(888) 743-1528    REPRESENTING FORT HOOD'S FINEST MILITARY FAMILIES  

8 Steps to a Successful Home Purchase

Real estate markets and customs vary so much across the United States, we thought it might be helpful to know the way that successful real estate purchases are most often conducted on a day-to-day basis.  There's always a little give and take, but for the most part, all successful real estate transactions occur as a result of 8 phases or stages.  Which stage are you in?  Did you miss a step?

STEP 1:  Select Your Buyer's Agent

This is the most important step toward purchasing a new home!  Selecting the right agent can mean the difference between being happy with your new home, or just settling for any home.  During this step, you'll want to select someone who is a BUYER'S AGENT -- not someone who is primarily a listing agent.  A Buyer's Agent is someone who represents you, and only you, throughout your new home purchase.  Hiring a Buyer's Agent helps to ensure that you're seeing EVERY home that's right for you, and not just the homes that particular agent has listed.  You'll also want to select someone who has a high performance website that provides you web access to ALL of the homes in the area approved for public distribution.  That way, you're ensuring full access to the homes you want to see, when you want to see them.  Your agent will also set the stage for a successful home purchase by assisting you in obtaining the proper mortgage financing for your home.  It's our job!  Most people go about the home buying process directly in reverse -- find the home, find the financing, find the agent.  The process is designed exactly opposite -- find the agent, find the financing, find the home.  What is your agent's education level?  Do they provide MLS access?  What is their professional background?  Would you care if they hadn't completed high school?  We would.  It's time to find out what your agent is all about.

STEP 2: Get Pre-Approved for a Mortgage

It always pays to arrange your mortgage financing right up front.  That way, you'll be ready to purchase when the time is right.  Career agents will have outstanding relationships with superior loan officers and mortgage brokers.  It's important to take advantage of the leverage this relationship provides by working with your agent to locate the appropriate financing for your new home.  Once you've made your mortgage selection, you'll provide all of the documentation your lender requires, then be pre-approved for a mortgage loan.  Preapprovals carry a significant advantage when making offers on your new home, while relieving the stress associated with wondering whether you'll even be able to purchase the right home once you find it.  Once this step is completed, it's simply a matter of finding the right home.

STEP 3: Study the Local Real Estate Market

Once you obtain your preapproval, it's time to study the local real estate market in the Fort Hood area.  You do this by searching the MLS through your agent's website at your convenience.  If your agent doesn't have a website and does not provide an MLS search capability, you are at a disadvantage.  You'd also have to ask yourself, "Is my agent really a Buyer's Agent?"  It may be time to look elsewhere for someone who's more experienced and someone who's more of a professional.  Our site offers you the opportunity to enroll in automatic searches that work day and night, 24/7, 365 days a year to find the right home for you.  It's a free service that most of our seasoned, professional buyers take advantage of.  By receiving a daily list of homes in you preferred area, size, and price range, you'll know exactly what types of homes best suit you in your price range - and where they're located.  You also have the ability through our site to save your favorite listings as they come on the market...a huge plus when it comes time to purchase.

STEP 4: Locate Your New Home

Now it's time to locate your new home.  You've already taken care of financing.  You've already studied the market.  You're 60 days out (120 days out if you're interested in new homes) and it's time to get serious.  If you're relocating from another duty location, you'll want to call your agent and schedule and advance trip to the Fort Hood area.  It's time to consult with your agent, and forward the listings you've saved up until this point.  Your agent will add your listings to those they recommend, schedule your itinerary, and coordinate for access to the homes you've requested.  Your agent will also assist you in coordinating for lodging for you and your family prior to your arrival.

