Three Distinct Steps in Today's Real Estate Transactions!!
Jun
21
Written by:
6/21/2010 11:36 AM
Even though I am only six, the real estate buying process has changed quite a bit during my lifetime. My mom says that I can compare it to a triathalon as I explain this three-part process to you.
Many experienced homebuyers with excellent credit are accustomed to negotiating a contract through their realtor; filling out mortgage applications, submitting two years' tax returns; and showing up at closing.
Gone are those days! Welcome to the real estate transactions of this decade with falling prices, REO's,the bank and savings and loan crisis, and difficult inspections! Today's homebuying process involves three distinct steps: negotiating the contract, obtaining financing, and negotiating inspections.
It is more important than ever to have an experienced professional (like my mom, Rainelle Mishoe) to guide a consumer through the maze of buying a home with the additional pitfalls which may face them today. Negotiating the contract is the first leg of their journey. A professional will provide the necessary statistics for the property and its neighborhood to help the buyer make informed and wise offers and counter offers. Although there are many good buys to be had in this market, it is important not to insult a seller by making an offer which will offend him so he will not even counter the offer. Once the price negotiating is agreed upon, there are still two more important hurdles to cross before closing.
Buyers, applying for a loan today is a different process that a few years ago. Be patient, and realize your mortgage person is only doing what he/she is required to do. With the proper information provided and good credit, there is money to be loaned. The extra effort is worth it, for the interest rates are the lowest they have been in over 30 years. If it takes going to more than one lender, do so. The end result will be worth it!!
While the loan is being processed, the inspections are being performed. Maybe this is kind of like when I sniff in the bushes around my house, huh? Home inspections are intended to give the buyer a better understanding of the home's conditon, taking into consideration normal wear and tear. It is not designed to be a technically exhaustive evaluation. Inspections for pests, environmental contamination,pools, and spas should be done by separate inspectors. Once the inspections are complete and the buyer has received the reports, he will then negotiate for repairs. In today's "buyers' " market, this process has become an integral part of getting to closing. A seller should have his real estate professional carefully guide him through this process.(Better call my mom, I can't guide you, I can only tell you what is in the bushes and point them out)
As a buyer, it is important to remember the homebuying process of 2010 is much like the triathalon we mentioned earlier and each leg must be completed with diligence and patience to cross the finish line. With the help of a qualified real estate professional, you will cross the line and take possession of your new home!! Since I like to swim and run, I think this sounds like fun, but I don't know about the biking part; so I guess I will be on the lookout for some more cool real estate information to share with you guys!
Later,
Divot