2009-07-03T00:49:00.000-07:00

The Home Buying Process

The first step to buying a house is determining what you want in a house. The type of neighborhood you would like, such as nearness to church, schools, shopping and work and also determining the style and size and age of house you want to live in and if you want to buy close to a family member or friend.

Once the buyer has determined what they are looking for in a house the next step is contacting a realtor who will serve as a match maker in helping the buyer find that dream house. He will first inform the buyer of the housing market conditions. Whether it is a sellers market in which the housing inventory for sale is low and there are an abundance of buyers. In this situation when it comes time for making an offer the seller will be in a stronger negotiating position for determining what will be in the final contract for purchasing a house. If it is a buyers market where there are fewer buyers and more of an abundance of houses for sale then the buyer will have a stronger negotiating position for the final purchase contract. In this market the bankers control most of the properties for sale and therefore control the market and what goes into a contract and by putting fewer houses on the market for sale they have created a sellers market.

The realtor after explaining the market will put you the buyer in contact with a lender who will determine your spending limits and the best loan for you. He also provides you with a preapproval letter which is needed in making an offer.

After determining the buyers spending limits and what they are looking for in a house the realtor will provide a list of houses on the market that are similar to what the buyer is looking for and that are within their price range. They will go out and view these houses and once the buyer decides on one the realtor will put together an offer or purchase agreement that not only shows what the buyer is willing to pay for the property but also time lines for sellers and buyers to perform certain procedures such as meeting any required disclosures on the condition or environment around the property, when the loan should be in place and when any inspections should be done and who pays for what.

When the offer is made the seller usually looks for three things to accompany the offer. The first is the earnest money deposit which shows the seller that the buyer is serious about buying. It is usually 1%-3% of the sellers offering price. The second is the preapproval letter to show that the buyer’s finances are in order to qualify for making the purchase and the third is proof of funds showing that the buyer has the money to close the deal.

Once all negotiations are done and an agreement is reached the accepted contract is put into escrow. Escrow is an impartial third party that makes sure both the buyer and seller meet their contractual obligations such as making sure the time lines are met and funds are transferred properly between the selling and buying sides and homeownership is transferred between the seller and buyer. While the offer is in escrow a title company does a title search on the property to make sure a clear title will be transferred to the buyer. The buyer is also required to buy a homeownership insurance policy to protect their and the lenders investment in the property. Once the appraisal of the property has been done and the loan approved and the lender has put funds into escrow the purchase is recorded and the buyer becomes the new owner.

C Me 4 Selling or Buying Houses

2006-10-01T12:04:00.000-07:00

If you are looking for information about the housing market in Southern Ca. ask me for information. You can visit my website at www.charlesdent.net. I will also email you free reports on selling or buying houses.

C Me to Sell or Buy Homes

C Me 4 Selling or Buying Houses