Information provided is intended for education purposes. Based on single family dwelling home Buyers in Pennsylvania . Real estate transactions are unique and do not fit exact molds.

YOU’VE CHECKED OUT THE PROS AND CONS

OF BUYING VS. RENTING

BUYING WINS.….

WHAT DO YOU DO FROM HERE?

Step One

Decide your needs vs. your wants.Make a physical list that you can refer to as needed.

EXAMPLE OF NEEDS

2 Bedrooms

1 ½ Baths

No more than 12 miles from work

Limited steps (a ranch-style home)

Generally, your true “needs” list is

likely to be modest.

EXAMPLE OF WANTS

3 Bedrooms

2 + Full baths

Family room or game room

Large deck or patio

Huge new gourmands’ kitchen

Fireplace in master bedroom

Indoor pool

Generally, the “wants” list could almost go into a fantasy, fun “wish list”.

Step Two

Check your credit and get a mortgage pre-approval so you know exactly what you can afford. Pre-approval is virtually painless and usually free.

People often have no idea how much they can afford, and sometimes they can be approved for much more than they are comfortable paying.

Now you can make an informed decision on what you can afford and what your monthly payments will be. Do not forget to add in taxes and insurances.

Go back to step one and re-evaluate your needs and wants; you may find that some of your wants can now easily become a need.

Now is the time many people become overwhelmed: there are thousands of homes, in dozens of styles, in hundreds of areas, in countless outlets to search for them…it’s OVERWHELMING!

Try to stay with the basics of what you’ve already decided. You know your needs and have an idea on your wants and you know how much you can afford.

You are likely have an idea of where you want to live, since that is important enough to be in both your needs and wants list.

Almost all buyers find themselves thinking, “that perfect house could be in an area we didn’t choose” or “the greatest house in the world could be listed for $200 higher than we planned to pay.” Letting go of the “could-be” possibilities is often a challenge.

Now is the time to stay within your chosen criteria. You can always expand if necessary.

Step ThreeHome searching. There are many ways to start your search. It depends on you, your lifestyle, and where you are in the looking process.

Some people prefer to call their Realtor to do the search and let the Realtor decide what to show.

Many people still drive around, look for “For Sales” signs, scour papers and signs for open houses, and then call to find out particulars of the home.

Technology has advanced the home-buying process , and a majority of home buyers now rely on the internet through a vast array of Real Estate search sites. You can often find pictures as well as virtual open houses to help narrow your prospects.

Simplify your search process by entering your wants and needs one time only and have automatic emails sent directly to your inbox.

New inputs come directly to you from the source as they are listed, before any website out there. You will be alerted to new listings, price changes, and status changes automatically. You can utilize a comprehensive webpage to help you keep track of what you like, what you do not want, keep notes, and find out who to contact for further assistance.

Finding the right Realtor can and should save you stress

and money during the home buying process.

Realtor TipSellers are encouraged to “stage “ their home. A Buyer should try and look beyond the “wow” factor of superficial interior design and concentrate on the “bones,” or structure, of the home.

Home “A” Home “B” New windows

New roof

New furnace

New air conditioning

New wiring

New kitchen cabinets

Painted in dated reds, oranges, golds, greens, and yellows with red velvet couches and burnt orange chairs. Mirrors throughout and a grand chandelier hanging low in the powder room.

(“Unique” would be the kindest word to describe the décor)

Priced $128,500

The home had all original mechanics with no updates

Spotlessly cleaned and polished

Staged well with a very “chic” design

Understatedly elegant furniture

Priced $159,900

For example, home “A” and “B” were on the same street, were the same style, the same age, and built by the same builder.

On paper that $31,400 savings should buy plenty of paint (and a painter!) and still have a hefty savings. Remember, the Seller will be taking the furniture , either lovely or ugly, with them when they move.

In this case, Buyers were interested in home “A” but could not see beyond the ugly style of decor.

The temporary staging of home “B” sold the home, despite the better value and lower price of home “A.”

YAY! You’ve found IT!

True Love

It fits 100% of your needs 51% of your wants and is in your price range!

Now what?

Many buyers feel emotionally overwhelmed again!

A normal reaction is that you are sure this house and only this house will ever be the one for you. It’s perfect. Nothing will ever be better. You want it no matter what. Start the negotiations!

The next emotion (followed directly on the heels of the first) is doubt. Questions arise: “could something better come along tomorrow?” “Is my perfect house too perfect – what is wrong with it?” People often start second guessing themselves.

Know that your feelings are normal; buying a home can be exciting and joyful, but is nonetheless a high-stress experience. Try to stay cool and enjoy the roller-coaster ride.

Step Four

The Negotiations

Utilize your Realtor’s experience when negotiating.

Price is important, but only part of the overall process.

Often overlooked by an inexperienced negotiator, terms are also extremely important in determining your bottom line.

Examples of terms ContingenciesClosing datesClosing cost concessionsSize of earnest money Type of financing Inspections

Step FivePrice and Terms are decided

Fill out the all the essential paperwork.

Write the Earnest Money check.

Get your offer accepted.

Step SixYour offer is accepted

Coordinate all your inspections.

Complete your mortgage application.

Choose your closing attorney/settlement company.

Arrange for homeowner’s insurance.

Most homebuyers find that they take two steps forward and one step back: there will be negotiations, re-negotiations, additional paperwork, and addenda signed.

But…FINALLY,

Terms and price have been negotiated to finalization.

All inspections are acceptable.

Financing is complete.

Appraisal is cleared.

You can start getting ready for your closing date.

Step Seven

Confirm your closing date.

Arrange utilities to become effective in your name on the day of settlement.

Start packing!

Step EightClosing At least 24 hours prior to closing you should receive your HUD1.

You will need to bring a valid picture ID (drivers license, passport, etc.).

You will need to bring certified funds for the closing amount and in addition you should bring a personal check.

The Buyer, Seller, Settlement Attorney and Realtors are usually present for the closing.

The typical closing lasts about an hour, but is always a good idea to allot 2 hours time.

All closing documents are finalized and signed.

You get your keys to your new home.

Congratulations! You are a the proud owner of your new home.

….. Live Happily Ever After.