"How do you eat an elephant?" Asked the student. "One bite at a time!" answered the teacher.

The buying process is much the same. Lots and lots of tasks, all of which need to be completed, in order to have a smooth and proper real estate closing. Hopefully, I can explain the "pieces and parts" to you, so you too, can have a better understanding of the whole picture and a truly successful closing.

1. Make a list of what you feel you want in your "dream" property. Be realistic. You might break it down into: must have; would like to have; definitely do not want to have. This is a start. Be sure to include measurements of odd or oversized furniture that you absolutely have to bring with you.   
2. Often times your credit report can contain errors in it. I recommend getting a copy of it and simply verifying all of the information. Incorrect information should be corrected and that can take some time. Your lender will order a copy when you apply for a loan, so let's make sure he gets a correct one.  To get a copy of your credit report click here to go to the Fair Isaac website where those credit reports are created.
3. Start to get a sense of the market. Since you are already on my web site, it would appear that you are doing just that. From within my site you can look at the listings of the entire Durango (and Bayfield) MLS.......over 2,500 properties.  To do this click on my HOMES link or my  VACANT LAND link.  When you go to my MLS search site, you will be able to search via "searchable map" where you can run your mouse over a county map...then click the area that interests you...and all of the listings in that "grid" will be displayed for your review!  Lastly, if you love reading classifieds, you could click on my link to The Durango Herald classifieds. In each instance I recommend that you take note of the MLS# or other identifying code and contact me for additional information.
4. Take a look at several other Realtor's web-sites. Is it helpful and informative? Can you get answers to your questions? E-Mail the person….how soon do you get a response? Number of listings is not the most important item.
5. Now pick your Realtor. You should decide at this time if you want to be represented by a Buyer Broker. What is a Buyer Broker?  Here is a link directly to a short article on Buyer Brokerage.  I am such an advocate of Buyer brokerage, I have co-authored a book entitled "How To Make Your Realtor Get You The Best Deal ~ Durango, CO edition"  Click here for a Buyer Broker Agreement.
6. Be prepared for a good interview. Your Realtor needs to understand your wants and needs for your property. I have prepared fill out response forms to help you answer the questions most pertinent in a property search.  Click here to go to that form and fill it out for me.  Be prepared to discuss your finances with your Realtor; there is no point in looking at property for $220,000 when all the bank will approve you for is $175,000. For a quick self-check on how much loan you can qualify for.  Click here to go to my mortgage payment calculator.  Occasionally, I get a "hard-to-qualify" client (someone who is moving here and changing professions; low down payment; bankruptcy in the past; lots of cash but no job at all yet, etc). For these few, I may have you contact one of my professional mortgage associates and actually get you pre-qualified. More often than not, what I find, is that I am able to locate a special financing package that will allow someone to buy a certain property, when going in they did not think that they could. Be realistic as to your timeframe when you feel you will be buying.
7. The next step is the Realtor's to make. I will then do a computer-search to locate properties that generally meet the criteria that we discussed in your interview. Additionally, I will check with other agents around my office to see if they have listings coming up that might fit your criteria. My procedure is to assemble all of that information and send you a "Property Presentation Book" that contains all of the property flyers, maps, etc on those properties.
8. You then go through those materials; often times you eliminate some of those properties; other times you are asking me for more information. That could include me going out with my digital camera and getting more pictures, determining how much of the property is in pastureland vs. trees, perhaps learning more about the irrigation water, getting more specific information, etc.
9. Generally, most people do not buy without coming to Durango and looking at the property in person. Assuming that we have created what I commonly call our first "short list" of prospective properties, we coordinate our schedules for a Durango trip. In the meantime, I am still watching for additional properties that fit your needs. My computer is updated daily with new inventory. Be sure to bring your checkbook. A legitimate offer needs to be accompanied with "earnest money". This money will apply to the purchase price.
10. You arrive and we look at properties. As you are looking, I am pointing out items (both positive and negative) that you might not notice. Also, with your own copy of the Property Presentation Book, you are able to take notes….."I love the mauve carpet…the pink bathtub has got to go….make sure the inspector checks out the musty smell in the crawl space…..the wall in the dining room is just the right size for our hutch"…..etc. It is hard for me to remember what color the carpet is in my own house; I encourage all of us to take notes, as these will be used when we write-up an offer.
