Esther Davis | Carlsbad Real Estate

Steps to Buying a Home in Carlsbad, CA

1. Work with a Pro

Buyers Advocate

Buying a home is a major financial decision, which is why a trusted realtor who prioritizes your interests above all others is so crucial. The listing agent’s fiduciary responsibility is to the seller, not you. With today’s challenges—rising home prices, higher interest rates, and new MLS rules—buyers need their own representation more than ever. As your dedicated buyer’s agent, I provide undivided loyalty, guidance, and expertise to help you make informed decisions.

Proactive Property Search
Buyers can easily find MLS listings online, so we go the extra mile to uncover hidden off market opportunities. After mapping out your ideal timeline, priorities, and price range, we proactively search for properties that meet your criteria, such as sending handwritten letters to homeowners in your desired area and leveraging professional connections to find upcoming listings ahead of the market.

Packing Assistance
Moving can be stressful, especially for elderly clients. With my unique professional organizing expertise, I offer packing and unpacking assistance to streamline the process, saving you time and stress, and ensuring a smoother transition from one home to another.

Sign the Buyer Representation Agreement
As of August 2024, all agents are required to have a signed buyer representation agreement before showing properties. Buyers are also responsible for covering their agent’s fees, though these can be negotiated as concessions in your purchase offer.

At EXP Realty, we use a straightforward 1-page Single Property or 2-page Buyer-Broker Representation Agreement.

EXP Buyer Agreement p1
Single Property
EXP Buyer Agreement p2

2.  Get Pre-Approved

Unless you’re paying cash, obtaining a lender pre-approval is essential for setting a realistic budget and understanding the price range you qualify for. A pre-approval indicates that your lender is willing to lend you up to a specified amount, strengthening your position as a qualified buyer when making an offer.

Types of Pre-Approval:

  • Prequalification: Provides an estimate of your borrowing power based on unverified information. It’s a good starting point but lacks the rigor of a full review.
  • Pre-Approval: Involves a thorough review of your income, assets, debts, and credit documents. You can request this without a hard credit check, meaning it won’t affect your credit score.
  • Underwritten Pre-Approval: The most comprehensive option, where detailed financial information is verified and analyzed. A hard credit check is required, but you’ll be in a stronger position in a competitive market, avoiding unexpected delays during escrow and experiencing a quicker closing process.
 

Key Information Reviewed by Lenders:

  • Income and Employment History (pay stubs, W-2s, tax returns, bank statements)
  • Outstanding Debt (loans, credit card balances)
  • Assets (savings, investments, retirement accounts)
  • Credit Report (payment history, credit length, overall credit score)
 

Avoid Making Major Financial Changes
To ensure a smooth home-buying process, avoid making major financial changes—such as changing jobs, maxing out credit cards, applying for new credit, closing credit accounts, making late payments, depositing cash, or co-signing loans—while home shopping and especially during escrow. Always consult your lender before making any decisions that could impact your credit score, debt-to-income ratio, or pre-approval status.

3.  Go Home Shopping

Once you are pre-approved, we tailor your home search based on your needs, wants and qualified price range.

Strategy For Finding Properties

  • Set up automatic MLS alerts for new listings.
  • Identify off-market opportunities.
  • Reach out to homeowners in your desired areas.
  • Leverage professional connections in the area for potential coming soon listings to stay ahead of the market
 

Touring Your Favorite Homes
Choose your top 5 homes that fit your criteria.

  • Assess the strengths and weaknesses of each property.
  • Focus on your top priorities, but be flexible on lower priorities.
  • Gather relevant details on value, taxes, utilities, etc.
  • Tour neighborhoods, key points of interest, and local amenities (schools, municipal services, etc.).
  • We’ll schedule showings and accompany you on tours.
 

Showing Etiquette

  • Arrive on time.
  • Wear slip-on shoes in case the seller requests you remove shoes.
  • Be respectful of the property: don’t damage or leave a mess.
  • Be mindful of surveillance devices.
  • Avoid strong reactions—both positive and negative—to protect your negotiating position.
  • No smoking, eating, or using bathrooms inside the home.
 

