If you and your family have found the home of your dreams and you are ready to buy, it is time to start the purchasing process. The California Association of Realtors (CAR) indicates that there are five steps to buying a home: making an offer, signing a residential purchase agreement, putting down a deposit, conducting inspections and closing the sale. It is recommended that you have a Realtor on hand to guide you through each of the steps, as it can be a bit overwhelming for most Americans.

Make an Offer

So, you’ve found a home you like and you can afford. You’re ready to make an offer. Before making the offer, recognize there are ways for you, as a buyer, to look more attractive to the seller. Buyers gain leverage in the negotiating process if they are all-cash buyers or if they are already pre-approved for a mortgage. Also, sellers who want to move as soon as possible are attracted to buyers who are ready to move in, versus those buyers who need to sell their existing home first.

When the stage is set, an offer to purchase the home is presented by the buyer. This may be followed by a counteroffer by the seller, which can be countered again by the buyer. This negotiating process is normal, as both the buyer and the seller try to find the best price to fit both their needs. Make sure to use your Realtor’s negotiating skills in this important phase of the buying process.

Residential Purchasing Agreements

You must get all the details in writing, with a document that spells out your offer price and any stipulations. That is what the residential purchasing agreement is for, according to the CAR. The purchasing agreement spells out every detail of the sale, including such things as the sales price, the amount of money owed in a deposit, the closing date on the house, disclosure requirements, the number and kind of inspections and final fees agreed upon by both the buyer and the seller. Your Realtor will have the proper paperwork.

Putting Down a Deposit

In most home sales, buyers are asked to put down a deposit at the beginning of the transaction. If the buyer completes the sale, this deposit is credited toward the buyer’s down payment on the house.

If the sale is not completed for legal reasons or disputes in the contract, usually this deposit will be refunded, according to the CAR. Most deposits as part of the residential purchasing agreement range from 1 percent to 5 percent of the house’s purchase price. More often, buyers will put as much as 20 percent down on the house.

Inspections and Appraisals
Home inspections should check the structure of the house, the construction and mechanical systems, and anything else that is being transferred from seller to owner on the property.
Though inspectors will not be able to tell everything that may be wrong with your new home, most of the time they are able to foresee possible repairs or problems that may arise down the road.

Unlike inspectors, appraisers are professionals trained to assess a home’s value. Appraisers will look at factors such as past sales data, the neighborhood and location of the house, the size of the property the home rests upon and the condition of the house itself.
It is a good idea to have an estimate for the costs of these inspections, as buyers most often pay for them.

Close the Sale

Closing day is very exciting for buyers because this is the day their dream home become official. Before that, however, your escrow agent will present you with many legal documents to sign and you will have to pay your down payment and closing costs at this time. Fannie Mae estimates that most buyer’s closing costs run from 3 to 6 percent of the home’s sales price.

- For more information on buying or selling a home, check out the California Association of Realtors Web site at www.car.org. Or contact Lea Pannell Realty Inc. at (707) 553-7388.

Lea Pannell Realty, Inc.

There are 5 steps to buying a home:.

MAKE AN OFFER - Negotiate with the seller to find the best price for both of you.

RESIDENTIAL PURCHASE AGREEMENT - This spells out every detail of the sale, including sales price, amount of money owed for deposit, closing date, disclosure requirements, number and kind of inspections, and final fees agreed upon.

PUT DOWN A DEPOSIT - Buyers are usually asked to put down a deposit, which is credited towards the down payment on the house. The deposit is returned if the sale is not completed.

CLOSE THE SALE - There will be many legal documents for you to sign, and you will need to make your down payment and pay your closing costs.

INSPECTIONS AND APPRAISALS - Inspections check the structure of the house, construction and mechanical systems, and anything else that is being transferred in the sale. Appraisals are done by professionals trained to assess the home’s value. Get an estimate for these costs, since the buyer usually pays for them.