1. Hire a real estate agent
Buying a home may be the largest investment you make in your entire
life and your choice of an agent is critical. Boston Realty Net Buyer
Agents will work diligently to ensure that all of your needs are
addressed. As your exclusive buyer agent, we will work solely in your
best interest. We will respond to your initial request immediately and
contact you to discuss your "wish list" and the buying process and its
timeline. Once we have shown you a few properties and gain an
understanding of your expectations, we will be better informed as to
use your time in the most efficient way possible so you are only
viewing properties of interest to you. We aim to make the buying
experience as informative and also as fun as possible!
2. Mortgage Pre-Approval
One of the first steps in the home buying process is seeking
mortgage pre-approval. A mortgage broker will review your financial
information, debt, income and investments and will be able to give you
an estimate of the loan amount for which you qualify in addition to
giving you an overview of the various loan programs. The mortgage
pre-approval amount will help you to determine your price range. When
you are ready to make an offer on a property, it is important to have a
mortgage pre-approval letter from a lender or mortgage broker as this
proves to the seller that you qualify for financing, thus making your
offer stronger.
3. Determine what I am interested in buying
Some of the factors to consider prior to viewing homes include your
price range, locations of interest, minimum square footage and number
of bedrooms and bathrooms, and anything else specific to your personal
taste (architectural styles, type of flooring, kitchen & bath,
etc.) and/or special needs (such as need for elevator, parking,
wheelchair accessibility, outdoor space for pets, etc.).
How important are the following factors to you?
- Location (public transportation accessibility, local schools,
community services, cultural activities, restaurants, parks and
recreation, etc.)
- Condition of the property (new construction, "fixer-upper, " pre-construction)
- Architectural style or building type (high-rise, brownstone, new
construction, large or smaller buildings, concierge, health club, etc.)
- Desired Features and Amenities (fireplace, type of flooring,
central air conditioning, outdoor space, in-unit laundry, elevator or
walkup, views, pet-friendly)
4. Visit Properties and Open Houses
Through our affiliation with LINK (Listing Information Network) and MLS
(Multiple Listing Service), the two multiple listing databases, Boston
Realty Net agents have access to virtually every listing for sale with
a real estate company. We will create listing accounts for you to
provide a complete daily update of what is available that meets your
criteria such as neighborhood, square footage, number of bedrooms, etc.
Our agents will schedule appointments to show you properties and
accompany you at open houses. We will also email you an open house
schedule for every Sunday.
5. Make offer
When you have found a home you would like to make an offer on, it is
important to consider several elements of the offer. Offers must be in
writing and signed and dated by all buyers. It is important at this
step to realize that unless you are specifically working with a buyer's
agent, the sales agent is working for the seller. The seller's agent is
working to get the best price for the seller and will report to the
seller your offer.
Your offer will include the following: the price you are agreeing to
pay for the property; an expiration date and time by which the seller
must respond (if the offer expires, it is not accepted); amount of
deposit to bind the offer (normally $1000); date of the Purchase &
Sale Agreement (this is a more comprehensive legal document which
spells out the terms of the sale) and the deposit amount to be paid at
the time of the Purchase & Sale Agreement and to be put into escrow
until closing; closing date at which time you take ownership; any
contingencies such as those regarding mortgage financing, home
inspection, review of property or condominium documents and/or budget
by buyer and/or buyer's attorney, and any desired changes or
improvements to be made to the property prior to closing, and; a list
of any items to be included or excluded from the sale.
In addition to extensive knowledge of the current real estate market in
general and in different neighborhoods, Boston Realty Net agents have
access to an enormous amount of information regarding recent sales of
comparable properties which will help you determine the best price to
offer on a particular property. The seller may accept the offer as
proposed, counter-offer with modified price, terms and/or conditions,
or reject the offer outright and return the deposit. If the seller
counter-offers, negotiations will continue until both buyer and seller
come to agreeable terms. If agreeable terms are not met, the deposit
will be returned to the buyer.
