10
Steps to Boston
Homebuying
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www.bostonmove.com
Prep Work!
Your Home Search Begins
Home Inspection
5
Build Your Team
Make a Competitive Offer
Get Pre-Approved
Secure Financing
Sign Purchase & Sale Agreement
Appraisal & Underwriting
Final Walk Through
Closing Day!
Celebrate your win!
A&S Realty, INC | 617.267.3485 | 271 Newbury St, Boston, MA | www.bostonmove.com
10
Steps to
Homebuying
1
Prep Work!
Your home search starts before you even begin looking!
Once you've made the decision to buy a home be sure that you...
- Are up-to-date on your taxes
- Review your credit report to ensure it's accurate &
work to strengthen weak points if needed.
- Avoid major transactions within 1 year & during your
search
- Commit to not making major purchases during your
home search
Success is where
preparation and
opportunity meet
2
Build Your Team
It is critical to have experts working with you when starting your home search. Having confidence in your team is important. We'd be happy to make an introduction to knowledgeable real estate professionals and/or work with a team of your choosing.
Buyer's Agent
We work with you during your homebuying process, from searching to owning, and are there to protect your interests.
Loan Officer
They are your guide in navigating the lending process and securing your loan. If financing is required, Boston sellers often will not consider an offer without a pre-approval.
Real Estate Attorney
Your local real estate attorney's mission is to protect your legal interests during your purchase.
Insurance Agent
They will make sure you obtain home insurance that best protects your new asset at a competitive rate.
Home Inspector
The inspector takes a deep dive into the home’s condition and any potential updates/repairs that may be needed in the future.
3
Get
Pre-Approved!
An important first step in buying a home is to obtain a pre-approval letter from 1 or more local lenders before you start shopping for homes. They will review your financial status and provide you with a maximum loan amount that they will cover.
What are the benefits of a Pre-Approval?
- Determines the highest loan amount you are qualified to borrow.
2. Reduces the time needed to process a loan
after you submit an offer on a desirable home.
3. Strengthens your offer by providing written
reassurance to the seller of your ability to
finance the purchase of their home.
How long does pre-approval take?
1-3 Days
Common Documents Lendors will ask you to submit -
- Personal information
- Credit authorization
- Past 2 years of Federal Tax Returns
- Past 2 years of W-2s
- Recent Bank Statements
- Copy of Paychecks
- Details on existing debt
4
Your Home Search
Begins!
Take a look at homes online to create your list of must haves & nice to haves! Define these needs & desires with me so that we can provide you with curated list of homes for you to review.
Consider what you need in your next home.
- Single-family, Multi-family or a Condo?
- Fixer-upper to customize or a turn-key home with all the fixings?
- Do you need to be near public transportation for convenience?
- What neighborhoods are you considering? How long do you plan to live there?
You may go into your search with a specific idea of what you want, but then change your mind once you start looking at houses. And that's ok! Keep your deal breakers in mind but don’t be afraid to readjust your criteria.
This is the time to review properties online in-depth & schedule showings with your agent.
So you've found the ideal home - What's Next?
5
Make an Offer
Is it a Seller's or Buyer’s Market?
The Boston real estate market is highly competitive. There are more people searching for homes to buy, than there are homes for sale. It's normal for homes for sale to receive multiple offers within 7 days of being on-market. If the home has been on the market for more than a couple weeks, there may be room to negotiate the offer price. Once a desired property has been located, it's time to draft an Offer to Purchase.
Comparative Market Analysis
Your agent will provide this report which compares recent home sales, similar to your desired property, that have been sold recently in the area. It will include a suggested offer amount based on the home's value and market trends.
Initial Deposit
An initial deposit is money paid when an Offer to Purchase is accepted. For Boston, the initial deposit is typically a minimum of $1000 and is applied to the down payment of the home.
What is included in an
Offer to Purchase?
