Welcome to Your First-Time Homebuyer’s Guide, Part Three!
If you’ve completed parts one and two of the series, you’re practically a first-time homebuyer pro as we’ve covered a lot, including: financing, how to find your home, partner with a real estate agent, and more. In the third installment of this series, we’ll continue to add to your homebuying knowledge base with tips featured in Your First Home (Second Edition), written by Gary Keller and Jay Papasan.
No matter the market, there are three basic components of any offer: price, terms, and contingencies (or “conditions” in Canada).
Common contingencies include:
Once you and your agent have written a contract, your agent will submit it to the seller’s agent. The seller may write a counteroffer that, for example, asks for an earlier closing date and a slightly higher price. Then the ball’s back in your court to decide whether to accept their changes or to counter their counter. Your agent will do all the talking with the seller’s agent, providing a buffer between you and the seller and saving you the stress of in-person negotiations.
When you and the seller reach an agreement and both parties sign the contract, that check you wrote as earnest money will be deposited into an escrow account.
Your agent will do all the talking with the seller’s agent, providing a buffer between you and the seller and saving you the stress of in-person negotiations.
Next, it’s important to complete a home inspection. An inspection exposes your dream home’s hidden flaws, so you can go back to the seller to negotiate. Typically, sellers will either agree to fix the problems or reduce the sales price to cover the cost of fixing them.
Before you hire your inspector, review the seller’s disclosure (known as a “seller’s property information sheet” in Canada), a written statement of the owners’ knowledge of the property’s current condition. Your agent will get the disclosure from the seller’s agent. The requirements for what exactly must be shared in a seller’s disclosure vary state by state, but they usually must include any information about large repairs or structural issues.
Make sure to attend the inspection if you’re able and thoroughly read the inspection report after. Once you’ve reviewed and partnered with your agent to decide what to have fixed in order to make your purchase, your agent will convey your requests to the seller for final negotiations.
After the inspection and negotiation, the last few steps between here and closing – which include a survey, title work, and appraisal – are handled primarily by your agent and lender.
Head over to the fourth, and final installment of Your First-Time Homebuyer’s Guide to round out your knowledge on all things homeownership!
From beginning to end, Keller Mortgage professionals bring clarity and ease to the homebuying experience. Contact us today to begin the process or request more information. We recognize how special purchasing your first home is and are committed to helping you every step of the way!
First-time homebuyer fears can range from “I can’t afford to buy a home” to “I can’t buy a home because my credit score is too bad.” While it can be natural to have these thoughts, it’s important to face fears with facts. Let's take affordability, for instance.
In part two, we will explore three more components of the first-time homebuying experience so you can embark on it with ease and confidence. Each magnificent tip below is brought to you courtesy of Your First Home (Second Edition), authored by Gary Keller and Jay Papasan.