Understanding
the home buying process in the South Bay
The
steps you should take in buying a house in the South Bay
Partner
with an agent.
Upon your first meeting with any agent to discuss a specific house,
you will be presented with the California Buyer Broker form to
review. You may elect to sign it or not. The agents are all working
off the same inventory of listings, so any agent can show you
virtually any listing, but not all agents work as hard or have
the same expertise. Looking at houses is just the beginning of
the home-buying process. The services the Realtor brings to the
job are considerable. The following steps are all things your
agent will guide you through. Remember, buying a house will most
likely be the biggest purchase of your life.
Obtain
a preapproval or prequalification certificate from a lender.
This is a printed or online document that will be referred to
in the offer you make. If you don't have this evidence that shows
the Seller how serious you are, your offer may not be duly considered.
Your offer may be in competition with another buyer who has this
certificate in hand. You will feel a lot more empowered to buy
if you have the security of knowing that you've got a bank behind
you.
Click
here for some links to companies that can provide you with financing
information:
Work with your agent to write up an offer.
An offer is a legally binding statement of your interest in buying
a property. It spells out the money you are willing to pay and
the time frame for the purchase that is best for you. You will
make your offer conditional upon satisfactory inspections of the
structural and mechanical systems. These inspections should occur
within a week or two of making the offer. In addition, the offer
will have a financing contingency covering the need for the bank
to okay several things about the house. Legally, your offer must
be in writing and with a "good faith" deposit which
is generally 3% in California.
Negotiation period.
It may be a matter or hours or days for the negotiations to come
to a conclusion. This is one of the most emotional phases of the
process. Sometimes the negotiations linger into the home inspection
phase, too.
Acceptance of your Offer.
Your offer has been accepted! You now have a legal interest in
the property. The inspections must be set up immediately and the
bank notified that you have found a property. The bank appraiser's
inspection visit will be scheduled by the bank through the listing
agent. Some of the inspections may include a home inspection,
environmental hazards inspection, title search, insurability,
building report investigation and appraisal.
Home Inspection
Generally your Realtor will help you find a qualified and reputable
home inspector. The inspector will search and find both major
and minor problems with your home. You will then fill out a "request
for repairs" form. The seller is not obligated to correct
the repairs, nor even required to respond to your request.
Contingencies
are pulled.
There are generally two types of contingencies in most real estate
transactions. The inspection contingency in which all inspections
are done and satisfied and the loan contingency in which you get
your loan in order. The period of time is based on the terms of
the contract with the standard being 17 days. Once the contingencies
are pulled you may be liable for the 3% deposit money if you cannot
complete the sale.
Utility Transfers
Contact the utility companies to arrange for their services to
be put into your name the day of the closing. The seller will
be contacting them to request final readings and to okay the transfer
to you on that date. These arrangements can be made 10 days or
so prior to the closing if that date is known for sure. If the
house has oil heat, the oil tank needs to be topped off just prior
to the closing. The buyer will pay the seller for a full tank
of oil, and the oil company will certify the exact amount and
price of oil in the tank.
The Final Walk-Through
On a day specified in the contract, you will check out the house
to make sure there are no surprises. Generally, the house is to
be vacant and clean. One hopes there is no trash or junk left
behind. Any work that was to be done must be completed. This is
a time of heightened excitement, anticipation, and sometimes exhaustion.
The Closing
This is a meeting generally held at the escrow office with the
escrow officer. The buyer puts down the rest of the money and
signs the mortgage documents. The bank will want to have proof
of homeowner's insurance from your agent. The title company will
put the new deed on record with the Registrar, confirming that
you are now the new owner! You may now bring in your furniture
- the place is yours! You'll get all the keys, but you may want
to change or rekey the locks.
