Step 1: Buyer/Agent Agreement

Before we begin exploring homes, the DRE (Dept of Real Estate) requires a Buyer Representation Broker Compensation Agreement. This ensures clarity in our relationship and sets the agreed-upon fee for my services. To start, we’ll need this agreement signed.

Step 2: Getting a Pre-Approval Letter

A pre-approval letter, also known as a prequalification letter, determines the loan amount you're eligible for. This helps establish your price range and allows me to refine our property search.

Step 3: Previewing Homes

Previewing homes is an exciting yet time-consuming part of the process. Our goal is to find the perfect balance between your housing needs, desires, and budget. Successful homebuyers use these strategies:

• See as many houses in person as possible.
• Be open to exploring new neighborhoods.
• Don’t worry about how long a property has been on the market or its level of interest.
• Be available to visit new listings as soon as they hit the market.
• Consult with me to ensure a property is within your budget before falling in love.

Note: Bay Area list prices are often set low to attract offers, driving up the final price.

Step 4: Disclosure Review

Once we identify a home you're interested in, I’ll request its disclosure package. These documents provide a comprehensive picture of the property’s history. The disclosures will contain detailed information covering:

Physical Property Condition: Details on active issues, past issues, maintenance, improvements, and natural hazards from sellers and third-party inspectors.

The Legal Property Description: Title reports (confirming the seller's right to sell) and public records (detailing property size, age, and any other rights like easements or liens).

We'll review these disclosures separately and then discuss them together. I'll summarize key points, address any concerns, and seek additional information if needed.

Step 5: Writing an Offer

When you're ready to make an offer, we’ll customize it for the property. Key considerations include:

• Offer price: I’ll provide comprehensive sales comps, including details on similar properties square footage, age, number of offers, days on market, and listing photos for a better understanding of comparable property condition.
• Escrow period: Determined by the lender; a shorter period is often preferable to sellers.
• Deposit amount: Typically, the earnest money deposit is 3% of the purchase price.
• Contingencies: We can discuss these in detail as we proceed. The three main contingencies are:

1. Appraisal: Option to release from contract if the home doesn’t appraise for the offer value.
2. Loan: Option to release from contract if unable to secure the approved loan.
3. Inspection: Option to release from contract if inspections reveal unexpected issues.

• Expiration period: How long to give the seller to decide on your offer.

Step 6: Accepted offer & Escrow Period

Once we have an accepted offer, we have a short celebratory moment and then get to work. The following actions happen subsequent to an accepted offer:

• Send contract to lender to lock in rate.
• Opening escrow, receiving wiring instructions from escrow officer
• Wire earnest money deposit.
• Contact Home Insurance carrier to set up insurance.
• Provide additional/ current documentation for income and assets to Lender
• Perform inspections if part of the purchase agreement
• Appraisal by Lender
• Complete disclosure package signing
• Final Walkthrough
• Loan signing/ Purchase documents signing
• Funds Transfer
• Title recording
• Key Exchange

Opening escrow starts the exchange of money. An escrow company holds the money in a secure location to ensure that the seller gets paid and the buyer receives their home at the end of the transaction.