STEPS TO TAKE WHEN BUYING/SELLING A HOUSE
It takes a lot of time and effort to buy/sell a property, but these seven steps will help make the process of home buying/selling manageable and help you make the best decisions possible.
Phase 1: Start your early research
Start reading blogs, journals and magazines that have real estate listings as soon as you can. Please make a note of the homes in which you are interested to see how long they will remain on the market. Note any shifts in asking rates, as well. It will give you a sense of the developments in housing in particular areas.
Phase 2: Identify the amount of house you can afford
Lenders typically suggest that if home buyers expect to make a 20 per cent down payment and have a moderate amount of other debt, people search for homes that cost no more than three to five times their annual household income.
Phase 3: Have your mortgage prequalified and preapproved for credit
You would need to know how much you can potentially invest before you start searching for a home. Having prequalified for a mortgage is the easiest way to do that. You need to provide your mortgage banker with some financial information, such as your income and the amount of savings and investments you have, to get prequalified.
Phase 4: look for the right real estate agent
When you are buying or selling a house, real estate agents are valuable partners. Real estate investment companies may provide you with useful information on homes and neighbourhoods that is not readily available to the public.
Phase 5: Shop for your home
In your price range, start visiting homes. Taking notes (using this useful checklist) on all the homes you visit may be helpful. You are going to see lots of houses! All about them can be challenging to remember, so you may want to take photos or videos to help you remember each building.
Phase 6: Get a home inspection
Usually, the real estate agent will help you plan to have this inspection carried out within a few days of the seller approving your bid. If the examination shows substantial material harm, this contingency covers you by allowing you the ability to renegotiate or withdraw your offer without penalty.
Phase 7: The Paperwork Coordination
As you can imagine, purchasing/selling a house requires a lot of paperwork. The lender can arrange for a title company to do all the documents to ensure that the seller/buyer is the legitimate owner of the house you are buying/selling.
Phase 8: End the sale
You will sign all the documentation necessary to complete the purchase at closing, including your loan papers. It usually takes occasional days for your loan to be funded after returning the paperwork to the lender. You are happy to move into your new home once the check is sent to the seller!
Why is it essential for you to employ a lawyer?
It can be an emotional roller coaster to buy or sell a house, and the negotiations and paperwork can leave you feeling unsure and on the brink. Here are a few reasons a lawyer is vital in buying/selling a property.
- When there is no agent or broker associated in real estate
- A lawyer will get the papers in order, guarantee that the title is good, and assist you with negotiating the deal with the fine points.
- When there is a problem with the property or the contract, you need a lawyer.
- A lawyer will assist you in addressing some of the more challenging, more complex problems that might occur.
If you are the seller, if the home has risen in value, you may be liable for capital gains tax. You will be entitled to subtract mortgage interest, home office spending, and any or all your property tax if you are the purchaser. Homeward Legal can clarify how your home purchase or sale can impact your tax return.