Buying Process Overview
The following overview has been developed to give you a good understanding and reference of the home buying process and the services I provide to you while guiding you through from beginning to end. There is no charge to you for my services (the seller pays a commission at time of sale).
Additionally, I will purchase a Home Warranty for you new home to protect you from major home and appliance repair expenses for 1 full year after closing.
1. Initial Information Gathering
• House/condo desired specifications: location(s), features, other
• Timing of purchase: sell current home (I will do a Market Analysis of your home at no charge), current lease, other factors.
• Price range. Preapproval from a mortgage co. should be obtained upfront so we know the price range you are qualified for. I can help you arrange preapproval. Call or email
• Buyers Agency: Ed Barter to serve as buyer’s agent and act on buyer’s behalf to find home and coordinate purchase/closing. No cost to buyer.
2. Find/View Properties
• Locate and email properties meeting buyer’s specifications via Multi List System (MLS). Send/email new matches as soon as they come on market.
* Buyer selects properties of interest.
• Ed Barter arranges viewing appointments via listing brokers, builder or For Sale by Owner.
• Buyer selects a home.
3. Develop Offer/Purchase Agreement Package
• Offer price/terms: consider comparable properties data (market evaluation), available funds for closing costs/pre-paids, seller concessions, closing date, if purchase contingent upon sale of buyer’s current property, etc.
• Complete/review/sign Purchase Agreement package: Purchase Agreement, Sellers Disclosure Statement, Lead Based Paint, Agency Relationships, mortgage pre-approved letter.
• Buyer’s earnest deposit check (Normally 3% of purchase price. Can be less if limited funds). Personal or cashiers check made out to “Keller Williams”. Check cashed and held in non-interest account until closing.
4. Present Offer
• Buyer’s agent presents and negotiates
• Sellers may not accept price or terms and make a “counter-offer”. Buyers accept/sign counter offer, modify, or reject.
5. Purchase Agreement (P.A.) Signed
• Buyer schedules and pays for an elective Home Inspection to assure house/condo has no major undisclosed defects. Typical cost range $200-$350. Buyer and agent to attend inspection.
• Buyer to formally apply for mortgage loan within P.A. terms and submit needed information timely. Appraisal done by lender (property must appraise at or above purchase price).
• “Clear to close” given by lender.
• Closing date set.
6. Buyer Preparations for Closing
• Arrange for utilities (gas-Consumers Energy 800 477-5050, electric-DTE Energy 800 477-4747, telephone-Ameritech 800 257-0902, cable).
• Obtain first year homeowners/fire hazard insurance policy in an amount at least equal to mortgage amount (get paid receipt) for house. Not necessary for condo- association policy covers.
• Review closing package received from title company before closing.
• Determine buyer’s total closing cost amount: title co. closing costs (Buyers Settlement Statement) plus mortgage co. closing costs (from lender).
• Bring cashiers or certified check for total made payable to yourself/yourselves.
• Do final house walk-thru within 24 hours before closing to assure proper condition.
7. Ed Barter purchases a Home Warranty on the new home to provide major repair expense protection for house systems and appliances for 1 yr. after closing.
8. Buyer Brings to Closing
• Homeowner’s policy and paid receipt.
• Total closing costs cashiers/certified check payable to self.
• Photo ID (drivers license, passport, etc.).
I look forward to hearing from and working with you to find your new home. Please give me a call or email when you are ready to get started.
