BUYING, THE BASICS
There is a proliferation of “how to” homebuying guides on the Internet and we can’t effectively summarize the “nuts and bolts” of homebuying here.
What we will provide is a brief, 60-second summary.
BUYING REAL PROPERTY IN CALIFORNIA
Buying a property in California is different from buying a property in many other states.
First, attorneys are not involved. In California, real estate agents handle many of the responsibilities handled by attorneys in other states such as New York.
Second, the sale is conducted through an escrow company, an unaffiliated 3rd party that processes documents related to the sale and insures that all the conditions of the contract are fulfilled.
You’ll often hear “opening escrow” or “closing escrow”. “Opening escrow” means Buyer and Seller have a signed purchase contract that is ready to be executed. “Closing escrow” means all the conditions of the sale have been fulfilled, and the grant deed, conveying the property from Seller to Buyer, has been recorded with the County.
REAL ESTATE AGENTS
In any sale, there is a Buyer’s agent, and a Seller’s agent. In California, one agent can represent both Buyer and Seller. This is called dual agency and is commonplace.
Agents are compensated through commission, a fee typically paid by the Seller. In the vast majority of cases, the Buyer pays no commission. Commissions are typically a percentage of the final sale price.
Adner Realty Group dedicates ourselves to working with our Buyer clients. When working with Buyers, we work on an exclusive basis — we only work with Buyers who work exclusively with us.
FINDING A HOME IN THE Age of ZTRR (Zillow, Trulia, Redfin, Realtor.com )
There is a seemingly bottomless well of data generated by the ZTRR online web portals, including listings, sales, market trends, and info about schools, crime, environmental hazards, etc.
The information is almost overwhelming.
In our role as Buyer’s agent, we add our perspective gained through nearly ten years of property hunting to help our clients sift through the clutter.
There are many steps between identifying a listing and moving into a home. These include qualifying the home and neighborhood, negotiating the terms of sale, inspecting the condition of the property, negotiating for any repairs, and navigating the escrow process.
Experience and professional knowledge are invaluable in successfully closing a sale, and we bring both to the table.
WRITING AND NEGOTIATING AN OFFER
When you find a great property, you want to be prepared to make an offer. This means you’ve been pre-approved by a lender (if obtaining a loan), you have the downpayment funds available, and you are prepared to sign on the dotted line.
In this competitive market, having a solid, financial package in place is critical in getting Sellers to accept an offer.
Offers are made on a standard California purchase agreement. There is a fine art to writing an offer, and the key to getting an offer accepted lies in the details.
Offers include price, downpayment amount, financing and inspection contingencies, occupancy terms, and a raft of other details.
Your agent earns their keep when negotiating the sale terms, trying to exact the best price and terms for their client.
BUYER’S INSPECTIONS AND DUE DILIGENCE
During the escrow period, the Buyer performs physical inspections on the property. These inspections may include a general physical inspection, termite inspection, sewerline inspection, chimney inspection, roof inspection … and the list goes on.
The Buyer will also review the Seller’s disclosures about the property, the title report, the City report and other documents related to the sale.
Your agent is your partner in these tasks and is there to guide and advise you as you perform your due diligence.
Once the Buyer has approved of the physical condition of the property, and reviewed and approved all other disclosures related to the sale, it’s time to close.
The loan is funded (or cash funds are disbursed), the downpayment is paid in full, and the title company records the grant deed.
You get the keys and are ready to move in.
YOU WANT AN EXPERIENCED AGENT, DON’T YOU?
We love the “hunt” of finding a great property for our clients.
If you’ve read this far and are interested in speaking with us about Buyer representation, please give us a call, email us, or contact us by completing the form below:
[gravityform id=”1″ name=”Contact “]