Home Buying Process and How It Works

Home Buying Process and How It Works – Whether you’re a first time buyer or it’s been 20 years, you may want to know the steps to buying a home.

Home Buying Process

1. Meet with a real estate professional: Discuss the type of home you’re looking for, including style, price, and location.
The Buyer’s Advantage: As the home buyer, your agent’s commission is paid by the seller of the home in almost all circumstances. This means your representation costs you nothing!

2. Get Pre-Approved: You will need pay stubs, W2s, 2 years of tax returns and bank statements. Knowing what you can afford is critical to a successful home shopping experience. Your real estate agent will know a few good lenders to refer you to.

3. Search for Homes: The fun part! Your agent will schedule showings and help you find the perfect home.  When you have a clear idea of what you want, it will be easier.  You’ll help by sharing which listings interest you.
Advanced Search: Not all real estate websites are the same. Your real estate professional has tools and systems to ensure you see every available home that meets your criteria.

4. Make an Offer: Your agent will prepare your offer based on the price and terms you choose.

5. Negotiation and Contract: It may take a few tries to get it just right, but hang in there. You’re on your way!
The Contract: In most cases the contract provides you with a timeline to obtain financing as well as time to inspect the physical condition of the home. Your real estate professional will inform you of all your rights and responsibilities related to the contract.

6. Under Contract or In Escrow: You and the seller have agreed to the price and terms. The home is effectively held for you until closing.

7 Final Details: Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.

8. Preparing for Closing: You will be finalizing your loan, reviewing documents, and discussing the findings from the inspection. Your agent will manage this entire process for you.

9. Closing: This is the transfer of funds and ownership. A title company or an attorney typically acts as an independent third party to facilitate the closing. Closings can be done remotely or locally.

Please let us know if you have any questions about the home buying process or selling a home on Anna Maria Island, Cortez, NW Bradenton or Longboat Key, Florida.

Jen and Mark Bowman, Keller Williams on the Water 941-840-0117.
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Real Estate Offers

Offers in Real Estate

Let’s get back to the basics – What’s an offer anyway? Recently, a Home Buyer believed we were under contract with a home just because we had submitted an offer and went back and forth with counter offers.  That’s not how it works. Let me explain.

An offer is simply that, an offer to purchase. It’s a promise by one party (usually the Buyer) to act or perform (buy the home) in a specified manner (purchase price, closing date, etc.) provided the other party (usually the Seller) acts or performs in the manner requested (sells the home).

An offer is an intention to enter into a contract. That means if you don’t intend to enter into a legally binding contract, don’t make the offer.

If the Seller and Buyer agree to the terms of the offer, the offer is accepted.

It starts like this:

  1. The Buyer sees the home they love.
  2. The Buyer’s Agent writes up offer and Buyer signs it indicating they want to purchase the home.
  3. The Buyer’s Agent sends it to Listing Agent.
  4. The Listing Agent submits it to seller. In Florida, Listing Agent is required by law to submit all offers to Seller, even if the Seller doesn’t want it.
  5. The Seller either accepts, rejects or counter offers.
  6. If they accept, then you are under contract per the terms of the agreement.
  7. If they reject, the Buyer is back to square one and can either resubmit a new offer or move on to another home.
  8. If the Seller counters, it means they want to work with the Buyer, but on terms other than what was originally submitted on the Offer.
  9. Sometimes the Seller will counter offer to the Buyer and the Buyer counter offers back to the Seller and it goes back and forth but an agreement is not met.  At this point, there is no contract.
  10. If the Seller and Buyer agree on the terms of the offer and the counter offer or offers, then there is a contract.  All parties must sign off to have a binding agreement or executed contract.

Real Estate contracts must be definite and certain, with all terms in writing.

I hope that clarifies the offer part of the real estate maze.

If you are thinking of buying or selling a home on Anna Maria Island or the surrounding areas, contact local experts and Realtors Jen & Mark Bowman, Keller Williams Realty at 941-840-0117.