The New Home Buying Process for 2011/2012

My main reason for writing this post is because I'm organized and I like to arrange things to prevent delays, obstacles, frustration, errors, disappointment, etc.

It took a few prospect calls to prompt me to write this to inform home buyers about how the home buying process works in the current market.

Before I begin with the breakdown of what you should do if you want a relatively easy home buying transaction, I have to clarify some myths in the metro Atlanta Georgia home buying market.

1. You and your Agent can tour a neighborhood and just stop at any home that has a "FOR SALE" sign in the yard. That is a myth, you cannot just stop at any home and see the inside. It could be "under contract or pending sale", occupied, have a security system, withdrawn from the market, disqualified for your loan type, have pets inside the house, not in your price range, etc. As your Agent I will call and get all pertinent information on the homes you like from the listings I emailed you and schedule an appointment with you to see the ones that are available for us to see.
2. People aren't buying houses right now. That is the other myth, people are definitely buying houses now. In the last 2 weeks over 418 contracts for just single family residences closed in the immediate metro Atlanta buying area.
3. Homes are over-priced. That's the other myth. So if you see a home listed at $120,000 don't automatically think you should offer $60,000 and win the bid. I know you want a good deal, but these days a lot of the homes are priced below market value to get a quick sale. As your Agent I will run a report to see what the comparables have sold for recently.
4. Don't use a Buyer's Agent because they will manipulate you to spend more money so they can make more commission. That's another myth. If you sign a "Brokerage Agreement" with us, we're legally obligated to act on behalf of your best interests as our client, not our pay. As your Agent all of the duties I perform on your behalf will be in your best interests.

To Simplify Your Home Buying Process

1. Choose an Agent you trust and feel comfortable enough to ask any questions you may have.
2. Get your payment method together, if you have to save up for your down payment, your Agent should have the patience to work with you until you're ready.
3. Based on your pre-qualified price range, choose an area and communicate all other important criteria to your Agent.
4. Choose some homes you like from the listings your Agent has emailed you as well as any you may find on your own.
5. Communicate with your Agent about the homes you'd like to see the inside of so your Agent can coordinate with you to schedule a showing appointment of the homes that are available.
6. If the exterior of the home will be a major factor in your decision, it may be beneficial for you to do a drive-by of the area and see the exterior of the home before your showing appointment, you can begin to eliminate the ones you don't like.
7. You've found one you'd like to place an offer on. Your Agent should get any information that's available to help you decide on how much to offer, as well as any disclosures, covenants, HOA rules, fees, taxes, etc. You should begin to gather the documentation your lender will require for your mortgage loan application and give an earnest money deposit to submit with your offer. Your Agent should ensure that your deposit is returned if the sale does not go through, if it does go through, the deposit is subtracted from your costs at closing.
8. Your offer will be accepted, rejected or countered.
   

   If it's accepted your Agent will begin the inspections process and you should promptly give your lender anything they ask for. If it's rejected-move on to the next home. If it's countered, negotiate until all parties can agree on the terms of the contract.
9. Once your sales contract is signed by all parties, it's official and the deadlines begin. All parties should promptly do their part to comply with the terms of the contract. This is when the teamwork kicks in and if everyone works together with little resistance, the transaction should proceed smoothly.
10. Do not, I repeat, do not change your credit or financial status whatsoever from the time your lender approved you. Don't make any large withdrawals other than your normal household expenses, nor any large deposits or large purchases. Wait until after you have the keys to your new home to buy new furniture, appliances, etc.
11. In most cases you're responsible for paying for the appraisal and inspections so ensure you've saved enough for that as well.
12. Order homeowner's insurance.
13. Your Agent will submit any amendments to the contract if the appraisal comes back low or the inspection reveals additional things that need repaired or replaced.
14. If there are contingencies, such as due diligence, appraisal, finance, etc. your Agent will remove them as they're satisfied.
15. The closing attorney or title company will run a title check and issue title insurance.
16. The final walk-thru of your home, I like to schedule it as close as possible to the closing date and time, usually on the way to the closing if our schedules allow and if not, then the day prior to closing. To make sure the home is in the same condition and hasn't been vandalized.
17. At the closing, you will sign the loan documents and settlement statement in exchange for the keys to your new home.

Congratulations, you've made what could have a been a stressful, frustrating experience a pleasant one for you and your family!

Call me to help make it smooth and easy for you! View homes for sale with no registration required here

Priscilla Hammond

404.503.6562