In this first step, the professional Realtor will cover

• the home buying process,
• determine the Buyer's purchasing power (also called qualifying),
• discuss the Buyer's needs and/or desires in detail, and
• also explain Agency (who the Realtor will work for).

 The professional Realtor will ask you a series of questions about your income and debt. You need to be very accurate about this information because it will come back to haunt you otherwise. The Realtor is bound by both Georgia Law and the Realtors Code of Ethics to keep the information you provide confidential and only reveal it with your permission. If this is a preplanned meeting, the professional Realtor will probably invite a Loan Officer to join the meeting. This will be a good opportunity to find out details of the various types of loans available to you. You may find that more than one type of loan fits your unique needs. You should also discuss the advantages of getting loan approval before finding that perfect home. Being preapproved puts the Buyer in a very strong negotiating position and your Realtor will explain this in detail.

Many buyers are unfamiliar with whom the Realtor works for. Historically, the Realtor worked only for the Seller and anything the Buyer said or did had to be provided to the Seller. Clearly, the Agent was only working for the best interests of the Seller.

Times have changed. In this area, we have Buyer Representation (Buyer Agency) available and almost all home buyers opt for this form of representation. With Buyer Agency, the Realtor is working for the Buyer only. Anything the Buyer may say is confidential and cannot be revealed to the Seller without the Buyer's permission. Also, anything the Seller says or does must be provided to the Buyer.

Now it's time to get in the car and go see some homes. The professional Realtor will have prepared a selection of homes, based on your needs and/or desires, and will take you around to see them. Things you should keep in mind while looking for that perfect home.

• Evaluate the neighborhood when you drive in.
• Does it look nice? Does the landscaping look trim and neat?
• Is the shopping too far or close? Where are the schools?
• Does the neighborhood give you a feeling of a place you'd like to live?

 Wise home buyers will also make loan application very early in this step (preferably before even going out to look). Obtaining loan approval before finding a home and making the offer to purchase empowers the Buyer Agent and significantly enhances the Buyer's bargaining power. Step 3 will cover this in greater detail.

You have found the perfect home and now you need to make an offer to the seller. Your professional Realtor is going to cover many items during this stage such as: current market, financing, contingencies, etc. Your Agent has a wealth of information available to make this step easy for you.

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• The asking price -- is it in line with prices of other homes that have sold in the same area?
• The home's condition -- does the home need work (other than cosmetic)?
• How long has the home been on the market and is it vacant? If it's been for sale for a long time and/or the seller has moved, the seller may be more eager for a contract.
• Is the home in your price range? Can you really afford it?
• Most Important!! How much do you want the home?

The Buyers Agent will discuss various types of contingencies that may be appropriate to include in the offer. Items such as

• home inspections,
• financing,
• coinciding settlements,
• rent back agreements are just a few of the more common contingencies.

Now we begin the give and take part of negotiation. Your professional Realtor will present your offer to the Seller and the Sellers Agent. Depending on what kind of offer you make on the property, the amount of closing costs you request the Seller to pay on your behalf, and any other contingencies/considerations you desire, the Seller may not accept your initial offer and will make a counter offer. Your Agent will discuss this as well as any pros and cons that might impact you. At this time, the Buyer may decide to accept the Sellers counter offer or may choose to counter back to the Seller. It is possible that the offers, counter offers, counter counter offers, etc. might go on for several days on uniquely difficult cases. This is a tense time for all concerned, try not to get stressed out. You will make a better decision if you remain calm and carefully look at both the Sellers' and the Buyers' side of the issue. Keep fairness in mind and do not become emotional. A meeting of the minds will finally take place and everyone will be in agreement. At this point, we have a ratified contract and can begin the next step.

During the next approximately 10 days, a number of important actions will begin to take place simultaneously.

 We will presume you have made loan application. At this time the lender will order an appraisal. The appraisal is a professional opinion of the value of your home. The Appraiser will examine your home and compare it to homes that have sold within the last six months within the same area. These limitations are necessary in order to get an apples-to-apples type of comparison. Your lender will choose a reliable Appraiser to perform this analysis and you will be provided a copy later. If the appraisal comes in low, further negotiation may be necessary. If it comes in high, the Buyer can be happy he got a lot of value for his money. In most cases, an appraisal must equal or exceed the sales price in order for the lender to go forth with the loan.

 A home inspection, done by a professional Home Inspector, is highly recommended and well worth the money spent. The Buyers Agent will offer several good inspectors for the Buyer to choose from. This inspection will take place within a very short period (seven to ten days) after ratification. If no meaningful flaws are found, that's great, on to settlement. If flaws are found, several options come up. The Buyer may elect to do nothing. The Buyer may elect to ask the Seller to fix the flaws. The Seller may opt to fix or not fix the flaws. It is possible that further negotiation may be necessary at this step. Your Agent will help and guide you through this part of the maze. Remember one important point, all homes (even new homes) will have flaws of one kind or another in them. Look carefully at the flaw and evaluate it's importance. Don't make a mountain out of a mole hill. A dent in the downspout is more cosmetic than critical and a faulty wire in the circuit breaker panel is more critical than cosmetic. There are other types of environmental inspections that a Buyer may want to consider -- please see General Home Inspections,Environmental Inspections, and  Other Inspections/Disclosures.

At this point, the Buyer is going to wonder why no one is talking to them any more. Many behind-the-scenes actions are now in progress. The Buyer will not see most of these. The settlement company is checking for a clear title and coordinating with the loan company. The loan company is checking the appraisal, finalizing the loan paperwork and coordinating with the settlement company. Both the Buyers Agent and the Sellers Agent are in touch with each other and also with the settlement and loan companies ensuring that no balls are dropped and that all the blocks are being checked. The Buyers Agent is making lots of phone calls now and occasionally forgets to provide that periodic update to the Buyer. Buyers, don't get upset, merely make a short phone call to your agent and ask for a progress report. Be sure to contact your insurance company to purchase a homeowners' policy for your new home (lenders only require hazard/fire insurance; however, we're sure you'll want a homeowners' policy to cover your personal property as well as liability in your new home). Provide a copy of the declaration page/policy with paid receipt for one year to your lender at least two weeks before settlement. See Moving Tips.

This inspection, also called the "walk-through," is usually done either the day before settlement or the day of settlement. During this check, the Buyer is to assure himself that the property is in essentially the same condition as when the offer was made and accepted. This check doesn't take long and is done by the Buyer with the Buyer Agent. It is normal for no defects to be noted. After all, the Seller doesn't want any hitches to develop at the 11th hour and 59th minute. Should there be any problems, they can be negotiated at the settlement table.

This is the time when the Buyer signs a big pile of papers and hands over that big check. At last, the keys to house are now in the Buyers hands. Normally, settlement is a boring event, however, sometimes an issue arises. An example would be a leaky faucet found by the Buyer during the pre-settlement inspection. This issue would normally be resolved at the settlement table, thus the name settlement. In this example, the Seller may simply opt to set aside money to have the repair made within a certain time or may opt to arrange for repairs privately. Whatever is decided, it will be in writing and all parties to the sale will sign off on the decision.

Here at last. The day when you move into your home. Buying that home has been relatively painless because you followed the steps above and worked closely with your Realtor. Don't forget to refer your Agent to others who may be contemplating a real estate venture.

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