11. Generally, we may look at 6 to 8 homes. That list then gets shortened to a couple, or if we cannot find the right property, we occasionally amend the criteria. We can then go back and even more thoroughly examine the property. If we have not done this before, this definitely would be the time to measure for oversized furniture and pay special attention to possible inspection items. As we are re-examining the property we will discuss how we want to shape our offer and what bargaining strategy will be used.
12. The next step is to actually write the offer. In Colorado, our Real Estate Commission approved contract forms are anywhere from 3 to 6 pages in length, depending on the type of property you are going to buy. In the contract we deal with lots of issues and contingencies. A contingency would be a clause that we put in the contract that would be a pre-condition to closing. For instance we would say that the contract is contingent upon you getting a loan of X dollars at X rate; if you don't get that loan, you get your earnest money back and you do not have to buy. Another example could be the sale of your existing home. You are not able to buy unless your home sells & closes. That can be made a contingency and in the event your current home fails to sell, you get your earnest money returned and you will not have to buy.
13. A standard contingency in our Colorado contracts pertains to inspections. First we come to terms with the seller as to price, closing date, etc. Then you hire a professional inspector to make an independent and thorough inspection of the property. No house is perfect, so it is important for you to know its condition before you are fully committed to purchase. Many times buyers will accept some items as not important enough to make an issue over; or perhaps we have already adjusted the sales price to account for them. Other times, totally unexpected items come up (termites, not-to code woodstove installations, chemicals in the water well, etc.) and we then have the opportunity to ask the seller to take some corrective action or make an adjustment in the price. If the seller will do neither, you as the buyer, have the choice of staying in the deal or backing out of the deal and getting your earnest money returned.
14. Another standard contingency regards title work. The seller provides, a few days after we come to terms, and at his expense, a title insurance commitment that states the exact condition of the title to the property. Normal "exceptions to title" would include "Protective Covenants" (kind of like the rules and regulations for a subdivision. Minimum house sizes, building set-backs, prohibitions as to use such as no commercial activity, etc.) We actually will receive copies of each of those documents and then have the opportunity to read, review and then approve or disapprove of the "exceptions".
15. Assuming that we get through all of the contingencies and conditions that we placed in the contract, then we are ready to close. In Colorado, we use a "date definite" for closing. That is, when we write the offer, we say that we will close on X date. Some states use "date indefinite" whereby the closing will occur 10 days after a certain event occurs, such as loan approval. With "date definite" both buyers and sellers are better able to make all of their arrangements from contracting with a mover to notifying all of the folks who will need your new address.
16. Several days prior to closing, the Title Company provides me with a copy of your "Closing Statement". This is a complete summary of the various charges and credits that will pertain to your real estate purchase. Having sold property to people from all over the United States, I have been amazed at what buyers are expecting to see on their closing statement. To help take away any fears, I have posted on my web-site 4 or 5 actual buyers closing statements from transactions that I have closed in the last year. I have changed the buyers and sellers names as well as the property's legal description to protect their privacy. Click here for a link to sample closing statements. No two are alike, but I have tried to select several different types of transactions and price ranges as a representation. I'll fax you the closing statement and go over it line by line with you. On this document will be a number that indicates how much money you need to bring. In our state, a cashier's check, certified funds, cash and wire transfer are all-OK. A personal check will not work.
17. The closing. This is where and when the buyer brings the money and the seller brings the keys and the deed. Lots of papers get signed, but it is simply part of the process. This is where all of the little "pieces and parts" come together to make a new picture……a home with your name in the ownership records! Sometimes closings are done in person here in Durango and many times they are done through the mail. My philosophy is that a real estate closing should go smoothly and it is not the time for surprises. If I get any inclination that we are headed for a troubled closing I want to head that off, if at all possible. Unresolved issues should be dealt with prior to the closing table; if we have a problem, lets get it fixed.
18. The mortgage payments begin. Sorry, but that is a part of it too.