Get Informed – Do Your Research

  1. Research the real estate industry and legal services to
    understand what’s available to you, including the entire
    process and necessity for legal representation.
  2. Achieve proficiency in federal and state fair housing
    laws that protect your rights. You want to be sure that
    you’re not being denied the opportunity to make an
    offer on a home or secure financing based on your race,
    religion, national origin, sex, disability, and/or family
    status.
  3. Research local and national down payment assistance
    resources. These programs can help make your home
    purchase more affordable.
  4. Check your eligibility for down payment assistance
    programs.
  5. If you’re a Veteran, research home services and loan
    programs available to you.
  6. If you’re a Veteran, determine whether you qualify for
    a zero-down VA home loan. Making a down payment is a
    significant hurdle for many home buyers. Programs like
    these can open the door to homeownership, for those who
    know about them and qualify.
  7. Learn about local home prices, inventory levels, and
    market demand in your desired area. If you are in a hotter
    market, high demand for homes may affect your buying
    process and offer strategy.
  8. Ensure that all personal and financial information
    remains confidential to mitigate risk of identity theft.
    Research the steps that you can take to protect your
    identity when buying a home.
  9. Throughout the process, know the risks of posting
    home search details on social media to avoid being
    targeted for fraud.
  10. Do some research on what home features are
    currently popular to help identify your preferences
    and how this may affect the value of the home.
    Set Homeownership
    Goals and Budget
  11. Obtain a copy of your credit report, including your
    credit score, to assess where you stand, and ensure you
    have time to dispute errors and improve your score.
    The better your credit score, the more likely you are to be
    approved for a mortgage and receive a better rate.
  12. Consider all your homeownership wants and non-
    negotiable needs. You may need a certain number of
    bedrooms based on the size of your family, or a first-floor
    bedroom and bathroom if you plan to age in place.
  13. Set your budget and be mindful of the complete cost of
    homeownership. Consider the purchase cost of the home
    and any ongoing living and maintenance expenses. Those
    ongoing expenses may include but are not limited to
    real estate taxes, heating, AC, water, yard and appliance
    maintenance, repairs, homeowners association fees, and
    commuting costs.
  14. Assess your financial ability to purchase a home.
    The typical rule of thumb is that your total monthly
    housing payment (mortgage, taxes, insurance, etc.)
    shouldn’t be more than 30% of your gross monthly
    household income, but individual situations may vary.
  15. Assess your desired market’s compatibility with
    your budget based on current income and other
    considerations.
  16. Professionally advocate for yourself throughout the
    entire process. To do that, you should promote and defend
    your interests while keeping emotions in check to ensure
    you get your desired outcome.
    Start Your Home Search
  17. Establish and adhere to a schedule for house hunting,
    mortgage approval, and closing to meet your desired
    timeline. If you miss any milestone deadlines, you could be
    at risk of losing your down payment or losing the home for
    purchase.
  18. Learn how local markets could affect your buying and
    owning process. Fewer homes for sale, future development
    plans, school ratings, access to transportation, and
    community amenities are all elements that may affect
    demand in a given market.
  19. Scout listings and online marketplaces for suitable
    properties.
  20. Set up real-time alerts on home search marketplaces
    to get notifications when matching homes hit the market,
    and for open houses and price reductions.
  21. Compare properties to your wants and needs list to
    ensure they align with what you’re looking for.
  22. Tap your personal network to uncover additional
    properties of interest that are not yet publicly listed and
    may become available for sale soon.
  23. Contact homeowners in desired areas to see if they
    are considering selling.
  24. Gather information about any homes that might be
    for sale but are not actively being marketed.
  25. Virtually preview properties that you’re interested in.
  26. Select homes for viewing that align with your specific
    needs.
  27. Schedule multiple in-person home viewings by
    contacting each home’s listing agent. Schedule separate
    appointments at times that suit the listing agent but may
    not always suit you.
  28. Periodically reevaluate your needs and refocus your
    property search, as necessary.
  29. Explore all available resources to learn more about
    prospective neighborhoods. Be sure to speak to local
    experts who understand the neighborhood and will give
    you honest feedback.
  30. Tour the amenities, schools, and points of interest, and
    test commute times in your chosen search area.
  31. Cross-reference local crime registries for the
    neighborhoods you are searching.
