7 Steps to Buying a Home | Homes for Sale in Westchester County: A Real Estate Guide for Home Buyers


The National Association of Realtors (NAR) reported that 89% of recent buyers purchased their home through a real estate broker or agent, while only 5% bought their home directly from the seller or seller’s agent. In the same report, 90% of buyers stated that they would reuse or recommend their agent.

When it comes to buying a home, real estate professionals play a big role in making the process less stressful, and more rewarding. Whether it’s helping someone find their perfect home, using industry expertise to help buyers make well-informed decisions, or simply helping buyers stay organized throughout the tedious process and paperwork, a real estate professional could help. 


The more a buyer knows about the process, the more they stand to gain, ensuring a more fruitful relationship with their real estate broker or agent. Let’s explore a step-by-step guide that buyers looking to purchase homes for sale in Westchester County, and elsewhere, could use to better understand the general process of purchasing a home, and help them achieve their real estate goals. 

It’s helpful to know what you’re looking for in a home, as well as the local area. When searching real estate for sale in Westchester County, first you might want to take a look at the house style, which could help you, and your broker, narrow down the search to find properties that fit your look and feel. The following is a list of popular house styles found in the United States:

  • American Craftsman
  • Bungalow
  • Cape
  • Colonial
  • Condominium
  • Contemporary
  • Cottage
  • Farmhouse
  • Log Cabin
  • Ranch
  • Raised Ranch
  • Split Level
  • Townhouse
  • Tudor
  • Victorian

Once you have your house style in mind, next you want to determine what amenities you’re going to want in your new home. Amenities could include structural considerations such as the number of bedrooms or bathrooms, as well as more aesthetical attributes like granite kitchen countertops, a deck, or in-ground pool. It could be helpful to make a list of amenities that are non-negotiable, and a list that are flexible.

Location is also important. The local area and school system could help determine which house you settle into. If you are deciding on where to purchase real estate in Westchester County, Westchester Magazine has a Quick Guide to Westchester’s Communities.

According to the National Association of Realtors, the first thing 44% of recent buyers did was look online for properties, while only 16% contacted a real estate professional at the start of their search. Today, it’s easy to simply google “real estate near me,” or “homes for sale near me,” on your smartphone or laptop, and look at homes in a matter of seconds. Or you might look on real estate search sites like Zillow, Trulia, or any of the other popular websites to find your new home. So you might be wondering, why would I need a real estate professional?

The truth is, sites like Zillow and Trulia aren’t always accurate. Realtors think of these sites more as marketing companies, rather than accurate databases. Sites like Zillow and Trulia often pull their data and listings from public records, such as county records and municipal offices. This could create situations where properties listed on their sites do not have the most up to date information.

An article in the HuffPost included Zillow’s value proposition and promise from 2015, where the company stated that, “Our expertise is in building websites and apps, not selling real estate.” The article continued, noting that Zillow’s “zestimates” were inaccurate, valuing homes with online data and algorithms without physically inspecting the homes or assessing the neighborhoods. Real estate professionals fear this could mislead buyers, as well as homeowners into pricing homes incorrectly, potentially losing money and equity as a consequence.

However, Realtor.com might provide more up-to-date information, as they receive their data directly from the National Association of Realtors. But it is often best to consult the expertise of a professional. They could help guide you from start to finish, providing experience, local expertise, as well as access to a multiple listing service (MLS), helping provide buyers with accurate, comprehensive information throughout their home search. As an added bonus, buyer’s agents are technically compensated from the seller, they don’t get paid by you.

Westchester County real estate doesn’t always come cheap, and there’s no “one size fits all” approach when it comes to financing a home. But there are two main ways of paying for a home, cash, or taking out a mortgage loan with a lender (most common).

Paying Cash

If you have sufficient cash reserves to put down a deposit on a new home without a mortgage, you wouldn’t have to pay off a loan with interest, or any closing costs. Since cash offers are usually more appealing to sellers, the transaction generally moves along quicker. Note, there are instances where a buyer could offer a hybrid offer including cash with a smaller mortgage.

Mortgage Loans

If you are seeking a mortgage to finance the home, you would first have to determine whether you could qualify for a mortgage.

Pre-qualification allows buyers to get an estimate of the mortgage loan they might be able to borrow and usually occurs early on in the homebuying process. It is often a preliminary step prior to seeking pre-approval, requiring less information, and could even be done over the phone.

Pre-approval, on the other hand, is a more in-depth analysis of your finances, requiring buyers to complete a mortgage application, and provide information such as pay stubs, outstanding loans, debt, and a credit score check. By pre-approving a buyer, a lender is offering them a mortgage loan for a certain amount, but the loan is still not guaranteed. Many sellers require buyers to have pre-approval for a mortgage loan before considering an offer.

Here are a few main types of mortgages that you may come across:

  • Fixed-Rate Mortgage
  • Adjustable-Rate Mortgage
  • Federal Housing Association (FHA) — (Government Loan)
  • U.S. Department of Veterans Affairs (VA)— (Government Loan)

Once you and your real estate professional have found some real estate listings in Westchester County that you’re interested in, the next step is getting a showing of the property. Showings give buyers the opportunity to visit the property and its amenities before making an offer. Showings could be public, privately scheduled, and in some cases, listing brokers have 3D virtual tours and showings available that buyers could view prior to physically going to the property.

