The Buying Process

1. Find an agent you trust and enjoy working with.

2. Determine the optimal method of communication with your agent (telephone, email, etc.)

3. Define the criteria for your new home to your agent. Among the topics:

Desired area or areas
Required School Districts (if applicable)
Number of bedrooms, bathrooms, square feet of home and lot size
Style of home
Remodeled or needing work
Closer to town or open space
Privacy
Price range.

4. The Mortgage Broker.

If you are not currently working with a Mortgage Broker, your Agent will be more than happy to supply you with a few names and numbers, from which you can select who you want to work with. After meeting with your Mortgage Broker you'll be able to decide which type of loan best suits your needs and how large of a loan you can comfortably live with. Your Mortgage Broker will supply you with a pre approval letter based upon the review of your credit information, you are pre-approved to buy your new home up to a certain dollar figure. You will need to give a copy of this letter to your Agent for your file. Once you have identified your new home and are ready to make an offer, this letter will be included in your offer, insuring you a “leg up” over any other buyers.

5. Finding the house that you want.

Communication is key!
Your Agent will screen and preview homes for you daily, as they come on the market, insuring you the first opportunity of buying your new home and being ahead of the competition.
After previewing the possible new homes and rejecting those that won't work for your specific needs, your Agent will e-mail you copies of the listings along with pictures. It is very important that you review the listings and let the Agent know which you would like to see and when. It is also very important to let the Agent know why you have selected some and not others. This will assist the Agent in refining his search parameters for you. Remember communication is key for both you and the Agent.
Your Agent will arrange for the previously agreed to appointment times to show you the selected properties. After seeing the properties selected, it is very important to communicate with the Agent your impression of the home and why it will or won't work for you. As the process continues, the focus narrows, until you find that perfect home!

6. Writing the Purchase Offer

To insure your offer is the strongest offer possible, your Agent will contact the Listing Agent to determine any special needs or desires the sellers are looking for; i.e., a shorter time to close escrow vs. a longer escrow period, do they want to take their appliances with them, etc.
Once your Agent has gotten every bit of information that will give you the edge over anyone else wanting to purchase the property, he will sit down with you and go over the seller's wants and needs, as well as your wants and needs. He will also go over what contingencies there are in the contract and describe them to you in detail; i.e., the ramifications of taking too long to remove these contingencies and the ramifications of making the contingency time frames too short. He will also explain inspections to be ordered; i.e., Property Inspection, Roof Inspection, Pest Inspection, etc. After meeting with your Agent, he will structure the strongest offer possible meeting your needs.
Your Agent will then write the offer to Purchase, meet with you and go over every paragraph in the Contract, until he is satisfied that you completely understand what you're signing and agreeing to do per the contract.

7. Schedule Inspections.

Agent might schedule inspections early on the assumption that you will get the house.

8. Submitting the Offer.
The offer is submitted to the Listing Agent. This should be done in person, so your agent has the chance to explain the stronger parts of the offer, or any part that might need explaining.

9. The Counter Offer.

If original is not acceptable to the seller, the Listing Agent will make a written Counter Offer. This might be because the price offered was too low, or because of other terms of the Purchase Agreement. (This may extend to additional counter offers by both parties until the offer is acceptable to both, or until one of the parties fails to respond and the process is terminated.

10.Congratulations – Your Offer Has Been Accepted

Now that your offer is accepted (signed by seller and delivered back to your agent), a number of things begin to happen all at once, and a TIMELINE is put into motion, where both the buyer and the seller have specific obligations to perform according to the terms of the contract. On the buyer’s side, this will typically include:

11.Opening Escrow.

The purpose of an escrow is to enable a buyer and seller to deal with each other without risk. Before title to the property can be transferred to the new buyer, the seller must be paid, the seller's old mortgage paid off, a new loan must be obtained by the buyer, and any other liens on the property must be paid off. All responsibility for handling funds and documents is delegated to the escrow holder, a neutral third party, which is usually a title insurance company or escrow company. Your title insurance officer can answer many of the frequently asked questions about title insurance and preliminary reports. In a simple transaction, the buyer delivers the agreed upon funds to the escrow holder. The buyer also instructs the escrow holder to deliver to the seller the stated sum only after all conditions have been met, and title is vested in the buyer. Concurrently, the seller deposits his deed and other documents with the escrow holder, authorizing their delivery when the buyer has deposited the agreed purchase price. The contracting parties deposit funds or documents with the escrow holder, for delivery to the respective parties upon performance of all conditions of the agreement.
12.Buyer’s Inspections.

Most contracts provide that the buyer may, at his own expense, have the house inspected by professionals of his choice. Typical inspections include pest (termite) inspection, property inspection (includes electrical, plumbing, heating systems), roof inspection, sand chimney inspection. These inspections may reveal defects which were not evident to the buyer, and which were not disclosed in the seller's disclosure statement. Depending upon the terms of the contract, the buyer may request the seller to either fix the defect, or provide funds so that the buyer can correct.