  32. Educate yourself on what to look for in property
    disclosures of home listings while you search to make
    informed decisions. Required property disclosures vary
    by state and may include, but are not limited to rights of
    way, upcoming special assessments, whether the home is
    in a flood zone, past termite damage, and the presence of
    lead paint.
  33. Stay current with the listing months of market
    inventory. As with days on the market, this indicates how
    competitive a given market is and should inform your
    offer.
  34. Consider measures of home value beyond price
    per square foot. These include neighborhood, proximity
    to work and community amenities, and community
    development plans. Be sure to consult with a local expert
    to get the most comprehensive information.
  35. Research municipal services and other relevant
    neighborhood information.
  36. Be informed about potential neighborhood negatives
    such as noise levels, venues, or operations that could
    impact your property value.
  37. Check applicable zoning and building restrictions if
    you plan to rent out your home or add a unit to generate
    short-term or monthly rental income.
  38. Understand public property and tax information for
    potential homes. It’s important to be informed about
    the possibility of future tax increases and property
    assessments, which will affect the property taxes you owe
    from year to year.
  39. Gather and consider important data on utility
    availability and costs. For example, you’ll want to confirm
    if the home has good high-speed internet access.
  40. Research any environmental factors and risks that
    could affect your home, such as flooding, wildfire, heat,
    air quality, and noise. Some of these factors will affect the
    cost of ownership. For example, if the home you purchase
    is in a flood zone, you will need to obtain flood insurance.
  41. Narrow down your top home choices for a closer look
    before considering making any offer.
    Prepare Financing
  42. Analyze your finances to determine the total down
    payment and closing costs you can afford.
  43. Gather and assess quality lender resources.
    Ask friends and family for recommendations.
  44. Consider at least three mortgage lenders during
    the pre-approval process. Mortgage rates, terms, and
    eligibility may vary from lender to lender.
  45. Familiarize yourself with the mortgage pre-approval
    process. Pre-approval means that a lender has verified
    your income, credit background, and other factors and
    has provided a conditional commitment for an approved
    mortgage amount. With pre-approval, your offer will be
    considered far more seriously.
  46. Prepare and collect personal financial information
    like pay stubs, credit card statements, and other existing
    loans/debt, and share that information with the lenders
    you’re considering.
  47. Collect and compare multiple financing options.
    Beyond traditional mortgages, look into lesser-known
    alternative options like seller financing or rent-to-own
    programs.
  48. Explore various financing options to find the best fit
    for your needs. Many people use a conventional, fixed-rate
    30-year mortgage, but mortgages with other terms (e.g.,
    15- and 10-year fixed rate, adjustable rate, and assumable)
    might also be options.
  49. Coordinate with your lender to discuss discount
    points, which you can pay to lower the interest rate on
    your loan.
  50. Analyze loan estimates. Loan duration, size of your
    down payment, fees, and other loan terms can affect your
    overall mortgage costs.
  51. Obtain a pre-approval letter from your lender, which is
    more comprehensive than pre-qualification. Pre-approval
    is a written commitment from a lender that stipulates the
    amount they will lend you for a home purchase.
  52. Carefully review the pre-approval letter from your
    lender to understand its contents and ask necessary
    questions.
    Making Your Offer
  53. Review statistics to see what percentage of the list
    price sellers in your area are currently receiving. This will
    help you decide whether to offer the asking price, or adjust
    your offer below or above the asking price, to make your
    bid more competitive.
  54. Consider the current, local average days on
    the market to gauge property pricing and market
    competitiveness. Fewer days on market indicates greater
    demand, which means you may need to raise your offer
    or offer additional incentives to make your offer more
    competitive.
  55. Pay for a professional comparative market analysis
    (CMA) before making an offer to ensure it’s competitive.
    A CMA is a report that details recent home sales, local
    market activity, and sales prices to help you craft a
    successful offer.
  56. Research independent home valuation information
    from online resources like Realtor.com to assess an offer
    price that considers the sale of similar homes in the area.
    It’s important to make an offer that’s in line with local
    market conditions. You don’t want to overpay for a home,
    or make an offer that’s so low it won’t even be considered,
    so it’s good to talk to an independent adviser who has
    local market knowledge.
  57. Consider hiring a real estate lawyer for legal
    representation as you build your offer and for legal due
    diligence as you review contractual documentation.
