How does buying a house really work

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If you don’t know how buying a house works, it’s ok, don’t sweat we have all been there. Sadly, almost every new realtor is afraid to ask because it could make you “look stupid.” Well, it doesn’t. If you have never bought a house or sold one, you couldn’t know because you haven’t gone through it yet.

When I started real estate, I had NO IDEA what I was doing or how this big complicated machine of real estate works. Now, I do, kind of. Read this breakdown so when you get your first client you don’t have to change your underwear secretly like I did because you’re so scared.

Let’s break it down.

1 - Find a client (Someone who needs to buy a house)
2 - Get pre-qualified with a lender (How much money can they spend)
3 - Show houses and find one (Budget, location, needs vs wants)
4 - Make an offer (Tell them how much you’ll pay)
5 - Get the contract accepted (They agreed)
6 - Open escrow with title agency (A 3rd party who will help us close)
7 - Order appraisal and inspection (Make sure the house is what you think it is)
8 - Negotiate BINSR (Buyer Inspection Notice, Seller Response > ask for repairs)
9 - Verify appraisal value (Lender makes sure house is worth what they lend you)
10 - Final walkthrough (Make sure the house is how you remembered it)
11 - Sign documents with title and record with county (So many signatures…)
12 - Turn on utilities and verify insurance (I have forgotten this before…)
13 - Give keys to the new homeowner (We LOVE this part)
14 - Get paid ($$$ bills ya’ll)
15 - Post on social media that you can help with real estate needs (Marketing)

Here are a few particularly BIG moments in this journey:

2 - Get pre-qualified with lender

Find a great lender who makes this process EASY for your client and provides the best possible experience. It is stressful for homebuyers because they’re supplying financial documentation, signing paperwork, and figuring out what they can afford on likely the biggest purchase of their life. It’s a big deal. Support them by letting them know everyone feels this way, it’s the standard process, and we’ll go through each step so they understand what’s happening.

6 - Open escrow with title agency

Title is another partner along with the lender who helps you buy a home. These are different companies, but it should feel like a unified experience for the buyer. Nobody wants to manage multiple contacts and be handed off back and forth to find answers. As their realtor, you are their quarterback! Their spirit guide! The shaman! Help coordinate between these resources and keep your client in the know on all things happening. This might become common for you, but most people buy 1-2 homes in a lifetime. So it’s a big decision. Don’t make it any tougher on them.

8 - Negotiate BINSR

This can have the potential to get spicy, but this is where you can bring huge value as a realtor. Focus on getting this house in the best shape for the buyer without losing the deal. You need a blend of negotiation with a healthy dose of behaving like a reasonable person. Make it work for both sides to have the best possible home-buying experience. Remember, don’t let it get contentious because making the deal requires partnership and compromise.

If you don’t want to read all this and want to watch some dork tell you all of this in a football helmet while his son shows off some suspect dance moves, then check me out:

— Temp