West Chester Ohio Home Buying Guide
Steps to buying a Home
by: Aaron George | Realtor
As a new home buyer in West Chester, Ohio there is quite a bit to know and remember. A home, for most is the largest investment anyone will make. So you want to be pretty confident and comfortable with the process, at least know enough to be dangerous. And don't worry... you wont be alone, you will have your REALTOR and Lender to walk you through the process as well as top notch blogs and articles to refer back to... Wink Wink.
STEP 1 - Get Pre-Qualified or Pre-Approved From a Lender
So the first step in the process is to get pre-qualified or pre-approved from a lender for a mortgage. If you have a suit-case full of cash under your bed, you can disregard this step, but for most of us, we will have to get a mortgage. I will touch briefly on the difference between a prequalification and a preapproval. A pre-qualification is a quick, usually 15-20 minute process, usually over the phone or online application were the loan officer takes information such as; income, employment, debt, assets, and credit score. A pre-approval goes a step further and is were the loan officer fully collects all the documents required and is able to completely verify all factors. Which ever you and your mortgage professional decide is best, this is a key first step because this lets you as a buyer know your true buying power and budget. If you don't know where to start for a good lender, your Realtor will most likely have a few good preferred lenders they trust and have successfully worked with in the past. I personally have two that I refer out to my buyers if they are in need. There are many good options, but I personally like the smaller mortgage bankers. They usually can keep you completely updated throughout the process because they know exactly who processes each piece of your loan, they sit in the cubical next door. Most importantly, the loan officers are there when you need them anytime you have a question; day or night, weekday or weekends.STEP 2 - FIND A REALTOR
Like I said before, purchasing a home is for most, the biggest investment you will make. You want a real estate agent that works exclusively for you and your best interests. That's the most important thing. You want an agent that has the availability and flexibility to show you properties at your convenience. With the low inventory we are seeing in 2016 in West Chester, Liberty Twp, and all over the City, combined with still low interests rates and housing sales the best they have been in 8 years. Properties in the area are not lasting long. If the homes are priced right and show reasonably well, they're SOLD, just days, even hours into sale. So its important that your agent is available to find and show homes quick. But also, has a good track record with negotiating and possible multiple offer situations because we are seeing a lot of that in this market. Sorry buyers... Realtors are not all created equal, there is definitely some varying quality out there. So its important to do your research, ask friends and family for recommendations, and if you feel its necessary; interview a couple different agents. You also want to find a good Lender, someone who can walk you through all your financial options and find you which loan product best serves you and your needs. Like I said before, your agent will probably have a few preferred lenders they have found to be very good. You may feel its necessary to have Lawyer during this process. There is certainly lots of paperwork involved when buying a home, but its also pretty standard paperwork your REALOR knows like the back of their hand. But if you feel like its in your best interest for a lawyer to look over the contract and/or over other documents, its never a bad idea. But its ABSOLUTELY not required.STEP 3 - DEVELOP YOUR WISHLIST
Its important when you start looking for a home that you have a good idea of what you want, what you need, must have, and what you absolutely cant stand in a new home. So begin your wish list and be specific, you can begin this even before you meet with a realtor and I'm sure some of you have done this already, if you have...kudos. What style of home (architecture), how many bedrooms, bathrooms, floor plan, layout, square footage, lot size, neighborhood, etc.... If you are able to drive around beforehand a little, to the different West Chester and Liberty Twp neighborhoods, just see which one makes you feel at home. Which offers the amenities that you are looking for...Are you looking for something close to the highways, schools, shopping, or the parks/golfing. Are you looking for something with a little bit more lot size or maybe a pool community. Driving around will allow you to get a feel for the neighborhood and allow you to at least prescreen the general area.STEP 4 - HOME SHOPPING
Now for the Fun Part!! So now that you have picked your dream real estate team and narrowed down what you are looking for, its time to go check out some homes. You probably have been doing some searching on your own on consumer sites like; Zillow, Trulia, and Realtor.com. Your agent has also, most likely been sending you properties in the area that fit your criteria, perhaps even has you set up on a "Client Portal" to receive alerts of new listings and price changes. For you who are not aware of a client portal, its a tool that alerts buyers of homes that fit their criteria in a specific area. Its powered by the local MLS, so you get to see all the properties available and also can get very specific with filters. So for example if you wanted to see just 4bed/3bath ranch style homes in the Beckett Ridge area of West Chester, OH we would set that up for you. For most of my clients I keep it pretty broad in the beginning, unless they have a special request like a pool or a first floor master. But this is a great chance to prescreen properties electronically and find ones that peak your interest. Remember pictures can be very deceiving. Something that looks great in pictures may be a totally underwhelming in person and the same is true about something that looks not so great in pictures. Its usually not possible to see every single active listing on the market, nor would you want to, so it is important to weed certain properties out from pictures. This is really your chance to get a feel for the different West Chester and Liberty Twp. neighborhoods, refine your wish list, and ask lots of questions. If your criteria or wish list changes, don't hold that back from your REALTOR, they are there to help and match you with the best possible home and wont hurt their feelings. If your happy, they're happy. I have found that you can do as much pre planning as you want for the perfect home, but for most buyers they just get that "this is it" feeling when they walk into the right home.STEP 5 - WRITE AN OFFER
