5 Steps To Complete A Real Estate Transaction From Start To Finish

Posted by Casandra Properties on Wednesday, April 8th, 2020 at 10:09am.

In order to complete a real estate transaction, such as purchasing a home or piece of property, there are a few steps that you must take.  Keep reading below as we go into detail on each step and give tips on how you can seal the deal and own some real estate.

Infographic 5 Steps in A Real Estate Transaction

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Getting Pre-Approved

Buyers looking for a home often overlook the first simple steps in a Real Estate transaction. The first thing you must do is figure out your price point. Once you have determined that, visit your local bank to get a pre-qualification and-or pre-approval. To be pre-approved for a mortgage means that a bank or lender has investigated your credit history and determined that you would be a suitable candidate for a mortgage. Pre-approvals might only be good for a certain amount of time, but they usually signify that a lender is ready and willing to lend you money. There are things you should avoid when applying.  For some mistakes you should try to avoid when applying for a mortgage click this link.  If you happen to be an all-cash buyer, you must show your proof of funds; this confirms that you are eligible and have the necessary funds to buy the property. After being deemed eligible for a mortgage or having the funds to buy a home, you then can start to tour properties that are in your price range. Once you have a better understanding of your budget, homes will be targeted to your price point. It is strongly suggested that you work exclusively with one agent, who will work hard for you and guide you through the process from start to finish.

The Right Agent 

Choosing an agent with excellent communication skills is key. Clear and effective communication throughout the real estate transaction makes the journey so much easier, especially if this is your first time buying a home. Your real estate agent should always be available to answer any of your inquiries and address your concerns. Strong local market knowledge is also essential when choosing an agent. He or she will have most answers at the ready regarding information about the neighborhood. Look for positive reviews when you chose an agent. Seeing pleased clients and great results from the agent’s previous work will reassure you and make you more comfortable working with that agent. Working with a full-time agent is also crucial in achieving the most information throughout your real estate transaction. Full-time agents have more time for you than someone who works part time; they can often impart more knowledge and provide more help than a part time agent.

Finding A Home

Once you are pre-approved and working with the right agent, the next step is finding a home that fits your needs. Touring multiple homes is a good idea. It is also a great idea to take pictures of every home you look at; it will help you remember the details and style of each home. It is imperative that you check every section of the home and see how well maintained the property is. For example, see how up to date the plumbing is, if the foundation is strong, the condition of the appliances, air conditioning and electrical panels. The properties you’re looking at should be conveniently located near places you need to be: perhaps near schools, stores, public transportation. Is the block good for you?  Is it quiet? Will there be ample parking when you have guests over?  There multiple factors consider when with regard to potential home location. You must assess what will work best for your and your family’s needs. 

Inspection & Appraisal 

After you have chosen the right home for you and your family, the next step is inspection and appraisal. After your offer is accepted by the seller, a home inspection will be scheduled. An inspection is to check the property for signs of structural damage or things that may need fixing. Your real estate agent will help you and give you 2-3 referrals for home inspectors. After speaking with the inspector you choose, he/she will arrange a date and time for the inspection. The inspection will protect you and give you an opportunity to possibly negotiate your offer or withdraw -- without facing consequences if there is significant damage. The inspector’s job is to protect the buyer and let them know of anything that might be a problem with the home. When the inspector has finished his/her job, you will now go to your attorney to discuss the contract. You may want to have a checklist of items that are staying or that your prefer to stay at house when you receive the property. Now the bank will want an appraisal. The lender will arrange for an appraiser to provide an independent estimate of the value of the home you’re purchasing. The whole idea of an appraisal is to know that you are paying a fair reasonable price for the home.

Closing

The last step in the process is the highly anticipated closing day. Once all the necessary  paperwork is completed, your attorney will notify you about the closing date. Prior to that closing date, either earlier in the day or a few days before, you and your Real Estate agent will have a final walk through. During this walk-through, you will thoroughly check that everything in the house is working as it should be, and/or is consistent with previous agreements between the buyer and seller. For example, make sure the water is running, and make certain that everything is there that you and the seller had previously agreed upon. Bring your favorite pen to the closing, perhaps two or three for backup. Shake out your writer’s cramp and give yourself a pat on the back. 

Congratulations, you are now a homeowner!

For more information on real estate, home improvement tips, and more check out the rest of our blog.

About the Author:
Written by:  Frank DiMattina, NYS Licensed Real Estate Salesperson
Email:  frank@casandraproperties.com

 

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