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MOVE Worthy Podcast
All things Real Estate...What's happening today in the real estate industry. Educating, entertaining, untold stories and more!
MOVE Worthy Podcast
Navigating the Home-Buying Journey: Essential Steps and Expert Tips for a Smooth Experience
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Unlock the secrets to a seamless home-buying journey with our insider tips on navigating the real estate process. Ever wondered if you're truly ready to find your dream home? Join Jenny Lendle and Lauren Jones in the 10th episode of the Move Worthy podcast as we promise to equip you with the knowledge to approach this life-changing decision with confidence. We discuss the essential first steps, such as consulting with a realtor and lender, attending open houses, and understanding buyer agency. With our guidance, you'll learn how to efficiently narrow down your search to focus on what truly matters, transforming an often overwhelming experience into a smooth and rewarding adventure.
Explore the complexities of the real estate closing process with us as we guide you through the crucial post-offer steps. From the importance of thorough home inspections to the intricacies of buyer-seller negotiations, we unravel the critical details that could save you from future financial setbacks. With our expert advice, discover how to navigate repair discussions and understand why inspection periods should never be waived. We ensure you're making informed decisions at every turn, turning potential regrets into confident steps forward. Tune in, as we stand by your side in this intricate journey to finding your perfect home.
MOVE Worthy Podcast with Lauren Jones & Jenny Lendle. Together we have the experience to MOVE you forward!
Buyer Process in Real Estate
Speaker 1okay , we are back with episode number 10 . I'm so excited , uh , 10 episodes so far of the Move Worthy podcast with Jenny and Lauren and today we are going to go through the buyer process , just like we did sellers . There's a process for buyers and while certain things are similar , there's some differences involved A little more detailed , I guess but that's when we get into contracts and things , and then the details are similar for sellers too .
Speaker 1so , to start it off , we talked about our seller books yeah last week and we also have a buyer book that we had made . So every buyer that signs with us will get this nice book to keep that they can always refer back to while we're in the middle of the process . And that process starts with a consultation , a chat , even virtual appointments . I mean we can do zoom , but definitely important to sit down and go through the process , because what ends up happening , especially sometimes with first-time buyers , is they get into the process and they're not aware .
Speaker 2They're not sure .
Speaker 1We didn't cover that .
Speaker 2Right .
Speaker 1Or what do you mean ? I have closing costs . Well , we didn't ask for that in the offer . I mean , these are real situations that absolutely I've had in my time in real estate is making an entire offer and then them ask and then a client asking afterwards did we , you know , is this cover closing cost to ? Right no we didn't put that in the offer .
Speaker 2Or what do you mean ? I have to spend $800 on inspections and wait . I have to make a deposit .
Speaker 1A deposit too .
Speaker 2Yeah , yes , oh yeah , for sure , for sure .
Speaker 1This is some of the most important things pieces of the process , pieces of the process .
Speaker 2so a consultation , a buyer presentation is so important in this process . Absolutely , yeah , so , and buyers should be meeting with more than one realtor . Um , of course , you know we do a great job . But you know , you know , I think , you know , I think it's important for a buyer to feel it out . I think some relationships work better than others and it's just a personality thing really , but you know , buyers should . If your agent has the time to sit down with you and do a consultation and go over step-by-step , everything that is going to happen and everything you should expect , then you're probably in pretty good hands .
Speaker 1I agree with that . Yeah , absolutely . And then now part of the consultation also is going to include buyer agency , buyer representation . What does that look like ? What are those fees ? How does that impact a buyer's closing costs ? I mean , these are all super important things . So , part of that whole consultation , the buyer agency I mean our next advice for a brand new buyer is to speak to a lender , a lender .
Speaker 2absolutely , if you haven't spoke to a lender before you start interviewing agents , you need to do it ASAP . You know the lenders are going to be the ones that provide you with your budget and they're going to be the ones to approve you or not approve you . You know , going through the shopping process with an agent is and you're , you know , have no idea whether you can buy a house is a complete waste of time .
Speaker 1Absolutely For you and for the agent .
Speaker 2Of course the agents are going to go above and beyond looking for what you need . But as a buyer , your significant part of your due diligence is getting with your lender . Yes , for sure .
