Buyer FAQs

How do I start the home-buying process?

Richard and Jana will begin with an initial consultation to discuss your goals, budget, timelines and any specific features you’re seeking. From there, we’ll guide you through mortgage pre-approval process by recommending one of our local lenders, setting up your home search, the process of submitting an offer, navigating negotiations, and getting to the closing table.

How long does it usually take to buy a home?

Typically, the home-buying process generally takes 30 to 45 days from the start of an executed contract, although timelines can vary. We’ll coordinate each step to keep us on track based on your timeline.

What is an escrow deposit (binder), and how does it work?

An escrow deposit, also known as "earnest money," is a good-faith deposit made by the buyer to show serious intent to purchase the property. It is generally around 1% of the offer price and is held by the title company. This deposit must typically be made within the first 3 days of going under contract and will be credited toward your total amount due at closing. The escrow deposit protects the seller if the buyer backs out without valid reason, while also confirming the buyer’s commitment.

What is an inspection period?

The inspection period is a crucial timeframe for the buyer to thoroughly assess the property’s condition and address any issues found. During this period, the buyer and seller can negotiate necessary repairs or request a credit for those repairs. While various types of inspections are available, a general home inspection typically covers most areas of concern. It’s recommended to complete the inspection as soon as possible after going under contract to allow time for negotiation and resolution.

What is a WDO inspection?

A Wood Destroying Organism (WDO) inspection checks for any wood-damaging pests, such as termites, wood-boring beetles, and fungi that could compromise the structural integrity of the home. For FHA and VA loans, this inspection is typically required, and any issues found on the report may need to be addressed before closing.

What types of inspections are available?

There are many different kinds of inspections that you can complete on a home. These are typically 3rd party companies, so these are an extra expense to the Buyer.  Inspections will vary depending on the home.

• General Home Inspection: Covers the main structure, roof, electrical, plumbing, and major systems.

• Pool Inspection: Assesses the pool's structure, safety, and equipment.

• Wind Mitigation Inspection: Determines the home’s wind-resistant features, potentially lowering insurance costs. May be required by insurance companies.

• 4-Point Inspection: Focuses on roof, electrical, HVAC, and plumbing, often required for older homes. May be required by insurance companies.

• Sewer Scope: Uses a camera to check for blockages or damage in the sewer line.

• Fireplace Inspection: Assesses the condition and safety of the fireplace and chimney.

What are closing costs, and how much should I expect to pay?

Closing costs are fees associated with finalizing a home purchase.  These fees are expenses beyond the down payment, such as title fees, lender fees, title insurance and taxes that you pay on closing day.  You should budget anywhere between 3-5% of the purchase price for closing costs. This can vary depending on your loan. 

What is a title company, and how do they help in a transaction?

A title company is responsible for verifying the legal ownership of the property, ensuring there are no outstanding claims, liens, or disputes that could affect your ownership. They provide title insurance to protect against any future claims and help facilitate the closing by handling funds, recording documents, and ensuring all transaction details are legally compliant.

What is an appraisal, and why is it necessary?

An appraisal is a 3rd party assessment of a property’s value conducted by a licensed appraiser. It’s essential to ensure the home’s value aligns with the loan amount and protects you and your lender from overpaying.

How does shopping for home insurance work?

Shopping around with multiple providers is essential to find the best insurance coverage and rates. Many providers offer bundle discounts, so consider comparing quotes for home, auto, and liability coverage.  We will recommend a few of our local insurance brokerages to try to get you the best policy with a competitve premium.