1. Define and prioritize our goals
2. Determine your financial capabilities & limitations
3. Discuss and formalize our working relationship
4. Identify properties which match the criteria we defined
5. Visit properties together and perform relevant research
6. Negotiate and execute a Purchase & Sale Agreement
7. Perform home inspections and settle any ensuing issues
8. Satisfy remaining contractual and practical requirements
9. Finalize the purchase at closing

My goal is to minimize your stress and maximize your positive experience by overseeing every detail and by giving you resources, information, and advice that will help you to make the best decisions.
 

1. Define and Prioritize our Goals

The greater clarity you have about what you are trying to accomplish and why, the more likely you are to succeed in achieving your goals.

Saving money, investing for the future, increasing living space, modernizing, simplifying, settling in a specific town or neighborhood, moving closer to work or to family, pursuing a vision -- these are just a few of the reasons that people purchase property. Understanding YOUR reasons and their relative importance is a critical first step.

Having this discussion at the beginning of the process will help you to make decisions later and will help me to provide appropriate guidance and support. 
 

2. Determine your Financial Capabilities and Limitations

Before we begin looking for property, it is essential that you have defined the appropriate price range and that you understand the costs and ongoing expenses associated with your planned purchase. You should also be pre-approved by a lender (unless, of course, you are a cash buyer) as virtually all sellers will require this documentation before considering your offer.

In choosing a lender, it is wise to shop around. I will encourage you to discuss your needs with at least three lenders, financial institutions with which you have an existing relationship or referrals that I can provide. In each case, you should ask for an estimate in writing that details all of the costs associated with the proposed loan as well as any contingencies that must be met by you.

The extent to which you choose to involve me in this process is entirely up to you, but the more information you are willing to share with me, the better able I will be to ensure that your best interests are served. Of course, any information that you do provide will be held in the strictest confidence. 
 

3. Discuss and Formalize our Working Relationship

Every buyer’s needs and expectations are different, and I consider it part of my job to do my best to accommodate whatever works best for you. To that end, I will ask you to provide as much feedback as possible regarding your preferences as to communication method (e.g. phone, e-mail) and style, property screening, level of advice and guidance, and any other aspect of our working relationship that is important to you.

There is a standard "Buyer Agency Agreement" that we will use to formalize our relationship, the details of which we will review together before signing. While this legal document is necessary within the context of the highly regulated real estate business, I consider my personal commitment to you to be of primary importance. Above all else, we are agreeing to a partnership based on honest communication and mutual respect. 
 

4. Identify Properties Which Match the Criteria we have Defined

You may know exactly the type of property you are seeking, or you may be starting with only a few vague preferences. In either case, we will prioritize the criteria that you have defined and create a search profile specifically for you. For many people, the process of looking at properties is an integral part of clarifying their needs and wants, so this profile may very well change as we go along.

Based on your profile, I will perform a search and deliver appropriate listings via e-mail for you to review at your convenience. The large majority of listings will come from the Multiple Listing Service (MLS), the official property database of RI Realtors, where 85-90% of all residential property sold is listed for sale. I do also monitor other sources (e.g. Craig’s List, various "For Sale By Owner" sites), but encourage you to do your own prospecting as well if you have the time and desire to do so.

While it is by no means a requirement, most people prefer to drive past prospective properties to check out the exterior, the lot, and the neighborhood before scheduling actual showings. Once you have identified those properties that you wish to see, I will make arrangements for us to go view the properties together at a time that fits your schedule. 
 

5. Visit Properties Together and Perform Relevant Research

As we view properties together, I like to give you as much space as possible to look at your own pace and without too much distraction, though I may point out special features or potential problems that you might have missed. Often, the listing agent or seller may be present; while this offers a great opportunity to ask any questions you might have about the property, it is a good idea in this circumstance to try to maintain a "poker face" so as not to compromise your negotiating position should you decide to bid on the property.

Once we have identified a property which seems to be a good fit for you, you may have questions or concerns that need to be addressed before you are ready to make an offer. By making the appropriate inquiries through the listing agent or researching the public records, I will be able to resolve many of these issues for you. In some cases, particularly when a subjective assessment is involved (e.g. "What’s the neighborhood like?" or, "How’s the school system?"), I may refer you to other resources or make suggestions on how to do the appropriate research yourself.

