Home sales skyrocketed in Northwest Austin in the past few years, and local real estate experts say this hot market requires prepared, decision-ready buyers.
Homing in on the right house
- Set a price range
- Set priorities for the search
- Determine needs versus wants
- Scout prospective neighborhoods
- Check area roads and transportation
- Scout nearby businesses and schools
- Know nearby industry and agriculture
- Consider the homeowners association
Necessary documents
- ID, Social Security card, credit report
- List of previous landlords, past 2 years
- W-2/1099 statements, past 2 years
- Federal income tax returns, past 2 years
- Pay stubs with earnings, your name and company name, past 2–4 months
- IRA, 401K statements, past 2 months
- If self-employed, must show proof of all income with tax returns
- Evidence of financial assets such as bank accounts, stocks, etc.
- Titles for cars, boats or other vehicles
- Evidence of debts including car payments, student loans, credit cards, mortgages, child care and/or support
- Value of life insurance policy and monthly premiums paid
Glossary
- MLS – Multiple Listing Service; real estate agents use this comprehensive list to find and sell homes.
- Earnest money – A deposit accompanying the offer to buy the home that goes toward the sale price; exiting the deal late can cause the loss of this deposit.
- Option money – A payment, usually $100–$250 to the seller, to secure a period of time, often 10 days, when the buyer can inspect the home or exit the deal if necessary.
- Closing – This is the final transfer of the property from the seller to the buyer.
Buying process
- Making an offer
In a hot market, buyers have less time and room for negotiation.
- Acceptance of the offer
- Open title
Once the sale contract is agreed upon, a copy of the contract and earnest money are delivered to the title company.
- Option period
This is a window (usually 10 days) secured by option money in which the buyer can inspect the home or exit the deal without losing the earnest money.
- Inspections
Buyers should hire a home inspector to check the house during the option period.
- Appraisal
Lenders require an appraisal to ensure the property’s value.
- Application for mortgage loan and approval
- The loan approval process can be stressful. Lending institutions need many financial documents before approving a loan.
- Repairs, if necessary
Buyers can negotiate repairs during the option period. The lender may require repairs before funding the loan.
- Homeowners insurance
Buyers must obtain homeowners insurance before closing. The cost is included in the closing costs, which are fees and expenses paid at closing.
- Closing, funding, taking possession
Closing is the agreed-upon time to meet for final paperwork. Funding occurs after paperwork is signed and conditions are met.
During the loan process...
Do
- Tell lender of salary, address or compensation changes
- Obtain homeowners insurance for the home’s value
- Document any deposits into your bank account
Don't
- Take out new lines of credit
- Change jobs without telling the lender
- Make large purchases (car, appliances)
Seller’s checklist
- Hire a real estate agent
- Prepare to move out
- Have new accommodations ready
- Be prepared to leave the home for buyer walk-throughs
- Prepare the interior
- Clean everything, remove personal items, make the home clutter-free
- Consider removing wallpaper, repainting walls
- Consider new floors or carpet
- Remove odd odors and pets while the house is showing
- Prepare the home’s exterior
- Clean walkways, trim vegetation and maintain landscaping
- Remove personal decorations and lighting
Sources: Cindy Crawford Homes, “The Home Buying Guide,” Sherry Hindmarsh RE/MAX Capital City, Real Estate Center at Texas A&M University Homebuyer’s Guide, www.realtor.com – online “Home Seller’s Guide”
