The Buying Process

Finding a Home

Finding a home can be an entirely different process depending on market conditions and your own time constraints. Another important factor is logistics.  If you are in the area and have ample time to watch and wait, the experience can be totally different from that of the buyer who is transferring in from a remote location, and a strict deadline to conclude the purchase.

First you must identify homes that are potentially interesting to you.  In this high-tech age, it is relatively easy to identify the available homes compared to years gone by, except in highly sought-after locations where many homes pass from one to another owner through private sales which never reach the multiple listing system or internet. Some of the value of using a Buyers' Agent is the added networking and behind-the-scenes knowledge your agent can use to find your home of choice. The most frequently used tools locate homes are: the internet, open houses, newspaper advertisements, industry publications, personal contacts, word-of-mouth and networking.

Second, you must see the home, in most cases, and see enough other homes to satisfy yourself that you’re making the correct decision, taking into consideration such important factors as commuting distance, schools, neighborhood facilities, proximity of transportation routes, etc.

Whether a buyers' market or a sellers' market exists will play a role in how easy it will be to find a suitable property.  In a buyers' market there will be lots of choices, and in the sellers' market there will be far fewer.

Making an Offer

Standard paperwork is normally used in all three jurisdictions nearby Washington D.C. for use in making an offer on residential property.  There are many forms and a lot of fine print, so it is a good idea to become familiar with them prior to the time of need. The last minute is not necessarily the best time to pour over fine print. The offer will contain the following parts, in addition to others:

1. offering price

2. earnest money deposit

3. financing terms if any

4. proposed settlement date

5.  financial qualifications

6. inspection contingencies if any

Contract Presentations and Negotiations

Contract presentations can occur in many different ways.  Commonly, the buyers agent will take the offer to the listing agent’s office or accompany the listing agent to the sellers residence where the offer will be presented.  Other times the seller will instruct his listing agent to have the offer faxed in which case still there is no direct contact with the seller.  The seller can accept the offer, in which case it becomes a ratified contract when signed; reject the offer or counter the offer with a new offer of his own.  Generally this will occur within 24 hours of the initial offer, but there are no hardfast rules and it will depend upon market conditions and personal motivations.  If the offer is rejected, the earnest money deposit is returned.

Contract

When the last initial is placed on the agreement, signifying a meeting of the minds, it is said to be a ratified contract, and the day following is the first day of any contingency periods, unless other provisions have been made.  Normally, the status is changed in the multiple listing system and other potential buyers are informed that the homes under contract, with contingencies, if any exist.

Contingencies and Inspections

Customarily, each inspection has an associated contingency.  Each contingency can turn into some kind of negotiation, in the process continues until all of the contingency periods are expired or withdrawn.

Settlement

After all the contingencies are removed and/or expired, there are many last-minute items to handle prior to settlement such as obtaining a homeowner’s insurance policy, if there is a loan involved, ordering all the utilities to be transferred into the proper name as of the day of settlement, sending change of address cards, and the final walk-through inspection, to mention a few.  Settlements normally occur in the office of the title company or settlement attorney, picked by the purchaser in most cases. Settlement usually normally lasts about an hour and a half, but from time to time last minute issues arise, and here your agent’s expertise can prove to be very valuable for you.