The Basic Terms of an offer include:
- The offered purchase price
- The amount of an initial deposit
- The amount & timing of the earnest money
- Offer expiration date
- Purchase & Sale signature deadline
- Time & Date of Closing
- Escrow Clause
- Financing Contingency
- Home Inspection Contingency
- Any additional contingencies
The Negotiation Table
Negotiations between the buyer & seller are facilitated through their real estate agents.
Once your offer is reviewed, the seller has the option to accept, reject or offer a counter-offer. These negotiations continue until mutually agreeable terms are made or until one or both parties choose to walk away from the deal.
In a multiple offer situation, you can strengthen your negotiation power by expediting/waiving contingency deadlines*, which leads to a faster closing. These include -
- Inspections Deadlines
- Purchase & Sale Deadlines
- Financing & Commitment Deadlines
*Speak to your agent to see if any of these strategies make sense for you.
6
Home inspecti0n
Most home sales are contingent on the results of a home inspection, which is paid for by the buyer (typically around $1,000), and occurs within 7 days of an accepted offer.
A licensed professional will examine the property & report any defects for you to be aware of. It's encouraged for you to attend the inspection to learn more about the home, but as your real estate agent, we will always attend to represent you. We can recommend reputable home inspectors to you, if needed.
7
Sign the Purchase &
Sale Agreement
Now you are able to review and sign the Purchase & Sale Agreement. We highly recommend hiring a real estate attorney to represent you in the transaction, who will review and revise the P&S until a mutually agreeable document is finalized. Once signed, it is time to put down earnest money (a second deposit). This is typically 5% of the purchase price less the initial deposit.
8
Applying
for a Mortgage
Your loan officer may have access to several lenders and can obtain the best interest rates and terms available. A loan application is usually submitted within a few days of the Purchase & Sale Agreement being signed.
15- OR 30-YEAR FIXED LOANS
These feature a fixed interest rate and fixed monthly payment paid over 15-30 years.
ADJUSTABLE RATE MORTGAGE
(ARM)
This loan has an interest rate that changes based on the market interest rate of the adjustment period, typically every 1-, 5-, or 7-years.
GOVERNMENT LOAN PROGRAMS
For qualified buyers, these programs offer favorable rates, reduced closing costs & low down payments. Popular programs are FHA & VA loans.
CONSTRUCTION LOANS
This loan distributes payments to builders during the construction of a new home.
9
Appraisal & Underwriting
After applying for a mortgage, your lender will order an appraisal of the property. An appraisal is a written valuation of the property that is performed by a licensed appraiser. This report is often required (but not always) by lenders since the property is security for the note.
Underwriting is the process a lender uses to qualify your loan based on credit, employment, assets & reviewing your past finances. Once a loan is successfully processed, your lender will provide a commitment letter, which indicates their intention to fund your loan.
10
Closing the Sale!
As the Buyer, you will be notified by the closing attorney of the time/location of the closing, and the amount & form of funds needed from you to close. Once the closing documents are signed, funds secured and the documents are recorded at the Suffolk Registry of Deeds, you are now a homeowner! Congratulations!
*
Final Walk Through
Ideally done the evening prior to or the morning of closing, you will have one last opportunity to visit the property for a final walkthrough. This provides an opportunity to confirm that there have been no changes in the property that may need to be addressed at closing.
The Additional Costs of Homebuying
% of Sales Price
Buyer's Agent Commission
Buyer's Agents are responsible for advising & guiding you through the sales process. We only receive compensation if successful at helping you buy a home. This fee is outlined in your Buyer Agency Agreement.
$700 - $1,200+
Inspection Fee
Condos have an average fee of
$700+
Single-families have an average fee of
$1,200+
$1,500 - 1,800
Legal Fees
Hiring a real estate attorney to protect your interests in a home sale will save you money and headaches later. Other legal fees vary by property.
