Process at a glance
Let's review the road ahead to be aware of what comes next and to avoid surprises.
Step 1: Earnest Money Deposit
Simple! I use TrustFunds allowing the earnest money to be paid electronically. This saves you the trouble of making a drop-off at the title company's physical location (or worrying about mail).
An email will be shared for the payment to be submitted. Secret Word = REAL
IMPORTANT INFORMATION ABOUT INSPECTIONS
KNOW BEFORE YOU BOOK OR LOOK AT REPORTS!
An inspection is a critical part of your due diligence process to confidently close on a home and represents an opportunity for a "second negotiation" for material defects in the property.
However, with hundreds of deals of experience under our belts as a team, here are some key pieces of information you MUST understand and take into account during this process to prevent some extremely common missteps that have blown up transactions and caused unnecessary stress for both the buyers and the sellers.
ABOUT INSPECTORS
We always recommend inspectors who are experienced and tend to find a LOT of issues.
We want you to have the kind of inspectors that listing agents don't like because they know they will turn over every rock and look at every detail.
When hiring an inspector, they WILL find things. Even if the home is new construction.
Some key points about inspectors:
Inspectors are not specialists; they are generalists. They will call out issues on a roof, for example, but they are not roofers, and it may or may not be a severe issue. It may require further due diligence.
Inspectors will call out when things are not up to code, in most cases the contract will require the seller to provide a separate municipal inspection granting occupancy.
Inspectors will call out and sometimes highlight even the most minor issues, knowing full well it's "not a big deal" even though it may seem that way on paper. They are just thorough and want to account for every detail (and in all honestly avoid being sued for an unreported minor issue).
Some common items that are on most inspections and might be concerning but are often minor issues:
"Bonding" issues with water line and breaker box
GFCI issues (ground fault outlets are inexpensive and relatively easy to install)
Double-lug breakers
Wear and tear on roof tiles
Code issues such as not having a GFI on a garage outlet
No expansion tank or drain pan on water heaters
Minor leaking or slow drains in bathroom and sink areas
There are many more of these, but best advice I can give when approaching inspection negotiation is to focus on the "larger ticket" items.
That is what we want to think of when we look at a report: focusing LESS on the small stuff and hunting for big stuff such as structural and major issues that could constitute thousands in repairs or remediations that you did not know about readily during the negotiation/showing process.
Remember that goodwill is a valuable resource in a transaction and to spend goodwill and seller patience on beating them up over a $15 repair might make things harder if you want some grace down the line, such as moving a few boxes in early, tweaking closing dates, etc.
The reality is homes are lived-in, used items and the quickest path to torpedoing goodwill and creating a contentious escrow period that might blow up the contract is to start nitpicking the smaller inspection items that are normal for most homes.
To summarize and give you something you can revisit during this process, review the Do's and Don'ts of being a buyer during property inspections below.
Step 2: Schedule Home Inspections
Inspections need to be scheduled pretty much immediately after going under contract to ensure the inspector can visit the property and reports can be issued within the allotted timeframe. Schedule them quickly and for the soonest date available.
Here is some information about what home inspection responses look like, including when/why/how we schedule them and respond to them.
DO AND DON'T GUIDE FOR BUYERS
Be a smart buyer focused on the right things during inspections; read and consider these hard-won tips so you can win on the big items and have a less-stressful escrow period.
Helpful Tip: Consider a Home Warranty
I like Achosa because I have a great contact inside the company, they let you choose your own provider, and feedback from clients has been great. I get NO kickback or bonus for recommending them. We can negotiate for a warranty to be provided or you can purchase one outright at closing.
Next Up: Loan Commitment
Lenders truly drive the car after the contract is signed. Just a reminder to keep in touch with your lender, provide them documents promptly, and do not do anything significant, financially, without asking them first. Big debts OR windfalls can damage a loan-in-progress. Questions? Let me know!
The Real Ultimate Moving Guide
Are you detailed oriented person wanting to ahead of the game?! Check out this comprehensive, week-by-week moving checklist covering everything from 8 weeks before move-in through the first month in the new home.
Finally: Closing Day!
Getting here is the goal! We will discuss more about closing day readiness in the weeks to come but the ultimate objective is now in sight and better yet on the calendar!
