A Homebuyer's Checklist

- Identify your housing needs.
- Confirm what you can afford and your price range.
- Estimate your costs to get the deal done.
- Understand the Representation and Agency Relationships - in the absence of a Buyer's Broker Agreement, the agent usually represents the seller, not the buyer.
- Let your Buyer Broker know the types of properties you want him/her to show you.
- Understand the commission arrangements. Typically, the seller contracts to pay his/her Listing Agent a 6% commission. That Listing Agent then offers to pay the Buyer's Agent half of the 6%...or 3%. Therefore, it can be said that the buyer gets the fiduciary services of his/her own real estate agent "for free", unless other arrangements have been made.
- Understand "Procuring Cause." The agent who finds the buyer that completes the deal is called the procuring cause. That agent procured the buyer.
- Understand that some Buyer's Broker Agreements are an outright employment contract between the buyer and his/her agent, whereby the buyer agrees to pay his/her agent out of the buyer's own pocket.
- Know how to choose a lender.

- Understand the purchase contract.
- Complete the loan application and credit report information for the lender to verify you are who you say you are and that you have the resources to pay back the loan in the prescribed manner.

OPEN ESCROW

- Wire or otherwise transfer directly to escrow your 3% deposit.
- The appraisal must be completed within the first 17 days.
- All inspections must be completed within the first 17 days.
- Negotiate any repairs if necessary.
- Always complete and return escrow documents immediately.
- Buyers have 5 days to review documents and to sign their approval/disapproval.
- All contingencies must be removed in writing within the first 17 days.

FINAL LOAN APPROVAL

- The final property walk-through takes place the day or two before escrow is to close.
- Call SDG&E, water & trash, phone, cable and HOA.
- Be sure you notify the Post Office of your new address.
- Sign loan documents at escrow 3-5 days before close of escrow.
- Wire the remainder of your downpayment to escrow 3-5 days before close of escrow.

ESCROW CLOSES

- The property title is recorded in your name.
- Pick up the keys to your new home!

We hope this helps you understand the escrow process. If you have any questions or comments, please email them to drtimjames@prusd.com.