Home Buyer's Guide: Home Buying Steps

STEP ONE
Choose and Meet Your Realtor
Building a solid relationship with a realtor is important. He or she will be working closely with you in finding the perfect home to meet your unique needs. Professional realtors have the extensive market knowledge and will provide guidance in your buying process.

STEP TWO
Finding the Perfect Home
Your realtor will show you homes based on the criteria that you have given him. The more precise and direct you are with your realtor, the more successful your search will be.

STEP THREE
Determine the Seller's Motivation
Once you have found your perfect property, your realtor will research the homeowner's motivation for selling, helping leverage your negotiating power in an offer to purchase.

STEP FOUR
Offer to Purchase
Your realtor will draft a purchase agreement, advising you on customary practices, local regulations, and protective contingencies. You will need to provide an "earnest money" deposit at the time, usually ranging from 1% to 3% of the purchase price (deposit amount is not cashed until after an offer is accepted by the seller).
Your realtor will present your offer to the seller's realtor. The seller will then either accept your offer, counter your offer, or reject your offer.

STEP FIVE
Seller's Response
You and your realtor will review the seller's response. Your realtor's knowledge of the process and strong negotiating skills will help you reach an agreement you feel good about.

STEP SIX
Open Escrow
Your realtor will open escrow for you once the purchase agreement is accepted and signed by all parties. Your "earnest money" will be deposited at this time. All funds associated with your transaction, either held, received, or distributed, will be handled by your escrow company.

STEP SEVEN
Contingency Period
This time period is determined by your purchase agreement and is used to obtain and perform the following items:
  • Physical Inspection of Property
  • Property Pest Inspection
  • Property Appraisal
  • Secure a Lender
  • Obtain Loan Approval
  • Approval of Seller's Transfer Disclosure Statement
  • Preliminary Report Approval from the Title Company
  • Satisfy Purchase Contingencies

STEP EIGHT
Homeowner's Insurance
Your realtor will work with your escrow and insurance agent to ensure policy is in effect by the close of escrow.

STEP NINE
Down Payment Funds
Prior to the closing date of escrow, you will need a cashier's check or wire transfer.

STEP TEN
Close Escrow
You will sign all documents and closing papers when all conditions of the purchase agreement have been met. After you deposit the balance of your down payment and closing costs with the escrow holder, your lender will deposit the balance of the purchase price. The County Recorder's office will record the deed, and you will take ownership of your home.