Buyer's Guide

Deciding to purchase

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.

Why do you want to buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord's? Have you outgrown your current home? Are you looking to build an investment portfolio, or for a rental property? Would you like a larger yard, a different area, or a shorter commute? Having a clear sense of your reasons for buying will help you choose the right property.

Has your income grown?

Property ownership is an excellent investment — whether you're looking for your dream home, a rental property, or to expand your portfolio. Owning real estate is one of the least risky ways to build equity and earn a greater return on your initial investment.

Preparing to buy

Before you start shopping, it's a good idea to make some preparations. Keep a file of the important financial documents you'll need to secure financing. A typical file should contain:

• Financial statements
• Bank account and investment statements
• Credit card and auto loan statements
• Recent pay stubs
• Tax returns for the past two years
• Copies of leases for any investment properties
• 401(k), life insurance, stocks, bonds, and mutual fund information

Check your credit rating

Your credit score has a huge impact on what type of property you can buy, and at what price. Check your credit with an experienced lender first so we can determine what you can comfortably afford. We're happy to recommend knowledgeable lenders across residential, construction, commercial, and investment real estate.

Be careful with your finances

Now is not a good time to make sudden career changes or large purchases — you want to approach your purchase from a position of financial stability. Avoid applying for new loans, changing jobs, making large purchases, or moving money into new or “unseasoned” (less than two months old) accounts.

Choosing a real estate agent

Buying a property means making many important financial decisions, understanding complex issues, and completing a lot of paperwork. It helps to have an expert in your corner — one who can guide you through the process and give you access to listings before they hit the general market. Some factors to consider:

• Look for a full-time agent with experience completing transactions similar to yours.
• Interview a few agents — are they familiar with the area you're interested in?
• Ask how much time they'll have for you, and whether they're available nights and weekends.
• Ask about their credentials and continuing education.
• Do they return your calls promptly? Time is money when buying.
• Ask for a list of properties they've sold, or for references.
• Choose an agent who listens attentively and with whom you feel comfortable.

Time to go shopping

Take a drive

Get to know the neighborhoods and subdivisions that interest you. Drive around and get a feel for what it would be like to own there — at different times of day — to see if there are any factors that would affect your enjoyment.

Narrow your search

Select a few properties that interest you the most and contact us to make appointments. Ask about the potential long-term resale value of the properties you're considering.

Time to buy

Once you've found the property you want, we help you make an offer the seller will accept. We investigate the potential costs and expenses associated with the property and draft your offer in a way that gives you the advantage.

Escrow, inspections & appraisals — step by step

The initial agreement and deposit

An effective agreement is a legal arrangement between a potential purchaser and the property's seller. A few tips to streamline the process:

• Keep written records of everything. We help transcribe verbal agreements, counter-offers, and addendums into signed written documents, and make sure you have copies.
• Stick to the schedule. You and the seller will follow a timeline that marks every stage of closing. Meeting deadlines keeps negotiations smooth and no party in breach.

The closing agent

Either a title company or an attorney will act as the closing agent. They hold the deposit in escrow and research the property's recorded history to ensure the title is free and clear by the closing date. Some properties carry restrictions, easements, or encroachments that limit how you can use the property.

Inspections

Once your offer is accepted, you'll have a licensed inspector examine the property within the agreed time frame. You may hire specialists for specific areas such as roof, HVAC, or structure. Depending on the results, one of two things happens:

1. Each milestone closes successfully, contingencies are removed, and you move one step closer to closing; or
2. After reviewing the property and documents, you request a renegotiation of the terms (usually the price).

Appraisal and lending

Keep in close communication with your lender, who will tell you when additional documents are needed to approve and fund your loan. If financing is contingent, a licensed appraiser determines the property's value for the lender. Within two weeks of closing, double-check that your loan will fund smoothly and on time.

Property insurance

If you're obtaining a loan, your lender will require insurance on the property. You can often save by raising your deductible, asking about discounts (safety features, long-term customer, age 55+), and insuring the house — not the land under it. We're happy to recommend experienced insurance agents.

Moving in

Final walk-through

More a formality than anything else, the final walk-through happens the day before or the day of closing. You'll verify everything is in working order, unchanged since your last visit, and that everything included in the purchase is still there.

Closing

The closing agent provides all parties a settlement statement summarizing the transaction, which everyone signs. If you're financing, you'll sign the lender's documentation. Funds can be wired to the closing agent's escrow account or brought as a certified check. The seller arranges to have keys and important information ready for you at closing.