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Steps to Buying a Home

Buying a home can be a speedy process, or it can involve lengthy negotiations. But while every buyers experience seems unique, the path to ownership is reassuringly consistent across the country.

The Offer: When you finally decide to buy, you make the bid or price offer.  If the bid is accepted, you pay a fee (called a binder, or earnest money) of or about $1,000 to secure your offer.  If the deal goes through, the binder amount counts toward the purchase price.  If it doesn’t you get it back

Inspection:  You should arrange for a licensed building inspector to examine the property.  If there are any serious cracks in the foundation, water damage, or a leaky roof, you may get a credit, lower your offer, or withdraw it altogether.

Negotiating:  Real estate agents sometimes agree to a reduced commission to close a sale that has gotten stalled over price.  The chances of negotiating a reduction are better if the agent works for the broker that listed the property, so the commission won’t have to be split.  Owners may also agree to a reduced price or to holding part of the mortgage, especially if they’re eager to sell.

The Contract:  This is the first legal document you and the seller sign.  Contracts are standard, but are modified to reflect the details of your purchase – price, date of sale, items included in the sale (like appliances) and the conditions of the sale, such as free and clear title, which means no one else has any legal claim to the property.  Contracts often are also contingent on your ability to arrange a mortgage.

The Deposit:  Signing the contract requires a cash deposit, often 10% of the purchase price.  This amount is held on escrow, or reserve, and becomes part of your down payment.  You get the deposit back if the deal falls through.  (But some co-op sales contracts are contingent, which means you could lose the deposit if the deal doesn’t go through.)