Buy Side Process

Buying Steps

Buyer Client - Initial Contact

A Potential Buyer decides to engage the services of an agent from Key Prime Realty. This can be from a client referral, Web generated, Past Client. We do a quick induction into the client list with some basic buyer requirements. We schedule a more detailed Zoom Call with the client immediate or at a later time

Buyer Video Conference

The buyer video conference typically done with Zoom will be with the principal agent. The session will have screen sharing and is very interactive. The buyer's CRM profile gets updated with all Info so that some dedicated Office admins can look out for potential properties and suggest them to agent working for the client. The market dynamics local and macro level will be discussed. 

Property Search - Match Analysis

Anytime a property matches buyer preferences, we suggest that to buyer. Buyers will also monitor their search results be it MLS or public sites, they contact us about market analysis & report for the property.  Extensive Reporting is done by us for the property & Neighborhood. You have to see these to believe the unparalleled value we supply in this step. Before you visit the property you are equipped with abundant information. 

Property Showing - Open House/ Private Showing

Showing of a property works in 2 ways. Clients visits at Open House. A private showing is booked by KPR. Each has its advantages. An Open House has some unique advantages and we prefer clients to make use of this. We will be happy to accompany clients at Open Houses. Open Houses are a great way to gauge the desirability of the property. Open House is typically conducted by agents who are familiar with the property / subdivision / town / area.  Immediate Questions & Feedback is possible.

Placing Offers

After the showing is done, if the client likes to pursue , an Offer to Purchase contract is prepared by KPR agent. This contract is detailed and is adopted GBREB which is fairly written up for both buyers and sellers. We discuss with the client on all contingencies they wish to include in offer - Various inspections, Appraisal, Mortgage, Home Sale etc. We strive to protect our clients interests early on as much as possible. we also provide some honest opinionated market value and suggestions to get through in a tough market where too many buyers chase too few properties.

Offer - Decision - Lost / Denied

If we lose the offer in bidding to another competing buyer then get feedback and move onto repeating steps above. If offer is denied we negotiate.  Several strategies are employed by savvy agents to to get a fair deal in purchasing. Negotiation is an art but practice this art with scientific methods with well researched data.

Offer Accepted

Congrats on the first successful step of the Buying Process. The offer is successfully executed by all parties. This is a binding agreement. Earnest money is paid.  We strive to make all these though electronic processing of documents, signatures and deposit payments. Every steps of the way, we minimize effort on paper work so we spend more time on educating, explaining these contracts to clients.

Property Inspection

Within a week from offer acceptance, a property inspection is scheduled if the offer to purchase has this contingency. The typical inspections include general inspection, Pest, Lead, Radon. not common but additional structural, mechanical,  plumbing inspections could be done as needed. The buyer hires a professional who is a generalist to do these inspections. 

Purchase & Sale Agreement Stage

A P&S is a more detailed agreement between buyer & seller that details extensively the terms and conditions of the sale. This is binding until closing. Typical P&S is due within 2 weeks from Offer execution. P&S is typically done by an attorney from each side. We advise our clients to hire an attorney for this step. To save costs we advice clients to hire an attorney who can negotiate a P&S and close for the lender. This could save attorney fees. Addition Deposit is due at the execution of P&S

P&S Deposit Check

At P&S signing, the buyer is due to pay a typical deposit of 5% of purchase price. The money will be kept in escrow account by seller attorney or the listing Office. This amount is not supposed to be commingled with other funds and it is returned to the buyer if any contingencies are invoked by buyer successfully and pulled out of the deal.

Followup to Fully Execute P&S

After buyer signs P&S, and tenders the deposit, ensure sellers sign the same and the agreement is fully executed. Fully executed P&S must have certain basic provisions for buyer(s). A couple of visits being one of them.

Loan Process - HOA approval

HOAs managed by individual trustees or by professional property management companies are notoriously slow and have outdated methods. As soon as possible buyers and agents in collaboration with lender should order Condo Questionnaire, master insurance certificate, meeting minutes etc. This is a critical step. if FHA loan is involved the HOA will need documentation if approved prior or to obtain fresh approval it can take a long time.  Stay on top of this to ensure the closing is not derailed.   

Loan Process - Buyer Approval

Buyers will work closely with their lender in obtaining the loan approval.  This is a lengthy process and often complicated for self employed or business owners. 

Loan Process - Appraisal

Appraisal is another critical step part of the loan process. Lender will order it through a third party. In theory the lender has the highest risk in purchasing the home so the lender will want to ensure the value of the property is determined to calculate Loan to Value. For loan amounts, the appraised value matters. Offer price does not.

Loan Process - Lower Appraisal

In a booming housing market, an appraisal that is less than the purchase price is not that uncommon. As far as possible we try to include an appraisal contingency or do not waive it explicitly. This gives an opening for buyers to renegotiate the purchase price or work with sellers side.

Loan Commitment

This is a significant milestone. Time is of essence. Ensure the date is extended if loan is taking longer to protect buyer from a default in case of a loan denial.  

Pre-Closing Walkthrough

A pre closing walkthrough is done to ensure the property is being delivered as shown as inspected. No damages during move out. 

Closing Day

Closing Day!!  It is a long journey. If the process was done right, this is the easiest day! Wire funds or bring a bank check to close. The Cash Close to communicated by the closing attorney.  

Post Closing

The closing goes on record on the same day or the following day in worst case. Once the recording is done, buyers technically own the property. Keys are provided. 

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