Consultation & Timeframe

It is important to be personally prepared to buy your property and understand your motivations in moving. Are you relocating for work to a new area? Are you retiring? Did your family grow and you need a larger home? Do you need to move to be closer to family? Are you investing? Do you know the neighborhood you want to live in or are you new to the area? All of these factors are influenced by your personal comfort level and goals.

You should also have a timeframe for purchase and an idea of the type of property you would like to buy. The general escrow timeframe is 45 days from a mutually accepted offer to purchase using a conventional, FHA or VA loan. This timeframe has increased over the past 2 years due to new government regulations. A USDA loan can take even longer depending on the type of USDA loan; check with your lender for details and allow about 60 days for closing. Add the lender timeframe to the time it will take to find the right home and the process can take 3-6 months. There are things you can do to reduce the purchase time, such as getting a loan pre-approved so you know how much you can spend before you look. Also, try researching neighborhoods and schools on line to narrow your options. If you are in town, drive by potential listings before setting up appointments to go inside; this will give you a feel for the area.

There are many distressed, foreclosed or overburdened properties currently on the market and more entering the market every day. These properties need a lot of due-diligence before purchasing because there are no seller records available on the condition of the property. There may be repairs necessary in order to obtain financing or repairs needed after closing that will have to be incorporated into your budget. Short Sales (selling below what you owe on your mortgage), have a 3-6 month timeframe to close and involve a third party in the transaction. See the Property Search section for more information on distressed sales.

If you are selling a current property there are additional time factors to consider. Is your home currently listed but not in escrow? It is always good to look online and visit a few homes during this period. It is important to know the value of homes in the area and it will help you understand the value of your own property. You should have a couple of homes in mind that you like in case yours sells, or have a back up plan to rent or live with someone until you find the right home. Given the current market conditions, writing an offer contingent on the sale of your property is not recommended. If your home has an accepted offer and the property you are moving to has accepted your offer there is the possibility of having a consecutive closing. This means that your home would close escrow; any funds you are using from the sale would be held in escrow and transferred to the closing of your new home a few days later.

Working with a Realtor® will help you reach your goals if you share your motivation with them. There are many options for all circumstances and working with a professional will help guide you in achieving your goals.