And then what happens....

Whoohooo let’s move in! NOT! Now comes the appraisal and inspection process. Most lenders require an inspection on the property. You should get this anyway! We had a great inspector that walked us through the whole house and the ins and outs. He checks the shingles outside and some siding and landscaping then went inside and explained the furnace, water heater, water softener, sump pump, etc. I probably looked like a little nerd carrying my notebook taking notes but I wanted to learn! We went through the plumbing, electrical, foundation, and everything! He made notes on every little thing that could be improved. After he prepared his report, he sent it over with all the improvements. We went over this with Brenda, and determined which ones were pressing. We for sure wanted the window to be replaced, plumbing fixed, outlets to code, and furnace checked. We submitted these requests to the home owners and they came back to us with what they agreed to take on. Once you have an accepted purchase and sale agreement, you'll take a copy to your mortgage lender. He or she will be responsible for ordering the appraisal and will order the Title Policy, if this has not already been done by your agent. This will happen after you have seen the results of the home inspection and have indicated that you are prepared to go forward with the purchase.

Your appraisal is then done (without you there) and if he/she determines that the agreed upon price is acceptable for the home’s value,  you can move forward! Did you include an appraisal contingency? Do you have the cash to make up the difference in price values if the appraisal comes in lower than the offer? Those are things to think about. You work on setting a closing date as well. Be sure to watch your spending – don’t go buy all these new items for your home! Wait!! The underwriters on your loan see that as a red flag!

You also schedule a walk through before your closing. The walk through you do with your realtor to be sure the home owner hasn’t decided to go pull out their fireplace or something! It’s a final look around before you call the home, yours!!!

 

Now, closing day!!

FIGHT FOR IT!

Don’t expect them to accept your offer the first time!  They will come back most likely with a counter offer. That doesn’t mean you can’t counter again! We went back and forth 4 times! In between the third and fourth offers, we almost gave up. Brenda even "made" or STRONGLY ENCOURAGED me go look at other homes during it so that I could see if this was really the home I wanted and if I was willing to keep fighting! Heck no to any of the rest of those homes!!! I found myself always comparing to the home I wanted and I wouldn’t like any of the new ones as much as I liked that one! My mind was stuck.

We knew the items we wanted included with the home and it was quite the experience going back and forth trying to get our precious washer and dryer included in the home! Also, having them pay closing costs or at least part of them is VERY helpful! With all the costs of buying a home, it is nice to feel like they are going to pay for something for you!

I was never so grateful to Brenda until after this experience. She calmed me down, put her boxing gloves on for me, and dealt with all the behind the scenes things I didn’t even want to know was going on! After battling for what felt like forever, the offer was finally accepted!

So now what? Move in right? NO!

 

35 Houses Later...

We are down to our 35^th home (that is after many days of looking of course, Brenda is SO patient though, she enjoyed every minute of it I am sure right?!?)…we were going to give up for the day but there was one we thought we should probably just at least drive by since we had an appointment….and boy am I glad we did!!! We LOVED it! It had everything minus a fireplace that I wanted (and you better believe we bought a portable one shortly after moving in!). Other than that, there are things looking back like wishing the entry was a bit bigger that could be changed, but I LOVED the rest and so did my husband! We agreed! No one I don’t think will ever be 100% satisfied with their home, whether they are building it or purchasing a model or buying pre-owned, but if the shoes fits your family's feet, some things can be looked past!
 

So the house across the street is for sale too….let’s check it out….

We walk in and immediately I realize nothing is going to compete with the house we just saw! I WANT that! We sit in the car as I stare starry eyed at this home. I want it and I want it now! There was another appointment after us….I told my now husband to stand out front and act like a crazy neighbor so the people don’t want it ha….he didn’t but I thought it was a good idea! No?!?!

So we found it….now what? Hit your head on the wall and realize you are going to not be as rich as you were before. NO! Sit down, go over your budget. Go over how much YOU feel comfortable paying each month. Can you afford the payment after EVERY expense you have already and still save and have money for fun things too? Don’t rely on making more later….that is not going to help you now!

Talk to your realtor, Brenda! What is an okay offer based on comps? What can we ask to include with it? Go over every detail…this might be YOUR new home!

So we did that…we sat down and went over EVERYTHING! We talked with Brenda, came up with our offer, and boom we got the house…NOT! I wish it was that easy!

So we fight for it…

 

What Type Of Sale Is It???!!!???

