Concepts That Constitute Real Estate
Before you get involved with a real estate business there are a few concepts that you should understand. These could come in handy or even save you a fortune when it comes to buying or selling a real estate property. To begin with, both the buyer and the seller are supposed to have agents. A listing and buyer’s agent represent the seller and the buyer respectively. There is a possibility that only one agent is present but she/he represents both of them, and this is often called a dual agency. It is always best to have an agent of your own in most cases.
Lenders could be an excellent opportunity for those who do not have money to purchase a home while those with enough funds can go on and buy the house of their dreams. When purchasing a home with loan money it is essential that one seeks a pre-approval letter. The letter should include the amount the bank is supposed to lend you. The agent will be able to know how much you have then calculated the necessary fees and offer you a list of houses that you can buy with the money. Any mortgage applications should come only after you have the pre-approval letter.
Appraisal is also necessary if one is purchasing a home using a loan. An appraisal is a necessity by the lenders before you can go ahead and make a mortgage application. The constituents of an appraisal should include the survey and importantly the value estimate of the house. An inspection should have been done paid for by the buyer, Among the things to be investigated are electricity, foundation, plumbing, etc.
Then you have to know about contingencies. Contingencies are the things that when one is buying a house they will have set in their minds that have to be in the house before they can finalize their deal. You should be very careful when you get to the bridge that involves discussing the contingencies with your agent if you’re going to get your dream house. Inspection and appraisal are some of the contingencies that you will have to take an interest in. Another solemn process is the one involving offers and deals that need to be given a lot of attention when the time comes. If you can get an attorney then this is the point where their help would be very much needed. If you want to win the negotiations it is essential that you choose a good real estate agent who will help you through all these.
A home title report is supposed to be at your disposal a week later after you have had an agreement with the seller.