A person’s home is often their biggest investment and there is a lot to know about the real estate transaction process.
Finding a home
Usually, the first step is to find a real estate agent who is familiar with the local housing market. Some buyers may choose to purchase without an agent. It’s a good idea to obtain a pre-approval letter from a lender which outlines how much the buyer can afford to spend on the home.
Then, the buyer can start searching for a home that meets their requirements and request showings so they can view the property. Once the buyer finds a home they want to purchase, they can make an offer and negotiate with the seller until they agree on a price.
Once the offer is accepted, the buyer can hire an inspector to examine the home for any safety issues or defects. The seller can ask the buyer to fix any of these items before closing.
Appraisal and closing
Usually, the buyer’s lender will require an appraisal. This determines the fair market value of the property. The buyer may have an opportunity to renegotiate the terms of the sale if the appraised value is lower than the price the seller and buyer agreed on.
Once the requirements of the sale are met, including repairs, the buyer can close on the property. At the closing the buyer and seller will sign all required paperwork and if there is any remaining balance of the purchase price, the buyer will pay that and any closing costs. Then, the sale will be recorded to finalize the transaction.