STEP 1 Find a Realtor you can Trust
You will be sharing some personal and confidential information, and you want to ensure you feel comfortable with the REALTOR you are working with.
STEP 2 Preapproval from the Bank
Once you’ve completed the bank’s loan application, your loan officer will advise you of your lending potential. We recommend you provide your REALTOR with this information to better assist you.
STEP 3 Additional Costs
On top of the price of the property, your REALTOR will advise you of additional costs necessary to purchase. Ie Lawyers fees, stamp duties on conveyance (normally shared equally between seller and buyer), transfer fees, search fees & other possible misc fees. If you’re obtaining a mortgage from the bank, your loan officer will advise you of bank fees such as the bank finders fee, stamp duty on the mortgage note, appraisal fees & other possible misc fees.
STEP 4 Attorney
Your REALTOR will provide you with several options of conveyancing attorneys (if you don’t already have an attorney). Your attorney will walk you through the entire legal process of the transaction.
STEP 5 Viewing Property
You have your pre-approval amount and you are now prepared to look for the right property. There are many web-sites in Bermuda for purchasing Real Estate. Your REALTOR can assist you in navigating you through this process and subsequently show you all properties listed, even if listed with another real estate company. This is called a co-broke. Your REALTOR will explain the difference between freehold vs leasehold properties and discuss yours specific wants, needs & desires.
STEP 6 Offer
When you’ve found the right property, your REALTOR will provide you with an offer form to complete. Sellers review offers more readily with a pre-approval letter than without. This proves to them you are qualified. As the buyer must satisfy themselves with the condition of the property your REALTOR should recommend you hiring a structural engineer to ensure the integrity of the property is sound & will recommend this be part of the written offer. Remember, it’s the seller who makes the final decision on all offers.
STEP 7 Offer Accepted/Deposit
Once your offer is accepted a 10% deposit must be made payable to the stakeholder of the property (usually the sellers attorney). The deposit is held in escrow until closing.
STEP 8 Draft Sales & Purchase Agreement
A sales & purchase agreement is drafted. The sellers attorney will send the draft to your attorney who will contact you for review and discussion of the sales & purchase agreement (spa).
STEP 9 Bank Appraisal
Your loan officer will order a bank appraisal on the property. After the appraisal is completed, the bank will provide you with the final approval letter of which you must provide to your REALTOR and conveyance attorney which should satisfy the finance condition, but always follow up with your attorney and loan officer on such finance completion.
STEP 10 Approved Sales & Purchase Agreement
Once all parties along with their attorneys’ advice have approved the agreement, the sales and purchase agreements are engrossed (printed out) for signature.
STEP 11 Preparing for Closing
The seller attorney and your attorney work together to ensure as smooth a transition as possible for the legal transfer of property. Make sure your loan officer is kept abreast of everything to ensure a timely closing date. Your REALTOR will assist you in making preparation for utility transfer, moving arrangements, cleaning arrangements, painting arrangements, security arrangements etc.
Keep in mind that the real estate process may run smoothly or there may be some unexpected obstacles that arise. Go back to the 3 deep breaths in the beginning of the exercise and refocus until your goal is achieved.
The journey is yours and like Tennessee Williams said “Make Voyages! Attempt them! There’s nothing else!”
Contact Cesa Edwards at Bermuda Longtail Real Estate on 232-2769 or cesa@bermudalongtail.com
