DIGGS Guide- How To Buy a Home

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How to Buy a HomeThe DIGGS Guide


Money


money first, shop later• Once you cross over from “just looking” to “ready to

buy” you need to nail your finances

• Nothing worse than finding The House and not being able to buy it because your ducks are not in a row


pre-approval

• No seller will take you seriously without one

• Not all letters are equal. Work with a mortgage person that local listing agents trust.


down payment• 20% of the purchase price is ideal

• Less can work, but it is not competitive in today’s market. More is obviously more competitive.

• Consider the Bank of Mom and Dad as your source

• 401k Retirement accounts can also be a source

• You need additional money for closing costs and reserves


Find Your Realtor


do you need one?• If you don’t have your own Realtor you are

automatically represented by the listing agent. This is not always in your best interests.

• There is a huge difference between information and knowledge.

• This is a huge financial asset, and each situation is unique. It is not like buying a commodity like a car.


how are they paid?• The seller pays the commissions for both the listing

agent AND the buyer’s agent.

• The Buyer’s agent is often (but not always!) offered 2.5% of the purchase price.

• The agent isn’t paid a dime until you close escrow on a home. If you don’t buy, the agent makes zero.

• You are not required to pay any out of pocket fees or expenses to have your own dedicated agent.


using the listing agent• This can work, but consider the following:

• Your only value to the listing agent is if you buy THAT home and no other.

• This means the deal is the priority, not you

• The sales price is just the tip of the iceberg. There are dozens of factors that can help or harm you AFTER the sales price is decided.


your agent• Local Expert- the relationships they have with other agents is

critical

• Experienced- surprises are easier for you when your agent knows what to do

• Trained- negotiation is no accident, it is a learned skill

• Resources- who supports the agent? If the agent has lots of support behind the scenes they are able to pay better attention to you.

• Best Practice - Interview your potential agent. Find out where they are on these critical factors


The House


shopping• most online sites pull info from the multiple list

• not all the homes you see are available to buy

• DIGGS uses a very cool site that allows you to search for things like “open floor plan” and gives side by side comparison options

• Click Here to view DIGGS Home Search

https://kendylyoung.realscout.com/agents/sign_in


your agent’s role• since the internet, your agent’s role has shifted from

home finder to your advocate

• you work together as a team to find the home

• negotiations start with the first inquiry

• your agent analyzes each home, gets the back story and positions you to win if you chose that home.


get answers• 65% of all online inquiries go unanswered.

• great houses sell very quickly

• the DIGGS home search tool allows instant text messaging on any home. ask a question, get an answer.

• sign up for the DIGGS Search Tool- it's free

https://kendylyoung.realscout.com/agents/sign_in


The Contract


the price• deciding how much to offer is stressful

• ask your agent to analyze the comparable sales

• how right is this house for you?

• what do you know about the seller’s situation?

• what is your budget?


multiple offers• if you’ve chosen a great Realtor and done your

homework multiple offers are not scary

• make an offer based on what the house is worth to you

• if it is good enough to win the house, great! If not, move on.

• It's that simple


the offer process• Submit a purchase contract and financials

• a seller can consider more than one offer at a time

• seller can accept, reject or counter, one, some or all offers at the same time.

• you can accept, reject or counter

• this process typically goes no more than three steps and takes 3 - 5 days


escrow• your contract typically has three main contingencies

1. Inspection

2. Appraisal

3. Loan

• If you can’t- or won’t remove these contingencies the deal is cancelled and you get your deposit back.


closing escrow• About 10 days prior to close you will sign your loan

documents. On that day you’ll find out exactly how much money you need to bring to close escrow.

• 1 day prior to close, wire the rest of your money to escrow

• closing day- you do nothing. the title rep records you title, escrow transfers all the money and we call you with the happy news and arrange to get you the key.


home buyer’s kit• Resource List

• Mortgage

• Inspectors

• Tax and Financial Experts

• Copy of this slide deck

• List of questions to ask a potential buyer’s agent

• Invitation to DIGGS cutting edge home search product

Real Estate

DIGGS Guide- How To Buy a Home