Transaction Roadmap
By Lee Nelson
Buying a home can be daunting, especially for those who have never done it before. By breaking the process down into smaller steps like reading a recipe to bake a complicated cake, they can reach the end without added stress and be happy homeowners.
This transaction guide can be given to your clients to help them understand all the aspects and all the moving parts of buying a house while explaining the highlights of why a Realtor® can improve the homebuying journey.
Find a Realtor®
“I still believe they need to sit down with a Realtor® first to talk about the process,” said Realtor® and sales associate with Realty Executives Exceptional Realtors in Kinnelon Kristen DeLeo. Finding a Realtor® can be as easy as talking with friends and family who have recently used someone they trust. You can also research agents in your area by visiting njrealtor.com/find. A Realtor® is a real estate agent who is an active member of the National Association of Realtors® who follows a strict Code of Ethics, are industry experts, and put their clients’ needs above all else. Most Realtors® can also provide reliable lenders’ names to if they need them too.
Find a Lender That Fits Your Needs
Ask all the right questions to potential lenders such as “Do you have any promotions going on right now without any catches?” said Realtor® and broker at RE/MAX Select in Westfield Neda Yarnall. “Don’t buy points. I give a set of questions to my buyers to ask lenders.” Lenders should also give you a timeline of how long a preapproval will take and the closing on a loan if all goes well too.
Get Preapproved
Once you find a lender you can work with and their rates seem good, then ask for a preapproval for a mortgage loan. The lender looks at your financial situation including income, employment situation, debt, and tax information for the last two years. Yarnall recommends asking the lender to prepare the preapproval for what you can afford rather than the home price range you’re looking.
Understand a Realtor®'s Strengths
A Realtor® can do market analysis, negotiate better deals, understand legal and regulatory changes, handle paperwork, identify potential issues with a property, customize search for specific needs, and advise on long-term value, said Designated Realtor® and regional manager of Howard Home | Rand Realty in Old Tappan Lisa Comito, Esq. In this tough time of low inventory, sometimes Realtors® can discover internal resources with homes that haven’t hit the market yet. DeLeo emphasizes some clients feel like they don’t want to bother their Realtors® if they see a house they are interested in visiting for an open house. “We don’t get paid until we close. We want to know if something interests them,” said Comito.
Find the Right House
Comito, who is also serving as 2024 President of Greater Bergen Association of Realtors®, feels buyers predominantly initiate their home search online. “This digital approach allows them to conveniently start their search from the comfort of their home,” said Comito. Although some sales are quick, some of DeLeo’s clients are on their second and third year trying to find the perfect house. “They don’t want to settle,” said DeLeo.
Put in an Offer
Once you find the property you want to purchase, your Realtor® will help put in an offer of what you want to pay. You will also submit the amount of earnest money to incentivize the seller to accept your offer. “The higher the better if it is a very desirable home,” said Yarnall. Five or 10% of the purchase price is common especially if you are putting down 20% on a home purchase. That money goes into a trust account in your name, said Yarnall.
In the offer, you can include contingencies such as needing to sell your house before you can complete the purchase. During the pandemic, some people were buying by waiving an inspection and offering way over asking price to beat out others when there were multiple offers. DeLeo is seeing her clients putting in about three offers on different houses before one is accepted.
Inspect the Inspection
A licensed inspector conducts a detailed evaluation of a property’s overall condition, said Comito. “Your Realtor® can tell you past client results of dealing with a particular inspector but, of course, cannot vogue for the inspector,” said Comito. In addition to a general home inspection, other inspections you might consider are chimney, pipes, septic, lead paint, and the list goes on, said Comito. Yarnall emphasizes it’s very important to get a thorough inspection. A buyer should be at the home inspection. “The inspector will show you how everything runs in the house,” said Yarnall. Follow them throughout the house. They will talk about how to change the furnace filter, where the water shut off is, and so much more.
Prepare for Closing
A few days before the closing, you can do a final walk-through of the home to make sure everything is in “broom clean condition” and all the repairs requested from the inspection are complete, said Yarnall. Receipts from all the work done should be available during the closing or before. “As the closing date nears, your Realtor® will check with the seller’s Realtor® to ensure that a proper Continued Certificate of Occupancy has been obtained (where applicable),” said Comito.
Obtain Your Keys at the Closing
Bring your I.D.s and a personal check to the closing in case there are some kinds of discrepancies. “Closings using are normally very peaceful,” said Yarnall. Sometimes, your Realtor® will show up, but the sellers or lawyers may not attend. So much is done online and through wiring funds. The title companies take care of a lot of the business.
Move In
It’s now your home. Enjoy and keep up the maintenance so the value continues to appreciate.