While the processes of buying and selling a home can’t quite be reduced to a rock solid formula, there are certain recurring steps involved with these two processes which take place in virtually all transactions. Here’s what you can expect when you go through either of these processes.
Buying a home
- Decision to purchase– prospective new homeowners must decide when the time is right for them to purchase, considering real estate values and your own financial situation.
- Pre-qualifying– this is an important step which gives new buyers an idea of how much they can afford to spend on a new home.
- Searching– whether you search for a new home yourself, or have a real estate agent do it for you, this involves finding a home for the right price, and which satisfies all your other requirements.
- Making an offer– when you find a home that’s just what you want, you can make a purchase offer to the current owners, who then have the option of accepting or rejecting your offer.
- Inspection– before it can be occupied, any home has to be inspected by a building inspector, who certifies that the home is fit for habitation.
- Financing– if you went through the pre-qualification step, you would most likely carry out financing of the mortgage through the same lender. This is the somewhat tedious step where all the documentation regarding your finances are submitted to an underwriting company, and if all goes well, a mortgage is set up for a period of time with regular monthly payments.
- Closing– after the financing step has been concluded, the finalizing of the transaction occurs between the buyer, the lender, the real estate agent, and the title company. This is also the time when title insurance should be arranged for from a reputable title insurance company, to ensure that no other claims against the property arise to jeopardize the investment of the buyer or lender.
Selling a home
- Hiring a real estate agent– unless you intend to sell a home yourself, you’ll have to obtain the services of a knowledgeable real estate agent who can present your home to potential buyers.
- Prepare the home for sale– in this phase, all work is done which will make the home more appealing to buyers.
- Marketing the home– the real estate agent photographs all aspects of the home, and lists all the details on various services where potential buyers might find them.
- Consider offers– once your home has been on the market for a while, you can expect to begin receiving offers from potential buyers, and you can consider which is most advantageous for you.
- Negotiating with potential buyers– in some cases, buyers may ask for certain repairs or other considerations, and you have the option to consider whether these should be carried out.
- Closing– when financing has been established and all negotiations have been concluded, the transaction can be finalized between all parties.