Navigating the Home Buying Process

The home buying process can be daunting. We are here to help. What follows is a general overview of the home buying process so that you can feel comfortable navigating it when the time comes.

Step 1: Meet with a Real Estate Professional

Build a relationship with a buyer’s agent who will be on your side throughout the entire process. We are not interchangeable. Good buyer’s agents will shine far above your expectations and will make sure your best interests are protected at all times during a transaction.

Discuss what your must-haves are and ask questions about how many homes they’ve sold to buyers in the last year. But don’t discount a buyer’s agent just because they are new and don’t have a ton of experience. Often times, new agents are hungry for your business and will be available for you much more than the person with 113 reviews on Zillow.

Step 2: Get Pre-Approved

All markets are hot right now. If you are looking at homes with an agent, you want to be ready to make an offer right away if you fall in love. And you can’t make an offer without a pre-approval and/or a proof of funds.

Even if you are new to the process, a pre-approval is a great way to gauge where you are at financially in terms of a purchase price so you can evaluate that against how much you want to spend.

Your real estate agent should know several lenders that can assist you on short notice. At Streamlined Properties On-Market, our go-to lender is Donald Anfuso of Homeland Lending, LLC. He is responsive, knowledgeable, and consistent. That’s what you want in a lender.

Step 3: Search for Homes

Get out there. Compare and contrast. Start to understand the ins and outs of house hunting and what to look out for when it comes to inspections and potential surprises. Sometimes the only way to find out what you want in a home is to see plenty of what you don’t want.

Your real estate agent is there to schedule showings for you, but keep in mind that they often need notice to set private showings. These have to be confirmed with the sellers or the seller’s real estate agent and are not always available on a moment’s notice.

Treat the search like a game. A fun one, but one you can’t lose. The more looking you do, the more knowledge you gain about your likes and dislikes. And this game ends with you in a new home.

P.S. – The search on our website is exceptional as it has multiple MLS systems connected and you can request appointments right from our site. You can give it a try here.

Step 4: Make an Offer

Once you find a home that you really love, it’s time to make an offer. Before deciding on an offer price, you will want your agent to send you some comparable sales and neighborhood block values, as well as to get in touch with the listing agent to see if or how many other offers are expected on the property.

The contract is long and you want to make sure you are completely comfortable with all of the language. Remember that your terms are often as important as your offer price. If your agent reaches out to the listing agent to find out the sellers’ preferences, it will put you ahead of other, similar offers if you can match what the sellers want in terms of closing dates and/or special conditions.

In hot markets, you may find yourself having to bid substantially over the asking price. This is not unusual. Our best advice for you is to choose an amount where if someone else outbid you by $1,000, with the same terms, you would not be upset. You have to know your top and be fine with it.

We also have another blog post with 3 Ways to Buy a Home in a Hot Market.

Step 5: Negotiation and Contract

If you don’t win a multiple bid situation and you are submitting an offer on a home with no other competition, you will most likely end up negotiating a final price with the seller. And the negotiations don’t end here. As you enter the inspection phase, there is often a secondary negotiation that takes place.

As a home buyer, you have to be reasonable, but realistic when negotiating. If you won’t budge over a $2,500 difference in price, you might need to ask yourself if you really love the home. Too often, buyers (and sellers) allow their ego to take over negotiations and that is never a good thing.

Once both sides agree on a final price and terms, the contract is countersigned and you are on your way to becoming a new homeowner. In New Jersey, you head into a 3-day Attorney Review period where both sides’ attorney makes sure all of the bases are covered.

Step 6: In Escrow

Once both parties have agreed and signed off, the property is in effect, held in escrow (along with any deposits) until closing. Most of the time, the sellers will be packing and readying themselves for their next step and you should be doing the same.

Don’t obsess over it every day, just get your old place packed up so that you will be ready for your new home come closing day.

Step 7: Final Details

The home inspection is the next major step in the process. In addition to a general home inspection, you may choose to do an oil tank sweep, a sewer inspection, a Radon test, and a termite inspection, as well as any ancillary inspections based on the initial findings of your home inspector.

Your real estate agent often has great recommendations for home inspectors because they work with them all the time. Your buyer’s agent will want you to have the best service from a reliable and knowledgeable inspector. Our go-to company is Total Home Inspection as they can also wrap an oil tank sweep and sewer inspection into the process (all done by experts in the field, not the home inspector).

After inspections and any subsequent negotiation, you will also need to finalize your loan documents and have your appraisal if you are getting a mortgage. Your real estate agent will be the point person on setting all of this up, in addition to your mortgage broker.

Step 8: Closing

You made it! Today is the day you become a homeowner. Three days prior to closing you will receive a breakdown of all of the final costs for review and you can ask any questions of your attorney and/or title company at that time. The night before or the morning of closing, you will do a final walkthrough of your new home just to make sure everything is still as it was the last time you saw it.

You will then sign the paperwork, make sure the money has been secured or wired, and get the keys to your new home. Congratulations!