The Local Buying Process

 The sizzling summer selling season of 2005 was an unparalleled sellers’ market -- list the property, stick a “For Sale” sign in the yard, and watch the offers flow in.  A prospective buyer stood only a slim chance of viewing a property unless a pre-approval letter was in hand.  

While the market dynamics have now shifted to give the buyer more leverage, the need remains for you, the buyer, to be pre-approved.  If you already have a real estate agent, he or she can put you in contact with a loan officer who will assess your financial situation, determine how much money you can borrow, and put the conclusion in writing. This document is called the pre-approval letter, and it attests to your financial ability to buy a home in a specified price range.  You’re now in a position to make an offer on a home.

 Your real estate agent can help you locate the type of home you want or else you can do that yourself.  (There are many ways to find homes that are for sale.)  However, making an offer and getting it accepted by the seller can be tricky – especially if there are multiple prospective buyers.  Your real estate agent will serve a critical function here by helping you define the terms and conditions of your offer such that you win the bid without undue sacrifice on your part.  Writing a durable, winning purchase agreement is both a discipline and an art.  

Once your offer has been accepted, you may apply for financing or arrange to pay cash for the home.  The lender may require that the property be appraised.  Simultaneously, both buyer and seller move through the relevant inspections toward closing.  (Only the termite/moisture inspection is mandatory in the State of Virginia.  The EIFS (for stucco homes), lead paint and septic system inspections apply only in specific circumstances, and the property inspection occurs only at the buyer’s request.)  Agree-to property repairs are normally completed prior to going to closing.

 The closing (or settlement) triggers the transfer of ownership from seller to buyer, and you will need to select a title company to manage the closing process.  

With this as an overview, here’s the buying process as described on the official site of the National Association of REALTORS®.