Buyer's Process Guide & Expected Closing Espenses
1. Choosing an Agent
Selecting the right agent is more important than many realize.
You’ll want an agent who not only understands your needs but also has strong skills in negotiation and property sourcing. A dedicated agent will proactively find properties for you and secure the best value within your budget. Take the time to research and find someone who will work tirelessly on your behalf—it can make all the difference.
2. Setting Expectations and Criteria
Early on, discuss your budget and realistic expectations with your agent. Being open about your budget helps your agent identify the best options without missing opportunities. This is also when your agent will help set expectations on what is feasible in the current market.
3. Understanding Disclosures
After selecting an agent, they will present you with required disclosures as per New York State regulations. These typically include an agency disclosure, outlining the agent’s role in the transaction, and a fair housing disclosure, informing you about New York State’s protected classes.
4. Signing Buyer Agreements
In New York State, buyers are now required to sign an agreement with their real estate agent. This agreement can be one of the following:
- Exclusive Buyer Broker Agreement:Â This agreement commits you to work exclusively with a single agent.
- Non-Exclusive Buyer Broker Agreement:Â This allows you to work with multiple agents simultaneously.
- Unrepresented Buyer Agreement:Â This indicates that you are not represented by an agent.
These agreements also specify who is responsible for the broker’s fees. If the seller does not cover the buyer’s broker fees, the agreement will outline your obligation to pay these fees. This step must be completed before showings are scheduled.
5. Reviewing Listings and Providing Feedback
Your agent will send you listings that fit your criteria. Prompt feedback on these options helps your agent understand your preferences and refine the search.
6. Scheduling Showings
Once you identify properties of interest, your agent will coordinate showings with the seller or listing agent to give you a closer look at potential homes.
7. Making an Offer
Once you find a property that fits your needs, your agent will help you structure an offer. This includes details like purchase price, down payment, financing terms, inspection requirements, and desired closing timeline.
Your agent will guide you through each component to create a competitive offer.
8. Offer Acceptance
Once your offer is accepted, you’ll provide necessary details to your agent, who will create a memo of sale and distribute it to the attorneys and any other involved agents.
9. Home Inspection
The inspection is scheduled based on your availability. It’s crucial to act quickly here, as this stage can be a potential sticking point. Some buyers choose to conduct the inspection for their own knowledge rather than negotiation leverage, which can make their offer more attractive to sellers.
10. Negotiating Credits for Inspection Findings
If the inspection reveals issues, you and your agent can discuss options for credits or repairs to move the deal forward. Remember, normal wear and tear is expected, and accepting credits for repairs can allow you to address them on your terms after closing.
11. Signing Contracts
At this stage, contracts are signed, with the buyer signing first and transferring earnest money into escrow. Once the seller signs, the contract becomes fully executed and enforceable. Every contract is unique, so review it carefully with your attorney to ensure it meets your needs.
12. Arranging a Survey
After contracts are signed, a survey may be ordered.
Depending on the agreement, this can be handled by your attorney or with your agent’s help. A survey helps confirm the property boundaries and any structural details.
13. Final Walk-Through
Within 24 hours before the closing, a final walk-through allows you to confirm the property’s condition. Test utilities like water and electricity, and note any issues. If any problems are found, your agent will notify the attorneys to address them.
14. Closing
On closing day, you’ll meet at the scheduled time to finalize the purchase. This includes signing documents and paying the final balance, whether by cash or mortgage. Bring a valid ID and any checks or wire transfers your attorney has advised. Once complete, the property is officially yours and the keys are given to the buyers.