The C 12-Step Process for Buyers

The first step in finding a house is to select the right agent. Purchasing a home is a big investment with many legal and financial ramifications, so you should not choose an agent merely on “personal connection” or because that agent is “nice,” without further investigation. Just like lawyers and doctors, the best agents tend to specialize in certain types of sales, certain market segments, or other special areas.

The C Network offers just that. We require a level of criteria that must be met in order to belong to this valuable network.  While no agent is “right” for everyone, we believe that experience, training, education, background, and specialization all contribute to success.

Nowadays, it is easy to locate properties through a combination of open houses and online searching. It may not, however, be in the clients’ best interests to wait until they locate a house to select a specific agent.

20%+ of home sales are off market and we have a way to tap that through a selectively built database and relationships with the top 100 agents in every California county and selected city where we operate. We also belong to the Top Agent Network (TAN) to be on top of a 24 hour moving inventory. Our experienced agents can help identify the right neighborhood, coordinate financing, explain the tax consequences of home ownership, filter out inappropriate properties, identify off-market opportunities, and answer questions that come up along the way. Additionally, our agents will help screen properties during broker tour and notify you when suitable properties come on the market.

Clients generally have an initial idea of what cities and neighborhoods appeal most to them. However, you should examine your criteria to determine the areas within the neighborhoods you feel are a good match.

Our agents will personally take you to some of the neighborhoods, give you an overview of the area, and show a few representative homes. More importantly, our agents will provide you with information about local schools, parks, and appreciation potential of each area. Generally, clients should not purchase a home until they are familiar with the neighborhoods and have seen enough properties to truly recognize an excellent fit.

Getting pre-approved by a vetted out C member lender or mortgage broker is one of the first things you should do for many reasons. Primarily, this determines what we can do and how much leverage we have. In Conejo, Silicon or Carmel Valley a pre-approval letter is a prerequisite for serious consideration of your offer. Knowing the available loan amount will aid in determining how much you intend to spend on your home and which neighborhoods to consider.

Generally, you should begin the pre-approval process immediately after meeting with your agent. If any issues come up, such as inaccuracies that make your credit score lower than expected, you will have time to resolve them. Our agents can help you through this process and recommend excellent lenders and mortgage brokers. Our recommendations are completely free of any conflict of interest; our agents do not benefit monetarily from providing recommendations.

Once you have located the desired property, carefully review the disclosures that the seller and listing agent provide.

Disclosures contain many important items, most notably the property and pest inspections, the seller’s disclosures, and the title report. Our agents will provide you with a summary of the important issues to help in your review of the disclosures.

Property Inspection Report

The property inspection is the inspector’s opinion on the home’s plumbing, electrical systems, foundation, roof, and overall condition. This report will list all issues the inspector finds. The property inspector does not provide the cost estimates. Generally, items found in the property inspections are not addressed by the seller, but they are your responsibility to repair.

Pest Inspection Report

The pest report will look for any damage to wood, most likely caused by termites, as well as any water damage that may be found in the home. Unlike the property inspection report, the pest report will usually list the costs required to alleviate these issues.

The pest report describes damage as a Section I or Section II issues. Section I issues are current problems with the home, such as active termite infestation or dry wall damage in which water has rotted away at the wood underneath the flooring or walls. Section II issues are future problems with the home, ones that could lead to pest or water damage in the future, such as a lack of caulking by the bathtub that could lead to future water damage.

Generally, the seller is responsible for Section I issues, and the buyer is responsible for Section II issues. However, if you purchase the home in “as is” condition, you are responsible for addressing the Section I issues. In a seller’s market, such as the one we are currently experiencing, the vast majority of homes are taken “as is.”

Seller’s Disclosures

The seller’s disclosures contain answers to questions, such as whether any remodeling has been done, and if so, whether the remodeling was done with permits. California is very protective of homebuyers and requires sellers to disclose all known material problems a property may have.

Title Report

The title report is issued by a company, such as First American or USA National Title, and insures that the seller can convey clear title without any liens preventing a smooth conveyance. All liens that may be on the property, such as unpaid property taxes, are listed in the title report. Problems with conveying title are rare.

Homeowners Association (HOA) Documents

If you are considering a townhouse or condominium, it is likely that the HOA documents will be included in the disclosures or be quickly forthcoming. Important issues to consider include the size of financial reserves, whether any litigation or special assessments are looming, and whether there are plans to heavily increase HOA dues. Unlike the interest on your mortgage, HOA dues are not tax-deductible. Together, you and our agent will review the disclosures and discuss any concerns either of you may have with the information contained therein. Only after you feel comfortable with the disclosures should you consider making an offer.

