Home Buying Process

Hire a buyer’s agent who will represent only you and have a fiduciary responsibility to look out for your best interests. You will be asked to sign a Buyer’s Agency Agreement—Connecticut Real Estate Law requires that a Buyer Agency Agreement be signed by prospective buyers before realtors can show properties listed on the MLS. As your buyer’s agent I will show you properties that meet your needs. Develop a negotiating strategy with your best interests in mind. Provide a comprehensive market analysis to substantiate appropriate pricing in the marketplace. Keep all conversations and personal information confidential.

Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get pre-approved for a mortgage. A pre-approval is when a mortgage lender reviews your credit—which involves providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so your lender can verify your financial status and credit. This will tell you the price range of homes you should be looking at.

Now you are ready to start looking at homes. We will discuss what is important to you in a home/property – wants verses needs, location, style, size, interior and exterior specifications and schools etc. It is helpful to take notes on all the homes you visit, this way you will remember everything. You will view lots of houses! Take as much time as you need to find the right home.

In negotiating the purchase of your new home, the initial step will be to instruct Barbara to make an Offer to Purchase. This offer is in writing and accompanied by a deposit check (1% of the purchase price) to show “good faith”. This check will be deposited in the company’s escrow account within 24 hours of acceptance of the offer. The offer should include:

• The amount you are willing to pay
• Closing and occupancy dates
• Any contingencies, including obtaining a mortgage, appraisal, building and pest inspections
• Any personal property specifically included or excluded from the sale
• As soon as both the buyer and seller agree on a price and terms, the Offer to Purchase Agreement is signed by the seller and the 1% deposit is held in escrow

Once the buyer and seller agree on terms:

The buyer immediately follows up with their mortgage broker re: financing and appraisal of the property, arranges for building, pest, septic, well and any other agreed upon inspections with the expert guidance of Barbara. These inspections protect you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection or appraisal reveals significant issues. The buyer can then decide if they want to ask the seller to fix anything on the property before closing or offer a credit at closing to take care of any issues/problems.

The seller arranges with his/her attorney for the drawing of the Contract of Sale, based on the agreed upon terms. In Connecticut, the banks will generally only release funds to an attorney. It is required that a buyer be represented by a Connecticut attorney.

The Contract of Sale should always include, the following:

• Purchase price
• Mortgage contingency, appraisal and dates, if any
• Quality of Title to be conveyed
• Date of possession
• Itemized list of personal property included or excluded in the sale
• Satisfactory building and pest inspections, etc

The contract is prepared by the seller’s attorney and forwarded to the buyer’s attorney. The contract will be signed by both parties, the remaining 9% of the agreed upon sales price is due by the buyer to seller’s attorney, to be held in escrow until closing. It is local custom to release the 1% deposit check to the seller’s attorney’s escrow upon signing of contracts. Just prior to closing of the deal – buyers will perform a final walk-through inspection of the home to make sure it’s in the same condition as when you agreed to buy it. If you find a serious issue, it will need to be addressed before signing the final closing documentation.

A closing of the sale will most likely take place at the seller’s attorney’s office or other mutual agreed upon location. In addition to the keys, the seller will convey the deed to the buyer. At this time, the conveyance taxes to the municipally and state will be paid off in addition to satisfaction of any applicable mortgage. Your attorney will record the deed and property transfer in the Town or City.

Costs on the Purchase of a Property (typically incurred by the Buyer):

 

Costs of Various Inspections (Buyer):