Buy a House

If you're reading this, you're probably that person who spends Saturday mornings with coffee obsessively searching through real estate listings. Maybe it's just been a pipe dream so far - a bit of nature, a weekend escape, a place to host friends, a basecamp for hiking, snowshoeing or jumping in a lake. Or maybe you've already been burned by a couple bidding wars and are poised to jump when the right property hits the market.

Wherever you are in the buying process, it's important to gather a strong team to guide you each step of the way.

Step 1: Find out what you can afford.

Before you start actively viewing properties upstate, take a moment to consider what you can actually afford. If you're a cash buyer, you'll need proof of funds. But if you're planning on financing, i.e. getting a mortgage, you'll need to get bank pre-approval. Pre-approval means the lender is confident you have the ability to make the necessary down payment and have an income that can sufficiently cover your future mortgage payments.

Every lender is different, but the process of applying for pre-approval is likely easier than you might think. It often just takes minutes to apply and can be done online. And then you are armed with a pre-approval letter that tells you how much you can afford before diving into your property search.

Also, just because you get pre-approved by a specific lender, doesn't mean that's who you have to go with for the full mortgage once you find a property. So don’t overthink it. Find a lender who offers a straightforward pre-approval process so that you can get started on your property search. Then you can continue researching lenders and their various offerings throughout your search.

Step 2: Find a property.

Now that you know what you can afford, it's time to hit the ground running with your property search. This is where real estate agents come in. As a buyer, you can certainly reach out directly to individual listing agents to view properties. But it also might be useful to work with a buyer's agent. 

During your search, a buyer's agent will work with you to get a comprehensive understanding of what you're looking for, will send you ideas, research your ideas, keep an eye on the market for you, provide local knowledge and set up showings on your behalf. 

Once you find a property of interest, your buyer's agent will guide you through the due diligence, negotiate an offer and ultimately act as an air traffic controller for the steps detailed below.  

Choosing a buyer’s agent.

Make sure you find an agent to work with who "gets it". Your agent should communicate well, be responsive, be competent, and send you properties that are in line with your search. If you aren't getting that out of your buyer's agent, it's okay to find someone new to work with. 

Buyer’s agents typically aren’t exclusive relationships unless they ask you to sign a contract, which is rare in the Catskills and Hudson Valley. It’s perfectly normal to work with different buyer’s agents in different regions. For example, if your agent in the Livingston Manor area doesn’t travel as far as Woodstock for showings, just ask her to recommend a buyer’s agent in Woodstock. Good agents in the second home market tend to have trusted relationships with agents in other regions nearby. That way you don’t have to start from scratch in finding someone you can trust.

Also, remember that buyers don't pay commission to real estate agents. The seller pays commission to both the seller's and buyer's agents. So it really is in your favor on multiple levels to work with a good buyer's agent.

Step 3: Get a home and septic inspection.

The timing for home and septic inspections will vary based on your unique home buying scenario, sometimes before you go to contract, or sometimes after you go to contract, depending on how competitive the situation is. Either way, inspections are an important due diligence step to cover when buying a house. Inspections are a chance to learn about the home, including any potential red flags, before closing.

Home and septic inspections are two separate inspections. Home inspections can include a septic "dye test" which might be able to provide some level of comfort that the septic system is operational, but dye tests shouldn't be confused with a full septic inspection. I often recommend hiring both. 

Step 4: Find a real estate attorney.

Your attorney will be your primary point of contact from drafting the contract through to closing. They really run the show, and it's vital to find someone who is knowledgeable and responsive. 

I recommend engaging a local real estate attorney. Having that local knowledge base will prove invaluable while navigating the region's nuances - title companies, surveyors, town codes and zoning. Your attorney's professional relationships should provide some efficiencies on your road to closing.

Step 5: Apply for your full mortgage. 

Once you are under contract, you can then apply for your full mortgage with your bank. You can either use the same bank from which you received pre-approval, or you start the application fresh with a new bank at this stage. 

It's worth reviewing your lender options. Sometimes banks offer deals, like "no closing costs" mortgages, or benefits for first time homebuyers.

(Maybe) Step 6: Ordering a property survey.

It's common for real estate attorneys to arrange a survey on your behalf, but sometimes it is up to the buyer to do so. First, ask if the seller has an existing survey. If so, and if it's recent, you might decide it's not necessary to get a new survey. If the seller has an existing survey, but you still want to get your own survey (for example, if the survey is very old), you may be able to reach out to the original surveyor to have it re-certified, which can save time and money.