The Buying Process Explained
It is often said that buying real estate is usually an individual's single largest lifetime investment. Whether buying a home or an investment property, this statement is quite often true. Either way, the process of buying real estate is dynamic and relatively complicated. While no two situations are identical, The Fenton Team sets out the process below, from start to finish, in order to help you better work towards your goal of buying real estate.
The buying process begins with the decision to buy, and the situations that trigger this decision are varied. The next step is usually research by you, the buyer. Today this is often done online, but can also be done using print materials. The point of this research is to better determine what you are looking to buy, and where you are interested in buying.
Next comes a meeting with your Mortgage Specialist. This will help you better understand your financial position – what you have available to spend and what the cost of borrowing money may be. By now you have likely decided the type of real estate that fits your needs, the community you are interested in and what your price range is. It is time to sit down with a real estate agent. A real estate agent will help you navigate through the rest of the buying process. Your agent will not only have valuable insight into the process, but also insight into the community they serve and the properties currently on the market. Your real estate agent can show you any property on the MLS market and may even be able to help you negotiate on a private sale. The best part of this for the buyer is that even though they work on your behalf, you do not pay your agent out of pocket. Your real estate agent is paid by the real estate brokerage that has the sellers property listed.
The next step in the process is where it really becomes fun – viewing real estate. This is where you are toured through the properties that interest you. This step can take a day, weeks or months, and that is entirely up to you. However long it takes. This step leads ultimately to a decision as to what you would like to buy. Next, your real estate agent prepares a written offer with you and presents it on your behalf to the seller(s). This offer will be either accepted, counter offered, or rejected. Generally speaking a counter offer is the most common outcome to an initial offer. Your Realtor will then work with you until the negotiations come to a conclusion that satisfies you.
The due diligence step typically follows an accepted offer. Due diligence is the time period the contract gives you to work through gathering any specific information necessary to facilitate the sale. The different types of due diligence are numerous and vary depending on the situation. In a typical residential sale this step will involve working through the details of your financing, building inspection and property insurance. Your real estate agent will help you work through the due diligence steps whenever their help is ethically appropriate. However certain parts of the due diligence steps, such as a building inspection, are best conducted independent of your real estate agent.
Once you have completed the due diligence phase, there is typically a period of waiting until you complete the contract and take possession of your real estate. Prior to the Completion date you will need to make an appointment with your Lawyer or Notary Public, who will help you through the legal step of Completion.
The entire buying process concludes in your agent handing you the keys to your new real estate. A gratifying day for all involved and the smiles on that day indicate successful navigation through the buying process. We at The Fenton Team, would love to help you get started.