  58. Review a sample sales contract to prepare to make
    an offer. This document outlines every facet of the
    transaction, but it may not include everything you want
    in the transaction or from the seller, so don’t assume
    everything is there.
  59. Understand common contract contingencies and the
    importance of including protective clauses in your offer.
    These may include but are not limited to your ability to
    secure financing that covers the appraised home value,
    inspections (home, radon, lead, etc.), closing date, date of
    possession, and owner lease-back terms.
  60. Learn about any purchasing incentives that you might
    be eligible for. Home sellers may offer concessions like a
    pre-paid homeowner warranty, closing costs, or allowance
    for home improvements/repairs as indicated by a home
    inspection. You will need to negotiate these as your own
    representative.
  61. Ensure your offer will stand out as the most attractive
    in the current market. Be ready to compete—many homes
    today are receiving multiple offers and bidding wars are
    common.
  62. Craft an offer that is well positioned to be accepted,
    and submit it to the seller’s agent. An offer typically
    includes how much you are willing to pay for the home,
    how much earnest money you can provide, when you want
    to close on the home, and the deadline for the seller to
    respond.
    Negotiations and
    Offer Acceptance
  63. Identify and prioritize your main goals for contract
    negotiations.
  64. Familiarize yourself with negotiation best practices.
    Be mindful of how your body language and facial
    expressions can influence a successful negotiation.
  65. Develop a negotiating strategy to secure the best
    terms. In addition to price, consider terms such as repairs,
    closing costs, or the timeline for closing.
  66. Negotiate the best price with the seller’s agent.
    The seller’s agent will be negotiating on the homeowner’s
    behalf. You will be negotiating with a professional who
    likely has extensive experience in this area, and you may
    be at a disadvantage.
  67. Be prepared for multiple-offer situations. Don’t get
    discouraged, and have your negotiation strategies ready.
  68. Consider using offer strategies like an escalation
    clause, which raises the price you’re offering by a certain
    amount over the price that another buyer is offering;
    offering flexibility on move-in/possession date; or waiving
    various contingencies.
  69. Explore optional contingencies, and understand their
    advantages and disadvantages. If you agree to waive the
    inspection contingency, for example, you are accepting
    the risk of purchasing a home that may have myriad
    defects or require additional funds to repair or bring up
    to code.
  70. Be aware that all known material defects should
    always be disclosed to you. Know what questions to ask,
    and ensure you receive and comprehend all required
    disclosure forms by state and federal laws. These forms
    vary by state.
  71. Agree to final terms with the seller, and sign the
    contract. In some states an attorney may be required.
  72. Verify the final offer is signed by all parties.
  73. Prepare your lender for listing agent calls. The agent
    representing the home seller will contact your lender
    to confirm pre-approval and arrange other settlement
    details. These details will likely favor the home seller, since
    that agent is representing their interests, so you may want
    to participate in those calls to negotiate on your behalf.
    Facilitate Closing
  74. Coordinate communications effectively among all
    parties, including your lender, the seller’s agent, the
    closing attorney, and any additional third parties.
  75. Seek additional guidance for transactions involving
    short sales, foreclosures, or bank-owned properties. These
    transactions often involve additional title, ownership, and
    financing considerations, and they may be as-is
    —meaning, the properties may be damaged or require
    costs for repairs that the buyer is accepting as a condition
    of purchase.
  76. Estimate the gross out-of-pocket cost of completing
    the transaction. This may include, but is not limited to,
    closing costs, a title search, financing points (to “pay
    down” the mortgage interest rate), and transfer taxes.
  77. Acquaint yourself with flood insurance. If the home
    you purchase is in a FEMA-identified flood zone, you must
    obtain flood insurance as a condition of ownership. You
    may also consider adding flood insurance to your regular
    home insurance policy, because most regular policies do
    not cover damage from flooding.
  78. Learn about title insurance, and consult a qualified
    insurance broker. Title insurance covers any pre-existing
    title problems that you may discover after you’ve
    purchased the home (e.g., tax liens, unpaid/outstanding
    mortgages, previous ownership claims).
  79. Fully investigate your options for a home inspector,
    title company, appraiser, and other services. Forgoing
    a home inspection is not advised as these professional
    inspectors will provide a comprehensive assessment
    of a home’s current condition and risks.