6. Hire attorney
It is highly recommended to retain an attorney once your offer has been
accepted. Your attorney will contact the attorney for the seller and
begin to draft a mutually agreeable Purchase & Sale Agreement. Your
attorney will also make sure that all steps of the sale process take
place as scheduled, including review of all documents pertaining to the
property, title searches, home appraisals, financing, smoke detector
inspections, carbon monoxide detector inspections, 6-D certificate
which states all condo fees have been paid by the seller and/or any
other legal matters pertaining to the sale.
7. Home Inspection
A common contingency in all offers to purchase property is the home
inspection contingency. The home inspection is scheduled by and paid
for by the buyer and occurs between the time the offer is accepted and
the time the buyer signs the Purchase & Sale Agreement (normally
within seven days of the date of the offer being accepted). It is
important for the buyer to be present during inspections as the
inspector will describe any property defects in language that is
understandable to the buyer and the inspector will offer the buyer an
objective third party perspective on the property. The home inspector
should be licensed and certified. The inspector should look for
structural and/or mechanical defects, examine electrical, plumbing,
heating and cooling systems, examine the structural integrity of the
property and any problems on the exterior, foundation and/or roof,
examine the basement for all systems and evidence of any flooding, run
all appliances to verify satisfactory working condition, examine
windows, test all electrical outlets, and examine all rooms for proper
venting and insulation. If a buyer wishes to have a property tested for
insects, pests and termites, it is important to check with the home
inspection firm to see if this service is included. If not, it is
important to hire a professional who specializes in pest inspection. It
is common the buyer will pay for the first $1000 worth of repairs. The
attorneys typically work out an inspection issues in the Purchase&
Sale Agreement.
8. Purchase & Sale Agreement and Deposit
The Purchase
& Sale Agreement is a standard document drafted by your attorney
and modified during communications between the attorneys for the buyer
and the seller. The Purchase & Sale agreement spells out all terms
for the sale, including financial agreements, mortgage financing, any
items to be addressed by the seller prior to closing, title insurance,
and the time, date and place of closing. The Purchase & Sale
agreement is typically signed approximately ten days after the date of
the accepted offer. Typically, four copies are signed and initialed by
the buyer and the seller and each party keeps two copies signed by all
parties. At the time the Purchase & Sale agreement is signed, the
buyer pays an additional deposit normally equal to 5% of the purchase
price. This deposit will be held in escrow by the seller's broker or
attorney.
9. Walk-through
It is both customary and highly recommended to schedule a walk-through
of the property to inspect the home immediately prior to the closing.
At this time, it is important to make sure that any work the seller had
promised to be done has been completed to your satisfaction.
10. Preparing for Closing
The closing day typically occurs about four to six weeks after the date
of the accepted offer. In the weeks between the Purchase & Sale
(P&S) agreement and the closing, the buyer's lender grants a loan
commitment no later than the date stated in the offer and the P&S.
Your attorney will contact you to discuss the payments due at closing
and to review the closing process and tell you everything you will need
to bring on the day of closing.
On the closing day, all parties will be present or represented by power
of attorney for review and signing of all documents. In many cases, the
closing is handled by the closing attorney (sometimes the buyer's
attorney acts as the closing attorney as well). If the seller chooses
not to be present at closing, documents may be signed in advance. If
the buyer is financing the purchase through a lender, the buyer signs
the mortgage and all documents pertaining to the loan. The buyer will
receive a statement of closing costs, including money owed to the
seller by the buyer (such as the remainder of the downpayment, any
taxes prepaid by the seller, etc.) and money the seller owes the buyer
(unpaid taxes, any rent prepaid to the seller, etc.). The lender's
agent will collect the closing costs and the buyer will receive title
from the seller in the form of a signed deed. The lender's attorney
will record the new deed and mortgage and discharge all previous
obligations of the seller. The deed and mortgage will be recorded at
the Registry of Deeds.
Mortgage Pre-Approval - Get pre-approved for a mortgage