Finding the Right One
It’s tempting to wait for rock-bottom prices or mortgage rates, but homes priced right tend to sell quickly. If you wait too long, you risk losing out on your ideal home. If you find a property you’d regret seeing sold—or one you want to revisit—consider making an offer.

No home is ever perfect. Instead of focusing on flaws, think about the property’s potential and what can or can’t be changed. Also, consider the surrounding area—is this a location you want to live long-term? Be sure to review your homebuyer checklist to help evaluate and compare properties. And don’t forget to factor in the total cost of ownership, including utilities, taxes, maintenance, and insurance.

4.  Making an Offer

When it’s time to make an offer, we’ll prepare a thorough market analysis to assess property values and guide you in formulating an informed offer. A clean offer with less to negotiate will be more likely to be accepted.

Key factors that affect market value and your negotiating position:

  • location
  • age of home
  • property condition
  • room count, square footage
  • number and price of similar homes for sale
  • offer activity (multiple offer vs no offer)
  • time on the market
  • comparable of recent sales
  • price changes
  • taxes, homeowner fees
  • seller motivation
 

Residential Purchase Agreement

  • Price: Based on current market conditions.
  • Earnest Money Deposit: A deposit is usually due within 3 business days. Always confirm with your escrow agent by phone before wiring funds to avoid fraud. While 1-3% is standard, a higher deposit shows seriousness. If you back out without a valid contractual reason, the seller may entitled to the deposit as compensation for taking the property off the market.
  • Down Payment: It varies depending on loan type and range from 0- 20% of purchase price, or more.
  • Contingencies: Contingency clauses in the home purchase agreement allow buyers to renegotiate or cancel without losing earnest money if certain conditions of the clause are not met. Typically, these include loan approval, a satisfactory home inspection and appraisal, clear title, and sometimes the sale of the buyer’s current property.
  • Other Terms: when possession can be taken and who pays fees, offer expiration
 

Presenting Offer
Seller can accept, reject, or counter your offer. Once you and the seller have agreed to the price and terms, your accepted offer becomes a a purchase contract and escrow will be opened.

5.  Closing Escrow

  1. Earnest Money Deposit – Earnest Money must be deposited within 3 days. Always confirm by phone with your escrow agent before wiring any money to prevent fraud.

  2. Loan – Finalize your loan application

  3. Appraisal – Your lender will hire an independent appraiser to assess the home’s value based on factors like its condition, age, location, and features. The appraisal ensures that the price is fair, protecting both the buyer and lender. It prevents the lender from approving a loan that’s higher than the home’s value and safeguards the buyer if the appraisal comes in below the contract price. Once the appraisal is complete, the loan file is then sent to the mortgage underwriter for final approval.
  4. Get a Home Inspection – A buyer typically has 14 days to schedule a thorough home inspection, a crucial step in identifying potential issues with the property, such as problems with heating, cooling, roofing, plumbing, mold, pests, structural integrity, or environmental concerns. If significant issues—like structural damage or termite infestations—are found, buyers can either cancel the contract or request repairs from the seller.
  5. Renegotiate if Necessary – If any issues arise after the home inspection or if the appraisal comes in lower than expected, we may need to renegotiate the terms of your offer, whether through credits or request for repairs.
  6. Seller Disclosures – Carefully review and sign the property disclosures provided by the seller, outlining any known issues with the property.
  7. Homeowner Insurance – Purchase a home insurance policy to protect your investment. Most lenders require this.
  8. Title Insurance -A title search will determine who owns the property and their right to sell it. Title Insurance protects buyers and lenders against liens, encumbrances or title defects.
  9. Remove Contingencies – Contingencies must be removed by a mutually agreed-upon date and commits the buyer to purchasing the property.
  10. Schedule Movers – Begin planning your move to ensure a smooth transition once the closing process is complete.
  11. Final Walkthrough – Schedule a final walkthrough within 5 days of closing to verify that repairs have been made and that everything included in the purchase is still present.
  12. Loan Approval & Sign Closing Documents – Once your lender approves funding, you’ll sign the closing loan documents. You and the seller will sign the final paperwork, necessary funds will be transferred.
  13. Close & Get Keys – Title will be recorded at the County’s Recorder’s office. Once escrow closes, you’ll receive the keys to your new home. Congratulations on reaching this exciting milestone!