Buying a home in Plainview? Prudential Douglas Elliman Real Estate can help. Buying a home is stressful for most people, but with a little planning ahead of time, it isn't that hard. So you'll understand exactly what to expect, I like to give my buyers an outline of the whole deal. Below are my nine steps to buying a home. When you have questions I will be here to help. Feel free to contact me anytime. You can reach me, Gary Baumann at 1-866-260-9822 . Step 1 – Prepare to purchase There are several things you need to consider before you search for a home. When you start your search, you'll probably want to assemble a checklist of items you need, get an idea of what neighborhoods and school districts you'd like to live in, and start planning your budget. Keeping your mortgage payment around a third of your monthly income is a good rule to go by. Step 2 – Get in touch with a real estate agent in Plainview This is where I can help. I'd like to schedule a time to get together with you and speak with you about why you want to buy a home and get an idea of your future plans. We'll discuss the mortgage industry, other economic factors that might affect your purchase today or in the future, as well as neighborhoods and school districts in the Plainview area. In addition, I'll assist you with getting started on your loan. I partner with some of the finest mortgage professionals in Plainview, so you'll be in great hands. They'll help you figure out which type of loan is best for you, as well as help you get approved. Step 3 – Begin looking for a home After our first meeting, I'll begin searching for houses on the market that meet your needs. I'll get a sneak peek of most of the houses and remove the duds, and then we'll book appointments to view the houses whenever it's most convenient for you. As we tour the homes, I'll identify good features and bad ones. I'll also ask you what things you like and dislike. Generally, buyers amend their list of must-haves as we view homes and some things become far more essential than others. If that's the situation, I'll go back through the listings one more time and narrow it down to the home you've been wishing for. Step 4 – Get a feel for the market My understanding of the Plainview housing market is a valuable asset in your house search. I'm familiar with all the schools and neighborhoods, and I'll alert you to which areas are "hot" and call for immediate action and the ones that are "cool" and allow for more analysis. As we view homes, I'll be sure to tell you if the asking price has room for negotiation or if I believe the home is "priced to sell." Any REALTOR® in Plainview will claim to truly understand the home market, but trust your instincts, and be sure to ask lots of questions. If it appears they don't know everything, just call me at 631-468-4830 or e-mail me at , and I'd be more than happy to answer any questions you have. My market knowledge will help you stay a step ahead through the entire process. Step 5 – Find the house you've been looking for I'm sure we'll find the home of your dreams in the Plainview area. When that happens, I'll precisely develop your real estate purchase offer. The offer will be tailored with your needs in mind, including a lot of contingencies, such as getting financing, finishing the home inspection, and a clear title. Upon turning in your purchase offer, you'll likely want to present "earnest money." This is a cash deposit submitted to a home seller to secure an offer to purchase the property. The amount is usually put towards the closing costs. If the seller accepts your offer, we should close on the property within 30 to 60 days after. This allows ample time for your mortgage financing. Step 6 – Negotiate A lot of deals aren't closed on the initial offer. It's pretty common to receive a counter offer. Don't let it intimidate you. We'll talk over whether or not to accept the counter offer, submit our own counter offer, or reject the seller's offer and move on. Market circumstances will play a role in how aggressively we negotiate the contract. In addition, we'll work within your budget. And when it's all said and done, we'll create a deal that's best for you. Step 7 – Secure a loan Upon signing the deal, you'll start working with your mortgage lender to close the loan. If you're pre-approved, it shouldn't take long at all. However, you'll want to keep in close contact with your lender. And I'll take care of all the property information your lender will need to close the loan. Step 8 – Close the deal You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your loan application. This estimate is formed from the loan amount, and RESPA requirements dictate that it has to include all closing costs and be within a narrow range of accuracy. I'll review the estimate and let you know if everything looks all right. Then we'll close on your home. This will probably take place at a title company or escrow office and will most likely be a smooth and easygoing occasion. Step 9 – Move in Congratulations! Now you can move into your new home. Enjoy it. And if you have any questions, be sure to contact me at 1-866-260-9822.

Buying REO property or a foreclosure?

	Making an offer on a bank-owned property is not something to be taken lightly.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company now owns. This differs from a property up for foreclosure auction.

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be willing to pay with cash in hand. Finally, you'll get the property completely as is. That possibly will involve current liens and even current residents that need to be removed.

A bank-owned property, by contrast, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects they are aware of. By hiring Prudential Douglas Elliman Real Estate, you can rest assured knowing all parties are fulfilling New York state disclosure requirements.

Is REO property really a bargain?

It's sometimes thought that any foreclosure must be a steal and an opportunity for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is to make money off of it. While it's true that the bank is typically eager to offload it soon, they are also looking to get as much as they can for it.

Look closely at the listing and sales prices of competing homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know concerning the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

After you've presented your offer, you can expect the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be final in one day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Prudential Douglas Elliman Real Estate is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.