What to Expect When Buying a Property

For most Buyers, purchasing a property is a combination of excitement and stress. Knowing what to expect with the process can help Buyers from feeling so overwhelmed.

Build a Team

Assume the Buyer has found an Agent to represent them, which can be a process in itself! The next step is to determine what the Buyer can or wants to spend. Their Agent often helps the Buyer choose a Lender if they don’t already have one. 

Find a Property

While some Buyers already have a property in mind, others are just beginning the process of exploring properties. Once a property is identified, the Agent guides the Buyer in making an offer. The offer process may consist of negotiations entailing counteroffers between Buyer and Seller. This situation can be very emotional if a Buyer has their heart set on a particular property. Once an offer is accepted, the Listing Agent opens escrow with a Title company and the transaction is “in escrow.” While each case is unique, in general the Buyer works with three entities during escrow: their Agent, their Lender, and the Title Company.

Follow the Timeline

Most Agents provide an escrow timeline showing key contractual dates—the dates/timeframes agreed to in the Purchase Agreement. Usually, the first contractual action item for the Buyer is to pay the Earnest Money Deposit. In California, the deposit is due three business days from the date an offer is accepted. The amount due is a percentage of the total offer. The Buyer receives Seller Disclosures from the Seller and reports and documents from Title (e.g., Preliminary Title Report).

Obtain Inspections

Generally, the Buyer’s Agent schedules inspections, which usually include a Home Inspection and Pest Inspection but can also include other inspections. Inspections help the Buyer and Agent to evaluate the condition of the home. Normally, the Buyer is responsible to pay for inspections.

Review Seller Disclosures

The Buyer should carefully review all Seller Disclosures and Inspection Reports and discuss them with their Agent. If warranted, the Buyer’s Agent creates a Request for Repairs to send to the Seller. The Request for Repairs process can result in a series of negotiations until all parties are in agreement with the terms.

Remove Contingencies

Meanwhile, the Lender ensures that an appraisal is done to verify the value of the property. The Buyer usually pays for the appraisal. As escrow proceeds, the Buyer works with the Lender for loan approval.

Per the escrow timeline, the Buyer removes contingencies. Types of contingencies can vary, depending on what is agreed to in the Purchase Agreement, but often include Inspections, Appraisal, and Loan. 

Within five days of escrow closing, the Buyer and their Agent conduct a final walkthrough to ensure that the property is substantially the same as on the date of acceptance and that the Seller has completed all repairs, alterations, etc. agreed upon.

Sign and Close Escrow!

Generally, the Agent or Title Company contacts the Buyer to schedule a time to sign closing documents. Once both Buyer and Seller have signed closing documents, the Title Company works with the Lender to get the funds transferred to the Seller. Once the loan funds, the property is recorded with the county. Now the Buyer owns the property!

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for over 15 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustin.com.