10 Critical Steps to Home Buying from Long Distance - Part 1
April 16th, 2008 categories: Relocating, Spouse Stuff
Do we like to do anything sight unseen? How about that first blind date - was it what you expected?
Many of today’s military and DoD personnel stationed overseas, unable to make that advanced house hunting trip back to the U.S. prior to their move, are faced with a situation not unlike the blind date. But, fortunately, with the new media and good old modern technology, the “unknowns” can be minimized, and almost eliminated when choosing their next home. I was reminded of this when answering an e-mail request last week from a client PCSing from Okinawa, Japan.
The secret to satisfaction in purchasing a home is no secret at all. Like just about anything else, it’s always best to follow a methodical or sensible plan. While much has been written about the best methods to purchase a home, like many checklists, there is no perfect method or number of steps, other than as many as it takes to achieve your objective. Having said that, we recommend a 10 step approach when home buying, whether trying it from abroad, or with your feet on the ground, and an ability to actually look at what you are purchasing.
- Selecting a Realtor
This first step is THE most important. Why? Because your Realtor is your eyes and ears, not to mention, the one directing your entire transaction. Their knowledge of the market, the neighborhoods, the agencies and personnel involved in the transaction, is something you’re betting on. It goes without saying that you need to find someone you’re comfortable with, because you’ll be sitting right next to them the entire way. More importantly, they will be acting on your behalf. Great integrity and judgement are two “must haves” for any successful Realtor. Once you’ve selected someone you feel comfortable with, make sure you’ve agreed for them to be your Buyer’s Agent. This Buyer Broker Agreement, signed by both of you, designates the agent as working strictly for the buyer. In many states, agents work for the seller, unless agreed in writing, to represent the buyer exclusively.
But, the advocacy of the agent is even more important for the buyer coming from abroad. Absent the ability to have feet on the ground, it is essential to have an advocate, and one who is area expert, when it comes to neighborhoods, schools, shopping, commuting options (for many, the long pole in the tent in Northen Virginia) - all those things that interest and concern buyers. Of course, with the luxury of the web, agents are able to provide clients with a continual e-mail feed of homes that match the buyer’s home criteria. This convenience is one that potential buyers should take full advantage of in order to familiarize themselves with more than just available homes, but also typical prices, neighborhoods, and other area specifics. While the next home buying step can be done first, buyers lose the advantage of their realtor’s input if they do. When it comes to the buyer’s choice of a lender, your agent ususally knows some of the best local lenders in the business.
2. Selecting a Lender (Getting that pre-approval letter)
This particular step has taken on new meaning since the recent, and on-going, mortagage/credit crisis. Who you use as a lender is important. Much of the blame for the mortagage/loan problems we’ve seen over the past few years is a direct result of poor lending practices. While many of us have used the same national lenders we’re familiar with like USAA, Navy Federal, Wells Fargo, Bank of America, and others, oftentimes, your best bet may be a local lender who knows the area market, who you can actually chat with face to face. Since agents are familair with many of the best professionals their region has to offer, they can also be a good source for recommendations. And, you’ll need to get than pre-approval letter from your lender. This shows you’re financially qualified to purchase the home, which, of course, is of primary concern to the seller. Securing this piece of paper is important.
3. Meeting With Your Agent for a Home Buyer’s Consultation
Although this normally takes place in the agent’s office, this is the meeting where expectations are discussed. This is when you and your agent prepare each other for what’s going to occur along the way. The following points, among others, should be covered and fully understood during the meeting:
- Exactly what the buyer’s needs are (#of bedrooms, baths, , etc.). Anything you might want in a home, to include the type or size of lot or yard should be identified. This includes what price range you’re comfortable with, and what your time line is. It generally takes about 30-45 days from purchase (this means a ratified contract) to closing or settlement.
- How often you are available to look and what you expect from your agent in terms of availability and communication. This includes what, and how often you wanted to be updated.
- Your agent should give you copies of all the paperwork you are expected to sign throughout the process and briefly explain what each form is for.
- Your agent should explain buyer brokerage vs. seller’s representattion, and you should sign a buyer broker agreement.
During Step 4, we’ll begin to look at homes…
Hey Jim,
Don’t forget the ability for a good agent to take Buyer Agent Photo Albums of each listing. A good 50-100 photos per house will make the buyer feel like they are there. Including close ups and neighborhood shots.