The Buying Process

For many people, something triggers their interest in buying a home. It might be a conversation with a friend, or maybe you read an article on renting vs owning. Maybe your family is growing and you want more space, or maybe you’re thinking of downsizing. Whatever the reason, you want to know what’s out there.  At this point, many people go online and search for apartments, houses, or both, usually in a neighborhood they know or have heard of. 

That’s fine if you’re just looking for the fun of it, but when you get serious about buying, it’s best to follow a time-tested process. 

🏘️Be clear as to why you want to buy

Why do you want to buy a home? It’s an important question that will inform many other decisions including financial, locaton, size, amenities, transportation, and perhaps schools.

Once you have answered your why, you need to determine what you can afford and what you’re willing to spend. Start by preparing a summary financial statement and getting a pre-approval letter for a mortgage from a financial institution. (Of course, you can skip the pre-approval if you plan to pay cash upfront.)

🤵Find a buyer’s agent

If you want the most enjoyable experience in finding and purchasing a home, engage a Buyer’s Agent. This is a real estate agent who specializes in working with buyers. While you look at the options and make the decisions, they’ll handle the entire process for you, from the initial search to the final purchase of a new home you love. The agent you engage will guide you through many months of fun and stress, answer hundreds of your questions, and negotiate the price you ultimately pay for your new home. 

So make sure you find a buyer’s agent you like and trust before engaging them.

🔍Start the search

First, list your must-haves and your wish list. Must-haves might include 2 bedrooms while you might have a view of the Hudson on your wish list. The goal is to get all of your must-haves and as much of your wish list as possible. 

Usually, your agent will be searching daily for new listings in the MLS (a listing service for real estate brokers), keeping an eye out for something that fits your criteria. If you like, you can do your own search on public real estate search sites as much or as little as you desire. Your agent will set up showings for any properties that seem appealing. You may also decide to go to open houses without your agent.

❤️Fall in love

It may be the very first property you see or it may take months of searching, but eventually you’ll find “the one” that you really, really want. Your agent will now go into various databases to learn the history of the property, how its asking price relates to other property sales and asks in the area, and then develop an offering and purchasing strategy. Once you’ve signed off on a strategy,  the agent’s job is to negotiate the best possible deal for you. Note that the agent handles the process but you make all the decisions.

🥂Congratulations, you have an accepted offer! 

Now it’s time to engage an attorney. In New York, attorneys prepare and execute real estate purchase contracts. Your attorney prepares the legal documents required for purchase based on the deal your agent negotiates. In addition to financial terms, these documents may include specifics about timing of closing, property excluded from sale, or other terms you or the seller wants.

There are different processes here depending on the type of property being purchased (for details, read more on co-ops, condos, and single- or multi-family houses). At all stages, your agent will coordinate with the sellers, attorneys, inspectors, bankers, management company, appraisers, etc. as required.

Eventually, after their underwriting process, the bank will allow funds to be released and a closing date will be set where all parties are present. Many signatures later you will get the keys to your new home. Take time to celebrate!