Click to View: Typical Home Purchase Costs

The following is intended as a guide to help you determine the steps that you might need to consider during the process of buying a home in Greenwich, Connecticut. All items mentioned are not necessarily required for all home purchases (e.g. a well inspection would not be necessary on a home which is serviced by the public utility water company).

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Selecting a Real Estate Agent:
Select an agent who is experienced and knowledge with both the local market and the inventory. The only way for you to obtain this type of information is to 'Interview' the agent. Just as you would do if you were going to list your home for sale, you want to speak with several agents to understand their level of training, education and experience and to see if you have matching philosophies. . When you do select an agent to work with, they will request that you sign a 'Buyer Representation Agreement'. State of Connecticut agency laws require that this document be signed by a buyer prior to a real estate agent showing them property. Review this document with the agent prior to signing it.

Do Your Homework:
Get a solid understanding as to what it is you are seeking - not simply in terms of real estate, but also placing emphasis on 'quality of life' issues and how important they are to you. Determine what a community has of importance to you, not only from an initial purchase perspective but also from a re-sale standpoint. There is nothing worse than finding your ideal dream home and then spending the rest of your life wishing that it were "in another town". Focusing on these types of items early will make the rest of the process that much more enjoyable and satisfying.

Mortgage Pre-Approval:
Early contact with a mortgage company or banking institution can set the groundwork for a completely successful purchase process. Initial dialogue will identify the financial parameters within which you will need to stay. Further understanding of your financial situation will allow the lender to issue you a 'Pre-Approval' letter which stipulates that you have been approved for a mortgage up to a specific dollar value -- an invaluable asset for you during the negotiation process! Your real estate agent will be able to provide you names of lenders (banks, mortgage brokers & mortgage bankers) should you need them.

Finding the Right Property:
The search portion of the process is truly a 'Joint Effort' between you and your real estate agent. You must communicate clearly to your agent what it is that you like and what it is that you do not like in the home you wish to buy. Your agent must learn your likes and dislikes and then find the home that best suits your tastes. Between your input and your agents' professional skills, the search will narrow until you are ultimately presented with the 'right' property for you. The only comment that can be made here is that, all to often, a person's desires for what they would like do not always equate to what it is that they purchase. Remember that it is through the efforts of both you and your agent that the right property will be found.

Preparing to Make an Offer:
Once you have narrowed your search, or started to focus on one or two properties, your agent will be able to provide you with historical market data on recently sold properties. This information will greatly assist you in being better prepared and more knowledgeable when it comes time to formulate your offer 'Strategy' for the property you ultimately decide upon. Working with your agent, you will be able to determine where you would initially like to start with your offer price. You should then develop a set of strategies, each dependent upon how the seller responds to your offer. In this way you are prepared to respond to the counter offer by the seller.

The Offer:
It may include, but is not limited to, the following:

• The Offer Price that you are willing to pay (including Mortgage Contingency requirements, amount of your mortgage and date by which you will receive a written commitment)
• The Closing Date upon which you will take title and ownership of the property
• Inspection Contingencies (Building, Radon, Termite, Lead Paint, Well, Septic, Survey, etc.), each of which must have a completion date associated with it
• Other Contingencies that are to be identified and included in a Contract of Sale along with dates if appropriate
• Identification of the Inclusion and/or Exclusion of any 'personal property' which may be a condition of the purchase
• The date you will sign the contract and give a down payment, usually 10% of the purchase price.

The complete 'offer', including all contingencies, is then tendered to the seller. The seller may respond in any one of the following manners:

1. The seller may totally reject your offer without tendering any counter offer,
2. The seller may counter your offer with one of their own, thereby rejecting your offer and placing one of their own on the table for you to consider and accept, reject or counter,
3. The seller may accept your offer as it was presented it.

Once you and the seller reach agreement on the 'terms and conditions' for the purchase, an 'Offer to Purchase' is prepared, outlining the terms agreed to by you and the seller, and this document is then transmitted to the appropriate attorneys.

