You are a first time home buyer.  You want to stop paying rent.  You want the money you pay to go to something you own, not someone else.   You see “for sale” signs all over the place, and you have heard it is a “buyer’s market”.  So now is the time to strike – you’re going to get a deal.  Now what do you do? 

Select a Realtor- Your Realtor will navigate you through all scenarios and problems that arise, but here is some information for the first time home buyer that will put you at ease about the process of buying a home.  

Search and preview homes- A good Realtor will assist you in finding homes to your liking.  He/She will assess your wishes and provide homes for you to preview.  They will also research properties you have found via the internet, driving around, etc.  The Realtor makes appointments to view properties and obtains permission to enter homes.  After searching, you will find a property you like, and decide you wish to make an offer to purchase.

Making an offer / Negotiating – When you find a home you like, your Realtor will provide you with research on the property you wish to make an offer on.  They can find out how long the home has been on the market, if there have been price reductions, what comparable homes have sold for in the area, and any other factors that may help determine a good offer price.  She will produce State-approved forms and present your offer to the seller.   There may be a counter-offer or two.  This is normal.  After terms are agreed upon by the buyer and the seller, you are now “Under Contract”.  At this point, you will deposit your “Earnest Money” into the Brokerage or Title Escrow account through your Realtor.  This is out-of-pocket money that will be applied to the actual purchase price.  The time-line to settlement begins, and we move to the next phase of your transaction. 

Buyer-Beware and Timelines – Now that you are “Under contract”, your timelines begin.  In most states, including Utah, the buyer is purchasing the home “as-is”.  That being said, there are what I like to call “safety valves” in the contract that allow you, the buyer, to perform your due dilligence in evaluating the property.  The seller is required by law to provide you with disclosures about the property, the Home Owner’s Association (if there is one), the Title to the property, and any pertinent facts that are important about the property.  You have a certain amount of time (at your expense) to do a property inspection and have any other evaluations pertaining to soil, termites, radon, etc. done to your satisfaction.  You also have time to make sure your loan can be underwritten, and that you can obtain property insurance.  Again, your Realtor will help you find the professionals that are qualified to advise you in these ares if you don’t have those resources yourself.  If there is something terribly wrong with the property, or financing falls through – prior to deadlines  in the contract – you will be able to safely withdraw your offer.  Your Realtor will make sure to keep you aware of your deadlines so you do not go into default and potentially loose your earnest money.

Settlement and Closing- In West Jordan, and in the State of Utah, Settlement is done at aTitle company.  They are a neutral party which does the paperwork for the lender, the Title transfer with the County, and the disbursement of funds.  Buyers and sellers may each use their own title company and do what is called a split closing if they choose.  You will go to the title company and sign all the documents required by your lender and the area you live.  Once all documents are signed by both parties, the packet of papers is sent to the lender who approves them, and releases your loan funds to the title company.  Once they have these funds, they disburse them properly and record the title transfer with the county.  This usually takes 24 hours from the day you sign, but can take up to four days without a penalty.   The property is now yours and you get to move into your new home!

Should you have any questions, please contact me – I look forward to helping you!