Steps in the buying process
• The Offer: Any offers you make will be conveyed to the listing agent by your BHS agent. Oftentimes, an offer will lead to some negotiation between the buyer and seller. Your BHS agent will guide you through this process and spearhead the negotiation.
• The Purchase Agreement: Once the buyer and seller agree upon a price, a purchase agreement will be drawn up and sent to the lawyers of both parties. The purchase agreement outlines the transactions terms and conditions.
• Connect with a CT Licensed Real Estate Attorney: By the time you have an accepted offer on a property, you should hire an attorney who will conduct due diligence on the property and handle the closing.
• Earnest Money: Along with the purchase agreement, a buyer may put down earnest money, customarily in the amount of 1% of the sale price. However, this practice may vary depending on the area you are in so consult your agent or attorney for guidance. This check is sent to the seller’s attorney. If there is a mortgage contingency, you will need to apply for financing immediately.
• Contract of Sale: Signed by both parties, and typically 10 percent of the purchase price is put down by the buyer and held in escrow by the seller’s or buyer’s attorney.
• Home Inspection: After a selling price is agreed upon, the buyer will order a home inspection as soon as possible, usually within seven days. Among the items the inspector will assess are the roof, structure of the home, and the heating, air-conditioning, electrical and plumbing systems. After the inspection is complete, buyers have the chance to negotiate with the seller over who will pay for any necessary repairs. Depending on the outcome of the inspection, they may also ask for a concession on the selling price.
• Written Mortgage Commitment: As the buyer, you will often have a mortgage contingency to ensure that financing is approved for the home. A mortgage contingency usually takes approximately 30 days to be resolved.
• The Bank Appraisal: The bank will send an appraiser to verify the value of the house.
• The Closing Date: Early on in the negotiations, a closing date will be agreed upon by the buyers and sellers. While the closing date can vary, it often takes place between 45 and 60 days after an accepted offer.
• The Walk Through: On the day of the closing, the buyers will walk through the house with their agent to make sure there have been no previously unforeseeable changes since the inspection and bank appraisal. A house is expected to be “broom clean” at closing time.
• Closing: The closing takes place and title is transferred from seller to buyer. At the closing you must have verification of insurance on the property for at least the mortgage amount and payment for the balance due on the sales price. This figure is subject to adjustments for taxes, fuel oil, etc. Your attorney will give you the correct amount prior to closing. Bring your checkbook in case minor adjustments are necessary.
