| Work With a REALTOR®
A REALTOR® can help you in many ways. Among the most important is that you can have the same representation that a seller has when listing with a REALTOR®. Best yet, this usually costs you nothing. Look here for the advantages of using a buyer's agent .
Custom Search
Once you have figured what you want in a home, what you can afford or want to spend and where you want to be, have your REALTOR® set up a custom search. Within the Austin MLS, I can set up a custom search using your specific search criteria. Every time a new listing that matches your criteria comes on the market or has a status change, you will be notified via email to go to your personalized web page. Using this web page, you can view and manage the listings being sent to you. Want a sample? Just email me with some search criteria and I'll set you up.
The Offer
The first reasonable offer made on a home will most likely get a good response, being either countered or accepted. Make your offer one that will be seriously looked at. Have your REALTOR® do a search for properties that have sold within the last six months that are good comparisons to the home you are making the offer on. This will give you a good idea of the market value of the home.
You will need to write an earnest money check for around 1% of the offer price. If the offer is accepted, this money will be put into an escrow account with a title company. Write in the offer that the earnest money is to be applied to your closing costs.
You should also write a check to the seller for an option period. More on this later.
The sellers will either make a counter offer, reject or accept you offer. You may go back and forth a time or two before having your offer accepted or rejected. If it is rejected, have your REALTOR® request a refund of your earnest money from the title company. If it accepted, it is time for the next steps.
Residential Service Contract
Most sellers will provide a residential service contract (RSC) as part of their closing costs. These are often called home warranties, but they are actually service contracts. The RSC will generally cover central heat and air, electrical, garage door openers, plumbing, garbage disposal, and more. For specific information on a RSC, visit Everything Residential . Companies who provide the service contracts are regulated by the state and are fairly consistent in terms of what is covered. Additional coverages can be provided at an extra cost.
The Option Period & Inspections
If you are buying a resale home, you should ask for an option period of about 10 days. Your option check should reserve this right. During the option period you should schedule inspections. Make sure you use a state licensed home inspector. Your REALTOR® can help you with this. The inspection will look for flaws in the home, anything that needs to be repaired and things not to code. Keep in mind that inspectors are generally extremely thorough. The report will most likely be quite long, but this isn't necessarily anything to worry about.
In Texas you should also have a pest inspection done. Termites are the main concern. If there is a termite infestation, and these are not uncommon, make sure there is nothing major wrong with the structure. If there is, you may want to back out of the contract. If the infestation is minor, ask the seller to pay for treatment.
If the home has is not on a public water or sewer system, you should have the septic system and well inspected. You will pay for these, but these are for your own protection. Learn more about septic systems in Texas .
You will not be the only ones looking at your inspections. Your lender will want to see them as well. Any repairs required by your lender will need to be taken care of. In many cases, you can ask the sellers to pay for these.
As I said, the list of repairs will probably be fairly long. Don't expect the seller to pay for everything. Ask for the major things, like septic system, air conditioning, windows, etc. If you love the home, don't let a bunch of small repair items kill the deal. If the seller agrees to make repairs, make sure they use licensed contractors and get receipts before closing to prove that the repairs have been made.
OK, so you're near the end of the option period. Having cold feet? Find another home you love even more? The option check you wrote buys you the right to terminate your contract for any reason whatsoever as long as you are within the option period.
This is also a good time to gather information about area utility providers. Much of the area will have water, sewer, gas and cable. However, some of the area will have other options such as well water, septic systems, propane tanks and satellite cable. See a list of Austin area utility providers
Contract to Close
After your option period has expired, you are on your way to home ownership. this is the time for you to do some more things. Check with your lender periodically to make sure that she has everything she needs and that everything on her end is being taken care of. Get homeowner's insurance. You won't close without it.
Ask your REALTOR® to get a list of utility providers for you. Have your REALTOR® coordinate with the selling agent the selling agent when to have the sellers turn off the utilities so that you can arrange to have them put into your name and turned on.
During this time, the title company will do behind the scenes work to ensure that you can close on time. The contract to close process is somewhat involved and you will probably not even be aware of what the title company is doing for you. They will do a complete title search, arrange for title insurance and coordinate with your lender to ensure a smooth closing.
During this period you will receive a title commitment in the mail or via email. This is an important document that can be a bit difficult to understand. Learn how to read a title commitment .
Closing
Closing is an exciting day. If you are in town, you will meet with title company closer to review and sign documents. There are a variety of items you will need to provide the title company at or before closing:
Homeowners insurance - make sure the title company has your insurance agent's name and contact information prior to closing.
Proof of repairs - make sure the lender and title company have proof of any lender required repairs prior to closing.
Certified funds - the Texas Department of Insurance requires certified funds at closing. This can be in the form of a cashier's check, certified funds or wired funds. Make the check payable to the title company. Your closing officer should contact you prior to closing with the amount of money needed at closing.
Wired funds - if you want to wire funds, please make arrangements prior to closing with your closing officer.
Identification - don't forget to bring a valid photo ID like a driver's license or passport.
If you will not be present at closing, make sure to coordinate everything needed for closing with your closing officer. Closing via overnight mail are not uncommon. They just need to be carefully planned.
When you are done with all the signing, you will be provided with copies of everything for your records. Keep these in a safe place. Before you leave, don't forget your house keys!
One more thing...Don't forget to file for your Homestead Exemption after living in your home January 1. This can reduce your property tax bill and save you money. Need help with this? Contact me right away.
Questions about Austin Real Estate, Lakeway Real Estate or Lake Travis Real Estate? Call me at 512-293-2422.
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