13.Title Report and Title Insurance

In California the title of the property is searched by a title company and a preliminary report is issued on the condition of the title, for the buyer's approval. The report would include such information as present ownership, legal description of the property, any existing liens or unpaid taxes, any easements, and other covenants, conditions, or restrictions. A policy of title insurance will usually be issued at close of escrow. A title insurance policy insures the buyer's interest in his purchase, and the priority and validity of any loan. It is a contract to indemnify against loss through defects in the title.

14.Loan Approval

The buyer is responsible for applying for his loan. When the buyer's loan is approved and documents are ready for signature, the lender delivers the documents to the escrow holder, usually a week or more before the closing date. The buyer signs all loan documents ahead of the closing date, and the seller signs the deed a few days before closing. One or two days before closing the buyer delivers the remainder of the down payment to the escrow holder. To avoid delaying the closing, the buyer should transfer his down payment funds to a local bank well ahead of close of escrow.

15.Loan Approval and Close of escrow

You, the buyer, are responsible for applying for your loan within the time specified in the Contract. When your loan is approved and documents are ready for signature, the lender delivers the documents to the escrow holder, usually a week or more before the closing date. Your Agent will contact the escrow holder to arrange a time convenient with your schedule for you to sign all of the necessary documents. At this time, you must deliver (in the form of a cashier's check) the remainder of your down payment to the escrow holder.
Your Agent will accompany you at this meeting with the escrow holder, to insure all goes smoothly.

16.Funding and Recording

When the lender has funded the loan, this information will pass to the title company. They will then record the change of ownership with the county.
Your agent will then give you the key to your new home! Congratulations!

Eduardo Gutekunst is a Marin County Real Estate agent and works for Frank Howard Allen Realtors, the top Real Estate Company in the area and a county fixture for nearly 100 years. Eduardo is about as native to Marin County as one can be, having first moved to the county from San Francisco when he was two years old. He has lived in Marin County all his life, and is familiar with its history and its communities ever since he was a child here in the 50’s. There’s hardly a nook or a cranny he isn’t familiar with, and he has walked or biked through most of its parks and open land. If you’re looking to buy or sell real estate, or you’d like to find out just about anything about Marin, give Eduardo a call. He’s available any day of the week. Try him at Frank Howard Allen’s San Rafael office, 415-258-4115, or give him a ring on his cell phone 415-939-2308.



