Step 2: Hire Your Agent

In the maze of forms, financing, inspections, marketing, pricing, and negotiating, it makes sense to work with professionals who know the community and much more.

A great real estate Agent will always your put your interests first and act as your advocate to help you make your dream of home ownership come true.

A great real estate agent will:

1. Educate you about the market.
2. Determine your needs and wants for your next home.
3. Provide information and showings on homes and neighborhoods
4. Work with you to write up purchase offers and counter offers
5. Negotiate on your behalf to get you the best deal possible.
6. Coordinate with other professionals, such as Escrow, Title, Home Inspectors, etc.
7. Discuss with you and help with solutions to solve any problems that may arise.
8. Oversee the entire process to ensure a successful close of escrow

As of August 17, 2024, you will be asked to sign a written buyer representation agreement. This became a nationwide requirement for real estate professionals as a part of the National Association of Realtors settlement related to broker commissions.

Additionally, California passed Assembly Bill 2992 which requires home shoppers to have a buyer representation agreement with their agents. For more information, see:
Why am I being Asked to Sign a Written Buyer Agreement?

Step 3: Secure Financing

For most buyers, securing financing means getting pre-approved. This initiates the mortgage process with a lender and tells you how much you can borrow.

The lender will provide you with a written letter of pre-approval, which allows you to move faster when you are ready to make an offer. A written pre-approval is also often required by the seller.

If you need assistance with your financing, ask your Agent to introduce you to the preferred financing consultant. This professional will work with you and your agent to make sure the financial aspect of your home purchase is professionally handled.

When you go to a lender for pre-approval, you may be asked to produce bank statements, W2s, employer information, etc., and have your credit and debt information reviewed.

Lenders will review your credit report, which provides a snapshot of your borrowing and repayment history, as well as any outstanding debt. A common credit score lenders use is called a FICO score.

Step 4: Choose Your Home

Once you’ve determined that you’re ready to buy and have your pre-approval ready, it’s time to begin searching for your new home.

You’ll find there are many questions you must answer about the type of house you want to purchase. Your Watkins Realty Group Agent will help you assess your criteria of needs and wants.

For example, some questions you might ask yourself include:

1. What cities / neighborhoods / zip codes are you interested in?
2. Do you want a Single Family Residence? A Condo / Townhouse? Either?
3. How big of a home do you need?
4. How many bedrooms and baths?
5. Are you interested in an older home or a newer one? Or either?
6. Would you be interested in a fixer-upper?
7. Any Other Critical Criteria? (fireplace, 1 story or 2 story, bedroom/bathroom on first floor, mello roos, association fees, etc.)

Once you’ve narrowed down the specifics of your ideal home, your Watkins Realty Group Agent has direct access to the San Diego Multiple Listing Service (MLS) and will provide you with homes for sale to consider.

As you look at homes, you also may find some of your search criteria priorities adjusting along the way.

Step 5: Make an Offer

Once you’ve found the home you want, it’s time to get the ball rolling with an offer.

Your agent can give you information on other properties in the neighborhood and recent sales (comparables or “comps”) to help you ensure you make an informed decision when it comes to price.

Review the data on at least three homes that have sold recently in the neighborhood that are similar to the property you are interested in. Compare the features, improvements and condition of the comparable homes to the home you are interested in.

Beyond your research, your negotiating leverage depends on many factors, such as: How motivated are the sellers? How long has the home been on the market? Are there other buyers interested or offers “on the table?” What is the current market inventory? In a slower market with ample inventory, you’ve got more power; in a hot market with lower inventory, you have less.

Beyond Price

Your purchase offer includes your offer price, and a host of other details which are all put in writing.

The residential purchase agreement contains the comprehensive terms of the deal, including sales price, deposit, closing date, disclosure requirements, contingencies, inspections, and fees agreed upon by both parties.

If all of this sounds a bit overwhelming to you, don’t worry; your Agent will guide you through each and every step.

Counter Offers

An offer to purchase is often followed by a counteroffer by the seller, which may be accepted, or countered again by the buyer. This is common practice as both sides attempt to negotiate an agreement that meets their individual needs.

Opening Escrow

If a successful final purchase agreement is negotiated, then an “escrow” will be opened.

The terms for the sale of a property are given to a neutral third party known as the escrow holder. Escrow has the responsibility of seeing that the terms of the escrow are carried out. They act as a depository for all monies, instructions, and documents needed.

Step 6: Perform Due Diligence

It’s time to review Seller Disclosures and conduct a Home Inspection. Your lender will also require an Appraisal – an independent estimate of the value of the house you are buying.

It is highly recommended that you hire a professional to perform a Home Inspection. A Home Inspection is a limited visual inspection of the general systems of your home. It is focused on four key areas:

• Safety Issues
• Structural concerns
• Items improperly installed
• Items nearing or exceeding their design life

The Inspector will inspect: the roof, attic, siding, structure, windows and doors, appliances, furnace, water heater, bathrooms, HVAC, plumbing, electrical, deferred maintenance, etc.

You may ask to be present during the inspection to learn more about the house, including its overall condition.

Upon review of the home inspection report, a buyer may request that the seller fix and repair specific items – especially items that are health, safety or code related. Your Agent will assist you with making a request for the seller to make the repairs or issue a credit for the amount of the repairs.

Step 7: Close Escrow

Once you’ve completed the inspection process and appraisal, you’re in the “home” stretch!

But in order to ensure that you don’t put your closing date or your mortgage at risk, you have a few pre-closing responsibilities that you should be aware of. These include:

• Staying in control of your credit and finances.
  
• Keeping in touch with your agent and lender, returning all phone calls and completing paperwork promptly.
  
• Communicating with your agent at least once or twice a week, and verifying with your lender that all mortgage funding steps are completed.
  
• Conducting a final walk-through of the home with your agent.
  
• Confirming with your agent, home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.

Don’t hesitate to ask questions along the way. We are here to help you!

You will typically get the keys after 5 pm on your closing date… and you are ready to move into your new home!

Congratulations, and Welcome Home!

And remember, just because the sale is complete, your relationship with your Watkins Realty Group Agent doesn’t need to end. After your purchase, your Agent can still help you – providing information on the real estate market, or finding contractors and repair services in the future.

Ready to Move Forward?

We are here to help you find and get a great deal on the home of your dreams!

Complete the form below and we’ll be happy to help you move forward and answer any questions you may have.