Southern Oregon is a unique and beautiful place. Because we are not a major city we have many different types of property that you might be looking to purchase as a first-time home buyer. You might be looking for a laid back lifestyle that is perfectly suited for rural property with some acreage, or you might like the no-fuss style of condo living or something in between. I have 7 steps for you to follow so that you make sure your first purchase is a success!
Step 1 Selecting a REALTOR®
No single decision you make will be more important than the REALTOR® you choose to help you. It will be their knowledge of the market that can guide you to the perfect home for you and your budget. Choose carefully. Often a referral is the best way to find one. Ask around to see who has one that they have used and really like. Find out what they liked about them and what they felt made them stand out. The brokers in our area all have access to the MLS with all the listings excluding For Sale By Owners (FSBO). Your broker is able to work with FSBO owners also so don’t hesitate to ask us if you see a FSBO you like to find out more about it! Interview the REALTOR®. Be sure that you feel you can communicate well with them and that they have your best interest in mind.
Step 2 Selecting a Lender
Your lender is the next business partner that you must choose. It is very important that your lender and your REALTOR® can communicate well with each as they will be working hand-in-hand to make your dream of home ownership come true. A good lender will listen carefully to you, they will ask lots of questions and they will also give you ideas and options that will work for you. A lender you want to stay away from is one that you feel is trying to force you into a loan product that makes you feel uncomfortable. It is always a good idea to talk to your REALTOR® if you have questions. If your REALTOR® is on top of their game they will be able to trouble shoot problems with you and help you find the very best fit with a lender.
Step 3 Selecting Properties to See
In our Southern Oregon Region most REALTOR® belong to the local MLS (Multiple Listing Service). This affiliation allows you to work with your REALTOR® and look through all the properties listed on the MLS to find the perfect property for you. Your Realtor will sit down with you and create a search criteria for homes based on what your lender says you can afford and what you are comfortable paying. These criteria will range from the number of bedrooms and bathrooms, to whether you want a specific school district and of course, price. The MLS gives your REALTOR® access to all the listings currently posted on the MLS.
Step 4 Viewing Properties
Now that you have a list of properties selected it will be time to go and look at some of them. You and your REALTOR® will be able to pick some of the more appropriate properties for you and schedule showings to look at them. Many properties are what a REALTOR® might call a ‘call, show, keybox’. This property is one in which the seller has said that you just need to call and let them know you are coming and then use the keybox. There are other properties that will be ‘by appointment only.’ Some reasons for an appointment only listing might be due to pets who might need to be removed during the showing or small children who might be napping. Your REALTOR® will work with the seller to find a time that suites both of your needs. And finally there will be ones that require ‘24 hour notice’. These are tenant occupied properties. The State of Oregon landlord tenant laws protect the tenants’ rights by requiring that someone wishing to enter the property must give them a 24 hour notice. That notice doesn’t mean the tenant will agree to show it at that time. These are the most difficult properties to show. Your REALTOR® will be working with the other agent and the tenant to set a good time for the showing.
Step 5 Selecting the Right Property
When you head out to look at all these properties you might want to think about taking notes. Your REALTOR® can give you a printout of the property and its features. On that print out you can make brief notes about what you liked or didn’t like about the property. Honestly, if you see too many properties they all begin to run together in your mind and you will be glad you wrote things down! If you see more than 5 or so properties in an outing with your REALTOR® it becomes very difficult to remember what you saw. Looking at property is a hard business as you are trying to make a major financial decision based on what you are looking at so your mind is hard at work doing this! It can be very tiring!
Step 6 Negotiating the Offer
Writing and negotiating the offer is what your REALTOR® does best! We have extensive tools and knowledge of the market that will help you write an offer that represents what you would like to pay and is one that the seller will look at as a viable offer and one that is worth negotiating on. Your Realtor will guide you as to what an appropriate price might be and what sort of sellers concessions, such as closing costs, might get the seller to see things in a positive light. Remember, very often the seller has an emotional tie to the property and you need to negotiate around both their emotions AND their financial position. This can take several days and is a very nerve-wracking time for most buyers. Everything that is done during this time is very time-sensitive so be sure that you stay in constant contact and are readily available to meet with your REALTOR® if need be during this time.
Step 7 Closing the Deal
Closing on the deal is a hectic time. It usually takes between 30-45 days to close on a property. The first two weeks are spent finishing the paperwork, having an inspection of the property and the under structure, negotiating any repairs that might be needed, having an appraisal, talking to your insurance agent to secure insurance, addressing paperwork sent by the title company and meeting with your lender. After that whirlwind of activity it is generally a ’sit and wait’ time for the next couple of weeks as everyone completes their jobs from the insurance and escrow person right down to your REALTOR® and lender. As you can see it takes a team to make all of this happen. Once everything is complete your REALTOR® will schedule a signing appointment to meet with at the title company to sign your papers. This appointment will be over an hour long usually and you will be signing LOTS of paperwork related to your loan and to the escrow. your Realtor should be at the signing with you to answer any questions that might come up and to troubleshoot last minute issues that sometimes arise. A couple of days after that depending on the lender, you should get a call from the title company saying they ‘recorded on the property’ and that means that YOUR name is now on the deed as the owner! Congratulations!
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