The Ultimate Homebuying Checklist for a Smooth Transaction

Buyer’s agents are not just bright smiles that open doors – we’re the guide our clients rely on to navigate the homebuying process. This is when your buyers need you the most. That’s why having a definitive homebuying checklist is an essential part of your agent toolkit. I’ll share everything you need to keep the homebuying process running smoothly from your first meeting to closing – and beyond.

1. Consultation: Prepare clients for the homebuying journey

Every client needs to be prepared for the homebuying process, whether it’s their first home purchase or their tenth. Each purchase comes with a unique set of circumstances. So before your clients fall in love with the perfect home, they must be financially ready and understand which homes they can realistically afford.

Evaluate the seriousness of your lead

Not all responsive leads will be serious buyers. Your time is valuable, so you’ll want to qualify your buyer before investing countless hours into showings and consultations to ensure they are truly ready and qualified to purchase a home. Here are a few questions you can ask to start feeling them out:

• What’s your timeline for buying your next home?
• Have you spoken to a lender?
• What is your reason for purchasing a new home?
• What’s motivating you to move?
• Who are the decision makers?
• Who will be involved in the homebuying process?

Buyers who are not quite ready to purchase will be hesitant to answer some of these questions. Setting expectations on how you will work with them and what you expect will help you focus your time and energy on buyers who are ready and willing to make a move.

Secure a mortgage pre-approval

As a rule of thumb, it’s best to have your clients obtain a mortgage pre-approval prior to setting up any searches and conducting property tours. Connect your clients with your preferred lenders to ensure they are only looking at homes they can afford to make an offer on. This will save your buyers from falling in love with a house they can’t afford and will save you from wasting any of your valuable time.

Required documentation

Save your clients some time by providing them with a list of the documents they’ll need to get pre-approved. This typically includes:

• Recent pay stubs
• Last two years tax returns
• Recent bank statements
• Proof of any additional income or assets

Discuss the budget

Once you have the mortgage pre-approval, have an open conversation about your client’s financial situation. They need to understand how income, debt, and credit score will affect their purchasing power. When working with clients who have never purchased a home, you’ll want to provide them with a first-time homebuyer checklist to be sure they understand the costs associated with owning a home, including, but not limited to:

• Down payment
• Closing costs
• Earnest money deposits
• Home Inspection costs
• Appraisal fees
• Property taxes and homeowners insurance

By providing them with a list of potential costs upfront, they will be ready to make an offer and decide if they can purchase the home without stretching beyond their means. Make sure your clients know how these costs impact payment amounts, cash out-of-pocket, and their bottom line. A well-informed buyer will be less likely to face financial surprises down the road, which could negatively impact your transaction.

2. Build a roadmap: Conduct an in-depth buyer consultation

Now that you’ve qualified your buyer, it’s time to discuss their housing goals. This is the time you determine what features they want to find in their next home. Think of this as building a roadmap for their homebuying journey. From choosing a property to navigating the closing process, you’ll need to do a deep dive into their wants, needs, and deal breakers. This conversation will help you set realistic expectations for the buyers and ensure that you show them properties that align with their priorities.

Discuss wants, needs and deal breakers

Understanding what your clients want and need in a home is crucial, but it’s just as important to understand what they don’t want. Shopping for a house isn’t much different than shopping for a car. Unless it’s a custom build – it’s rare to find something that will check every box on your client’s wishlist. This is where the 80/20 rule comes in handy. If a home has 80% of what your client needs and 20% of what they want, it’s likely a solid purchase worth serious consideration.

Remember, this is the opportunity to help clients discover their “must-haves” versus the “nice-to-haves”. Make sure they take into consideration more than just the basics, like bathrooms and bedrooms. They should also consider:

• Preferred neighborhoods and school districts
• Commute times to work
• Lifestyles needs (i.e., home office, yard size, proximity to shopping and amenities, etc.)
• Architectural style
• Floor plan and home layout (i.e,. first-floor primary bedroom, kitchen island, open concept, etc.)

The final – and arguably the most essential – question to ask is: “What are your deal breakers?” These are non-negotiable features that would immediately disqualify a property from their search. For some homebuyers, it may be something specific like not wanting a swimming pool, while others may insist on the home having a two-car garage. Identifying these deal breakers up-front eliminates homes from your property search upfront.

Ensure they know what’s next

Many homebuyers, especially first-timers, are not aware of how many steps there are in the homebuying process. Take the time to walk them through what they can expect from showings to closing day.

• Showings: Explain how you, as the agent, will find and send properties through MLS searches and set expectations for how you will conduct property tours.
• Offers: Outline how making a competitive offer will work, including how price, contingencies, due diligence funds, and earnest money will impact how the seller views an offer.
• Negotiations: Prepare your clients for the possibility of counteroffers. They will want to be prepared to be flexible and know that you’ll advocate for their best interests.
• Under contract: Let your clients know what to expect after they go under contract on a home. Clarify key steps like inspections, appraisals, and the importance of meeting deadlines and any impacts of missing them.
• Closing: Briefly review what to expect on closing day, including a final walkthrough, signing documents, and collecting the keys to their new home.

Remember, this is a lot of information to cover at once – especially as part of a first-time homebuyer checklist. While you want your clients to be prepared, focus primarily on the immediate next steps and reiterate the key details as you progress through each stage of the transaction.

3. Set the stage: Educate your clients on the market

This is your time to shine! Show off your real estate knowledge by educating your buyers on what the market is like in your area. It’s important for clients to be able to make informed decisions, and it’s your job to help them navigate the current market while setting realistic expectations. When buyers know what to expect, they are less likely to feel overwhelmed by the process.

• Explain current market conditions: Is it a buyers market, sellers market, or a more balanced market? Let your clients know how the market will impact competition, home values, and the overall buying strategy.
• Review comparable sales: Show your clients how a comparative market analysis (CMA) will be used to help them make an offer and determine the fair market value (FMV).
• Discuss pricing and inventory trends: After you go over how you determine FMV, go over the latest local trends in home prices, days on market, available inventory. How will these factors affect a potential offer?
• Set realistic expectations: Prepare your buyers for any potential issues they may encounter during the homebuying process, such as bidding wars or appraisal gaps. Buyers are more confident when they know possible upfront challenges.