      Ever heard of a short sale? Yea….they aren’t short! Whoever came up with the name of that was obviously trying to be funny.  It is a LONG process but can be well worth it if you have the patience! A short sale occurs when a particular property is sold at a lower price than the mortgage due to the bank. The bank then accepts the “short” payoff – taking a loss on the loan.  If you don’t even want to consider a short sale or foreclosure or auction property, let Brenda know that upfront…she won’t show you any! I wasn’t sure initially if it mattered to me so I went to see a couple. The particular ones I saw were NOT something I wanted to live in! Walking in to foreign music and incense burning along with grease infested ovens, writing all over the walls, wiring out everywhere, need I keep going….is not something I wanted to stay in! NO way! I did see one really great one too don’t get me wrong, but decided the timing just wouldn’t work for us. Be careful with these though as they are as – is. Also, just because the seller accepts your offer doesn’t mean the bank will! When the homeowner is no longer able to make their payments and has quit making payments, then the lender starts the foreclosure process in which time the people living in the home are forced out but still have the opportunity to buy the property back. Once the property is REO (Real Estate Owned), the bank owns the property as collateral for the loan. Usually the short sale process takes longer than the REO since the banks have to agree to take less money than they are owed, but they each have their own set of rules. And be careful to know where the foreclosure process is when you go to purchase it! Auction properties have their own set of rules as well. Some have reserves which force you to start the bid at a higher price than you anticipate.  There are many pieces to the short sale and foreclosure puzzles! Brenda of course is the expert for that – literally a certified expert! This isn't something you need to be a pro on but be sure to work with an agent that is!

Also, remember when I said don’t settle? Yea, don’t! It’s easy to get wrapped up in it all and decide on one we think is “the one” right away but take your time to think about it! One that we saw the first day I thought I “loved” – Nate went to see it the next day and laughed at me. He reminded me that it had cedar shingles and siding (and I am not a bird fan…what animal do you think is drawn to that material!) with a swamp in the backyard full of mosquitos in the summer – think about the seasons and what they will bring to you! For example, the swamp, a steep driveway in the winter, etc. Some things though can be fixed with a handyman or a great construction company - of which I know of one!!

Now….34 houses later…

 

And Let's Walk Into The Home...

      Ok let’s talk....me to you….no one wants to walk into a home and feel out of place, smell the last persons cooking, or feel like you walked into a sweaty locker room right? So think about how you feel walking in? Walk in, take a breath, take a quick look around (What are your first impressions?? Often they are the ones that are lasting!), and start exploring. Enjoy this part! Walk around, feel out the floor plan – what is your routine every day? Does it fit in this home? Where do you spend most of your time? Picture your family there with YOUR things in it (not their custom made furniture or Ikea handiwork)….can you see it? LOOK at each room and in each door and in each nook and cranny. Come on, all of us are snoops at heart….here is your chance to snoop and it’s okay! When staging a home the homeowners are told to take their personal photos out. Did you ever think about why? Well it is MUCH harder for a buyer to picture their own family in a home when you see the owner’s Great Grandma Louise and Uncle Bob and Cousin Ralph on the wall. If they ignored that precious advice, ignore the photos and don’t get caught up on who lives there now! SEE yourself there. Sit down for a minute and picture what your life would be there! 

What are the upgrades like in the home? Maybe you are handyman or you know someone that is and can see the potential of an older home and what you could make of it. I love my husband to pieces but there was no way he was going to be able to whip out anything construction related so I knew I wanted something already to my liking. I wish I knew Friemann Companies when I looked! They are awesome! Look what they did to the kitchen below! Call them for anything! They can do it! Look past the paint and wallpaper (EASY fix – well maybe you have taken down wallpaper lately and disagree but it is something you can fix at least!) What kinds of appliances are included? How old are the appliances? Will they need to be replaced soon? (This will change your budget!) Are the countertops updated (if not, is this going to bother you?)? Do you have a washer and dryer/are the ones in the home included? How old is the water heater and furnace? When you are looking into that, think about the outside as well….when was the roof last shingled? Is the siding permanent or something you will have to paint? All these things start adding up over time!! Maybe it has an association – what are the fees and what does it cover?

Now, how do you access the great outdoors? Maybe you are the type that wants to sit inside with your book all summer and that’s great! For myself, however, the outside was a HUGE thing for me! I grew up with a large ravine lot yard and didn’t want to be on top of my neighbors and wanted a yard for myself and future children to be in. Is there even a yard? Is it a hill and how will rain flow through it? Will you have your own pond out there after each rain? Maybe you are looking for lake property….then be sure to know your riparian rights, property lines on the beach, if you have a big beaver dam by your deck, if a deck and/or lift is included, etc! Brenda can help with that! You should always know your property lines no matter where you end of living though! Maybe the sneaky neighbors started taking over your land…it pays to know!

Now, for myself, we ended up purchasing a home with gazebos, a privacy fence, a deck and hot tub. They all need to be stained at some point! Lots of work but my husband knows how to do that (I give him credit for that!!!). With a hot tub though becomes more responsibility….how/when/what chemicals do you use? How often do you have to change the filters? How much is a pump? How much is this going to cost extra in water each month? Same goes for a pool!

Think about the size of your yard as well…do you have the right equipment needed to keep it up if you aren’t going to hire it out?? How good of shape is the lawn in? These are all things Brenda will help you with!

Now….something we haven’t talked about….what kind of sale is it?