Home Buying - Steps To Buying A House
The Purchase Process
Many prospective home buyers ask "what are the steps to buying a house?" The process of purchasing a home should be an exciting not stressful experience. The factors which create drama and trauma for some can be prevented with the proper guidance and attention to details. The more you know upfront, the less you'll regret in the end.
Start by becoming an educated buyer
Countless resources - from books and websites to well-intentioned friends and relatives can offer advice. However, be prepared to sort through information that can, at times, seem conflicting. Real Estate laws will also vary from state to state, and procedures change frequently. Establishing a close working relationship with one Real Estate Agent enables you to rely upon the professional's education and experience to navigate this complex process. see also: buyers glossary of terms
Cover the market by exploring all your options
An informed buyer will have reviewed all the available options of interest. Advertising media the Internet, newspapers, magazines are probable sources, but this can be a hit or miss system since homes are usually advertised on a random or rotating basis. Therefore, our ideal home may not be advertised when you happen to search. In fact, the hottest properties often sell before the first ad appears. Your Real Estate Agent has access to complete, current information on all of the homes listed by every company in the Multiple Listing Service. MLS system alerts your agent to all homes that fit your requirements and to new listings as soon as they appear. Home buyers who limit their selections to For Sale By Owners (FSBO) with the goal of saving money can end up with less value than they would have with the assistance of an agent. In addition to shrinking their choices to a small fraction of available homes, buyers may also lose money from a lack of knowledgeable representation. Additionally, sellers account for agents' fees when establishing the list price, so having agent will not increase the asking price.
Reach an agreement with the seller
Upon finding your dream home, you'll commit to the purchase by entering a Purchase and Sale Agreement with the seller. At this time, negotiations between the buyer and seller will settle issues of price, possession date, repairs, and responsibility for various costs. This critical document binding on both parties spells out the rights and obligations of both buyer and seller. However, issues overlooked by the contract are not binding on either party. At this juncture, you will not "save" money by neglecting to hire good representation. If you choose not to work with a qualified Real Estate Agent, do hire a reliable real estate attorney. Be aware, however, that attorneys seldom, if ever, visit the home to be purchased.