It seems obvious, but it's good to note that the first step to buying a house is making the decision regarding WHAT to buy. Consider the reasons you want a new house and write them down. What are your needs? What are your wants? What location do you want to be in? Do you need three bedrooms or four? Do you require one bathroom or two? Can you afford a house that will meet your list of requirements? All of these questions are vitally important for you to answer before you begin your house search. We are here to help consult with you to determine what will best fit your needs.
Step 2 - Seek Professional Guidance
We'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, we will also help you get pre-approved for a mortgage loan. Pre-approval is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal. Note that having a pre-approval letter "in hand" at the time you make an Offer on a home is critical in such a fierce market as Madison's. We routinely deal with various mortgage lenders throughout the Madison and Dane County area and would be more than happy to suggest some names of reputable, friendly folks to you.
Step 3 - Begin the Hunt
After our initial meeting, we'll search all of our resources for properties on the market that fit your criteria. We'll share with you what we find and give you an opportunity to review the homes that are currently on the market that may fit your needs. Then, we'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, we'll point out positive and negative features. We'll ask you to tell us what you like and what you don't. You'll probably amend your "wish list" as we tour houses, as some things will become more important and others less so. With this new information, we'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
Our knowledge of the local market is an essential factor in the house search. We'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration. We'll keep you up to speed on market fluctuations and changes, too, so that you are certain to be an informed, knowledgable Buyer when the time comes to write the Offer.
As we tour houses, we'll let you know when the asking price has negotiating room and when the house is "priced to sell." Our unique market knowledge will keep you a step ahead of the "house hunting competition."
In a "seller's market" it is not unusual to see multiple offers on a property. Further still, those offers tend to be "full-price" or "above-price offers." On the flip side, during a "buyer's market" there are more houses for sale than than there are buyers actually looking for homes. This gives the Buyer more negotiating room as houses are in less demand. Currently, Madison is experiencing a very hot Seller's market, so it's especially important to have a voice of wisdom and knowledge on your side, guiding you through.
Step 5 - Find Your House & Writing an Offer
We're confident we'll find you a home that will be well-suited to your needs and in which you'll be very happy and comfortable for many years to come. When we do, we'll put together the Offer to Purchase, tailored to fit your needs. Things we'll consider customizing in the offer include appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.), as well as preferred dates for closing, etc.
The offer is normally presented with "earnest money." Earnest money is a cash deposit (given to the Listing Broker via a personal check) to secure an offer to buy the property. Essentially, the aarnest money check signals to the Seller that you are a serious and qualified Buyer. The amount of the earnets money is applied to your down payment and/or closing costs. If the seller accepts the Offer, closing is generally held 30 to 60 days from the offer date.
Step 6 - Negotiate the Deal
It is not uncommon to receive a Counter Offer after the initial Offer to purchase is submitted; only one out of every twenty-one Offers is accepted without a Counter Offer back. Don't let this discourage you. We will deal with any Counter Offers that are presented to us, and we will help you make the wisest decision possible with regard to your response. We are trained negotiators and will do everything in our power to secure the best terms and conditions for you with regard to the purchase of the home.
Step 7 - Get a Loan
During the period immediately after the Offer to Purchase is accepted, you will be working with your mortgage lender to get the loan. Since you were pre-approved for the loan before starting your home search, you are already miles ahead of most Buyers, which will ensure a much smoother and stress-free purchasing process for you. As your agents, we'll gather the necessary property information that your lender will need to secure the loan, and we'll work closely with your loan officer to make certain that he/she has all of the required paperwork necessary to get the job done.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. We will be glad to review the "Good Faith Estimate" with you, answering questions and highlighting missing costs or estimates we believe to be too low.
Step 9 - Move In!
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time! We are available to help you schedule movers, transfer telephone service, etc., during this busy time. Of course, if you have any questions or concerns upon move-in, please don't hesitate to contact us. Just because the transaction is over does not mean that our relationship is. We view ourselves as your family Realtors and your Realtors for life, so please feel free to call on us at ANY time. We truly hope you enjoy your new home and wish you all of the best.
MadCityDigs.com 2601 Crossroads Blvd. Suite 130 Madison, WI 53718
