The Buying Process
The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your buying capacity. Your real estate agent can refer you to lenders best qualified to help you. It is usually best to get Pre-Approved prior to starting your search, it may be beneficial when buying your new home.
Finding The Right Home
Once you know how much you can and want to invest, the next step is to find the properties that most fit your needs. This is the time to choose a REALTOR.
A REALTOR is a member of the National Association of REALTORS, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics.
A REALTOR has many resources to assist in your search. Sometimes the property you are seeking is available but not actively advertised in the market and it will take some investigation by your agent to find all available properties.
Selecting Your Dream Home
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent can assist you in the selection process by providing objective information about each property.
Agents who are REALTORS have access to a variety of informational sources. There are two things you'll want to know about your investment. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
Negotiating The Purchase
There are a myriad of negotiating factors, including, but not limited to price, financing terms, date of possession, and often the inclusion of repairs, furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
Due Diligence
With a negotiated agreement in hand, it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, radon, septic and well tests, just to name a few.
Your agent can assist you in finding professionals to do most of these investigations and provide you with written reports. You will also want a preliminary report on the title of the property. Title indicates ownership of the property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.
Financing Your New Home
As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualified lenders.
Closing
Finally, there is the closing. Every area has its own unique customs. In some areas, the title or escrow company will handle this process. In other parts of the country, an attorney handles it all. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly.
Why A REALTOR?
All real estate licensees are not the same. Only real estate licensees who are members of the National Association of REALTORS are properly called REALTOR. They proudly display the REALTOR logo on their business card or other marketing and sales literature. REALTORS are committed to treating all parties to a transaction honestly.
REALTORS subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of selling and buying real estate. An independent survey reports that 84% of home buyers use the same REALTOR again.
You Be The Judge!
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. Considering the small upside cost and the large downside risks, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR.