Case Study: Lola’s First Home Purchase Journey
Lola, a first-time homebuyer, had long dreamed of owning her own place but had always been apprehensive about taking the plunge. However, after months of research, she found a cute starter home in a neighborhood she’d fallen in love with, and finally faced her fears. She made an offer and, much to her excitement, it was accepted!
House Details:
• Buyer: Lola
• Address: 123 Oprah Street
• Property: 2 bed, 2 bath
• Built in: 1986
• Time on market: 37 days
• Under Contract: $255,000 (price reduced from $260,000)
The Offer and Negotiation
Lola’s offer was accepted by the seller, and they agreed to a $2,000 earnest fee, which Lola wired to the title company. The seller also agreed to a 7-day option period for Lola to conduct an inspection, with a $170 option fee. If Lola decided to back out within the option period, she would get her earnest money back, but the $170 option fee would remain with the seller.
Additionally, Lola was granted an 18-day financing contingency, which allowed her time to secure a loan, or back out if something went wrong, without losing her earnest money. The seller also agreed to clean the house before closing, which was another win for Lola.
Contract Details:
• Price: $255,000
• Option Period: 7 days (ending March 8)
• Earnest Money: $2,000
• Option Fee: $170
• Financing Contingency: 18 days
• Closing Date: April 5
• Seller Agreement: Clean house prior to closing
Inspection and Negotiation
Lola’s inspection took place on the third day of the option period, and she was guided by her realtor and a reputable inspector. They carefully reviewed the findings and created a plan of action. Among the concerns were:
• Air conditioning not cooling properly
• Dryer lint leakage in the attic
• Oven not working
• Tree branches touching the roof
• Leaking toilet in the spare bedroom
Together, Lola and her realtor decided to ask the seller to fix the toilet, service the AC unit, and replace the oven instead of asking for a credit. Lola was fine with taking care of the tree branches herself, and she decided to move forward with the repairs.
The seller agreed to make the necessary repairs with licensed professionals, and both parties signed an amendment to formalize the agreement.
Final Walkthrough
On April 3, a few days before closing, Lola and her realtor returned for a final walkthrough. They were accompanied by the inspector to ensure all repairs had been done correctly. Everything seemed in order, but the house had not yet been cleaned as promised. Lola’s realtor reassured her that the seller had planned to clean it the next day, and she would personally check it again before closing.
Closing Day
On the morning of April 5, Lola headed to her local bank with wire instructions from the title company to wire the necessary funds. Her appointment to sign closing documents was scheduled for 12:30 p.m., after the seller had already signed at 10:00 a.m.
After signing, Lola and her realtor went for a celebratory lunch, awaiting confirmation from the title company. A call came soon after, letting Lola know that everything had gone through, and she was officially a homeowner!
The Result
Lola had successfully navigated the homebuying process with the help of her dedicated realtor. She secured a home she loved, negotiated repairs, and made sure everything was in order for a smooth closing. After a lot of hard work, Lola walked into her new home as a proud homeowner.
Congratulations, Lola! You did it!
And if you’re a first-time buyer like Lola, rest assured that you don’t have to go through the process alone. With the right guidance and a good team, you too can successfully close on your dream home!
