Want to buy a home? Here’s what to expect.

First, we setup an in-person get together, where we have a discussion on what you’re looking for, and how we can get it for you.

Once we arrive, the first agenda item is to go over the PA State Consumer Notice, a compliance requirement . Any time a “substantial conversation” about real estate occurs, we have to review and sign this document first. Don’t worry, it’s not a contract! It simply explains the different types of agency in the state of Pennsylvania.

Next, we setup your search criteria. Searches are extremely customizable, but the basic parameters we look for are:

1. Location

2. Price range

3. Design

Last, we send over a few forms, including the Buyer’s Financial Information form (BFI), and the Buyer’s Agency Contract. The BFI will be provided to sellers when you put in offers, and the BAC formalizes our relationship as Buyer’s Agents as well as how we will be paid. At this point, we are still accepting the offered compensation from the Listing Brokers, but the recent NAR lawsuit means things are evolving. As change happens, we will let you know if there is any impact on the offers you’re putting in, but for now that’s our plan.

And that’s it! Normally we answer questions or provide specific information too, but this is the basic idea.

Before moving forward at all, now is the time to talk to your lender and get an MPQ, or mortgage pre-qualification. We could start looking at houses before this point, but if you come across something you like, you’ll need this to even put an offer in.

The procedure is fairly simple – you’ll work with your lender rep to provide them with some basic info about your income & debts, assets and liabilities. They’ll figure out how much they can lend you, and provide you with an MPQ letter. Then, onto showings!

The two most common mortgage programs are “Conventional” and “FHA” loans. Each have their idiosyncrasies and requirements, but nothing outlandish. FHA appraisers act as health and safety inspectors as well, and if there is any remediation required (most commonly, railings, chipping paint, and GFCI outlets), this will have to be completed before the lender will fund the loan. Sometimes this scares people away, but believe us when we say that it’s not a big deal.

Also, make sure to shop around! A 0.5% difference in interest rate can amount to hundreds of thousands saved over the lifespan of the loan.

It's time for showings, your one chance to legally enter a stranger’s house and use the bathroom without anyone calling the cops. When a home is listed on the MLS, a program called Showingtime is automatically integrated. Showingtime is pretty cool – it’s a scheduler that’s accessible only to real estate agents, and allows us to put together showing tours based on the Seller’s posted showing schedule.

Sometimes, looking for a house can feel discouraging. Especially if you’ve been looking for a while. Don’t lose hope! The market has been tumultuous the last few years, and things are definitely more difficult, but that just means things will take longer, not that they won’t happen. Keep your chin up, keep looking, and we’ll find something you like.

Along with showing, comes submitting offers. There is a LOT of strategy behind this – being able to read into agent’s and seller’s behavior will increase your chances of having your offer selected, and this is where we excel. The basics of any offer are an Agreement of Sale, the Property Disclosures, and how you’re going to fund the sale (i.e. providing mortgage & financial details). Have your paperwork ready, and be fast – it always helps being the first one on the table.

You’ve put in your offer and because you decided to go with our amazing brokerage, it’s been accepted. Remember – you don’t get 100% of the offers you never put in. Make sense?

Now comes the real work. Since we’re on the Buyer side, it’s going to be a little more complicated. If applicable, you’ll have to:

1. Turn in the Deposit

2. Obtain Mortgage Commitment

3. Schedule an Appraisal

4. Schedule Inspections

5. Review HOA Documents (if applicable)

6. Conduct any mid-transaction negotiations based on elected items (inspections, appraisal, etc.)

7. Buyer Conveyancing (Clear child support, judgements, liens)

A lot of this is work that will be initiated by you, and helped along by us. Since these items are handled by outside organizations, we can provide guidance and coordination between the parties but specific tasks will be given to you from these other guys (title, lender, inspector). Remember, real estate is mostly project management.

If you’ve opted to do inspections, they are usually done within 2 weeks of going under contract. Now there’s a whole slew of inspections that can be done, but those are for special circumstances. The big three that we see most often are:

1. General Home Inspection

2. Radon Inspection

3. Termite Inspection

Fun fact – if the property doesn’t have a basement and instead sits on a slab, a radon test isn’t necessary. As a heavy gas, Radon pools in the lowest sheltered points which is most often the basement. No basement, no pooling.

After the Seller receives and reviews the inspection report and any requested repairs, negotiations start. Warning - this is not an opportunity for you to whittle down the Seller and get the price you really wanted from the beginning. That would be bad faith negotiating, and is pretty frowned upon. Inspections are where most transactions fall through, so approach this step with reasonableness and soon you’ll have come to a deal and will be onto our next steps.

If you’ve opted to get a mortgage, there’s almost certainly going to be an Appraisal.

Appraisals can be desktop, drive-by, or in person.

• A desktop appraisal is pretty much a CMA, done by a licensed Appraiser. There’s so many comps out there, and the pictures are good, so they don’t even need to come out.

• A drive-by appraisal is like a desktop one, except they do a quick visit to make sure everything’s on the up-and-up.

• In person appraisals are the most common, and thorough. The Lender selects an independent Appraiser who comes out, does a tour, and gives their opinion on the price.

If the Appraised Value is less than the Sales Price, that’s what we like to refer to in the industry as “Not Good.” While rare, it has been known to happen occasionally, no fault by either party. That’s where the Appraisal Contingency Addendum is useful here, it can help determine next steps.

Appraisals can be contested, though most of the time it only makes the Appraiser grumpy. We’ve had success twice though (NBD) so don’t give up hope!

Onto the next to last milestone in the home buying process – the final walkthrough. This is going to be your last chance to make sure the house is still standing!

Joking aside, this means we’re checking that there hasn’t been any damage to the property since going under contract, and the Seller has the home in a “vacant and broom-swept clean” condition.

Per the AOS, you the Buyer get TWO walkthroughs which can be done at any point. Usually one is at the end (now), and one is during inspections. This does not mean the final walkthrough is a chance for inspections! No saying “I’m not settling until the bathtub is re-caulked.” If it was like that when you signed the AOS, then you’re out of luck.

After the final walkthrough, we like to sign off that the property is in acceptable condition, then it’s on to settlement!

And now, our journey comes to an end. You might ask yourself – couldn’t Gandalf’s Eagles have simply flown us to settlement instead of making get here the slow way? Well, they were busy so get off my back about it!

Settlement is more complex for a Buyer. If you’ve gotten a mortgage, there is a decent amount of paperwork that needs to be processed first, in addition to the boilerplate forms to sign, and the final ALTA (cost breakdown sheet). Don’t forget to bring your ID.

For Buyers, we may be able to do settlement remotely. This will depend on if the Lender required wet signatures or not. If they can do it, Title will prepare a “Deed Package” containing everything you’ll need to sign at settlement besides the final ALTA. One of those forms grants us as your agent a limited Power of Attorney to sign on your behalf at the settlement table. You will have to sign the deed package in front of a notary though – pro tip, almost all banks that you’re a member of provide notary services at no cost.

Buyer specific item – even if you’re not there in-person, you still have to get the money to the title company! You can wire funds, or mail/bring a cashier’s check.

And that’s it, you’ve bought a house!