The Beginner’s Guide to Houses
Concepts That Constitute Real Estate
Before you get involved with a real estate business there are a few concepts that you should understand. Those planning to either buy or sell a home are likely to benefit much from the information herein. There are agents needed to be present in such a transaction. A buyer and a seller of a given property are represented by a buyer’s agent and a listing agent in that order. There can be a dual agency situation characterized by the presence of only one agent covering for both in the transaction. 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. In the real estate business it is important to have a pre-approval letter for the kind of person that will use a loan to buy a home. 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. It should, therefore, be clear that a pre-approval letter should go first to mortgage applications.
A property bought using loan money needs an appraisal first. It is a rule by most lenders that you send them an appraisal long before you make a request for a mortgage of your choice. The constituents of an appraisal should include the survey and importantly the value estimate of the house. The home by this time should have undergone inspection which the buyer will have to pay for. Among the things to be investigated are electricity, foundation, plumbing, etc.
Contingencies is another essential concept. Whenever one is going to buy a house there are things that they say must be in the home they will end up buy; these things are what are referred to as contingencies. Do not overlook these contingencies when the time comes if you want something specific in your home. 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. This is very crucial, and there is a need for you to seek the help of an attorney if possible. 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.