STEP 5: Contract Your New Home

Once you arrive into the Fort Hood area, it's extremely important to make good use of your time.  Most of our clients will arrive on Thursday or Friday evening, view homes the next day (or 2 days) and contract on the 3rd day.  That's awful fast, right?  You bet it is.  Why is that?  It's like this -- once you find the new home that suits you perfectly, there's no time to waste.  Time is now your enemy.  If that home falls through and you're no longer in the area once you've returned home, you've lost what may possibly be the only home that may have suited you, and you're no longer available to view more.  Your agent will walk you through each home and area you prefer, discussing the positives and negatives of each home.  Don't expect your Buyer's Agent to be a cheerleader.  That's not their job.  Their job is point out the negatives of each property.  You already know the positives.  This point of view is also what sets the Buyer's Agent apart from all other agents.  If your agent is a cheerleader, constantly pointing out all of the great features of every property and not the negatives, there's a good chance they're not guarding your interests.  Once you find the right home, your agent will assist you in drawing an appropriate offer for the home based on the agent's experience with the area, builder, seller, market, and the listing agent or broker.  A superior agent will usually shine during this phase of your purchase.

STEP 6: Get a Home Inspection

One simple rule.  Never, ever purchase a home without having a licensed home inspector inspect your property first.  Never.  Home inspections rarely come back clean, with no faults.  A proper home inspection is a mandatory item in our book.  Once your home inspector inspects the property, you'll be given the results so that you can confirm your assessment of the property.  It's generally assumed that your initial offer price covers the property in as-is condition, with all known faults.  If you find additional items other than those disclosed, or the faults turn out to be more serious than expected, it's possible to renegotiate your contracted sales price as long as you're still in your option period.

STEP 7: Renegotiate Required Repair Items

If your home inspection alerts you to unknown or undisclosed items, those may be renegotiated during your option period to your satisfaction so that you're not in a position where you're accepting your home in less than desirable condition.  Sellers must disclose any known faults to the buyer during the purchasing process.  Most often, you'll see this disclosed via the Seller's Disclosure available to your agent prior to making the original offer.  No matter what the Seller's Disclosure states, there are always more faults that you'll eventually see in the inspection.  Why is that, you ask?  Seller's rarely have their homes inspected prior to the sale.  They'd rather let you find out later on.

STEP 8: Close on Your New Home

There are many items that need to be accomplished prior to closing.  Appraisals, surveys, title commitments, homeowner's insurance, utility transfers, settlement cost validation, and the list goes on.  It is the duty of your agent to help you the entire way through the process, which also means attending closing with you.  Not all agents attend your closing with you.  In fact, some don't think they need to there at all.  This isn't acceptable in our book, which means we will most definitely be there with you before, during, and after the closing.  It's our job.  It's our life.  And it what we do.  And we take great pride in providing world class service at every opportunity.

written by

TREY JACKSON

OWNER, BROKER

Selecting the right Buyer's Agent

Purchasing your new home is usually an easy process if it's gone about correctly.  It helps to know people in the business, to know more than the normal person, and it pays to be proactive.

You don't win by sitting on the sidelines, wishing the situation were different...wishing you had this or that.  You win by solving the problem, by achieving more, and being more prepared for what may come.

As a former U.S. Army commissioned officer and enlisted service member, I think I learned that on the first day of basic training.  In the civilian world, it's no different.

Years ago when I purchased my first new home, like many of you, I assumed that the person sitting behind the builder's desk was on my side.  She kept telling me that she'd give me a better deal if I didn't use an agent, and like most people....honestly....I believed her. 

Nothing could have been further from the truth.

I really had no idea that builders almost never reduce the cost of the home by the amount of the commission paid to a professional Buyer's Representative.  I also didn't know that by NOT using a Buyer's Agent, I essentially gave up about $4500 in free representation on the cost of my first home.

In all actuality, my interests as a home buyer really were not guarded at all.  I exposed myself to unnecessary risk. Something I never would have done with my troops.

What I needed at the time was someone who was really on my side, who guarded my interests.  Someone who could obtain the best possible price and terms for me, and someone whom I could trust with something as large as a home purchase.

Many years later, I now know that someone should have been my Buyer's Agent. 

Hiring a professional Buyer's Agent, at no cost to you, ensures the check and balance system within the real estate industry.  Sure, builders would love to sell homes with no agents involved...it makes them more money.  However, our experience has been that reputable builders actually ENCOURAGE you to be represented because things go more smoothly, you're more educated, and there's something esle...

You're happier.

Happier with your purchase and happier with their product.