The steps for buying a home can vary depending on where the home is located and your situation, but a real estate transaction usually involves five steps:
1. Deciding Whether You Want To Hire A Real Estate Agent.
You can represent yourself in buying a home, but most people hire a real estate agent to help guide them through the process.
In addition, hiring a real estate agent can help you get the most value for your investment as a solid real estate agent should know the market inside and out.
2. Hiring The Real Estate Agent.
If you are buying a home, you might work with a real estate agent without signing an agreement. You might also be asked to sign an agreement providing that you will work exclusively with them to find your home.
If you are selling your home, once you select a real estate agent you most likely will sign a listing agreement which outlines the conditions under which the agent will help you sell your home.
Some of these keys terms include how much the real estate agent will be paid if they sell your home and whether the listing agreement is exclusive or if you can work with other agents.
3. How Does Your Real Estate Agent Find Your Ideal Home?
If you are selling a home, once a listing agreement has been signedyour real estate agent will likely list the property in the multiple listing service (MLS). By listing the property on MLS other real estate agents can see that the property has been listed for sale. In addition to listing the property on MLS, your real estate agent might also advertise the property by using fliers or listing it online platforms such as Zillow or Trulia.
If you are buying a home, your real estate agent can set search alerts for you to receive e-mails once new listings meet your criteria. Once you have zoned in on your ideal home, you and your real estate agent can visit open houses to view properties until you find one you'd like to make an offer on.
4. What happens when you find your dream home?
Once you find your ideal home, you can work with your real estate agent to make an offer. A seller might receive multiple offers and will have the opportunity to select the buyer for their home. In other real estate markets, a seller might have their home listed for months before receiving an offer and will need to negotiate with the potential buyer over the purchase price and other items before entering into a contract of sale.
The contract of sale is essentially a to do list of items which must be completed before the sale of the property is completed. A few of the items which are typically included in a contract of sale include:
(i) A home inspector inspecting the property to make sure that no major repairs are necessary;
(ii) Conducting a title search to see if there is a “marketable title” for the home and
(iii) If the buyer is not purchasing the home with cash, they must finalize the mortgage financing for the home.
If the terms of the contract of sale are completed, the buyer and seller close on the purchase of the home. The purchase is then recorded with the office of public records.
Please contact us at (415) 299-0257 to learn whether BLG Properties might be the best fit for representing you in the purchase or sale of your home.