Step 1: Your Readiness
Knowledge and
experience are the keys to successful real estate transactions.
One of the keys to
making the home-buying process easier and more understandable is planning. In
doing so, you'll be able to anticipate requests from lenders, lawyers and a
host of other professionals. Furthermore, planning will help you discover
valuable shortcuts in the home-buying process.
Do
You Know What You Want? Whether you are a first-time home buyer or entering the
marketplace as a repeat buyer, you need to ask why you want to buy. Are you
planning to move to a new community due to a lifestyle change or is buying an
option and not a requirement? What would you like in terms of real estate that
you do not now have? Do you have a purchasing time-frame?
Whatever your
answers, the more you know about the real estate marketplace, the more likely
you are to effectively define your goals.
Step 2: Getting A Realtor/Agent
In many cases
buyers will interview several REALTORS/AGENTS before selecting one professional
with whom to work. These interviews represent a good opportunity to consider
such issues as training, experience, representation and professional
certifications.
Step 3: Looking At The Home
Millions of new and
existing homes are sold each year. There's no shortage of housing options, but
with so many choices the challenge becomes finding the property which best
meets your needs.
The housing market is
complicated because the stock of homes for sale is always in flux. If it were
possible to have a complete list of every home for sale at this very moment in
a given community, such a list would become obsolete within seconds as new
homes become available and properties now for sale are put under contract.
In effect, buyers are
looking at a moving target in a marketplace that is never static. Because of
this, it is important to know as much as possible about the choices in
preferred markets, and the way to do that is by working closely with a local
realtor/agent who has a good lay of the land.
Step 4: Choosing A Home
There's no doubt that
choosing a home is a big decision and you want to do it right.
As a buyer, here's
what actually happens. A home has been placed on the market for which the
seller has established an asking price as well as other terms. In effect, this
is an offer. At this point, you have three choices: accept the seller's offer
and create a contract; reject it and not make an offer; or suggest different
terms and make a counter-offer. If you choose this last option, the seller may
accept, reject or make a counter-offer.
Step 5: Funding
Where do you get a
loan? Mortgage financing can be obtained from mortgage bankers, mortgage
brokers, savings and loan associations, mutual savings banks, commercial banks,
credit unions, and insurance companies.
Step 6: Making An Offer
While much attention
is spent on offering prices, a proposal to buy includes both the price and
terms. In some cases, terms can represent a huge amount of money in additional
value for buyers -- or additional costs. Terms are extremely important
and should be carefully reviewed.
Step 7: Getting Insurance
No one would drive a
car without insurance, so it figures that no homeowner should be without
insurance. The essential idea behind various forms of real estate insurance is
to protect owners in the event of catastrophe. If something goes wrong,
insurance can be the bargain of a lifetime.