Home About Marin Home Search Buyers Sellers Mortage Calculator County Information Community Services Schools Map of Marin Testimonials About Eduardo Contact Me	The Buying Process 1. Find an agent you trust and enjoy working with. 2. Determine the optimal method of communication with your agent (telephone, email, etc.) 3. Define the criteria for your new home to your agent. Among the topics: Desired area or areas Required School Districts (if applicable) Number of bedrooms, bathrooms, square feet of home and lot size Style of home Remodeled or needing work Closer to town or open space Privacy Price range. 4. The Mortgage Broker. If you are not currently working with a Mortgage Broker, your Agent will be more than happy to supply you with a few names and numbers, from which you can select who you want to work with. After meeting with your Mortgage Broker you'll be able to decide which type of loan best suits your needs and how large of a loan you can comfortably live with. Your Mortgage Broker will supply you with a pre approval letter based upon the review of your credit information, you are pre-approved to buy your new home up to a certain dollar figure. You will need to give a copy of this letter to your Agent for your file. Once you have identified your new home and are ready to make an offer, this letter will be included in your offer, insuring you a “leg up” over any other buyers. 5. Finding the house that you want. Communication is key! Your Agent will screen and preview homes for you daily, as they come on the market, insuring you the first opportunity of buying your new home and being ahead of the competition. After previewing the possible new homes and rejecting those that won't work for your specific needs, your Agent will e-mail you copies of the listings along with pictures. It is very important that you review the listings and let the Agent know which you would like to see and when. It is also very important to let the Agent know why you have selected some and not others. This will assist the Agent in refining his search parameters for you. Remember communication is key for both you and the Agent. Your Agent will arrange for the previously agreed to appointment times to show you the selected properties. After seeing the properties selected, it is very important to communicate with the Agent your impression of the home and why it will or won't work for you. As the process continues, the focus narrows, until you find that perfect home! 6. Writing the Purchase Offer To insure your offer is the strongest offer possible, your Agent will contact the Listing Agent to determine any special needs or desires the sellers are looking for; i.e., a shorter time to close escrow vs. a longer escrow period, do they want to take their appliances with them, etc. Once your Agent has gotten every bit of information that will give you the edge over anyone else wanting to purchase the property, he will sit down with you and go over the seller's wants and needs, as well as your wants and needs. He will also go over what contingencies there are in the contract and describe them to you in detail; i.e., the ramifications of taking too long to remove these contingencies and the ramifications of making the contingency time frames too short. He will also explain inspections to be ordered; i.e., Property Inspection, Roof Inspection, Pest Inspection, etc. After meeting with your Agent, he will structure the strongest offer possible meeting your needs. Your Agent will then write the offer to Purchase, meet with you and go over every paragraph in the Contract, until he is satisfied that you completely understand what you're signing and agreeing to do per the contract. 7. Schedule Inspections. Agent might schedule inspections early on the assumption that you will get the house. 8. Submitting the Offer. The offer is submitted to the Listing Agent. This should be done in person, so your agent has the chance to explain the stronger parts of the offer, or any part that might need explaining. 9. The Counter Offer. If original is not acceptable to the seller, the Listing Agent will make a written Counter Offer. This might be because the price offered was too low, or because of other terms of the Purchase Agreement. (This may extend to additional counter offers by both parties until the offer is acceptable to both, or until one of the parties fails to respond and the process is terminated. 10.Congratulations – Your Offer Has Been Accepted Now that your offer is accepted (signed by seller and delivered back to your agent), a number of things begin to happen all at once, and a TIMELINE is put into motion, where both the buyer and the seller have specific obligations to perform according to the terms of the contract. On the buyer’s side, this will typically include: 11.Opening Escrow. The purpose of an escrow is to enable a buyer and seller to deal with each other without risk. Before title to the property can be transferred to the new buyer, the seller must be paid, the seller's old mortgage paid off, a new loan must be obtained by the buyer, and any other liens on the property must be paid off. All responsibility for handling funds and documents is delegated to the escrow holder, a neutral third party, which is usually a title insurance company or escrow company. Your title insurance officer can answer many of the frequently asked questions about title insurance and preliminary reports. In a simple transaction, the buyer delivers the agreed upon funds to the escrow holder. The buyer also instructs the escrow holder to deliver to the seller the stated sum only after all conditions have been met, and title is vested in the buyer. Concurrently, the seller deposits his deed and other documents with the escrow holder, authorizing their delivery when the buyer has deposited the agreed purchase price. The contracting parties deposit funds or documents with the escrow holder, for delivery to the respective parties upon performance of all conditions of the agreement. 12.Buyer’s Inspections. Most contracts provide that the buyer may, at his own expense, have the house inspected by professionals of his choice. Typical inspections include pest (termite) inspection, property inspection (includes electrical, plumbing, heating systems), roof inspection, sand chimney inspection. These inspections may reveal defects which were not evident to the buyer, and which were not disclosed in the seller's disclosure statement. Depending upon the terms of the contract, the buyer may request the seller to either fix the defect, or provide funds so that the buyer can correct. 13.Title Report and Title Insurance In California the title of the property is searched by a title company and a preliminary report is issued on the condition of the title, for the buyer's approval. The report would include such information as present ownership, legal description of the property, any existing liens or unpaid taxes, any easements, and other covenants, conditions, or restrictions. A policy of title insurance will usually be issued at close of escrow. A title insurance policy insures the buyer's interest in his purchase, and the priority and validity of any loan. It is a contract to indemnify against loss through defects in the title. 14.Loan Approval The buyer is responsible for applying for his loan. When the buyer's loan is approved and documents are ready for signature, the lender delivers the documents to the escrow holder, usually a week or more before the closing date. The buyer signs all loan documents ahead of the closing date, and the seller signs the deed a few days before closing. One or two days before closing the buyer delivers the remainder of the down payment to the escrow holder. To avoid delaying the closing, the buyer should transfer his down payment funds to a local bank well ahead of close of escrow. 15.Loan Approval and Close of escrow You, the buyer, are responsible for applying for your loan within the time specified in the Contract. When your loan is approved and documents are ready for signature, the lender delivers the documents to the escrow holder, usually a week or more before the closing date. Your Agent will contact the escrow holder to arrange a time convenient with your schedule for you to sign all of the necessary documents. At this time, you must deliver (in the form of a cashier's check) the remainder of your down payment to the escrow holder. Your Agent will accompany you at this meeting with the escrow holder, to insure all goes smoothly. 16.Funding and Recording When the lender has funded the loan, this information will pass to the title company. They will then record the change of ownership with the county. Your agent will then give you the key to your new home! Congratulations! Eduardo Gutekunst is a Marin County Real Estate agent and works for Frank Howard Allen Realtors, the top Real Estate Company in the area and a county fixture for nearly 100 years. Eduardo is about as native to Marin County as one can be, having first moved to the county from San Francisco when he was two years old. He has lived in Marin County all his life, and is familiar with its history and its communities ever since he was a child here in the 50’s. There’s hardly a nook or a cranny he isn’t familiar with, and he has walked or biked through most of its parks and open land. If you’re looking to buy or sell real estate, or you’d like to find out just about anything about Marin, give Eduardo a call. He’s available any day of the week. Try him at Frank Howard Allen’s San Rafael office, 415-258-4115, or give him a ring on his cell phone 415-939-2308.