Speaker 1And a lot of people look , we get it . You want to see a house . You might not 100% be ready to purchase something , you might not want to talk to a lender right away before seeing houses , but I think now , with buyer agency , there's strings attached more so than there ever was . So , if you really just want to view some homes , I would still get with a realtor , still establish a relationship with someone that you can call , because I would suggest you go look at open houses yeah take a Sunday .
Speaker 1Take a Saturday . Go view open houses in the area that you want to be in again , have your realtor a phone call away , because if you see something that you like , then you can give your realtor a call . You're not obligated to work with a realtor who's at the open house . You are okay to go see those homes on your own .
Speaker 2And that realtor you know can give you resources . You may not have a lender in mind or you know , really know what's available out there as far as lending options go . Most realtors stay up with that and they can probably guide you in the in the best direction you you could be in for for that purpose .
Speaker 1So I saw a post on facebook just recently . I joined this first time home buyer group and a buyer even asked should I contact a realtor first or a lender first , or the lender first or the realtor ? I'd say they both kind of go hand in hand . But if you're ready to get started on the process , I really feel like the realtor is a good first step , because then that realtor is going to explain the next step the entire process call a lender .
Speaker 2So .
Speaker 1I'm still going to say the realtor before the lender .
Speaker 2Yeah , no , definitely I think the realtor before the lender , but I think the lender before shopping .
Speaker 1Absolutely , yes , absolutely and yeah , like I said , now so more than ever , because buyer agency is here to stay , it's . You know , there's a lot more involved today than there was a year ago .
Speaker 1So yeah so next , after you've talked to your realtor , you've gone through the process , you're comfortable with all of the things that go with purchasing a home your closing costs , your deposit and what the fees look like . You're going to go look at houses , yep , and you're going to . I mean , our job is to narrow down your search . So we're not looking at 100 homes Not that there's 100 homes on the market but it's your must-haves , your priorities .
Speaker 2And in the beginning I think you'll probably see more that you don't like then , then that you do , because I think that you're learning as a buyer . You're learning what it is that you want and what you need , but the agents also learning that as well .
Speaker 1So you kind of like you said things I rule some things out , you .
Speaker 2You figure out what's an absolute no , what's an absolute yes , and you know that part gets a little more streamlined through the process , for sure .
Speaker 1Right , yeah , I think my first couple buyers not knowing exactly where they wanted to be , searching for a lot of different houses , I mean , we must have seen 40-plus houses , if not more , before they finally narrowed down location size . And then another thing is do you want to do work to a house or do you not ? And I think everyone's idea of putting work into a house is different , so while they might have been talking about just paint and then you walk in and the whole kitchen needs to come out , that's a big difference .
Speaker 2Yeah , that's a huge difference .
Speaker 1I think we saw in that , with that buyer , that first one , I think we saw anything from complete gut jobs to completely redone all across from the West Bank to New Orleans .
Speaker 2And that also changes your lending options , too , do you need a construction loan . Can you go FHA ? Can you you know ? Is it commercial ? I mean conventional only Like . Those are the types of things that you'll narrow down in the first few days too . Right , I mean the first few weeks .
Speaker 1And then , being a more seasoned agent , we have those conversations up front , being a brand new agent , I had no idea . No , you're right I had no clue , but now I get it . When someone says , hey , I want to find a house to remodel , okay , well , conventional or construction is pretty much your only two options for that . Or , of course , they have the FHA 203K , which I've honestly never done one in my time as a realtor . I haven't either , which I've honestly never done one in my time as a realtor .
Speaker 2I haven't either . I've been on the selling side of one of those , but not the buying side . I've never been on either .
Speaker 1No , no , it's either been whoever it is , has either gone straight conventional or construction or we stopped looking for things that needed work and just did straight FHA , or whatever the case may be .
Speaker 2Yeah .
Speaker 1So that's , and then now we have another buying option with the NAVCASH that we talked about last week . I mean there's so many programs out there now , navcash being one . There's a lot of assistance out there for buyers so again , talking to your realtor , getting in contact with a great lender that can put on the table all the options to you as a buyer . Yeah , it's super important very so , after you're looking at houses , you find the one . What do you do ? Right you get an insurance quote .
