There are some basic steps or components that are common in most real estate transactions. Understanding what these steps or components are and following experts’ tips will go a long way in making your home sale or purchase worry-free and less stressful.
1. Negotiate Closing Costs
There are a number of fees included in a property sale. The buyer and seller may negotiate which fees he or she is willing to pay before the actual sale occurs. This is done through a real estate agent or the parties.
2. Down Payment
This is money held in escrow, with the agent or title company securing the sale. Until a successful completion of the transaction, all funds are held in escrow and contingent on the successful completion of all necessary actions.
3. Address Contingencies
All the terms in the original offer on the property have been resolved to the satisfaction of both parties.
4. Address Legal Issues
A title company ensures that the party selling the property is the legal owner of the property and that the sale is successfully completed. Title insurance ensures that if there is a discrepancy and the sale is rescinded, you are compensated for any oversight.
5. Lock Interest Rate
The buyer locks in the interest rate and terms with their lender before the actual sale.
6. Home Inspection
A professional inspector is paid to examine the house and grounds for any problems existing on the property.
7. Pest Inspection
Apart from a home inspection, a pest inspector ascertains whether there is any pest damage and if there are any current pest problems on the property.
For most properties a survey is required by the lender. Also, at this time any other contract required items are ordered such as, home warranty, HOA estoppel, among a few.
9. Final Walkthrough
This is a final inspection of the entire property to ensure you know exactly what you’re buying before the completion of the home sale.
10. Sign Papers
When all financial and legal issues are completed, the seller and buyer will officially sign the paperwork and the buyers will have access to the house.
These real estate tips are an abbreviated explanation of the most common components of buying a home. Your agent will guide you through the complexities, but you should have a basic understanding of all the steps involved in buying a home.