Buying a Home
All states have different requirements and steps in the home buying process. This is a brief outline of steps (not by any means complete) that a buyer should consider taking in order to have a great experience:
1. GET TO KNOW THE AREA. Look on-line at properties via www.realtor.com and www.coloproperties.com to see the price ranges offered in the different towns.
2. GET TO KNOW THE REAL ESTATE COMPANIES & AGENTS. Visit real estate company websites to see what information those companies can offer you, the buyer. Try www.thegroupinc.com for northern Colorado for great community information and links to other area websites.As you find properties that interest you, note the realtors who have those properties listed. One of the criteria you should use for the realtors you interview is their knowledge of the type of homes, and areas, in which you are looking. Realtors who are listing homes that you like should have good knowledge of those areas.
3. INTERVIEW AGENTS. Visit the websites of the realtors you noted. See who feels like they might be a good fit for you. Interview those realtors who interest you; via email is always fine. Ask them "how they work" with buyers - i.e. do they require a signed contract, do they require payment from the buyer (usually required with buyer agency), are they a "Realtor" (requires ongoing education and ethics training), how long have they worked in this area, do they have references they can give you, how do they prefer to communicate and how often? Remember, 1/4 of all realtors are in their first year in the business - with all the nuances of this business, your realtor's experience will be a great benefit to you. Many buyers assume they will get a better deal if they don't have a realtor assisting them with a home purchase. While this may be true in some areas, it is usually not the case in northern Colorado. You will typically fare much better and make a better investment decision if you have assistance with negotiation, analysis of the properties that interest you, and assistance throughout the contract period. This applies especially to new construction contracts. Most listing agents for new construction do not offer the extras a good agent will provide for their buyers (i.e. - pictures during the construction process, assistance at walk-throughs).
4. ORDER RELOCATION MATERIALS. If you're new to the area, or just considering moving, relocation packages are available from any great realtor for free. Or, visit the community website for a relocation packet from the local chamber of commerce.
5. SCHEDULE A COMMUNITY TOUR. Have the realtor you've selected drive you around the community you're considering so you can get a good feel of the different areas of town and what that community has to offer.
6. SELECT A LOCAL LENDER. It's easier to use a local lender that you can meet face-to-face and who knows the state requirements for lending in Colorado. A great realtor can recommend two or three different lenders to interview. Talk with your lender about your financial situation and get pre-qualified/pre-approved for your home purchase.
7. IDENTIFY HOME CRITERIA. Talk with your realtor about your lifestyle; what you love about your current home and what you dislike, what you "must have" in your home and what is important to other family members. These criteria may change as you begin your physical search so make sure you let your realtor know if you're leaning in different directions.
8. PREVIEW HOMES. Look at homes with your realtor that match your criteria. A great realtor can help you with new construction, resale homes and for-sale-by-owner homes. Make sure you've discussed all these options with your realtor. Also, discuss what you should do when you find a home you like that your realtor hasn't yet mentioned, or if you visit an open house on your own.
9. SELECT THE RIGHT PROPERTY. Once you've determined if a home may be the one you'd like to purchase, ask your realtor if the home was pre-inspected so you can review the report, see if there's a home warranty included, and ask your realtor to prepare a market analysis of the property so you can see if the asking price is in line with recent neighborhood sales.
10. PREPARE YOUR OFFER. Your realtor can give you assistance with all the details of Colorado's 11 page real estate contract. In order to be valid; all offers must be written and accompanied by earnest money. The market analysis your realtor prepared should give you a good indication of price validity. Other factors to consider are condition of the property, location within the neighborhood, how you plan to finance the home, and time on the market.
11. CONTRACT ACCEPTANCE. Congratulations on making a great offer! Your contract will be turned over to a title company and your lender so they can get to work on their parts of the deal. A great realtor will give you a timeline of dates for when certain items must be completed by buyer and seller so you can easily follow the steps you need to complete. All dates and deadlines are extremely important and must be adhered to without fail.
12. TITLE INSPECTION. This step ensures the seller has the right to sell his property and under what conditions the title company will insure title to the property.
13. PROPERTY INSPECTION and RESOLUTION. This is usually one of the first steps after contract execution. The buyer traditionally pays for a property inspection; a great realtor can give you names of good companies they have worked with in the past. If the home was pre-inspected this can be of great benefit in deciding what further inspections you may want to complete. If there are conditions on the property that are unacceptable to the buyer, an Inspection Report can be filed and then negotiated with the seller.
14. LOAN COMMITMENT. Your lender will have run your credit report and may have certain requirements that must be met prior to their committing to fund your home loan.
15. WALK-THROUGH. You will want to inspect the property prior to closing to make sure all repairs were completed as negotiated and the condition of the property is the same as it was at time of contract.
16. CLOSING. You will need good funds (cashier's check) for any monies required at closing. Allow a good hour to sign all the real estate papers and all the loan papers. Colorado property ownership transfers at the table so once all the documents are signed and the monies are delievered, you own your new home!
A great realtor should be able to assist you throughout this process and give you lots of great ideas and information on who to call for local services, utility information and phone numbers, local inspectors and lenders, etc. Use your experienced realtor as the source of knowledge they truly should be. |
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