Speaker 1That's what you do this day , this day and age , that's absolutely what you do and you might even do that when you even if you say I like a house , let me run the insurance quote on that , especially if it's in the areas that we know are coming in super high yes , and it's hard to tell and regard some of some buyers .
Speaker 2Regardless of whether or not it's in budget or it's not in budget , they may say absolutely not , I'm not paying that kind of money for insurance , right , whether it works in their note or doesn't , um , you know that's that could be increasing , oh , absolutely already a high rate and then possibly increasing the next year .
Speaker 1I mean that could really hurt a budget .
Speaker 2Yeah , that's another . Insurance has become a vital part of real estate transactions and to have a realtor with you through the process is just going to save buyers . I'm sorry , I mean there's just too many changes here in the last few years , um with insurances and interest rates and buyer agencies , and there's just so much that um if you're out there alone , you just don't know . You could totally miss it . You could totally miss it , you could totally .
Speaker 1you could get through the entire process and then , when you get your , your , your CD and you're like what you're like where did this come from ? Yeah , I mean , it's like you're your insurance premiums and at that point you don't really have an out no in the contract , so having a realtor by your side is so important , even though there's so much controversy over the topic these days , Like do I really need a realtor ?
Speaker 2Well , yes , and I think it's become more of a controversy now that buyer agency is a thing , because buyers are like do I really need to pay an agent ? Can I just you know if there's an agent that's listing the house ? Do I really need representation ? Absolutely .
Speaker 1I mean , how many phone calls have you gotten from a client or a friend who's working with another agent because they may not trust what that agent told them ? I know and you just want to like what are you serious , are you ? Serious right now . Just imagine if you win it alone . Had no clue right chat , gpt'd your way through it and then ended up at the closing table signing something that you are regretting yeah immediately and you have no out yeah .
Speaker 1I mean that right there says let me call a realtor yeah let me get my ducks in a row , let me figure this out and have someone by my side who can get me through this process and have my best interest at heart .
Speaker 2And I think another thing that it's important that buyers know is that don't be scared of the buyer agency commissions , I mean buyers' agents have managed to , you know , negotiate these things in the contract , leaving minimal for a buyer to pay out . You know sometimes nothing , and so you know , let your let , your , let your agent do that part and and work on that for you . Don't let that be a factor as to whether whether or not you hire an agent as a buyer .
Speaker 1Correct yeah , and sit down . I mean you never know until you sit down and have that talk . Yeah , you never know until you have the numbers on paper . We do a really good job of putting all the numbers on paper so you know exactly what you're getting into . There's no surprises .
Speaker 2Right .
Speaker 1So absolutely , I mean obviously we're biased , we're realtors , but gosh , we've seen it gone . We've seen it going bad too many times , with realtors even involved .
Speaker 2Could have went way worse Could have been exactly .
Speaker 1It could have really been way worse , and that's our job . That's what we do every day .
Navigating the Real Estate Closing Process
Speaker 1You make an offer , you get it accepted , then you're off to inspections and I'll back up . So you give your deposit , whatever that may be .
Speaker 1Typically 48 hours of an accepted contract need to give you a good faith deposit , either held with a listing broker or the title company of your choice . Then you have your inspections there's feet . You know that cost and that is a buyer cost . The buyer pays for the inspections . Once you go through those , you have an opportunity to ask for any repairs , if any at all . We send that over to a seller . A seller can say yes or say no .
Speaker 1Then it comes back to you and you have an opportunity to say okay , I'm okay with this , or I'm not and again , don't be afraid to lose out on the money for inspections , because we could uncover a major problem with a house .
Speaker 2That's right .
Speaker 1Which will save you thousands in years to come . But for the amount you have to pay for inspections , it's not a waste even if you have to cancel a sale .
Speaker 2No .
Speaker 1Don't be afraid of that . And you have to be comfortable , no matter what . Inspections can range anywhere from , I'd say , 300 to 500 , depending on the size of the house , depending on the inspector . You're looking at termite inspection which has been running around 125 to check a house for termites . Video plumbing inspections run around $250 , give or take depending on the location , and these are gold .