  80. Create a list of required and optional home
    inspections, including environmental, roofing, and
    mold. This will help you determine what inspection
    contingencies to include in your purchase offer.
  81. Ensure that necessary property surveys are ordered.
    A property survey will help you understand where your
    property begins and ends, and determine any potential
    issues—such as easements or encroachments—before
    you take ownership of the property.
  82. Discuss any concerns arising from the home
    inspection. Use any negative findings from your home
    inspection report as leverage for repairs or credits.
  83. Track and meet all contract deadlines. Depending
    on the terms of your offer, these may include deadlines
    for inspections, final financing/loan, down payment and
    earnest money deposits into escrow, title searches, and
    settlement date.
  84. Order the appraisal. Confirm whether your lender will
    accept an independent appraiser or require an appraisal
    management company to conduct the appraisal.
  85. Question the appraisal report if it affects your
    financing. Check for errors like square footage,
    inadequate home comparisons, or incorrect descriptions
    of the home or neighborhood.
  86. Order the title search. A clean property title means
    the buyer and lender agree there are no claims on the
    property that could become an issue after ownership
    is transferred.
  87. Regularly contact your lender to ensure the loan
    process is on track to meet the closing requirements.
  88. Ensure any necessary funds, like earnest money or
    down payments, are received by the stated deadlines
    to avoid any risk of the seller terminating your contract.
  89. Ensure all parties have all forms and information
    needed to close the sale. Missing or late paperwork can
    cause delays.
  90. Check addendums and alterations for agreed-upon
    terms.
  91. Take note of the location and details of your closing
    meeting.
  92. Confirm and communicate the closing date and time
    to the seller’s agent, noting any changes.
  93. Schedule and conduct a final property walk-through.
    Create a comprehensive checklist of your concerns
    regarding the home, and then confirm that any agreed-
    upon repairs were addressed or fixed by the seller.
  94. Confirm the clear-to-close status, indicating all
    documents and conditions to approve your loan have
    been met, with your lender.
  95. Review your closing statement. It explains the terms
    of the mortgage, the projected monthly payments, and
    how much your fees and closing costs will be.
  96. Double-check all taxes, dues, and prorations related
    to your purchase.
  97. Request the final closing figures from the closing
    agent. This is the total amount of money that you will have
    to bring to the closing table.
  98. Review your title insurance commitment carefully
    to ensure all information is accurate.
  99. Be aware of wire fraud risks, and verbally verify
    all wiring instructions with the seller’s agent before
    transferring funds. Get the detailed instructions from
    your closing company, and be leery of any messages you
    receive that request changes to the original instructions.
  100. Provide receipt of escrow deposit to the seller’s
    agent/broker to verify this financial step has been
    completed.
  101. Gather all required forms and documents for closing.
    Typically, you’ll need a photo ID and a cashier’s or certified
    check (or receipt of a wire transfer).
  102. Perform any remaining closing activities to complete
    the transaction.
  103. Review all closing documents with the closing agent
    or attorney. Be prepared to sign a ton of paperwork.
  104. Distribute final documents to all involved parties for
    their records. You’ll want to keep this important paperwork
    safe.
  105. Verify receipt of all keys, access codes, garage door
    openers, and manuals for all equipment and appliances.
    Post-Closing Activities
  106. Prior to moving, consider rekeying your locks and
    changing access codes as an extra precaution to
    safeguard your home from anyone who may have had
    access prior to your ownership.
  107. Remember to transfer all utilities and services to your
    new residence so you do not incur costs on your former
    residence. This ensures everything is up and running in
    preparation for your move-in date.
  108. Turn your home inspection report into a maintenance
    to-do list.
  109. File claims with your homeowner’s warranty company
    as needed. A home warranty is a policy that covers the
    cost of major repairs or appliances.
  110. Stay engaged and proactively follow up on any
    pending items or concerns post-closing. Keep a running
    checklist handy to ensure you stay on top of any potential
    warranties, including their expiration dates.
  111. Arrange for the move-in day in your new home by
    contacting movers. Buy yourself a bottle of champagne.
    Congratulations, you’re a new homeowner now.

*Actual services or to-dos will depend on the needs of the buyer and the transaction – not all 111 things will need to be done in every transaction.
**Based on a 2023 proprietary survey among recent home buyers and sellers.

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