Teaming up with car manufacturers like Tesla and Mercedes that allow our agents to be 90% mobile in order to be present in front of off market listings, day of listings and basically be present in the market where the properties are located gives our clients a competitive advantage. The cars are now mobile offices with fully equipped WI-FI and allows us to do a great deal of online work in a car that has a software driven environment. With 4G, you can actually do a great deal of work from the car. Utilizing all applications includes an iPad, laptop computer, mobile device and direct communication back to the office where the office staff is located.

The car becomes an extension of the mobile sales agent.

All daily tasks and appointments are loaded into the car before you start the day.

Administrator can use the software to provide an information flow that determines what the day looks like.

Agent can allow admin to handle admin and agent to focus on clients 90% of the day. With digital signing (such as DocuSign), agents have less need to be in an office. Meeting at clients personal locations make it easier on them and the Tesla allows the agent to be 100% portable. Wireless printer in trunk allows for printing to be on the go if needed.

With more equity at stake, it is critical that you show your clients service in a way that can be considered “hand holding”, but will set you apart from the cream of the crop.

Next, our agent will work with you to draft an offer. Our agent will speak with the listing agent ahead of time to ascertain the seller’s desires and to see if you can offer any items of value to the seller with little cost to you. This shows your desire to work with the seller and can optimize the situation for both you and the seller. Regarding what price to offer, our agent will provide you with a comparable market analysis, showing the selling price of recent comparable properties and what the market value is of the current property. Additionally, our agent will update you on the interest level of other parties and whether you may be in a multiple-offer situation.

Once an offer is made, it can be accepted, rejected, or countered. A counteroffer accepts all the terms of the contract, except the terms that are mentioned. For instance, a counteroffer may increase the purchase price or shorten the escrow period. A counteroffer can be made to one party or multiple parties. If there is only one counteroffer and that counteroffer is accepted, then a binding contract has formed. On the other hand, if there are multiple counteroffers, which may all have the same or different terms, the counteroffer must be accepted by the buyer and reaccepted by the seller, ensuring that the home sells to only one party.

It all about having a smooth transaction. Your review of the process is taken so seriously and we use the feedback for continual improvement. After the parties formed a contractual agreement, the escrow period begins. An escrow company is a neutral third party that acts as an intermediary between the buyer and seller. In Northern California, title companies handle both the title and escrow duties of the same transaction. The most important job of the escrow company is to properly take the buyer’s money in exchange for the seller’s property. An average escrow period is 30 days, with the vast majority ranging from 15-45 days.

If your purchase contract has contingencies, such as a property contingency, then your agent will find inspectors to view the home during the contingency period. During this period, you can determine whether you want to proceed with the purchase. If you back out of a contract for a reason related to a contingency during the contingency period, then you are entitled to a full return of your “good faith deposit.” Our buyer agents can assist you and ask the seller to credit you for any new problems. Usually, an agreement can still be reached if the seller accepts your requests. If your findings uncover a major issue, such as bad foundation, then you will likely want to back out of the deal without seeking a credit, as this involves a lot of risk. If you have a loan, as most homebuyers do, then an appraiser will appraise your home. Also, our agents will work with your loan officer to ensure that the loan proceeds arrive on time and with little hassle.

We make a big deal of this day. Everyone has worked so hard to get to this point and desire for celebration by all. We thank the other brokerage and agents to assure we did everything right to make this smooth for everyone. On the day of closing, the escrow company transfers your funds to the seller and records the deed in your name with the county. Once you are on record with the county, this becomes the favorite part of the transaction. Delivering the news that we have closed and the celebration begins. We will provide you with the keys, garage opener, and access codes, if any. Other information, such as manuals for appliances, are usually left at the property. While you are the owner of record when escrow closes, you generally will not receive the official deed from the county until two to three months later.

Enjoy your new home! The C Network is here to serve you for all of your housing questions or issues during the escrow period and even after you close.

The C is a family. We have monthly gatherings, guest speakers and continue to educate ourselves on our changing world. (The mind is a precious tool) We stay well connected as a resource to make your life easier. We allow you to decide how often you want to remain updated on market conditions for your home and any other neighborhood you would be interested to stay updated.