Purchasing property can be a massive headache when going in without an agent or lacking an understanding of the process. One missed step or unsigned document can result in a detrimental loss of both time and money. Here is what to expect during a real estate transaction and how to complete one successfully.
Establish a Sense of Security Immediately
Closing on a home can take several weeks, and over this period, there will be a ton of documents and money involved. It is best to store everything in an escrow account to ensure that nothing is lost or modified without mutual consent. Before getting too attached to a property, conduct a title search to confirm that it is up for grabs. Once approved, purchase title insurance so that it will remain unavailable to other house hunters. Also, the documents involved may be confusing for an untrained eye, so hiring an attorney to handle this step can be beneficial.
Negotiate the Costs
As with all negotiation processes, the goal is to get the cost as low as possible, especially if there is a need for repairs. Also, bear in mind that sellers often pack on unnecessary fees, like administration costs and application charges. These are called junk fees, and with strong negotiation tactics, they can be knocked off the overall cost.
Prepare for Ownership
Once both the pest and general inspection has been conducted, it is time to renegotiate the cost. By this time, the seller is usually ready to end the process and will lower the price just to be done with it. Furthermore, mentioning any issues found during the inspections might help to breed a better outcome. Once an agreement is made, be sure that the interest rate is locked so that changes in the market won’t increase the cost in the future, and get all contingencies removed and documented.
Sign the Dotted Line
After the final walkthrough and a thorough document examination, the closing paperwork is ready to be signed. If anything looks strange, ask questions, and get a professional involved immediately.
An ideal real estate transaction moves smoothly and will be done in less than a month. But as each case is different, being patient as covering all bases is better than biting the bullet down the line.