Linda Holley, Realtor with Fine Properties, Provides Planning Tools for Buyers

Step 1 – Get ready to buy a home
What are the most important features in your new home?  Many people decide to live in a certain school district, near the water, or close to Siesta Key, Venice,or Nokomis Beaches.  Whether you are paying cash or getting a mortgage, we will need proof of funds or your lender's pre-approval to be submitted with the contract.  Most Sellers do not want to take their homes off the market for weeks and then the deal falls through because the Buyer does not have the means to purchase the home.  We want your offer to be attractive to the Seller, so proof of funds or a letter of pre-qualification will make a difference in the Seller accepting or rejecting your offer.   

Do you have a home to sell first?   If you do, talk with your accountant so you will know if a 1031 Exchange is required to avoid paying capital gains taxes.   You can pay a big penalty if you don't understand IRS's 1031 Exchange rules.  

Step 2 – Communication
You and I will get together to talk about what you are looking for in a home, where you want to live, and your upcoming plans. We'll discuss everything from pricing, property types, homeowners association dues, school districts in the area, proximity to our beaches, pet, and rental restrictions.  

In addition, I'll help you get started on your loan. professionals whom I know personally and are the best in the business.  Chances are, there is a program that will fit your needs and one of our loan officers will guide you through the loan approval process.  

Step 3 – Begin house hunting
After our initial meeting, I'll start looking for available houses, and will preview the properties to screen those that do not meet your criteria,  I can send you listings and will watch each day for homes just listed that meet your criteria. Some Buyers enjoy doing their own research online and giving me a list of what appeals to them.

 We'll look at properties that match your criteria and price range.

Step 4 – Understand the market
The inventory of homes in the Sarasota area is low, so homes that are priced right and are in good condition sell very quickly.   Some homes are sold within a few days of being entered in MLS.  

I know the market and the neighborhoods!  When we tour houses, I'll let you know when the Seller's asking price has room for bargaining or if the house is overpriced.  It's difficult because some Sellers believe that since the inventory is low, they can get their asking price. My experience as an investor and Realtor and knowing neighborhoods will keep you a step ahead throughout the buying process.

Step 5 – Finding YOUR home
Your home is out there and I know we will find it, and when we do, I'll carefully prepare your offer and include the necessary addendums to protect you.  We will look at the Seller's Disclosure, deed restrictions, condominium/homeowners association documents, and build in the right timeline for inspections.  We may need to addendums for an appraisal, re-inspections if necessary, and discuss if we need a new survey.  You'll need a title search to be sure that you are buying a property with a clean title.  Doing things right may cost you a few extra hundred dollars but it's certainly well worth it in the long run.  Many times I recommend that Buyers I work with use an attorney for closing because they get FREE legal representation through the process.     

New Homes - Sometimes buying a new home makes sense because of the builder warranties.  New developments are popping up around the area.  Builders such as D.R. Horton, Taylor Morrison, Divosta, and Neal communities are going strong in Sarasota county.  Many new home sites are minutes from the beach and great shopping.  If you buy pre-construction, understand your rights if you think you need to terminate your contract.  Realtors selling new homes represent the Seller and NOT the Buyer, so you need your own Realtor in your court looking out for you.  

After your offer is accepted by the Seller, you will submit "earnest money."  How much?  I recommend 5% of the purchase price, $1,000 at the time of the offer and the remainder after the first home inspection.  This way, we don't keep a large sum of your money tied up in the transaction and it also lowers your risk.  You will have 3 days from the effective date of the contract to send in your initial deposit of $1000.  The amount of your escrow is deducted from the purchase price at closing. If your offer is accepted by the Seller, we should close within 30-45 days.  Consumer protection laws changed in 2015 that affect mortgages, so it's important to choose an agent who understands the implications for both Buyers and Sellers.

Step 6 – Negotiate the deal
Counteroffers are common, unless Buyers submit a full-price offer.  We will determine if the Seller's counteroffer is fair and if you should accept, present your own counteroffer, or refuse the Seller's offer and go on.  Negotiation skills are important, but some Sellers have overpriced their properties and are not realistic. From my experience, there are homeowners who owe more on their homes than it's worth if they bought during the "bubble" in the early 2000's.    

Multiple offers. With our shortage of inventory, many times more than one Buyer submits an offer.  That process may require that all Buyers submit their "highest and best," offer for consideration.   It's a bidding war that some Buyers prefer to avoid.  In this process, there is always a winner and a loser.

Step 7 – Secure a loan
Once we have a contract, you will work with your mortgage lender to close the loan.  With the new laws as mandated by the Consumer Financial Protection Bureau (CFPB) that are effective October 2015, the buying process can take over 45 days.  There are strict timelines that all parties need to follow, otherwise the loan process starts all over and no one will be happy.  Do stay in close contact with your lender and I'll take care of all the property information your mortgage lender needs to close the loan.

Step 8 – Closing costs 
You'll get a Good Faith Estimate (GFE) detailing your closing costs from your mortgage lender within three days of receiving your application. This estimate uses loan amount, and RESPA requirements dictate that it must show closing costs and fall within a close range of accuracy. I'll review the estimate and let you know if everything looks adequate.

Then we'll close on your home and will most often be a smooth and hassle-free occasion.  

Step 9 – Moving in
You made it!  Now you can move into your new home. I'll stay in touch, but be sure to call me for any real estate questions at 941-914-4914 or send me an e-mail.