5% of Purchase Price
Earnest Money
Buyers pay an initial deposit of $1,000+ w/ the Offer acceptance. Earnest money is a 2nd deposit paid when signing the Purchase & Sale Agreement. This is typically 5% of the purchase price less the initial deposit & is applied to your down payment.
$500 - $700
Appraisal & Lender Fees
A home appraisal has an average cost of $500 - $700. Closing costs fees vary by property.
The Additional Costs of Homebuying
% of Sales Price
Buyer's Agent Commission
Buyer's Agents are responsible for advising & guiding you through the sales process. We only receive compensation if successful at helping you buy a home. This fee is outlined in your Buyer Agency Agreement.
$1,500 - 1,800
Legal Fees
Hiring a real estate attorney to protect your interests in a home sale will save you money and headaches later. Other legal fees vary by property.
$500 - $700
Appraisal & Lender Fees
A home appraisal has an average cost of $500 - $700. Closing costs fees vary by property.
$700 - $1,200+
Inspection Fee
Condos have an average fee of
$700+
Single-families have an average fee of
$1,200+
5% of Purchase Price
Earnest Money
Buyers pay an initial deposit of $1,000+ w/ the Offer acceptance. Earnest money is a 2nd deposit paid when signing the Purchase & Sale Agreement. This is typically 5% of the purchase price less the initial deposit & is applied to your down payment.
Tips on How We
Can Work Together
Always call your agent to set up showings
It is to your advantage to have your agent set up showings, so that we can research the property on your behalf. This is especially true for properties for sale directly by the owner.
Check in before you jump in!
Be aware that the Seller's agent will always put their clients' interest before yours - this is why having a Buying Agent is so important. Listing agents do not have to share certain aspects of a home upfront and can choose to disclose it in the fine print of a contract.
Avoid potentially upsetting and confusing situations
When visiting public open houses always complete the sign in sheet and include your agent's name. This communicates to the seller that you are ready to move forward with a reliable representative in place.
Be aware of what you say to other real estate agents
If you disclose something confidential about your personal or financial situation, it can and likey WILL be used to your disadvantage. If you see a "For Sale" sign on a property, be sure to reach out to your agent instead of calling the number listed. Do not risk revealing information to a seller's agent directly.
A&S Realty is a family-owned and operated business that has been entrusted with the real estate needs of the Boston area since 1960.
We were the first Boston real estate agency to specialize in apartment rentals & investment properties. Today, we are a full service real estate company providing sales, rentals and property management services.
We are committed to representing and serving our clients with excellence, professionalism & honesty.
YOUR A&S REALTY AGENT
Our licensed agents have been working in the neighborhoods we service for years, bringing their knowledge to bear in every transaction.
SERVICES
HOME sales
Representing the interests of homebuyers, investors & sellers with clear communication, strategy and experience.
apartment rentals
Deep knowledge of the Boston rental market with extensive inventory exclusive to A&S.
Investment Management
We help owners get great tenants, great rents, and avoid costly mistakes. Let A&S Realty and our team of vendors handle all the day to day operations of your property
our team
Joel Simons
Broker, Owner
Justin Grammer
Sales & Leasing Specialist,
Property Manager
C. 978.853.6724
justin@bostonmove.com
@everything.boston.realestate
Valerie Filiberto
Senior Leasing & Sales Specialist
C. 617.877.0423
valerie@bostonmove.com
@yourbostonlifestyle
Jalexis Smith
Leasing & Sales Specialist
C. 617.468.1417
jalexis@bostonmove.com
@explorebostonliving
Kailah Gittleman
Leasing & Sales Specialist
C. 678.333.5682
kailah@bostonmove.com
@listingswithluna
thank
you
Address
271 Newbury St,
Boston, MA 02116
Office
617.267.3485
Website
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bostonmove.com
@asrealtyboston
We're here to help with all of your real estate needs.
We look forward to guiding you through Boston's competitive housing market.
From fine tuning your wants & needs to
reaching the closing table, A&S Realty is here to represent your best interests .