BUYING A HOME
HOME BUYER PROCESS
Looking to buy a home in the vibrant Austin area? Buying a house is complex, with many moving parts. Here's an overview of the process. We always emphasize to our clients that while understanding the process is beneficial, we'll guide them step-by-step, so there's no need to memorize everything. That's our job.
Step 1: Buyer Consultation
The buyer consultation is crucial. It's where we gain a foundational understanding of our buyers' motivations, allowing us to serve them best. We discuss commission structures, who pays for what, how to get pre-approved, and note specific housing preferences to assist in finding the ideal property, both on and off-market.
Step 2: Pre-Approval
Once buyers decide to proceed, understanding the real costs is essential. The pre-approval process helps determine the necessary down payment, closing costs, and estimated monthly payments. It's vital for our clients to see accurate figures, including property taxes, insurance, and interest rates, based on their desired locations. In Austin, property taxes can vary significantly by neighborhood due to factors like Municipal Utility Districts (MUDs), Public Improvement Districts (PIDs), school districts, city limits, and other taxable entities that can impact monthly payments over time. We ensure our clients have a clear understanding of their financial commitment.
Step 3: The Search
With a clear understanding of your criteria, the search becomes exciting! While many buyers browse third-party sites (Zillow, Redfin, Realtor, etc.) daily, we take finding the right property seriously. We employ a back-end system to access off-market listings and new listings as soon as they become available.
Step 4: The Offer
When we find a property that meets our clients' needs, our work as agents intensifies. We analyze comparable properties sold in the neighborhood within the past six months to ensure our clients don't overpay. We assess the value of any updates compared to sold properties and help determine a sensible offer price that aligns with both the market and our clients' financial goals.
Step 5: The Accepted Offer
Sometimes, it takes multiple offers to secure a property; other times, the first offer is accepted. Once an offer is accepted, contractual timelines begin. These include the option period (paid by the buyer), earnest money delivery to the title company, and deadlines for seller disclosures, surveys, T-47 affidavits, financing, HOA documents, title policy objections, and closing dates. All these are detailed in the contract, and we ensure our clients adhere to every requirement.
Step 6: The Option Period
The option period allows for detailed property inspections that weren't possible during the initial walkthrough. We negotiate repairs for undisclosed issues that are necessary for the buyer to proceed. This includes inspecting the foundation, roof, HVAC, plumbing, electrical systems, attic space, and more. If significant issues arise, the buyer can terminate the contract during the option period. We can also negotiate seller concessions or repairs before closing.
Step 7: Financing Deadlines
After the option period, focus shifts to securing loan approval. This primarily involves the buyer and the loan officer. As agents, we respect our clients' financial privacy and minimize our involvement. We maintain open communication with the lender to ensure timely processing without intruding on specific financial details. We only need to know the down payment amount, availability of closing cost funds, and the pre-approved and comfortable purchase price range.
Step 8: The Appraisal
The appraisal is ordered during the option period. It's the lender's safeguard, ensuring they don't loan on a property that could result in a loss. This is why accurate pricing and offers aligned with comparable sales are crucial. Lenders must order appraisals promptly to avoid deal complications. Our team sets reminders for lenders to ensure timely ordering. Appraisals are paid by the buyer and typically cost around $700.
Step 9: Final Walk-Through
Once the appraisal is complete and the loan is underwritten, it's a waiting game until closing. We use this time for a final walkthrough to confirm no changes have occurred since the contract was signed and to allow clients to measure for furniture or obtain quotes for post-closing renovations.
Step 10: Closing
Closing occurs at the title company or with a mobile notary. The process takes 30 minutes to an hour, depending on the loan type and property location. FHA loans involve more documentation than cash deals. After buyer and seller signatures, the title company collects funds from the buyer and lender, funding the loan. Once funded, the transaction is complete, and our buyers own their new home.