The Real Estate Transaction Process from the Buyer’s Perspective
A buyer's agent will be able to guide buyers through the following steps:
Step 1: Determine what type of property you are looking for (single-family, multi-family, condo) and what your price range is. Also define characteristics that are desirable (garage, finished basement, 3 or 4 bedrooms, etc.)
Step 2: Begin search for matching properties through available sources (online, newspapers, for sale by owners, foreclosures, etc.)
Step 3: Schedule showings of matching properties.
Step 4: During showings, carefully examine property for any potential defects or hidden problems. |
Step 5: Estimate the approximate value of any properties that are desirable by doing a market analysis of similar available properties in the area as well as similar properties that have recently sold in the area.
Step 6: Make initial offer on chosen property by filling out a purchase and sales agreement.
Step 7: Negotiate back and forth with selling agent until price and terms are acceptable (who pays closing costs?, when will the seller move out?, are all the appliances staying?, etc.). This may take some time.
Step 8: Sign and fill out all necessary documentation for contract (purchase and sales agreement, lead disclosure, real estate agency disclosure, standard property disclosure).
Step 9: Research best financing available (fixed interest rate, adjustable mortgage rate, 20yr mortgage, 30 yr mortgage, 50 yr mortgage). Apply and get approved.
Step 10: Schedule inspections for the house. Should any problems be uncovered, you must begin negotiations on what should be done (lower the selling price?, have the owner fix the problem before the property is sold?, etc.).
Step 11: Schedule a date for closing.
Step 12: Have attorneys make sure all paperwork is in order, title is clear, taxes have been paid, etc.
Step 13: Attend closing with payment and receive clear title to property. |