It is important to know what to look for when viewing a property at a showing. Here’s a checklist from Homes.com that might help you save money and headaches on unnecessary costs and repairs in the future:

  • Neighborhood Economy — Are there other homes for sale in the neighborhood? (Note: this may or may not indicate the health of the local economy)
  • Roof Condition — Are there missing/damaged shingles? Leakage?
  • Electricity — Do the lights dim when switching on an appliance? (Note: this may indicate a problem with the home’s electrical, and could require the electrical panel to be upgraded)
  • Plumbing — Is the ground soft, or are there leaks around the base of the toilet?
  • Appliances — Do the appliances have rust? Check the furnace, air conditioner, and water heater. (Tip: Ask for service notes for large appliances from the seller or their agent)
  • Furnace — Is the temperature the same in each room? (Tip: turn on the furnace and listen for rattling or popping noises)
  • Mold — Are there musty odors or damp on the walls or window frames? (Note: this could indicate leaks in the pipes or ceiling, even foundation issues
  • Doors — Are there hollow doors? Are any door frames tilted? (Note: these may indicate a subsidence in the foundation
  • Foundation — Is there water at the base of the home’s walls? (Note: this could mean a crack in the foundation)
  • Flooring — Is the flooring in good condition? (Tip: When examining rooms with wall-to-wall carpeting, remove the casing for the floor vent to see what’s under the carpet)

Ask your real estate broker or agent to obtain a Property Disclosure Statement, referred to as a Property Condition Disclosure Statement in New York, from the seller prior to making an offer. This form contains useful information related to the structure and mechanical systems of the property that could help you determine if costly repairs need to be made. Most states require some form of property disclosure statement from the seller.

When you’ve decided on buying a home for sale in Westchester County, you’ll need to make an offer to purchase the property. Both the strength and amount you offer would depend on several factors.

An offer consists of three main elements: (1) contingencies, (2) method and amount of payment, and (3) the down payment. A real estate agent or broker might conduct a Comparative Market Analysis (CMA) the amount other properties sold for in the area to help give you a reference for your offer. The strength of an offer is often measured by factors such as whether it’s an all-cash offer, the buyer’s obtained pre-approval for their mortgage, the size of the down payment (traditionally 20%), and contingent offers. Common examples of contingency offers include a home inspection contingency, appraisal contingency, or mortgage contingency. Sellers could accept the offer outright, or respond with a counteroffer, beginning the negotiation process.

It is worth reviewing the difference between an offer and earnest money. Earnest money is given to the seller and held in escrow by the title company or real estate broker, typically after the purchase agreement has been signed, acting as a deposit made by an interested buyer to show the seller their good faith and that they’re serious about purchasing the home. In some cases earnest money may be given at the time the offer is made.

In the event that the deal falls through, whether or not the buyer or seller is entitled to keep the earnest money deposit entirely depends on the circumstances and the terms of the purchase and sale contract. For example, a seller might be entitled to keep the earnest money deposit if all of the buyer’s contingencies have lapsed.

Shortly after the seller accepts the buyer’s offer and the purchase agreements are signed, the next step is to get the home inspected.

The U.S. Department of Housing and Urban Development estimated that the average home inspection cost is between $300 and $500. The home inspector would search the property and report on its condition, discovering any defects or things in disrepair, concentrating on the roof, electrical, plumbing, foundation, and HVAC systems. Upon reviewing the inspection report, a buyer could either send repair requests to the seller, who could agree or disagree to fix any or all of the requested items, or the buyer may have the opportunity to back out of the deal.

Within one week of the inspection, the lender would assess the fair market value of the house by sending an appraiser, unless a pre-listing appraisal has already been conducted. The buyer would usually cover the appraiser’s fee, which is typically based on the square footage of the home. 

Title insurance and a title search would also be obtained around the same time, prior to the closing. Title insurance protects the buyer from losses sustained from a seller’s defective title, while a title search examines public records to confirm whether a seller, in fact, has legal ownership of the property they’re purporting to sell, and if there are outstanding title claims on the property by third parties.

This is the final step! After much time and effort you’ve searched real estate for sale in Westchester County and found your dream home, consulted a professional, pulled together your finances, viewed the home, made an accepted offer, inspected the home for physical and title defects, and now you and the seller are ready to sign the papers and close out the deal.

Real estate attorneys are usually hired by both parties due to the complexity of the deal. Buyers and sellers, guided by their attorneys, typically negotiate closing costs, which could include:

  • loan-related fees (credit report fee, application fee, origination fee, etc.)
  • prepaids and escrow (prepaid days of interest, prepaid taxes and insurance, initial escrow deposit, etc.)
  • title/recording fees and transfer taxes (title search fee, title insurance fee, recording fees, sales tax, etc.)
  • 3rd party fees (appraisal fee, home inspection fee, survey, attorney fees, etc.)
  • mortgage insurance

At least three days prior to the closing, buyers receive a closing disclosure, outlining the closing costs. Buyers could match up the closing disclosure with their good faith estimate (GFE), previously received from their lender, which gives a fair assessment of expected costs and fees associated with their mortgage, to spot any inconsistencies which might cause a delay with the closing.

Once the closing costs are negotiated, it’s time to finalize the paperwork. On the predetermined closing date, ownership of the deed would be transferred to the buyer. Both parties, as well as their attorney’s, representatives, real estate professionals, and a notary public would be in attendance. After everything is signed and notarized, the closing is complete and you get the keys to your new home!

In Sum

Buying a home isn’t always as easy and straightforward as we’d like it to be. There are many steps involved in purchasing your home, some of which may not have been covered in this article, so don’t stop here, continue to learn more.

Now that we’ve covered these general steps, hopefully you feel a little more comfortable with the process, and feel confident to tackle whatever comes your way. Whether you’re looking for houses for sale in Westchester County, or anywhere else in the world, I wish you the very best.

Sincerely,

 

Michael Jasper, Esq. | Licensed Associate Real Estate Broker | COLDWELL BANKER REALTY

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