Contracting Process:
The seller will instruct their attorney to draw the Contract of Sale to include the terms agreed upon. Your agent will ensure that, at the same time, your attorney receives the necessary information so that he/she may commence their work and be prepared to receive and review the forthcoming contract. Your attorney will review the contract from your perspective and insure that your interests are protected (such as including stipulations for delays, quality of Title to be conveyed, cleanliness of the premises at time of closing, etc.). The timing of this, dependent upon the complexity of the terms, should all take between seven to fifteen days from accepted offer to signed contracts. You will normally be expected to submit a down payment (made out to the seller's attorney) with the signed contract, in the amount of 10% of the total purchase price. Prior to execution of the contract, your attorney will commence the title search and any other necessary activities to ensure that the closing or passing of title occurs on schedule.

Pre-Closing Activities:
Your agent will work closely with you to ensure that the specified 'contingencies' which are part of the contract are removed by the dates stipulated. This means that inspections must be arranged and completed and that your mortgage must be obtained by the agreed to dates. If any of the dates appear to be in jeopardy, notify your attorney immediately - do not wait until the last minute. There is always the possibility that extensions, if reasonable, can be accommodated. One of the most often jeopardized dates is the one by which you will have completed arrangements for your financing/mortgage. This, unfortunately, is one date where you are at the mercy of the mortgage person you have chosen. Therefore, when selecting your mortgage provider, you need to seek out one with a solid record for performance and level of service. This is another area in which your agent can provide valuable assistance.

Your agent will remind you, about two weeks prior to the closing, that the appropriate utilities and services (electric, gas, oil, propane, telephone, refuse, etc.) need to be notified to have the accounts transferred to your name on the date of the closing. During the same period, the seller will be contacting the same providers to 'discontinue' service. This transition needs to go smoothly to protect you from having to pay a 'connection' or 'hook-up' fee because the service was completely terminated. Your real estate agent will assist you with this, but the companies require the new account owner to actually initiate the request for service.

Closing Day:
On the day of your closing, you and your real estate agent need to perform one last walk-through of the premises. Together you will look to insure that the property is in the condition that it was when you signed the Contract of Sale. You will verify that the items which were to be included are present. You want to make sure that the house and grounds are as specified within the contract ('broom clean'). And most important, that there are no defects visible now which were previously hidden (such as a damaged floor which was previously hidden by carpeting, or a hole in a wall which was hidden by an entertainment center, etc.).

Lastly, you close on the property. You (or in your absence, your power-of-attorney) will attend the closing - primarily to sign appropriate documents and deliver checks for appropriate amounts. If your situation dictates, you may actually meet with your lender immediately prior to the time of the closing to sign your mortgage papers. Between your real estate agent, your attorney and your lender, you will be advised ahead of time of all the costs and fees associated with your closing (e.g. points or loan origination fee, title insurance, bank appraisal fee, attorney's fee, survey fee (if required by lender or title company), recording fees, homeowner's insurance, adjustment costs (gas, oil, property taxes), private mortgage insurance (if financing more than 80%), tax escrow, etc.).

We at Shore & Country Properties trust that the above information proves helpful to you and that it makes the entire process less forbidding and more enjoyable. To further assist you with all of your real estate needs - please give us a call (203) 698-1234.

Typical Home Purchase Costs

• Points or Loan Origination Fee
• Adjustment of Interest on Loan from date of closing
• Title Insurance (One-time fee required by banks)
• Credit Check
• Bank Appraisal
• Attorney's Fee
• Survey Fee: If property has not been surveyed, the Lender or Title Insurance Company may require a registered survey or plot plan showing the location of the dwelling(s) and the boundaries of the property, as well as easements and rights of way.
• Recording Fees: The Buyer usually pays the fee for legally recording the new deed and mortgage.
• Homeowners Insurance: Proof of a current policy is necessary at closing.
• Adjustment costs paid to the seller at closing (where applicable):
  Buyer's share of pre-paid property taxes.
  Heating Oil or Gas remaining in tank(s).
  Association Dues.
  Sewer Service Charge.
• Inspections made of the property (normally incurred prior to closing) which may have been performed at the request of the Buyer:
  Pest
  Building
  Radon
  Lead Based Paint
  Well
  Septic
• Private Mortgage Insurance (PMI) - if financing more than 80%.
• Tax Escrow