Prior to drafting an offer on the property, I will gather as much information as possible to help with the decision-making process. This may include public information regarding ownership history, tax records, and recorded liens, as well as data from the MLS about comparable sales and active listings. 
 

6. Negotiate and Execute a Purchase & Sales Agreement

Before putting ink to paper, we will first consider all of the information we know about the property, its market value, and the seller’s situation & motivations. We will also discuss the various contingencies that need to be met, including any repairs that must be made, personal property to convey (e.g. appliances, window treatments, furniture), inspections to be performed, existing property that you need to sell, timeframes for closing, and anything else that will affect your ability and willingness to purchase the property. Finally, we will determine a maximum price that you are willing to pay for the property, discuss best strategies, and settle on an initial offer.

After detailing all of the above-mentioned terms in an "Offer to Purchase," we will submit our offer (usually to the listing agent) and wait for a reply. The seller has the following options: accept the offer as written, reject it outright, or (the most likely scenario) make a counter-offer. It is not uncommon for there to be several rounds of negotiation. Assuming that we succeed in reaching an agreement, both parties will then sign a formal Purchase & Sales Agreement (P&S), laying out the terms in detailed legal prose.

At this time, you should expect to deliver a deposit with the Purchase & Sales Agreement, typically 3-5% of the sale price, which will be held in escrow by the listing broker until closing. 
 

7. Perform Home Inspections and Settle any Ensuing Issues

With very rare exceptions, I will strongly recommend that you include home inspections as a contingency in the Purchase & Sales Agreement. While the inspections cannot completely eliminate risk, they will substantially reduce the likelihood of encountering unexpected and costly problems after closing. Inspections are generally performed at the expense of the buyer and typically will cost $300-$600 for a residential property, depending on the nature of the property and the specific inspections conducted.

It is important to schedule inspections as soon as possible after signing the P&S, in order to allow adequate time before closing to resolve any issues which might be discovered. As with every other decision, the choice of home inspectors is up to you, though I am happy to provide referrals from which you can choose. In most cases, buyers prefer that I coordinate the scheduling, but I do suggest that you be present for the inspections, as it presents an opportunity to learn further details and to ask questions about the repair and maintenance of the property you will soon own.

Upon receipt of the written inspection report, we will review it together and determine what issues, if any, require attention. If the inspections uncover any issues which would significantly affect the value or safety of the property, you may terminate the agreement to purchase, ask that the seller remedy the problems before closing, or request a monetary credit towards the cost of the expected repairs. Although not obligated to cooperate, sellers are generally motivated to do so to avoid having to put their property back on the market, especially since they are legally required to disclose any known defects to potential new buyers. 
 

8. Satisfy Remaining Contractual and Practical Requirements

You will choose an attorney to represent you at closing. Again, I can provide referrals if needed. The attorney will perform a title search to ensure that the seller has a clear and marketable title to the property and to reveal any encumbrances, rights of way, easements, restrictions and any other matters or conditions which may affect the property. In addition, your attorney will coordinate with your lender and the seller’s attorney to prepare all the required documents for closing.

Once the lender receives a copy of the signed P&S, their underwriting department will order a property appraisal and will begin processing your loan. Even though you may have been pre-approved, it is not uncommon for the lender to require additional or updated documentation from you before issuing the loan commitment. You will also be expected to secure title insurance (typically your attorney will take care of this) and homeowner’s insurance before the lender will release the funds for your purchase.

During this phase, it is critical that all of the parties involved are cooperating effectively to satisfy all of the requirements for a smooth and timely closing. As your agent, one of my most important roles is to facilitate this process by tracking contractual dates and coordinating the communication in order to avoid unexpected and potentially costly delays. 
 

9. Finalize the Purchase at Closing

Immediately prior to the closing, we will conduct a final walkthrough to verify that the property is being conveyed in the agreed upon condition.

The closing itself will typically take place at your attorney’s office, though it can be conducted at any location acceptable to all parties. Your attorney will review with you the deed, the mortgage, and a sizable stack of related documents requiring your signature. Once you have signed all of these documents, your attorney will record them at the local city or town hall, and the title to the property will officially pass to you.

Although our formal contractual relationship ends at closing, I will always be available to answer any questions or to help resolve any subsequent issues with the property. 

* For an update on all this relative to current market conditions, see this helpful article on my blog.