Our Process

Our Process

Here’s a detailed and complex order of events for buying or selling a home. This process can vary depending on location, laws, and individual circumstances, but the following is a comprehensive outline:

1. Preparation Phase

For Buyers:

  • Assess Financial Readiness:
    • Review credit scores and reports.
    • Calculate how much house you can afford.
    • Determine how much money you need to close (i.e. down payment if any, closing costs, etc)
    • Budget for closing costs (2%-5% of the purchase price).
  • Pre-Approval for a Mortgage:
    • Contact the lender of your choice.
    • Submit necessary documentation (income statements, tax returns, etc.).
    • Obtain a mortgage pre-approval letter.

For Sellers:

  • Evaluate Market Conditions:
    • Research current market trends and home prices.
    • Decide on the timing of the sale.
  • Prepare the Home for Sale:
    • Declutter, clean, and make necessary repairs.
    • Stage the home to appeal to potential buyers.

2. Selecting a Real Estate Broker

For Both Buyers and Sellers:

  • Interview Multiple Broker’s:
    • Check references, credentials, and experience.
    • Discuss marketing strategies (for sellers) or home search strategies (for buyers).
  • Sign a Listing Agreement (Sellers) or Buyer Representation Agreement (Buyers):
    • Formalize the relationship with the broker through a contract.

3. Search and Marketing Phase

For Buyers:

  • Begin the Home Search:
    • Identify preferred neighborhoods.
    • Attend open houses and schedule private showings.
    • Review property details (e.g., age, condition, size, etc.).
  • Adjust Search Criteria:
    • Refine search based on budget, needs, and feedback from viewings.

For Sellers:

  • Set a Listing Price:
    • Work with the broker to analyze comparable sales (comps).
    • Consider market conditions and urgency to sell.
  • Market the Home:
    • List the property on MLS and real estate websites.
    • Use professional photography, virtual tours, and social media marketing.
    • Host open houses and private showings.

4. Offer and Negotiation Phase

For Buyers:

  • Make an Offer:
    • Submit a written offer, including price, contingencies, and closing timeline.
    • Provide earnest money as a deposit.
  • Negotiate Terms:
    • Respond to counteroffers from the seller.
    • Adjust offer terms if needed (e.g., higher price, fewer contingencies).

For Sellers:

  • Review Offers:
    • Evaluate offers based on price, contingencies, and buyer’s financing.
    • Accept, reject, or counteroffer.
  • Negotiate Terms:
    • Work with the buyer to finalize terms (e.g., repairs, closing date).

5. Under Contract Phase

For Both Buyers and Sellers:

  • Sign Purchase Agreement:
    • Finalize the contract with all agreed-upon terms.
    • Establish the timeline for closing and contingencies.
  • Arrange for an Escrow Account:
    • Deposit the earnest money into an escrow account managed by a third party.

For Buyers:

  • Conduct Home Inspection:
    • Hire a licensed inspector to assess the home’s condition.
    • Negotiate repairs or price adjustments based on the inspection report.
  • Secure Financing:
    • Lock in the mortgage interest rate.
    • Complete the mortgage application process.
    • Obtain a home appraisal to ensure the property’s value aligns with the purchase price.

For Sellers:

  • Address Inspection Requests:
    • Decide whether to make repairs or offer a credit to the buyer.
    • Coordinate with contractors if repairs are necessary.
  • Prepare for Closing:
    • Gather all required documents (e.g., title, mortgage payoff statements).
    • Schedule a final walk-through with the buyer.

6. Closing Phase

For Both Buyers and Sellers:

  • Review Closing Disclosure:
    • Ensure all terms, costs, and payments are accurate.
    • Confirm the final amount to be paid or received at closing.
  • Attend the Closing Meeting:
    • Sign all required documents (e.g., deed, mortgage documents).
    • Transfer funds (down payment, closing costs, etc.).
  • Transfer Ownership:
    • The buyer receives the keys to the home.
    • The seller receives the proceeds from the sale.

7. Post-Closing Phase

For Buyers:

  • Move Into the Home:
    • Arrange for moving services.
    • Set up utilities and address any immediate needs.
  • Follow Up with the Lender:
    • Ensure mortgage payments begin as scheduled.
    • Keep records of the transaction and new homeownership documents.

For Sellers:

  • Settle Remaining Obligations:
    • Pay off any remaining mortgage balance.
    • Cancel homeowner’s insurance (or transfer to the new property).
  • Tax Considerations:
    • Report the sale on your tax return.
    • Keep records for potential capital gains tax implications.