Continuing from last week:

Dear Kathe,

We’re first time home buyers – where do we begin? 

If you’re following along each week, by now you have been pre-approved for a loan, selected a Buyer’s Agent, looked at and selected a Property, made an offer and are negotiating for your new home!

The process of negotiating for a home is one of give and take.  Your Buyer’s Agent should be able to explain negotiating norms in the areas in which you are interested.  For example, in our North Hills communities, Sellers price their homes more tightly and they generally sell in the range of 98% of list price.  If you bring an offer at 90% of list price, you may not even get a response.  In Sewickley, there is often a bit more flexibility.  Keep in mind, however, that price isn’t the only concern.  Closing date is important – if you can’t get the date you want, you may need to pay for temporary housing and storage of your things.  Inclusions are important – if a Seller starts removing things from the home, they are things you may need to spend money to replace and this may affect what you are willing to pay for the home.  You must keep all of this in mind as you try to negotiate to a final Agreement to purchase the home.

Once you and the seller reach a deal, both parties sign the Agreement and you are officially “under agreement.”  At this point, the contract takes over and specifies exactly what you must do next.  Your Buyer’s Agent should lay all of this out for you in easy-to-use timelines.  This is absolutely critical – if you miss deadlines, you could lose your deposit money in some scenarios.  You generally have 1-2 weeks to apply for a mortgage.  Do not delay.  The lending process is quite complex these days – there will be a lot of detailed information requested – this will take you time to compile.

At the exact same time that you are applying for your mortgage, you will also be inspecting your new home (yes, it will be very busy for a few weeks).  More on inspections next week…