A Deep Dive Into The Home Buying Process
The Buyer’s Consultation
Are you thinking about buying a home within the next year? It’s not too early to have an initial buyer’s consultation. This is where we will learn about your hopes and dreams for buying your first home, moving to a larger home in SLO County, or even purchasing your retirement home. We will discuss your needs, timeline, and where you are currently in the process. From there, we can provide you with an overview of the home-buying process and a recommendation for the next steps to make your home-buying dreams a reality.
Financing
One of our first recommendations will be for you to talk to a lender so you can figure out how much you can afford and also start the pre-approval process. This is a very important step in the home-buying process so that you can make a strong offer when the time comes.
Can you imagine finding your dream home but not being ready to write a competitive offer because you don’t have a pre-approval letter? It happens more than necessary. We can get you connected with a reputable local lender to start the pre-approval process.
Maybe you need to sell your current home before purchasing a new home. There are also some creative solutions here like bridge loans, HELOC, contingencies, etc. We can discuss what’s best for your specific situation and start the process so that all the pieces can fall into place at the right time.
When scheduling your initial buyer’s consultation, there is no commitment. It’s a chance for you to learn about the process and for us to meet. Buying a home is one of the largest purchases in your lifetime and you’ll want to be sure you choose a partner you can trust to guide you along the way.
Next up…
The Home Search
When the time comes to start your home search, we will help to curate a list of homes that best fit your stated needs. We know this is an evolving process and will work with you to revise search criteria throughout to help make the process as efficient and low-stress as possible. From open houses to private property tours, we will look at properties with you - reminding you of the non-negotiables you may have identified, noting property drawbacks or challenges, and/or envisioning a property’s potential. You will always receive honest and experienced feedback throughout this process so that when you ultimately decide to write an offer, you will feel confident in your home-buying decision.
Compass also has a few proprietary tools to elevate your search:
Collections - Accessed through the Compass app, this is the curated search results based on your criteria. It has a Pinterest board feel and allows us to collaborate on your search. You can comment about a specific property, mark a favorite, or remove properties that aren’t a good fit.
Private Exclusives - These are off-market properties around San Luis Obispo County that are listed exclusively by other Compass agents. There can be multiple reasons that a seller doesn’t want to list their home on the MLS (the large search engine that all the Realtors® and online companies use). Access to these homes gives you early access to properties that may be coming soon or sold completely off-market.
So you’ve found the one, now what?
Writing Your Offer
Now that you’ve identified the home that checks most of your boxes and you see yourself living there, here is where the value of an experienced and strategic Realtor® really comes into play. In a competitive situation, where you may be competing against multiple offers, our job is to help you win the property at the best possible price.
Can you imagine finding out that you lost out on your dream home for only $1,000? Our experience has been that we can get most of our buyers into contract by writing only one or two contracts. How do we do that? While each transaction is different, it’s important to understand the seller’s motivations for selling and any terms that may be important to them. Price is usually in the top 3, but there can be other motivators that also carry weight and can strengthen your offer.
How to determine your offer price and terms:
We will review all of the available disclosures and inspection reports, before making the offer, so you know exactly what you are getting into.
We will provide you with a comparative market analysis so you are educated on what similar homes have sold for and what else is currently available. In most situations, we like to provide two of these reports, one with a lot of properties so that you can see the trends and another that is more detailed and includes properties that are most like the subject property.
As your real estate agent, we will get as much information from the listing agent as to the seller’s motivation and any terms that may be important to them. For example, we had one buyer win the property because he was willing to have a very long escrow and the seller wanted to stay for a while but know that his home was sold. In this case, the price wasn’t the most important.
We will coordinate with your mortgage lender to understand any timeline requirements they might have for both the appraisal and loan approval. While it can be important to keep timelines short, we also want to be realistic about how the overall team can perform.
Finally, we will review the full standard purchase agreement by the California Association of Realtors® with you so that you know exactly what you are signing and feel comfortable with the terms.
While the definition of winning the offer likely means that you have paid more than the next best offer (price is often still the largest determinant base as we said, not always), we don’t want you to feel like you’ve overpaid for the house. Taking these steps gives you confidence in your offer and your home purchase based on the current market.
After Your Offer Is Accepted
Once your offer is accepted, escrow is officially open! Typically an escrow period is about 30-45 days, but this can be as quick as 14 days with a loan or even faster for a cash purchase. Our team will put together a calendar with all the key dates and walk you through each step to remove any contingencies.
The escrow period is when you will complete any further investigations - home inspections, insurance quotes, etc. This is also when some further negotiation may occur if new information is discovered. This can result in the seller completing repairs or reducing the price accordingly but it is all negotiable and we are here to guide you.
Your lender will perform an appraisal and underwriting will re-review your approval and request any additional documentation. We will stay in touch with them throughout the process to be sure things are moving along at the agreed-upon timeline.
Our transaction coordinator will also ensure that all of the disclosures and documents related to the sale are reviewed and signed by both the seller and the buyer, as needed. There can be a lot of paperwork when buying a home but our team is here to answer any questions and be sure you understand each document sent to you for signature.
About a week before closing, we will schedule a final walk-through of the home to confirm it’s in the same condition as when you made the offer to purchase. Your lender and escrow will schedule for you to sign final documents with a notary a few days before closing and you’ll transfer any funds for the down payment. We will also send you a list of utility providers so you can reach out and start to set up those accounts for closing day.
Finally, the sale will be recorded on closing day (usually around midday). We will meet you just after with the keys. Congratulations, you’re now building equity in your new home!
After You’ve Purchased Your Home
As a new homeowner, it can feel a bit overwhelming and that is why we are there to be your guide, even after closing. Dwell means “to live in a place or in a particular way”. For us, it conjures up more and represents not only the physical home where you live but a lifestyle, a sense of peace, and a feeling of connection.
Our mission at Dwell Collective is to help you truly dwell in that place and love where you live on the Central Coast. Here are just a few ways we keep working with you, even after you’ve purchased your home:
We would love to be a resource for you to plug into your new community. What’s our favorite beach spot or winery? Happy to share! Looking for a kid-friendly restaurant - we have lots of those too.
You’ll start settling into your home and making it your own. We are always available to consult with you on home improvements that increase your home’s value. If you need a recommendation for an electrician, plumber, or painter - we’ve got one.
Check out our monthly newsletter for home maintenance tips to be sure you are taking care of your greatest investment.
Track the value of your home, just like your stock portfolio. We provide annual home valuations and market updates.
Anything else, just ask! If we can’t help, we’d be happy to point you in the right direction.
