The Buying Process

Buying a home just got easier with Ola

Northern California is one of the most desirable real estate markets in the world, and we understand that navigating the property buying process can seem challenging. However, with the expertise and breadth of knowledge of your Compass agent, you are in trusted hands. We will guide and advise you during every step of the buying process to help you find the perfect home that fits your needs, budget, and lifestyle.

The Proccess

1

Find an Agent

Set up a time to sit down with your agent to discuss the neighborhoods you’re considering and can help guide your search.

2

Get Pre-Approved

Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying the full price of your home in cash). Your agent can connect you to a mortgage broker. Based on your income and credit history, the mortgage broker will determine how much a bank will lend you, which will help determine the price range for your search.

3

Visit Properties

Now is the time to consider your ideal home’s location and amenities. You will attend viewings and open houses spanning a range of areas and property types. Additionally, your agent will activate notifications for exclusive Coming Soon and Off-Market properties as they hit the market.

4

Review Disclosures & Inspections

The buyer reviews all disclosures (documents from the seller) and inspections to determine property's ownership, condition, and desirability.

5

Make an Offer

Once you identify a home you like, you can put in an offer, which is an agreement to pay a certain price for the home. This offer is packaged with a Proof of Funds (POF) and Pre-Approval Letter. Note: if your offer is lower than the list price or with terms not acceptable to the seller, the seller will likely return with a counter-offer price or acceptable terms, which you can accept, reject, or make another counter offer. Your agent will provide advice throughout.

6

Escrow Proccess

(Life of an Escrow: 21 & 30 day escrow period)

Day 1 Once an offer is accepted, escrow is officially open and the clock begins on contingencies*

Day 2 Contact your insurance agent for homeowners coverage

Day 3 Initial deposit is due per terms of agreement (unless changed to 1 business day)

Day 1-7 Buyer performs any additional inspections

Step 1-10 Loan is in underwriting and appraisal occurs (Step 7)

Day 7-21 Seller signs grant deed and staging is removed, if any (Step 7)

Day 14-30 End of Escrow - Within final week of escrow period, buyer signs loan and closing documents and wires in closing funds (Step 10)

Day 20-30 Loan funds and escrow closes (recordation)

7

Loan, Appraisal & Closing

Organize an appraisal with your bank. Your completed mortgage application with all supporting documentation should be submitted to your chosen lender upon receipt of the fully signed Purchase Agreement. The bank then issues loan approval. Consequently, the buyer wires the closing funds with the homeowner’s insurance in place, and then the loan will be funded with clearance to close.

8

Final Walk-Through

The buyer performs final walk-through at least 5 days before the close of escrow to confirm that the condition of the property remained the same thorughout escrow process and requested repairs were completed.

6

Welcome Home!

Congratulations! You're now a homeowner.

Key Terms

Appraisal: Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser.

Assessed Value: Value placed upon property for property tax purposes by the Tax Collector.

Closing Costs: Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, title insurance and escrow fees.

Closing Statement: The statement which lists the financial settlement between Buyer & Seller, and the costs each must pay.

Contingency: Certain criteria that have to be met in order to finalize the sale.

Credit: Money given to a buyer from a seller through escrow or closing.

Escrow: A neutral third party that handles the transfer of any money during the sale of a home from initial deposit to final funding and closing.

Earnest Money Deposit/Initial Deposit: Buyers in California usually deposit 3% of the purchase price to show that the buyer is serious about purchasing the home. It is usually refundable in the event a contingency in the sales contract cannot be met.

Home Warranty: A policy that covers certain repairs (e.g. plumbing/heating) of a newly purchased home for a period of time, typically one year.

Preliminary Title Report: A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a new title insurance policy will be issued.

Title Insurance: Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.

Recording Fees: Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.

Common Ways Agents Can Support Their Buyers

Finding and arranging financing
Determining how much the home buyer can afford
Negotiating the terms of sale
Finding the right home to purchase
Paperwork
Price negotiations
Determining what comparable homes are selling for
Finding renters for the buyer’s property
Teaching more about the neighborhood or area (restaurants, schools, parks, public ticransportation)

Why Compass?

Collections

Collections lets you compare multiple properties—their size, neighborhood, amenities—within a visual workspace. Monitor market activity in real time, stay in constant contact with your agent, and invite collaborators to join in on the discussion.

Coming Soon

What buyer isn’t looking for an edge over the competition? Browse unique properties that are only viewable on Compass.com with your agent and discover your future home before it hits the market.

Private Exclusives

A private exclusive listing is an off-market home that can be shared by a Compass agent directly with their colleagues and their buyers. Property details aren’t disseminated widely and won’t appear on public home search websites.