Making a Decision <ul><li>Is it priced right? </li></ul><ul><ul><li>CMA (Comparative Market Analysis done) </li></ul></ul><ul><li>Does it meet our needs? </li></ul><ul><li>Does it have resale value? </li></ul>
  9. 9. STEP 6 – Submit the Offer <ul><li>Earnest Money </li></ul><ul><li>Prequalification/ Pre-approval letter </li></ul><ul><li>Contract to Buy and Sell </li></ul>
  10. 10. Earnest Money <ul><li>Good faith deposit </li></ul><ul><li>CASHED by the Title Company or Real Estate Office when submitted. </li></ul><ul><li>Typically it is 1-2% of the sales price, depending on value of property. </li></ul><ul><li>Part of down payment that is credited to you at closing. </li></ul><ul><li>Will be returned to you IF the contract is not accepted or the Seller defaults. </li></ul><ul><li>Will be forfeited IF you default, e.g., if you back out without reason or within set contract deadlines. </li></ul>
  11. 11. Prequalification / Pre-approval Letter <ul><li>Shows seller that buyer if financially able to afford the property. </li></ul><ul><li>“ Broker shall disclose to any prospective seller all adverse materially facts actually known by Broker, including but not limited to adverse material facts concerning buyer’s financial ability to perform the terms of the transaction…” </li></ul>
  12. 12. Contract to Buy and Sell <ul><li>Legal document. </li></ul><ul><li>Sets forth price an terms. </li></ul><ul><li>Schedules deadlines. </li></ul><ul><li>Inclusions/Exclusions. </li></ul><ul><li>Attachments. </li></ul><ul><ul><li>Square Footage Disclosure. </li></ul></ul><ul><ul><li>Lead-Based Paint Disclosure. </li></ul></ul><ul><ul><li>Seller’s Property Disclosure. </li></ul></ul><ul><ul><li>Other Disclosures (Mold, Closing instructions, etc.) </li></ul></ul>
  13. 13. Contract to Buy and Sell Dates & Deadlines <ul><li>Alternative Earnest Money. </li></ul><ul><li>Loan Application. </li></ul><ul><li>Loan Conditions. </li></ul><ul><li>Appraisal. </li></ul><ul><li>Title and Objection. </li></ul><ul><li>Documents (Including HOA). </li></ul><ul><li>Survey. </li></ul><ul><li>Seller’s Property Disclosure. </li></ul><ul><li>Off Record Matters & Objections. </li></ul><ul><li>Survey & Objection. </li></ul><ul><li>Inspection Objection & Resolution. </li></ul><ul><li>Right of First Refusal. </li></ul><ul><li>Closing Date and Time. </li></ul><ul><li>Acceptance Date and Time. </li></ul>
  14. 14. STEP 7 – Document Review <ul><li>Title Commitment / insurance. </li></ul><ul><ul><li>Free and clear title? </li></ul></ul><ul><li>Seller’s Property Disclosure. </li></ul><ul><ul><li>Condition of the property. </li></ul></ul><ul><li>CIC (Common Interest Community) </li></ul><ul><ul><li>HOA covenants. </li></ul></ul><ul><ul><li>Restrictions. </li></ul></ul><ul><ul><li>Special Assessments? </li></ul></ul>
  15. 15. STEP 8 – Inspection <ul><li>Inspection vs. Appraisal. </li></ul><ul><li>Finding a qualified inspector. </li></ul><ul><li>Special Inspections. </li></ul><ul><ul><li>Radon, Mold, Structural, Pest. </li></ul></ul><ul><li>Scheduling to meet the deadlines. </li></ul><ul><li>Deciding on what you want from the Seller. </li></ul><ul><li>Seller’s response. </li></ul>
  16. 16. STEP 9 – Meeting Loan Deadlines <ul><li>Appraisal. </li></ul><ul><li>Documentation. </li></ul><ul><li>Underwriting </li></ul><ul><li>Loan Conditions. </li></ul><ul><li>Property Insurance. </li></ul>
  17. 17. Step 10 - Closing <ul><li>Closing Company. </li></ul><ul><li>Picture ID. </li></ul><ul><li>Certified Funds. </li></ul><ul><li>Writer’s cramp!! </li></ul><ul><li>Obtain the keys to your new home! </li></ul>
  18. 18. Other Information <ul><li>New Construction </li></ul><ul><ul><li>Whom the salesperson works for. </li></ul></ul><ul><ul><ul><li>Deposits. </li></ul></ul></ul><ul><ul><ul><li>Incentives. </li></ul></ul></ul><ul><ul><ul><li>Additional Costs. </li></ul></ul></ul><ul><ul><ul><ul><li>Landscaping </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Window coverings. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Furniture, etc. </li></ul></ul></ul></ul><ul><ul><li>Home Warranties. </li></ul></ul>
  19. 19. Esther Harnsberger Realtor 10026 W San Juan Way Littleton, CO 80127 Tel; 303-985-1901 Cell: 303-902-1435 Remember – As your Buyer’s Agent – You pay me no commission – the Seller does!