Tips for Home Buyers: Close the Deal

Congratulations! You found a house, you made an offer (and they accepted!), you got a loan, and you finished the home inspection… WOW! If you managed to do all this, you deserve a vacation, or at least a round of applause, but first it’s time to close the deal! Here are some tips to help you get those keys.

Everything’s negotiable… even closing costs?

For those home buying newbies, closing costs are costs billed to the buyer at the close of escrow. They are in addition to the down payment and mortgage payments. SmartMoney has a great article on what to expect to pay in closing costs and how to cut them down. After all, everything is negotiable, is it not?

But, who should really pay for these costs? You, the buyer? Your agent? The seller? Well, if you ask the agent or seller, they’ll say you, the buyer. However, what really happens? With these market conditions, agents and sellers are getting creative to get your “business”. Having the seller credit you for closing costs is another way to lower the price without the sellers actually budging on their list price. As for agents, you don’t hear of this happening as much, but you never know. I remember hearing about an agent in Riverside County handing out BMWs and Harley Davidsons just to get business.

Has anyone out there been able to negotiate down their closing costs with the bank? If so, let’s hear about it! I never thought to do this when we closed on our condo and am most curious about it.

Dot your i’s and cross your t’s!

The whole escrow closing process is a little overwhelming, even to the seasoned home buyer. A few things to remember… Don’t hurry – Make sure you have scheduled a few hours free for when you review and sign the truckload of paperwork they throw in front of you. Ask questions – If you’re not sure about something, ask the escrow agent. Take it out – If you’re not comfortable with something, ask if you can line through it. Remember, not everything has to be included. A lot of the language is there to protect the escrow company, not necessarily your interests. Take breaks – If you are like me, you get to the point where you just don’t care what you’re signing anymore… that would be a good time to excuse yourself to use the restroom. While there, do a few jumping jacks or something to wake yourself up.

I’m sure escrow agents hate these tips because many of them just want to get through it as soon as possible. However, don’t feel bad about “wasting” their time… their job is to sit and watch you sign all this stuff, they’re getting a nice check for it, so don’t you worry about them.

No surprises on move-in day!

Check again and again with the seller (or their agent) regarding what is to stay and not to stay. These things really should have been noted on your offer, but it doesn’t hurt to follow up to make sure what is supposed to stay actually does. The last thing you want on your long-awaited move-in day is to find that the curtains, washer/dryer, refrigerator, outside storage shed, and built-in shelving are all gone. Now, there’s a pretty penny you weren’t planning on spending.

This tip sounds obvious, but I’ve heard horror stories. A good friend moved in to find the drapes and the dining room chandelier gone. A neighbor moved in to find everything that detaches from the house gone… including toilet seats, light bulbs, and light switch plates! Yes, it’s illegal for sellers to take these things, in many cases, but buyers rarely go after them to get it back… they’d rather just move on with life.

Other “Tips for Home Buyers” Posts:

Buy New or Old?

The Home Inspection

Just Chill Out for a Minute

Know Your Money