Speaker 2Oh my gosh to find a major plumbing issue under the slab before you that no one knew about that .
Speaker 1No one knew about I mean , it wasn't .
Speaker 2It wasn't a thing that the sellers kept from you . It was something they didn't know either . Um , you know , to find that 10 steps ahead of the game is huge , yes , yes before you buy a house .
Speaker 1Huge Before you're in it , because once you're in it , you're in it . And again back to the seller side . Sellers are giving their disclosures based on the things that they know . There are obviously going to be things that they don't know . Maybe they lived in the house for 50 years and never had an issue , had no idea underneath the house . Maybe they just bought it three years ago , had no issues , had no idea . Maybe they did or didn't do an inspection . Maybe it was caught or wasn't caught . There's so many possibilities . So , um , I remember we talked about agents waiving inspection periods in 20 and 21 , which I thought was insanity insanity um .
Speaker 1I would never waive an inspection period .
Speaker 2Period .
Speaker 1Yeah , I would always give my buyers time to inspect a property , even if they say I don't want to inspect it or I'm going to have my dad walk through it . At least you have the time , and that's their choice .
Speaker 2I did that quite a few times with when the market was so crazy . It was like , you know , like , oh well , if we waive inspections will we have a better shot of getting it , and it's like okay , so there's a difference between waiving your inspection period and not asking for repairs correct so let's try and take the safe road .
Speaker 2We can say that we won't ask for any repairs . But if you protect yourself and you get that inspection done and you see that there's something major , you could walk away correct , without having to do anything else . But if you say you're waiving inspections , you can't even walk away . You , you can't walk away , you just waived that opportunity , right , um . So I did that with quite a few of my buyers . It's like , okay , if you're comfortable with making repairs , they need to be repaired , let's go ahead and do the inspection , but we can put it in the offer that we won't ask for any repairs . It definitely will help when we're competing , for sure .
Speaker 1Yeah , I had a seller . I was working with a buyer and the seller said we will not make any repairs . We agreed to that . But then something major came up in the inspections that no one could have known . And we ended up negotiating a portion of that being paid for and they were adamant , like we said , we were doing no repairs . I'm like , yes , we weren't going to come at you with a list of these little things , but this is something major that has to be taken care of .
Speaker 1And you're going to either have to take care of it with our buyer , or you're going to have to take care of it with our buyer , or you're gonna have to take care of it with the next buyer and you know , when they say they're not doing repairs , don't you ?
Speaker 2don't you have to believe somewhat that they're saying they're not doing repairs on something that they are aware of . So when something else comes up that they're not aware of , it's like okay right , no one knew . No one knew this . I mean you really , are you gonna do you think the next buyer is going to feel the same way ? No , they're going to feel the same way we feel . Let's come to a meeting of the minds . But again , if you have an agent , that part .
Speaker 1I was thinking the exact same thing . I mean , think if you were on your own doing that , would you not want to deal with the confrontation , not want to push forward , feel pressured to , to keep going ? And have regret and then have regret later , while we would say , look , I we're not going to ask for the 10 , you know small things right , this is something major right so plumbing is one of those , because no one knows what's going on under the house no unless they do .
Speaker 2But nine out of ten , no one really knows until they do those video inspections and I've seen newer houses and I've seen older houses . It that I'm , sometimes that really doesn't matter I know it doesn't , things happen things happen the ground shifts yeah we're in south louisiana yes , absolutely
Speaker 1um once . Once you get through your inspection period though everything's been agreed on or not . So either it doesn't , you cancel and you start looking at houses again . You get through your inspection period though everything's been agreed on or not . So either it doesn't , you cancel and you start looking at houses again . You get your deposit back yes , that is refundable . You're out your inspection fees . But then , if you are happy with everything the outcome of the inspections then you move forward to the appraisal . The appraisal is a buyer fee the fees . I think the cost for that has gone up a little bit , still running between , let's say , $475 and $550 $550, .
Speaker 2yeah , yeah , okay .
Speaker 1I hadn't done one in a little while , so I wasn't sure .
Speaker 2But after we don't ever see the fees though .
Speaker 1No , we don't . No , it's all part of the lending process .
