Purchasing A Home In The Charleston South Carolina Area

Puchasing a home in the Charleston area can be a confusing process to both local as well as out of town buyers. I have put together a short outline describing many of the steps  my clients will go through when we finally locate just the right home to suit their needs.

Buyers Information Sheet

1. Once the buyer/client identifies the home they wish to purchase, a fair market value of home and target sales price range is developed using recent comparable home sales.
2. An offer/contract to purchase is prepared, to include initial offer price, closing date, inspection date, earnest money amount, mortgage application dead line, mortgage pre-approval letter deadline if not already available and personal property such as washer, dryer and/or refrigerator to be included in the sale.
3. Offer/contract furnished to listing agent for presentation to sellers. Offer will be accepted, countered or rejected by sellers. If buyers are in Charleston, an earnest money check should accompany the offer. It is generally made out to the listing office. The amount of earnest money is up to the buyers, but the larger the amount, the stronger the offer. Amounts often range from $1500 to $10,000, dependent on the price of the home.
4. Once/if the contract is ratified, the earnest money check accompanying the contract offer will be deposited in the listing or selling agent’s escrow account and will be credited to the buyers at closing. If contingencies are not satisfied/met(such as financing and inspection), the earnest money check will be returned to the buyers as long as there is no breach of contract by the buyers.
5. A copy of the ratified contract should be furnished to the buyer’s lender to start the application process and a pre-approval letter obtained for the sellers, if not already provided to the sellers with the initial offer.
6. Buyers or buyer’s agent will contact a home inspector to arrange for the inspection of the home prior to the inspection deadline specified in the sales contract. This should be completed as soon as possible often within a week to 10 days.
7. The buyer should contact one or more home insurance companies to get quotes for insuring the home as well as flood insurance if home is in a flood zone.
8. The buyers should be present at home inspection if possible. Once home inspection is complete, the inspector will often type up an inspection report right away and provide the buyers as well as the buyer’s agent a copy of the report. Buyers and their agent will review the inspection report to determine what items on the report that the sellers will be asked to repair or correct. Generally the items are restricted to non-cosmetic defects and/or safety issues in the home. The buyer’s agent will type up a “repair addendum” specifying which items the sellers are being asked to correct/fix in order for the “inspection contingency” to be removed. Buyers and sellers negotiate which items will be fixed and if both parties agree the inspection contingency is removed with contract now dependent upon financing and satisfactory appraisal. If the buyers and sellers cannot agree on which items will be fixed, the earnest money will be returned to the buyers as long as a “release of contract” is signed by both parties.
9. Once the buyers select a closing attorney, a copy of the ratified contract will be provided to the attorney for a title search to be conducted and the appropriate paperwork prepared. A survey, flood certification and elevation certificate will be ordered by the closing attorney or the lender.
10. The buyers has the right to have a “walk-through” prior to closing to insure that the home is in the same condition as it was when the contract was written and all required repairs made to the home. The buyers should contact the local utility companies to have the power, water and telephone accounts put in their name effective on the closing date. This should be done about a week before closing.
11. The closing will take place in the buyer’s attorney’s office. A “HUD” statement/closing statement will be prepared by the buyer’s attorney and furnished to both the buyers and seller approximately 24 hours prior to closing, although often times the statement is not received by both parties until the morning of the closing. The buyer will be expected to have the closing funds wired into the closing attorney’s escrow account prior to closing or bring a certified check made out to the closing attorney to the settlement table. If the exact amount due from the buyer is not known in time to get a certified check, often times an estimated amount can be obtained from the lender before hand. If the estimated amount is more than the actual amount owed, the closing attorney will write a check back to the buyers at closing.
12. The buyers will be given the keys to their new home at the conclusion of the closing.