A real estate transaction involves a series of steps right from perusing properties to closing a deal. Knowing what to expect in a property transaction can make it less stressful, at the same time eliminating guesswork in this purchase. So, if you’re wondering where to start, here are the 5 basic steps to go about a real estate deal successfully.
1. Find the right property
It starts with finding a property you would be interested in buying. There are hundreds of properties to choose from. You need to make a plan, set your priorities, for example; what area do you want the house to be in, the number of rooms, bathrooms, the size, etc. Having knowledge of the market could help narrow down the search for properties suited to your specific needs and purchasing power. It is possible to choose a valuable property in a location you like and at a price you can afford.
2. Make an offer
A common mistake made by most prospective property buyers involves making an offer that is either too low or too high. Better the offer, higher is your profit. Having a real estate coach or mentor can be helpful when making an aggressive yet reasonable offer that will enable you to nail the deal. The offer should take into account vitals such as title policy, the condition of the property and the value of the property in relation to the current market trends. It should be such that the proposed offer gives the seller room to consider.
3. Offer acceptance
In most cases after you table your offer for the property, you will get a counter offer from the seller. He will put forth his best offer on the property. With the help of your realtor, you can review the counter offer and accept it to take the deal to the next step or reject it. After acceptance, a contract is taken to a title company so that an escrow is opened on the concerned property. It is the starting point of the ownership transfer. The contract copy is handed over to you so that you can make loan arrangements.
4. Appraise and inspect
As a buyer, you will in most cases have a few days to have the property appraised and inspected. It is considered the option period, which can lead to property amount adjustments or request for necessary repairs. At this juncture, there is no obligation to complete the property purchase. You can still walk away from the deal if you are not comfortable. If all the aspects are accepted at the end of the option period, the transaction is carried forward with an agreement between you and the seller.
5. Closing deal
Once everything has been discussed and the parties have come to a mutual agreement, it’s time to close the deal. The real estate deal now moves to a pending status. It is during this period that the finalizing documents are prepared by the lender. The title company will also be doing its part in finalizing the loan document and preparing the deed for both seller and buyer. It is this company that will give the go ahead for closing of the deal. You need to be prepared for the closing fees, sometimes buyers don’t realize about the external cost of buying a property, so always be prepared.