What to expect when buying a home...

Buying a home is the largest and most complex transaction you will probably ever encounter. If you’ve never bought real estate before, the process can seem confusing and overwhelming at first, but once you understand the how it works and what to expect, you’ll find it’s really pretty fun!

Choose a Realtor® who is knowledgeable, experienced and who you trust.

The first step, when considering the purchase of a home, condo, townhouse or investment property, is to choose a Realtor who is knowledgeable about local market conditions and the areas which interest you, and who has the experience to assist you in finding the right property and negotiating the best deal. Beyond that, it’s very important to work with a Realtor who you trust and feel comfortable. (A Realtor® is an agent or broker who is a member of the National Association of Realtors and who is bound by a strict code of ethics, and not all agents and brokers are Realtors.)

In most real estate transactions, there are two agents involved; the seller’s agent, who represents the person selling the property, and they buyer’s agent, who represents the buyer. In almost every case, both agents are paid on a commission basis, by the seller, at the end of the transaction. That means that while buyer’s agent is legally bound and responsible for representing and protecting the interests of the buyer, there is no cost to the buyer for the agent’s services. So the buyer’s agent works for the buyer, but is paid by the seller.

Become a pre-qualified buyer.

Most people get a loan, called a mortgage or trust deed from a bank, savings and loan, mortgage company or other lender, to purchase their home. A buyer needs to have enough money for a down payment as well as closing costs, and the rest of the purchase price is covered by the mortgage. Down payments can vary considerably. Many Veterans will qualify for a zero-down VA loan, meaning that aside from closing costs, the entire cost of the home can be borrowed. First-time homebuyers (those who haven’t owned a home for at least three years) may qualify for an FHA loan, with a down payment as low as 3.5%. Most other buyers will need to have a 20% down payment.

It’s important to get “pre-qualified” for a loan before you start looking at properties, because many sellers will only consider offers from pre-qualified buyers, and even if a seller offers from potential buyers who haven’t been pre-qualified, an offer from a pre-qualified buyer is considered to be a stronger or better offer. If everything else in two offers is identical (price, terms, etc.), the offer from a pre-qualified buyer will almost certainly be accepted first. As a loan officer, Pam Alexandra can help you find loan that has the most favorable rates and terms for your particular situation, and can help you get pre-qualified quickly and easily.

Once you’ve been pre-qualified, you’re ready to see homes!

By this time you will have been receiving email listings of homes in the areas and price range that interests you. The listings are from the San Diego Multiple Listing Service, and each will include at least one photograph (sometimes many) as well as the address, a link to an online map so you can see exactly where it’s located, the asking price, and other specific details about the property. By carefully reviewing the listings you will quickly become familiar with what to expect in a given area regarding the kinds of properties available and at what price. Knowing this information will make viewing properties in person a much more valuable and enjoyable experience for you.

Depending on your wants and needs, and the current market conditions, you may find “the right” home very quickly, or it may take some time. Don’t be discouraged if you don’t find your dream home right away, eventually we’ll find you exactly what you’re looking for.

Make your offer a strong one!

When you find a home that you love and decide to submit an offer, is when working with a knowledgeable and experienced professional is most important. It’s critical to understand the real value of the particular home or condo, and know what similar properties have been selling for and how quickly. We’ll work closely with you to craft a strong offer that will protect your interests and be as attractive as possible to the seller. Depending on the market conditions, the best properties can generate multiple full-price (or higher) offers, and we’ll use our knowledge, experience and skills to make your offer stand out from the others. It’s not unusual for a seller to respond to a buyer’s offer with a counter-offer, and this is where the real negotiation begins, as we work to create a deal that works for both you, as the buyer as well as the seller.

When your offer is accepted, we go into escrow.

Escrow is the process in which all the information and paperwork is gathered so that the sale can be finalized. Escrow typically lasts 30-60 days, although it can be longer or shorter. During escrow, a lot of things happen, including making sure that the property your are buying has a “clean title,” and lots of paperwork is distributed and signed. Escrow is the time when you have the opportunity to hire a professional property inspector to check out the physical condition of the house or condo. He or she will inspect every aspect, from the foundation to the roof, making sure all the systems are safe and working properly. This is also the time that a termite inspection is done. If something is found to be, broken, damaged, unsafe or not working, we can consider asking the seller to either repair it or adjust the price so that you can have it repaired when the house is yours. Escrow is also the time that the mortgage is processed by the lender, meaning that all the information pertaining to the loan (such as employment and credit) is verified and documented. After all the inspections have been completed, the paperwork has been signed and the loan has funded, then escrow closes and the house is yours!