Seven steps to buying your home
1. Define your needs.
Congratulations on your decision to purchase a new home! It is important to
select a professional real estate agent to work with you before you begin
house hunting, so that your agent can help you define what kind of home
and neighborhood would best suit your desires and needs. The finer the
details on your wish list, the more effective your home search will be.
To further define your needs, you may want to divide your lists into negotiable
and non-negotiable items, so your agent can operate with some flexibility when
scouting for homes on your behalf.
2. Get pre-approved.
Now that you know what you want in a home and neighborhood, you need to
find out what you can afford. The best way to do this is to get prequalification
or preapproval for a home loan. Your real estate agent can refer you to a
mortgage broker to begin the process. In most markets, preapproved buyers are
preferred by sellers over those who are prequalified. Your preapproved status lets
the seller know:
* You have gone through an extensive financial background check.
* A lender is willing to do business with you.
* The likelihood of unexpected obstacles regarding financing is minimal.
3. Let the house hunting begin!
Now you are ready to embark on your home search — an endeavor that can prove
overwhelming if not approached with some forethought. The most efficient route is
to allow your real estate agent to do the initial scouting for you. Using your wish list
as a guide, he or she will alert you of new and existing listings that have strong
potential. If these listings pique your interest, your agent will arrange home tours at
your convenience. Many agents send alerts via email — sometimes as often as daily,
depending on the available inventory in your market. Let your agent know how you’d
like to receive these alerts, whether by phone, email or fax.
You also can do some research on your own. Read local real estate publications,
contact your local neighborhood associations, visit the local chamber of commerce,
surf the Internet, or drive around your favorite neighborhoods. While these methods
certainly can lead to your dream home, it’s important to note that 82 percent of home
sales are the result of agent connections.* That means it’s more likely your agent will
find your dream home through being in the real estate business than you driving around
on the weekends.
* National Association of REALTORS®
4. Make an offer.
When you’re ready to make an offer on a home, your real estate agent will help you
determine the offer price by reviewing recent sales of homes similar in size, quality and
amenities. With your input, your agent will draft a written contract that outlines what
needs to be done by both parties to execute the transaction. If the seller accepts the
offer, the document becomes a binding agreement, so it is imperative that you carefully
review it with your agent and speak up if anything is not clear to you. It’s important to
note that if the seller changes any aspect of the offer, it is not a binding agreement
until the buyer agrees to the seller’s changes.
5. Strike a deal.
Sometimes, you get lucky and the seller accepts your offer as is. However, in most
instances, the seller will make a counteroffer. This is where your real estate agent’s
experience in negotiations will be invaluable. Keep in mind almost everything is
negotiable when you are buying a house. This can give you a great deal of leverage
in the buying process — that is, if you have adequate information and you use it in
an appropriate manner.
Some items you may negotiate:
* Price
* Financing
* Closing costs
* Move-in date
* Repairs
* Appliances and fixtures
* Landscaping
* Painting
Remain in close contact with your real estate agent so you can quickly review any changes
from the seller. Remember: Bargaining is not a winner-take-all deal. It is a business process
that involves compromise and mutual respect.
6. Prepare for the closing.
When an offer becomes a binding agreement, your real estate agent will help you tackle the
checklist of action items that you, as the buyer, have agreed to perform prior to closing.
Depending on how the responsibilities are divvied up in the agreement, this is typically when
you will:
* Conduct a home inspection.
* Get an appraisal and finalize your financing.
* Secure title insurance.
* Shop for a home warranty.
Having these procedures done in a timely and professional manner is a must, as any delays
could threaten a successful closing. A first-rate real estate agent should be able to serve as
your “one-stop shopping??? referral source for service providers. Your agent also should serve
as your advocate, helping to coordinate activities and making sure the vendors have access
to the property to perform their jobs.
7. Close the deal.
Congratulations! The moment you’ve been anticipating has arrived. The closing is
where home ownership is legally transferred from the seller to the buyer. It is a
formal meeting that most parties involved in the transaction will attend. Closing
procedures usually are held at the title company’s or lawyer’s office. The closing
officer will coordinate all the document signing and the collection and disbursement
of funds.
In advance of your closing date (24 hours at minimum), your lender will send a final
closing statement that outlines your closing costs, if applicable. Your real estate agent
will review this document with you to ensure its accuracy, as well as help you gather
any necessary documentation that you’ll need to bring to closing.
If you would like more information on buying Chicago Real Estate,
please send me an e-mail.
You can also visit me online at www.773property.com
I am a licensed REALTOR that specializes in Chicago Real Estate.
Although I service all areas of Chicago, I work mostly on the South side.
My office is near the Bronzeville and Hyde Park neighborhoods.
My services include, but are not limited to, the following:
* Helping Owners Avoid Foreclosure
* Helping First Time Home buyers realize their dream
* Helping Sellers find qualified buyers
* Helping tenants lease luxury condo rentals
Until the next time,
Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!
Visit me online: www.773property.com
EQUAL HOUSING OPPORTUNITY
