DECIDING TO BUY
PURCHASING A LUXURY HOME IS MOST LIKELY THE BIGGEST FINANCIAL DECISION YOU WILL EVER MAKE. WHETHER THIS IS YOUR FIRST PURCHASE OR YOU ARE AN EXPERIENCED BUYER, THIS DECISION MUST ME MADE CAREFULLY.
REASONS TO BUY:
- PURPOSE
MOTIVATIONS OF YOUR PURCHASE- Investment portfolio expansion
- Rental property
- Vacation home
- Main Residence
- TYPE
TYPE OF PROPERTIES YOU ARE LOOKING FOR- Home
- Condo
- Land
- LOCATION
ENVIRONMENT YOU WANT TO LIVE IN- Specific neighborhood
- Urban environment or Rural environment
- Proximity to work, schools, amenities
- OTHER
MANY OTHER CRITERIAS NEED TO BE TAKEN INTO CONSIDERATION IN ORDER FOR YOU PROPERTY TO MATCH YOUR LIFESTYLE- Personal needs
- Specific expectations
HAVING A CLEAR SENSE OF YOUR REASONS FOR BUYING WILL HELP YOU CHOOSE THE RIGHT PROPERTY.
PREPARING TO BUY
Before you start shopping for your property, it is a good idea to make some preparations. One of the most important steps of the preparation process is to be able to demonstrate that you are a serious buyer to a seller.
BUILD YOUR GREEN FILE:
The Green File latter contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
Financial statements / Bank accounts Investments / Credit cards / Auto loans / Recent pay stubs / Tax returns for two years / Copies of leases for investment properties / 401K statements, life insurance, stocks, bonds, and mutual account information.
YOU WANT TO APPROACH YOUR PROPERTY PURCHASE FROM A POSITION OF FINANCIAL STABILITY.
CHOOSE A REAL ESTATE AGENT
Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. We can guide you through this process, and also provide you with access to property listings before they hit the general market.
HERE ARE SOME FACTORS TO CONSIDER WHEN CHOOSING YOUR REAL ESTATE PROFESSIONAL:
- EXPERIENCE
A full-time agent who has experience completing transactions similar to yours is always a great asset. The agent will know how to guide through the process. - KNOWLEDGE
A good agent will continually strive to improve and gain knowledge of the latest real estate trends and hold the highest designations in their respective fields of expertise. - EFFICIENCY
Time is money when attempting to buy a property. You should be the agent’s top priority, meaning the agent should be available for you, which includes returning your calls and messages promptly. - TRUST
Buying a home is a significant step in life which makes it extremely important to find an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable.
TIME TO GO SHOPPING
Once those preparations are out of the way, it is time to find the right property for you.
- Market Research
For that stage, the real estate agent shares with you its knowledge and experience about the area you are interested in, including the neighborhoods, complexes, or subdivisions. It is crucial to have a sense of what is available in those areas. The agent should provide an analysis of the market and the value of homes available on that specific market. - Narrow Your Search.
Select a few properties that interest you the most and have your real estate agent make appointments to visit them. The real estate agent should assist you during the visits and provide a prediction report of the potential long term resale value of the properties you are considering. - Time to Buy.
Once you have found your dream home, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs and expenses associated with the new property. An agent can also help you draft your offer in a way that gives you the advantage over another offer.
CONTRACT & CLOSING
REVIEW THE TERMS AND CONTINGENCIES
Before you sign, the closing agent that has been selected (attorney or a title company) will advise you on how to hold title. This step involves analyzing the contract of sale considering legal, estate and tax implications. The goal is to make sure that the title is clear from contingencies as everything needs to be adequate before the contract signature.
ADDITIONAL STEPS
Buying a luxury home involves high stakes, therefore, it is highly recommended to consult experts such as attorneys, financial advisors, licensed property inspectors to guide you throughout the process.
- Inspections
Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property. Out of these inspections, the contingencies can be removed, or the terms of the contract can be renegotiated. - Loan application
Once you submit all the documents for your loan application, and your financial institution gives you its approval, you are a step closer to the closing. - Association Approval (if applicable)
If the property that you are purchasing is conditional upon an association approval, you will have to build a file with strong the required documents (bank statements, tax returns, letters of reference, and an effective purchasing agreement) in order to obtain the association approval.
CLOSING DAY
- Final Walk-Through Inspection
A final visit is organized to ensure the home is in condition based on the agreements - Home Services and Utilities.
Your agent will provide a list of useful numbers for the activation of home services and utilities after the closing occurs. - Signature
The closing agent reviews the contract with the buyers and sellers before the parties finally sign the documentation.
