Buyer Resources

Deciding To Buy

Purchasing a property is likely the single largest investment financial decision you will ever do. Whether this is your first home purchase or you are an experienced buyer, the decision should always be made carefully.

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What are your motivators to buy?

Tired of paying rent? Outgrown your current home? Investing in your/your family’s future? Relocation? Having a clear sense of your reasons for buying will help you choose the right property. Property ownership is a stable asset to add to your general investment portfolio; owning real estate is one of the least risky ways to expand personal equity or to obtain a greater return on your initial investment.

Preparing To Buy

Before you looking around for your new property, it is strongly advised to make a few key preparations.

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Put Together Your Personal Financial File

This file should contain all financial documents relevant to your financial health. Majority of these will need to be furnished to your lender (if financing is required). The typical file should contain:

  • Financial statements
  • Bank accounts and balances
  • Investment Accounts (Retirement, Brokerage, etc)
  • Credit cards
  • Home and auto loans
  • Recent pay stubs
  • Tax returns (2+ years preferred)
  • Copies of active leases for current investment properties
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Check Your Credit Eligibility

If financing, your credit score can have a substantial impact on what type of property you are eligible to buy, and an impact on price. It is recommended to check your eligibility with a reputable lending institution so that you can confidently determine what is affordable to you. The lender will likely be researching your credit ratings from the main three credit reporting agencies (Equifax, Experian and Trans Union).
We are more than happy to recommend professional and experienced lenders that have served many of our happy clients! 

Choosing A Real Estate Agent

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Because buying a property is one of the largest (if not the largest) financial decisions you can make, you want to know your Agent has your best interests in mind and understands  the complexities of a transaction. It helps to have an expert you can trust in your corner when in a complex or changing market. We can guide you through this process, and also provide you with insight into off-market listings prior to hitting the market. 

Several key factors to consider when deciding on your Real Estate Agent:

  • Look for full-time agents who are actively involved in the areas you are interested in - referrals from friends, family and colleagues are a great place to start! 
  • Interview a few agents: 
    • Ask and confirm if they are familiar with your interested area.
    • Ask about their buyer process and how they keep their buyers up to date. 
    • Ask how much time the agent will have for you, and their availability (time is money in a real estate transaction!). 
    • Ask for comparable properties they have sold and/or their reference list.
  • Pick the best couple of agents who listen most actively and attentively to your needs and concerns. Choose the single agent with whom you feel the most comfortable and trust wholly.

Time To Shop Around

Once all of the preparations are out of the way, it is now time to find the right property.

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Take a Drive

Get to know the neighborhoods that are the most appealing to you. Drive around and get a feel for what it would be like to own and/or live in a property in the neighborhood. Start getting a sense of the properties available in those areas and price points per quality of the properties.

Narrow Your Search

Choose a few properties that most interest you and have your Real Estate Agent schedule appointments to visit them. After viewing, have your Agent review the disclosure packet to confirm the health and longevity of the property. Ask your Real Estate Agent about the trends in the neighborhood and/or the potential long term resale value of the properties you are considering.

Time to Make an Offer

Once you have decided on the property you want as your own, your Real Estate Agent can help you make the best possible offer that the seller will accept. A good Agent will perform detailed due diligence on the potential costs and expenses associated with the new property to give you a holistic understanding of all costs of ownership. Then an Agent can draft your offer in a way that gives you the advantage over other offers, tailored to the seller’s desires.

Escrow & Appraisals

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The Process, Step-by-Step

The Purchase Agreement and Deposit

The California Residential Purchase Agreement is a legal document between a potential purchaser and the property’s seller for the purchase of a property. 

Some important tips to keep in mind to streamline the process:

  • Keep written records of everything - a paper trail is preferred. For the sake of clarity, it will be useful to transcribe all verbal agreements, including counter-offers and addendums, and to convert them into written agreements to be signed by both parties. We can assist you in drafting all the paperwork for your purchase and make sure you have full visibility.

Escrow and the Escrow Officer

  • Stick to the schedule. Now that your offer has been selected and ratified, you and the seller will be given an Escrow Timeline to mark each stage in the process to closing. Meeting the requirements on time ensures a smooth flow so that each party involved is not in breach of their respective agreements. During the process, we will consistently keep you updated every step of the way, so you will always be in the know and fully prepared .
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Appraisal and Lending

Within 1-3 days of your offer acceptance, your Earnest Money Deposit (EMD) will be due, which is normally 3% in this current market. Following this, if financing, the remainder of your down payment will need to be furnished, then the property will be appraised by a licensed appraiser (ordered by your lender) to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within a couple weeks of the close date, confirm with your lender to be sure the loan will go through smoothly and on time.

Property Insurance

If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.

  • Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
  • Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
  • Insure your house NOT the land under it. After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

We will be happy to recommend experienced knowledgeable insurance agents for every property type.

Moving In

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Closing Day

If you have come this far, then this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:

Final Walk-Through Inspection

More of a formality than anything else, the final inspection takes place within a few days of closing. You will inspect the property to verify that everything is in working order and that everything is the same as when you submitted your offer, that there are no extra items left behind, and that everything included in your purchase is still at the property.

Home Services and Utilities

We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

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Be Prepared

We are ready to assist you, should an unforeseen issue pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before and know how to handle them effectively, efficiently and stress-free for you. 

Closing

The Escrow Officer will furnish all parties involved with a settlement statement, which is a summary of the details of the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as Title, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution. If you are unable to attend the scheduled closing, our Title contact will create arrangements depending on the circumstances.

Any further questions on the process? Please reach out to us and we’ll be happy to consult! 

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