Ownership Guide
| Your Needs When considering real estate ownership it can be helpful to first focus on your wants and needs. The needs of your family are typically a primary concern. For example, the number of people living in your household will generally influence the number of bedrooms and bathrooms required. Assess your kitchen and dining needs. Is a family room important? How about a garage, yard or pool? With a clear understanding of your needs and other "must have" features, you can begin to formulate the criteria for your property search. Location Where will you be moving? Consider work locations, schools and other facilities that are important to you and your family. Determine the areas that may be suitable for your next home and research the real estate market in those areas. Make sure there are homes in your selected areas that suit your needs with regard to number of rooms, price, neighborhood amenities and other features. Knowing where you are going is an important part of moving! Timeframe When would you like to move? Is there some event or occurrence that is influencing your decision to own a home or move to a new one? Understand that finding the right home may take some time and effort. Even after you have located the home and negotiated an accepted offer, the Escrow process of inspections, disclosures, appraisal, title considerations and more may take another 30 days or longer. Plan your timeframe to achieve a comfortable schedule. Financing Planning the financing for a real estate transaction can have a positive impact on the entire process. Nowadays the options for financing a home are numerous and do change from time to time. Interest rates, initial investment (also called "down payment"), credit score and available loan programs are all factors with regard to real estate financing. A good real estate agent can help you sort through your choices. By planning ahead you can be preapproved for financing which lends credibility to any offers that you make and helps your transaction to progress smoothly. Home Search With your needs, location, timeframe and financing plans intact or at least in progress you can begin to confidently and seriously consider homes that meet your criteria. You may want to search online to get familiar with available homes in your selected areas. Remember that while photos and text can be valuable indicators they only tell part of the story. You will want your real estate agent to escort you to homes that are under serious consideration so you can experience these homes and their surroundings in person. Offer When you find what you are looking for it's time to make an offer. Your offer will typically include not only the price you are offering but other important terms and conditions as well. A written offer is usually structured as a complete purchase agreement upon which a transaction can be based in the event the offer is accepted. The guidance of a real estate professional (agent) is strongly recommended at this stage. Negotiation Typically, a seller and the seller's agent will review an offer they receive and either accept the offer, reject the offer or make a counter offer. A counter offer continues the negotiations that can involve price, time schedules, financing, inspections and much more. Eventually if you and the seller can reach an agreement the result is an accepted offer that leads to the beginning or "opening" of Escrow. Escrow When an offer is accepted the Escrow process and time period typically begins. It is during this time that details of the sale are handled through a process that may vary according to local customs. Often inspections and appraisals are arranged, repairs may be requested and performed, title insurance is arranged, financing is finalized, contingencies are removed, taxes are prorated and more. Proper management of essential formalities and paperwork is vital to ensure that the transaction goes smoothly and complies with local, state and federal laws. Closing When all the detail work of Escrow has been done the transaction can then be completed. Typically, in a process influenced by local customs, the real estate transaction is recorded in government records, the seller is paid, you become the new owner of the home and the transaction is "closed". |
