I would like to begin with discussing the buying process of a new home. This is one of the largest investments you will make in your lifetime and hopefully the first of many more to come. This is not only a home purchase that provides shelter and many happy memories, but more importantly it is an investment in your financial future that will provide assets for your retirement years.

Getting started- The most important step to take in the beginning of the home search is to meet with your lender. You will need to have your last two years of completed tax returns, financial records such as bank accounts and a good credit score. Your lender will run your credit report and much of your borrowing ability is based on your credit worthiness of the past and your ability to pay for the new monthly payment. You will be approved for the purchase amount based on the above and your down payment. If you do not have a lender I can recommend several or go to your bank and compare what each can offer in rates and terms.

Representation of you the buyer- As your buyer’s agent it is my fiduciary responsibility to represent your interest through out the search and buying process. My job is to find you the home that meets your needs, desires and fits into your financial situation. In the end you are the one to make the commitment to purchase the perfect home for you. I ask for open communication during the process, so please tell me what you think of the homes we see. If I am directing you in the right direction of the search and if not please tell me! I am paid for results and the seller pays me my commission that is pre set and it is no out of pocket expense to you.

Mental preparation- The home search is an emotional process that gives you highs and lows and you will experience many along the way. For instance you walk into a home and the ‘vibe or feeling” of the home does not match your personality or energy. View the entire home, take in the good and the bad and move on. Evaluate what it is that you did not care for in the home, color, textures (carpet, counters, flooring, window treatment) light, natural and ambient and landscaping or outdoor living spaces. Use these thoughts for the continued home search and you will quickly recognize what you want in a home and what you do not.

Decision Making-You will recognize the home that fits your lifestyle and desires and then go for it! Don’t be afraid to write an offer on the property that you would like to buy. Remember the asking price is only the asking price. Many buyers have priced their property to sell quickly with a some what fair market price. If they are overpriced you are helping them recognize that it is by writing an offer that you as an educated buyer feel is a fair market price. Be prepared for negotiations, or counter offers back and forth. It is not uncommon for multiple counter offers and this is how we will arrive at an acceptable price for both the buyer and the seller. Again the emotional side of the process will wear on you, but do not let it get to you. The negotiations will be handled between myself and the sellers agent, but you will be in charge of the terms and prices but as your agent I will advise you along the way.

Acceptance of the offer- After the negotiations have ended and we have an accepted offer this is where the clock starts ticking. But first let me explain that this process is intended to protect you the buyer as well as the seller. You will put down approximately 1% of the purchase price as a good faith deposit that will be deposited with the Title Company in an escrow account. We then will have approximately 17 days to remove all contingencies such as our home inspection, pest inspection and others if we are not certain of the condition of the home.

Our loan approval will need to be removed at this point and upon removal of all contingencies we will need to deposit approximately 2% for the initial deposit which will be applied to the down payment at the close of escrow. Up until this point you have had the opportunity to cancel the contract and get out with no costs to you other than costs of the inspections. Upon removal of all contingencies we are moving forward to funding the loan and closing the sale of the escrow with the Title Company.

You will need to deposit the balance of the down payment usually 20% of the sale price, minus your 3% good faith deposit so 17%. The Title Company will usually only accept a cashier’s check or a wire transfer from your bank. It is important to have your assets accessible as you are shopping for a home and not tied up in term account that you may have to pay a penalty to withdraw. This could delay the close of escrow and you could be liable for damages if you could not consummate the sale of the property. It is my responsibility to advise you of this through out the purchase, so again trust and communication is of the utmost importance in your representation.

Acceptance and Move in- Upon the close of escrow the property is yours. Congratulations, you are now a home owner! Before the close of escrow you will have shopped for insurance, set up the utilities in your name and given notice to your landlord. You are now prepared to spend your first night in your new home and celebrate the success on the purchase of a property on the beautiful Monterey Peninsula.

As you can see the process is very time consuming and a big commitment for all involved. I look forward to making the search and the purchase a memorable process that is something you will remember and hopefully refer your friends and family for my services. With that in mind I hope we can proceed in the search and find the home that meets your needs for many years to come.

Sincerely,

Todd M. Porteous

      831-277-2380