From the outside, the real estate transaction process can seem like a complex maze of viewings, approvals, agreements, and responsibilities. However, don’t let it overwhelm you. If you take things one step at a time and line your corner with experts, you should have no trouble sailing to the finish line.
While some articles inadvertently intimidate first-time real estate consumers with a buckshot of granular advice, this article aims to strip things back to basics. Here are only five essential steps to know before unlocking your dream home. (Don’t worry; the rest will follow in due course).
Step 1: Apply for Pre-Approval
You may have pre-qualification, but do you have pre-approval? The former is a mostly illustrative formality to determine your general creditworthiness for purchasing real estate. However, since it relies on self-reporting, it holds little water with sellers.
Talk to your bank, mortgage advisor, or mortgage broker about kicking off the pre-approval process. Once approved, you have a roughly 90-day window of a locked-in interest rate, terms and conditions. This is your window to start searching for a home.
Step 2: Find an Experienced Realtor Who Knows the Area
A great realtor is worth their weight in gold. They guide you as a first-time buyer through the complex process. They advocate for you during searches, fight for you in negotiations, prepare the necessary documents/agreements, and generally ensure that you get the right home at a fair price.
If you want to know what an experienced realtor looks like, check out this website from Harvey Kalles Real Estate. In particular, read the “Our Advantage” section, which lists some stats you can benchmark your realtors against.
Step 3: Let the Search Begin!
With a winning realtor by your side, you can start the search immediately. Here are a few sub-steps to follow in this phase:
- List your criteria in order of importance and try to balance firmness on the important points with flexibility on the details.
- Research various neighbourhoods for amenities, schools, nightlife, or whatever else matters to you (but remember to consider what may matter to you in the future, too).
- Cast a wide net to view as many homes as possible.
- Be thorough during viewings.
- Ask your realtor to automate frequent updates so you see newly listed properties as they appear.
Step 4: Make Your Offers Strategically
Offers are tricky. If you attempt a lowball, you could miss out on a great opportunity. If you bully your way through with a big offer, you can end up overpaying. Similarly, removing or adding subjects can tilt the scales, depending on the market. There’s no single, correct answer for how to place an offer, as it will depend on the intricacies of your local market.
The good news? If your realtor is experienced, they can advise you on exactly how to play things. Plus, their fiduciary duty ensures that they always act in your best interests.
Step 5: Organize a Checklist of Important Dates and Responsibilities
If the seller accepts your offer, what follows is a string of paperwork and important dates (like agreement signing, the subject removal date(s), deposit date, completion date, ownership date, etc.). Your realtor will explain all of this in great detail, ensuring you complete every responsibility on time. However, it’s not a bad idea to organize a checklist so you can track the process.
At the end of the long journey, you’ll look down at that shiny new set of keys, and it will all be worth it.
