Find Your Home

FIND YOUR HOME!

BEFORE STARTING THE SEARCH PROCESS: 

• Determine your best timing - when would you like to be in the new home, what restraints might there be in keeping your schedule - present lease terms, cash for down payment and closing costs, job situation, etc.
• Consider the elements of your future home that are at the top of your list of needs and wants.
• Location, location, location - do you have a specific neighborhood or community in mind?
• Is there a particular style or age of home that appeals to you?
• Are you open to many possibilities as long as the space fits your requirements?
• Have you established your affordability range?
• Take the time to meet with a local Lender to get "pre-qualified" - an easy step to determining what you can afford and what monthly costs are comfortable for you.
• Think ahead about what will work best for you - size of the home, age of the home, condition of the home, size of the lot, etc.
• Start your research online (87% of buyers do this) or attend Open Houses and follow the real estate ads.
• When you are ready to get serious about finding your next home, contact a Realtor (Ron, of course).

THE SEARCH BEGINS:

• Time is all we have...time is money...time is important!
• Starting your serious search with a Realtor is an important step in the process.
• Real estate ads are generally days or weeks behind the real market.
• Realtors have access to up-to-the-minute listings.
• If a Realtor knows your needs, they can receive instant data from the MLS (Multiple Listing Association) on the newest listings or listings with price reductions that fit your situation.
• The initial search and viewing of properties is helpful to the Realtor to determine what you like and what you don't like - it needs to be a time of total honesty by the client (you). The Realtor takes no personal offense in your remarks about a home that does not fit your needs.
• Once the basic criteria and guidlines are established, it is a matter of searching until the "ideal" property is viewed and considered by you to be the one to pursue.

MAKING THE OFFER:

• Do the research - what have other homes of similar size, age, condition, sold for in the past 6 months? Ask  your Realtor for assistance (Ron, of course).
• Are there condition items that need to be considered  in the offering price? As an example - needs a roof, carpet, paint, etc., things that are obvious when touring the home.
• Make sure that all concerns and details are in writing in the offer to purchase such as items included in the sale (appliances, etc.) possession and closing date, response deadline for Seller, financing terms applied for.
• Are you prepared to write an Earnest Money Deposit (Check)? This is part of your down payment and it is cashed by the Listing Office upon final acceptance of the offer. Appropriate amounts generally are based on the purchase price and range from $500. to $5,000.
• Determine what amount you will offer for the property. Your Realtor can guide you in determining this amount, but you need to be comfortable with it and also be prepared for a counter-offer from the Seller if your offer is less than the listed price or has terms that the Seller has not already indicated are acceptable.
• Be prepared to negotiate and set your limit on what you will ultimately be willing to pay. Often times, this becomes both a financial and an emotional decision, so your final price may change as you work through the process.
• Once you and the Seller have agreed on all terms and signed the Purchase Agreement, the next hurdle will be the Home Inspection. Your Realtor can furnish you a list of Inspectors that have performed satisfactorily in the past, and you make the choice and also pay the fee (range between $200. and $300.).

THE HOME INSPECTION:

• Every home, regardless of age and appearance, may have issues - small and large - that need repair or replacement.
• The Seller is required by Iowa law to furnish the Buyer with a Seller Disclosure Statement (SDS). In this document, Sellers reveal the condition of various components of the home and reveal any known defects and deficiencies. This would include past problems that have been remedied and existing situations.
• As a Buyer, you have the opportunity on the Purchase Agreement to place a Contingency on the sale related to this home inspection. If a major deficiency is discovered, and the Seller is unable or unwilling to correct it to your satisfaction, you are able to cancel the sale and have your Earnest Money returned promptly.
• The person you hire to perform this inspecion needs to be a Certified Home Inspector in order for the inspection to be valid. This person will review the major aspects of the property; roof, gutters, siding, foundation, electrical, plumbing, heating and air conditioning, structural components, to name some of the items reviewed. The inspector is generally not an expert in every area and if there are concerns, a specialist in that area may need to do a more thorough inspection (heating and a/c, fireplace, electrical, etc.)
• This inspection must take place withinn the time frame you have indicated on the Purchase Agreement (generally7-10 business days from the date of final acceptance). This is critical if any deficiencies are found.
• When the inspection has been completed, the Inspector will furnish a written report to the Buyer detailing the deficiencies discovered (if any). The Buyer needs to respond to the Seller within that period of time if there is to be a request for repairs or replacements. This may involve additional negotiations if the items are of a signifigant value.
• The emphasis on the items that may be requested is in the word "Major". There are varying opinions by agents on the severity of needed repairs which is why there is often a time of negotiating. Items that could be considered "maintenance" issues (furnace filters, leaky faucets, missing paint, etc.) should not be added to the list or could be handled by a request for an amount of cash to have these small items handled after the closing.
• Some deals fail at this point in the process. Buyers and Sellers may have different ideas as to what is major, or there are unreasonable demands on either side. If second opinions are needed to affirm the requests, this is the time to get them.
• Once these items are resolved and documented (signed by all parties), the transaction continues to move on to a Closing.

THE CLOSING:

• From the time of the final negotiations - either when the offer is presented, or after the inspection - there are a number of other details that are being handled.
• The Buyer will have completed a final application with their Lender (asap after acceptance) and the Lender will proceed to check credit, employment, assets, etc.
• The Closing Department of the Listing Office will forward the Abstract of Title to a local Abstractor for updating and forwarding to an Attorney for review.
• The Buyer's Attorney (or one assigned  for the Buyer by the Closing Department) will review the updated abstract and report any discrepancies needing attention in order to give the Buyer absolute clear title to the property.
• The Closing Department is also coordinating the process and eventual closing with the Lender, assisting in clarifying and securing documents needed.
• Once all of these details are completed and the agreed on closing date is reached, the Buyer and the Lender complete the transaction. At that time, the Buyer pays the balance of funds due to close and the Closing Agent disburses the funds to the Seller and others who have a part in the transaction.
• On the day of closing, when all documents are signed and the legal papers are recorded with the County Recorder's office, the keys are given to the Buyer and the home becomes theirs.
• The Buyers will need to have arranged for Insurance and utilities prior to the closing.

W  E  L  C  O  M  E        H  O  M  E  !