Step By Step House Shopping Process
This BLOG On A Guide To Step By Step House Shopping Process Was Written By Gustan Cho
After a home buyer has gone through a solid pre-approval mortgage process it is now to look for a home. Not just window shopping but the real deal. It is time to hire a real estate agent and go shopping for a real home and make the dream of home ownership soon become a true reality. We will discuss Step By Step House Shopping Process for home buyers. This Step By Step House Shopping Process blog should be very helpful for first time home buyers. Shopping for a home, especially if you are a first time home buyer, will be a very memorable experience. Many of those who just gotten pre-approved for a home loan may already shopped for a home. Here are the Step By Step House Shopping Process and the topics we will be covering.
Step By Step House Shopping Process: Online Shopping
Whether you are house shopping for a home by yourself online or are driving around and visiting open houses, you should hire a real estate agent to represent you and work with your realtor. It does not cost you a dime as a home buyer because real estate agents make their commissions from the home seller. The home seller pays out a total 6% commission where the listing realtor and buyer’s realtors split the 6% real estate commission. We will cover some tips and advice on this blog on step by step house shopping and hope our viewers can get some useful tips after reading this article.
Shopping for home online on real estate websites as the following:
Searching for homes online in the comfort of your own home or office is extremely convenient and often fun where the whole family can get involved. You can cover a lot of legwork by doing the preliminary shopping online and make a checklist of all of the homes that interest you and want to physically set up an appointment with a realtor and visit the property. Pictures can be deceiving so scheduling a visit is a must.
Online home shoppers need to know that all of the information online are no fully correct. If you go online to Zillow’s home price analyzer called Zillow Zestimate, the market value of that market value analyzer can be off more than 15%. However, it is a good tool to get a ball park figure of market value of homes in areas you are targeting on your online home shopping spree.
Online Home Shopping offers great benefits and are extremely helpful in doing your preliminary research so you can present all this to your real estate agent. Here are the main benefits on online home shopping:
- Online home shopping will give you home types and market values on certain areas
- Neighborhoods and property taxes and school district information
- You can make a list of properties that interest you and make appointments to see them in person
- Negatives includes that not all properties on the MLS are online
- Listings that are not on the market or pending listings that are about to hit the market
Consulting With Real Estate Agent
A real estate agent is a licensed real estate professional who can help you with the following:
- A real estate will interview you and your family and take notes on the type of home and neighborhood you want to purchase your home
- Help you gather of inventory of homes that may interest you
- Arrange showings of homes that interest you
- Advice you on how to make your real estate offer and assist you in getting you get a sellers concession
- Refer you to lenders, attorneys, appraisers, insurance agents, home inspectors, credit repair consultants, and other real estate professionals
- Prepare your real estate purchase offer to the listing agent
Making The Real Estate Purchase Offer
After you have visited multiple homes and found your dream home, it is time to make a real estate purchase offer on the property you like to buy. Here is how your real estate agent will structure the home purchase offer:
- The real estate purchase contract consists of conditions
- These conditions are called contingencies
- Some contingencies on a typical real estate purchase contract includes home inspection contingency, home appraisal contingency, and financing contingency
- Contingencies are back out clauses of the real estate contract
- For example, a home inspection contingency states if the home inspection comes up with flaws, the buyer can back out of the contract
- Appraisal contingency states if the property does not appraise out at the offered price, the sellers either has to lower the purchase price to match the home appraisal value or the buyer can cancel the home purchase contract
- The financing contingency states that if the borrower cannot get a mortgage loan approval, the buyer can cancel out of the home purchase contract
- Contingencies protects the home buyer and the buyer’s earnest money.
- A real estate purchase contract is a legally binding contract between home buyer and home seller
Once you are done with the steps of the house shopping process and have the executed real estate purchase contract, you submit that contract to your loan officer and the mortgage process officially begins.