If you're looking to buy a house in Boca Raton Florida or south Florida, this will give you a good idea of how a real estate transaction progresses from beginning to the end.
FIRST THING YOU SHOULD DO
The first thing you should do is interview buyer's agents. Buyers tend to get confused on the role buyer's agents play and how they work. A Buyer's agent will cost you nothing. When you call the name on the sign, that is the listing agent. That listing agent has a contract with the Seller to get them the highest price possible for their home. Why then, would you think they are working for you? They're not. And, no, you won't save any money on the commission either. What happens is the listing agent will collect a double commission from the Sellers at closing.
The same thing goes for new construction. Should you hire a buyer's agent for new construction? Absolutely yes! The nice people in the sales office work for the builder, not you. They just want to sell you a house. They aren't going to tell you if the other community may be more to your liking.
So do yourself a favor and find yourself a buyer's agent you like and feel comfortable with. They will work for you, the buyer.
GET YOURSELF PRE-APPROVED
If you're planning to take a mortgage, get yourself preapproved. This step is vitally important before you start looking for houses. Why bother to look at a $ 500,000 house if you're only preapproved for $ 450,000? Your buyer's agent should be able to give you names of mortgage brokers or you may have a relationship at a bank with someone already. Whatever - just get it done because if you find a house you love, we need that pre-approval to submit along with your offer.
If you're paying cash, all you will need is proof of funds. A bank statement, letter from your bank, something to show there are funds to cover the purchase will suffice.
LET'S LOOK AT HOUSES
Now that you've found your buyer's agent and gotten yourself pre-approved for a mortgage (yes, it's necessary!), you're ready to look at houses. Your buyer's agent will research houses according to your wish list, make all the arrangements and you're off. Let's go look at houses.
You may find a house on the first day out or it may take some time. Your buyer's agent is committed to you and you should be to her or him. They will work faithfully to find you the house you are looking for. If time is of the essence to you, you need to let your agent know. Let your agent know if you want to look in gated communities or you prefer non-gated communities.
SUBMIT AN OFFER
Great, you found a house you love! Now it's time to submit an offer. Your buyer's agent will go through the details with you prior to writing it up. In Florida, we have preprinted fill-in-the-blank contracts with addendums written by the Florida Bar and the Florida Association of Realtors. It may be different in the state you're coming from where attorneys write the contracts. In Florida, the real estate agents write the offers which, if accepted by Sellers, become the contract. Attorney Review, if requested, is done after the contract is signed.
This is where your pre-approval comes into play. If we submit an offer without a preapproval or proof of funds (for cash offers), the listing agent will come back to us and ask where it is. Sellers want to know you have the money to back up the offer.
ACCEPTED OFFER
Your offer has been accepted. Now it's time for inspections. You may have an inspector or your buyer's agent may recommend a few of them to you. Florida doesn't require you use an attorney, but I always recommend to my buyers they hire one. This may be one of the largest purchases you make in your lifetime. Now is not the time to be penny wise and dollar foolish, as the old saying goes.
INSPECTIONS
As soon as we have an accepted offer, we have what is known as an Effective Date in Florida. That is the day the clock starts ticking. It is time to schedule inspections. Of course, you will want to do a home inspection. Depending on the type of house you're buying, you may also want to do a mold inspection (if you're very sensitive), a wind mitigation inspection because this will save you money on your insurance, a 4-point inspection for an older home, a dock or seawall inspection if you are buying a home with a private dock.
APPRAISAL
If you're taking a mortgage, the bank will require an appraisal. This is to ensure the house is worth what their lending you. What happens if the house doesn't appraise? You have options your buyer's agent will discuss with you.
MORTGAGE COMMITMENT
Once you're got your mortgage commitment, it's usually just a matter of waiting. Your lender may ask for more documentation. Don't go and make any large purchase during this time. Now is not the time to buy a new car. We are waiting for a clear to close. Once we have that, the closing can be scheduled.
CLOSING
Closing, or settlement as it's known in other states, takes place in the county the house is located in. Closing disclosures will be provided prior so you know how much money to wire in to the closing agent. Everyone needs to make sure the closing disclosure is correct.
CONGRATULATIONS!
You're closed!
If you're looking to buy or sell a home in Boca Raton, Delray Beach, Boynton Beach, Highland Beach, Deerfield Beach or the surrounding areas of south Florida, please contact me. I have been in the Boca/Delray/Boynton Beach area for 24 years and know all the pet-friendly communities and condos that will allow you and your beloved animals. Call/Text (561) 716-7824 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
