Home purchasing

Buying a Property in Two Parts: Part Two Examines the Buying Process | Money

Buenas yan hafa adai PDN readers,

It’s so much fun collaborating with Sandy Yow on these monthly columns. It makes it easier to find topics, which can sometimes be difficult. But we always have you, the reader, in mind when discussing these real estate topics.

As discussed in last month’s column, we’ve outlined the steps to getting pre-qualified from a lender for a home purchase. Now that you have that, it’s time to find a real estate professional and start your home search.

From our point of view, finding a real estate agent is a very important step. You should be very confident in this person’s ability to work closely with you, your lender, title agent, surveyor, building inspector, and more. For perhaps months, this person will be your best friend when buying a house, because you will be communicating with this person almost daily. Once you’ve decided on the real estate agent that’s right for you, it’s time to figure out exactly what you’re looking for in a home.

Often people will just say the number of bedrooms, bathrooms, villages, tile types, but that’s not enough.

start wide

Think about what is important to you in a home and make a list. Just keep in mind that Guam is small, and currently our inventory is even smaller. So start your house search as broad as possible, then filter it. Once you have an idea of ​​the homes you want to see, let your real estate agent know right away, as homes on the current market don’t stay available for very long.

Once your real estate agent has scheduled the home visits, it’s time to go!

After visiting the houses, let’s say you are most excited about the house you saw in Chalan Pago. The price is right, the yard is right, the condition of the house is right, so what do you do next? It’s time to make a written offer. This will place all of the terms and conditions of your purchase into contractual form. It outlines the timelines and other terms you want in your purchase offer.

You can request home inspections, property point relocation, septic system audits, plumbing, electrical, structural, insurability, tax obligations and much more. This is where you work with your realtor to make sure what you want is part of that purchase document. This is another reason why you want to work with a real estate professional who can guide you through your offer.

Negotiations

Often at this stage negotiations will take place. The process may include receiving a counter offer from the seller, or you may be able to make a matching offer.

Since you know the seller wants to sell and you want to buy, stay in the process.

Most of the time you will be able to get by.

Once all parties have agreed to the contract, the next phase of home buying begins. In Guam, the time to complete the purchase is approximately 30-90 days. If it’s cash or partial financing, it can be up to 30 days.

A very important first step after the seller accepts your offer is the earnest money deposit. This deposit, paid with your offer must demonstrate your level of seriousness in the purchase. It’s a good idea to have a buying schedule that will keep your team on the same page. It also allows everyone to meet important deadlines.

Check items

You’ll start checking off items on your list in the next few steps. For example, you want the title company to show that the property has a clear, marketable title. The title indicates who owns the property, if property taxes are up to date or if there are outstanding loans or liens. Your home inspections will also begin. It is important to hire an experienced home inspector. The cost is usually around $500 for this. You should also consider hiring a licensed surveyor to locate property boundary points.

Keep in mind that the financing of the transaction is the most important. Usually, while these inspections are taking place, you provide all important documents required by your bank. This should be a top priority so that the bank can order the appraisal of the home once pre-approved.

Often in today’s seller’s market, appraisals will be higher than the sale price. It’s a good problem. But what if the valuation is lower than the purchase price?

• The buyer can ask the seller to reduce the price.

• The buyer can pay the difference out of pocket.

• The two parties fail to agree on a price and the deal falls through.

Your real estate agent will represent you in these negotiations.

If all goes well at this point, the bank and title company will schedule the escrow to close, which means it’s time to finalize the transaction and sign all the paperwork.

Once you and the seller have signed all of your closing documents, they will be registered with the Land Management Department. Then you can get the keys to your new home!