How Real Estate Buying Works
Many people buy real estate – either private homes, shops, factories, land and that is because real estate buying still works as far as an investment is concerned. The same is true if you simply want to buy a home for yourself and your family. Chances are you will end up selling it at a higher price than you bought it.
Even though this is definitely not the boom time for real estate like it has been five years ago, the bank interest rates are still low so a mortgage will not hurt too much. With any real estate transaction, it is important now more than ever to choose wisely and to get the property for the lowest price possible.
If you want to go through a professional realtor, that is usually a very wise choice. The realtor will sit down with you to find out exactly what you would like to buy, in what area and for what price. He will usually be able to answer all the questions you have – for example what the resale value of a condo is in comparison to a house, or if you need somewhere near your place of work, he can advise you which are the better areas or which areas are best served with public transport.
If you give the realtor the go ahead, you will sign a contract with his brokerage, engaging him to look for property for you. He will then check the MLS (multiple listing service) website for suitable properties you might be interested in. He will email them to you and if you want to go ahead and look at some, he will arrange for appointments and go with you (even take you if you would prefer) to the properties. He will also go through the rooms with you and advise you.
Should you want to go ahead and make an offer, the realtor will hold your hand through the whole process. He will fill out the offer form for you and talk to you about conditions you should include (for example a home inspection clause and/or a finance clause) and advise you about the price to be offered. He will have done comparisons on houses sold recently in the area to make sure that the price you offer is a good one but maybe not as high as the seller wants. It’s all about market value at the beginning of negotiations. He will also advise you as to the amount of the deposit check required to accompany the offer. The realtor will go back and forth between you and the seller until the deal is done to your satisfaction.
If the seller agrees, the realtor will be there for you when you have a home inspection done on the property and also walk you through any problems that come up and how to deal with them.
He will also help you with the choice of a lawyer if necessary and any other people you need to have on your side.
Real estate buying with a licensed realtor gives you peace of mind that a professional is there to help you through the whole process.