Speaker 2We typically don't even .
Speaker 1Oh yeah . Oh , I thought you were saying well , I was like what , but you're right , we don't see those no , but I haven't bought one either to pay that out .
Speaker 2No , I haven't either um .
Speaker 1So , after the appraisal , we haven't I'll knock on wood we haven't seen values coming in . Terrible lately or low , so so um , to me that's a sign of a healthy market . We have a range of property values , but once you get through that appraisal , it's usually a week or two and then you can close and you get the keys , the day of closing and um and it's a done deal .
Speaker 2There sometimes can be a very stressful process in the closing . You know if you're selling a house and you're buying a house and you're having to do a move all in one day , that part you know . Everybody thinks that once they get past the appraisal it's smooth sailing from there . But not always for the person . I mean there's not going to be any hiccups that arise , but for the person that's involved it can be very daunting , it can be very stressful . Navcash has really been a vital lifesaver for that process because I know we talked about this last week . Navcash will pay for the property that you're buying in cash and give you 90 days to sell your home that you're currently in . So that's huge . When it comes to that buying and selling process together , it can be a little much .
Speaker 1Yeah , I mean all in all the feedback I hear from buyers . It's a process and we're working on certain things on our end and then you have things that you have to do as far as with your lender getting documents in on time , providing everything that they need . Once it goes to underwriting , they may ask for more documentation and it can be a little tedious , but just know like we're working with your lender , we're working with the title company , we're talking to the insurance agent yeah , and we're trying with the other agent we're working with the other agent in order to make the process as smooth as possible for you , so all you really do have to worry about is getting your documents in on time and packing your house and packing up your
Speaker 2house and we'll usually that part we can't do .
Speaker 1Yes , and we'll give you an idea of when it's time to do that .
Speaker 2I like to get through inspections I like to get through appraisal and I , and so after inspections I'll say okay , start planning your packing or decluttering or yeah , you know whatever it is that appraisal it's time to kick it into gear . Yeah , so Yep , you book that U-Haul .
Speaker 1Oh gosh , the moving company .
Speaker 2Mm-hmm .
Speaker 1Moving companies I find have been reasonably priced .
Speaker 2I would agree with that .
Speaker 1Lately , mm-hmm , I've had a lot of buyers .
Speaker 2It got ridiculous for a while . It was super expensive .
Speaker 1I've had a lot of people say they've had good things , they've had good things to say about the movers , pricing and just the process not having to do it all on your own ? Yeah , it could .
Speaker 2That's , and they're not just loading the truck and moving it , like some of these companies are coming in and packing and wrapping , and I mean it's yeah , it's definitely we got .
Speaker 1The last time we moved we got a pod and Of course we're not professional Movers . Yeah , our furniture , you know the pods move , they don't just stay still , they move it to their place and they move it to your new house . Right , our furniture with the speed up .
Speaker 2Oh gosh .
Speaker 1Yeah , I think , if I ever have to move again . I feel like I'm at an age now , like I'm going to hire movers . Right , I'm going to do this right , I'm going to save my furniture . But yeah , we had some nicks and dings and some things . But I mean , it's our fault , our own fault .
Speaker 2You packed it in there .
Speaker 1We packed it , we did it I mean we did good , it was all
Navigating the Real Estate Buyer Process
Speaker 1right . But that's the buyer process . It is not always stressful , it is a lot . It's a process . But it's fairly simple , and when you're working with a realtor , we're going to walk you through every step of the way .
Speaker 2And make sure you're comfortable with every .
Speaker 1And make sure you're comfortable with everything . Yeah you're comfortable with every and make sure you're comfortable with everything . Yeah , and that just goes back up to the beginning of the process . Is that consultation , knowing your fees , talking to the lender , knowing your monthly payments and then go look for a house ? Yep , don't , don't put the cart before the horse ?
Speaker 2yes , I almost got that wrong you almost said it backwards I almost said it backwards .
Speaker 1I almost said it backwards , so , yes , all right . Well , we will end it there . This is the Buyer Process . We are the Moveworthy Podcast with myself , jenny Lindley .
Speaker 2And Lauren Jones .
Speaker 1And together we have the experience to move you forward .