So you finally found the right house... Congrats!! All that hard work and tireless searching has finally paid off. Its the home that fits your budget, needs, wants, and most of your must-haves. Most importantly, its the home that gives you that "this is it" feeling when you walk in. So your next step is writing an offer. So first of all, sit down with your agent and come up with a negotiation strategy and figure out a fair initial asking price using "Comps" of similar homes that have sold recently in the immediate area, usually in a half mile radius and within the last 6 months. So in the state of Ohio, to write an offer for a residential property, you must complete a full purchase agreement including the: Purchase Contract and all other required documents from the state and agents brokerage. Typically an offer will include; the Purchase contract, Residential Property Disclosure, Agency Disclosure, and your Pre-Approval Letter. Its probably a good idea to ask your lender for a "property specific letter", so not to tip off the seller's side that you may be able to bid higher. If the property was built before 1978 you will also need to sign a "lead paint disclosure". The last piece of the offer is "Earnest Money". Earnest Money is not required, but is a part of the majority of offers. It is merely "Good Faith Money", to show that you are serious. I like to say "It's the spit in the hand-shake". Its usually about 1-2% of the purchase price. As a buyer it usually is held by your sides broker in a trust account until closing, then is usually credited back to you going towards purchase. I say "Usually", in my time as a REALTOR, I have never seen a buyer lose their earnest money, but if you do back out of the sale at the last minute without proper cause. You do run the risk losing it or at least having it tied up for awhile as its bickered over. So when you draft up an offer its a legally binding documents when accepted and contains everything: from the price you are prepared to pay, to the inclusions (fridge, washer, dryer), to the contingencies (inspection, appraisal, other) to the closing day. You and your agent will also decide whether you want to select or ask for the seller to pay a portion or all of; closing costs, a home warranty, and title insurance. So once you have submitted your offer one of 3 things can happen: the seller can accept, decline, or counter. Usually its the latter and you go back and forth until both sides reach a deal. During negotiations you may have to compromise on a few things, but that's why you hired a good REALTOR to fight hard to get you the best deal.STEP 6 - CONTINGENCIES AND LOAN COMMITMENT
So in the Purchase Contract it protects you the buyers interests with several contingencies; a Financial contingency, Inspection contingency, Appraisal contingency, and there is a section to write in any others. The most common write in is; "if you had a current home to sell before purchasing". Finance contingency protects you if for some reason your loan fell through and you can no longer afford the property. The Appraisal Contingency says that if the home doesn't appraise, that you have the option to back out. If you still wanted to move forward you could either request that the seller lower the price, come up with the money yourself to cover the difference, or split the difference with the seller. The Inspection Contingency protects you in that you can do any and all inspections of the property that you desire. We recommend that clients get a whole home inspection, termite, and Radon. Of course, you as the buyer are responsible for the cost of any and all inspections. They can range anywhere from $300-$500. So soon after you have an accepted offer, usually about 7-10 days is when you order and complete the inspection. Then you usually have about 5 days to negotiate repairs. Certainly the number of days is negotiable in the contract, but those are typical numbers. So after you have an accepted offer you and your lender will also work on getting in all the pieces and documents to finalize your loan and work towards final loan commitment. Usually a standard"Conventional" loan takes about 30-45 days to process. An "FHA" and "VA" loans usually take a bit longer, anywhere from 45-60 days.
STEP 7 - CLOSING
The closing is the process in which ownership is transferred from the seller to the buyer. The closing is managed by a "closing coordinator", which is usually a representative of which ever title company you chose in the contract. Sometimes your lender will require you to use their preferred title company. Title companies not only manage the closing, but also go back 40 years to look at the deed and make sure its a clean and clear document, free from any liens for example. So both sides will sign papers, usually takes anywhere from 20 minutes to an hour. You as the buyer will have a significant number more of paper work to fill out compared to the selling side. Remember to bring a valid drivers license or State ID to the Closing, it will be required. This is also the time for the sellers to share any tips and tricks of the home and neighborhood with the new buyers; the garage door sometimes sticks, here is how you turn on the fireplace... Stay away from the people on the corner, etc.... After all paperwork is signed... CONGRATS YOU ARE A NEW WEST CHESTER, OH HOME OWNERs!! This is usually the point you get your keys, garage door openers, etc...HOW MUCH CASH DO I NEED TO BUY A HOME?
The Median Sales Price of West Chester, OH in April 2016 was $221,250 and averaged $128 per Square foot.Conventional Loan Down payment: 15-20% of purchase price = $33k-44k
FHA Loan Down Payment: 3.5% = $7744
Earnest Money: 1-2% of the Purchase Price $500-$2000
Inspection Costs: $300-$500
Closing Costs: $2500-$3000 (can ask seller to cover some or all in offer)
Home Warranty: $550 (optional)
Broker Fees: Sellers pay commission, but there may be a broker fee: $50-$300
RESOURCES
http://www.homesnap.com/ - BEST APP (Andriod/Apple)Takes your location via GPS and shows you all listed homes in the area. Take a pic of any home and get instant info.
www.CBWS.com
Search homes, find an agent
https://k12.niche.com/
School District Rankings and info
http://www.schooldigger.com/go/OH/districtrank.aspx
School Rankings and Info
www.aarongeorgerealestate.com
More about the author, search homes, video tutorials, Free Home Valuation
Aaron George | Realtor
Coldwell Banker West Shell513.488.3372
Email:aaron.george@cbws.com
9106 West Chester Twn Ctr Rd.
West Chester, OH 45069
