Finding Phoenix Neighborhoods: March 2008

Thursday, March 20, 2008

First Time Home Buyers in the Phoenix Area

I have quite a few first time home buyers right now and I find myself wanting to make the entire process simple and less intimidating for them. Please keep in mind this is only for the Phoenix-area and this simplified explanation of home buying does not apply to Short Sales. Don't forget to learn about home buyer down payment assistance. On with the show...

Let's assume that two important things have already taken place: you have been pre-qualified by a reputable lender and you and I have communicated at length about what you truly want for your first home. We have gone house hunting and you believe you have found the one you want. Now what?

First we make an offer. You and I will talk about market conditions, neighborhood comps, discussions deal with the other agent, etc. to find the best negotiating strategy. Part of that offer is Earnest Money. It's the money that goes on the table, that communicates to the seller that you are serious about buying the home. It is generally around 1% of the sales price. That money can be applied to your down payment or your closing costs. Negotiating will go back and forth for awhile and then we will have a signed contract. Then what?

Once that contract is signed, then begins the 10 day inspection period. During that time we will employ a qualified home inspector and your lender will require a termite inspectiontoo. I will suggest you do your own looking around as well, take walks in the neighborhood at different times of day, check out the sex offender registery for the area, drive your commute to work. The title company is also during their own checks to make sure the title is clear enough to sell to us and where exactly are the property taxes going. You and I will meet with the inspector to find the list of things wrong and decide what truly matters to you. Then what?

We present the seller with a list of repairs we would like them to complete prior to close of escrow. They have a set amount of days (usually 5) to consider our request and respond. We then have a set amount of days (generally 3) to decide if we want to accept their response or back out altogether. If you decide to back out for some crazy reason, you will be entitled to your earnest money. If you decide to move on, your earnest money (generally) is now considered part of the deal.

After the repairs are hammered out, it's generally a waiting game for the lender. They will order the appraisal and make sure it appraises for at least what you are paying. They will ask you to send them tons and tons of documents and you'll get sick of talking to your loan officer all while wondering if he/she doesn't call, what's wrong? Finally you make it to the last week or so. Then what?

First we check to make sure the agreed upon repairs actually happened. Then we sign documents at least 3 days prior to close of escrow, at which time you fork over whatever you are paying for closings costs and down payment. The seller also needs to sign documents. Then, if all goes well with the lender, they wire the loan amount to the title company, the title company then records the sale with the county and then, only then, is the house truly yours. I pick up the keys from the other agent and you own a little piece of Arizona.

Here's how I make it easier for you. I do all the comparative research and lead the negotiation process. I also write a dang good contract that protects you as much as legally possible. I then assist you in finding a great home inspector, and help you see what repairs are truly needed and what we can negotiate on. I keep in touch with your lender to make sure things are rocking and rolling there, and progression isn't halted because of something silly. I check on the repairs and report back to you. Then, if needed, we can sign those final documents at your office instead of taking 2 hours out of your work day to get to the title company.

Home buying can be incredibly stressful and intimidating but it doesn't have to be. Buying your first home can be exhilarating and empowering with the right team of people on your side.

Labels: az real estate, first time home buyers, short sales in Gilbert

Elena Thurston, Family Realtor @ 3:12 PM
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