Step 1: Defining What You Want
Start by creating a prioritized list of features you want in your next home and
the reasons why. Use it as your search guide, but remember that depending on
your funding, you will probably need to make some compromises. In addition, talk
to your real estate professional about where you want to live. Location is a
huge part of any move. CENTURY 21 professionals are trained to help their
clients narrow down their choices by sharing market trends and local information
like neighborhood statistics and community links.
Step 2: Figuring Out What You Can Afford
that you know what you want, it's time to see what you can afford. You can start
by crunching the numbers yourself using our selection of calculators. When
you're ready to move to the next step, you can get pre-approved for a mortgage.
This process can often be performed in under an hour and it accomplishes two
important goals. First, it will tell you how much house you can afford and what
your monthly payments would be. Second, it tells the seller that you can afford
to buy their home. By definition, a pre-approved buyer has an approved mortgage
subject to an appraisal of the property. Many times a buyer can use this
pre-approved status as leverage during the negotiation process.
Step 3: Shopping For Homes
Once you know what community you'd like to live in and have an idea of how much
house you can afford, its time to start checking out actual properties.
Beginning this search online can help save you time since it can help you target
homes that meet your search criteria. Our home notifier can even email you when
properties come on the market that meet your search criteria.
Next, begin visiting homes in person. Ask your local real estate professional to
arrange visits and attend open houses that are in your target area and price
range. When comparing homes, make sure to look at all aspects of the property.
Is the property tax approximately the same? Are both the houses renovated? Do
they both have the same amount of bedrooms and bathrooms? Are both houses
located on the same or similar streets? Does either house have any encumbrances?
Remember to keep an open mind when you are looking at homes. Use a virtual home
planner to help you imagine what the house could become with you as the owner.
Step 4: Making An Offer
Once you find the home you want, you need to make an offer for the house.
Typically this is a very difficult and trying time since both parties have
totally different goals. In most cases it is better to have a third party, such
as a real estate professional, negotiate the offer. If you have any personal
interaction with the homeowner, don't give out any information about your move,
your current housing status, financial status or your feelings about their
property - positive or negative. This could hurt you in future negotiations.
This might also be a good time to consider purchasing a home protection plan.
These insurance policies can be purchased by the buyer or seller and help
protect against unexpected costs or home repairs during the listing period or in
the initial years after a home has been purchased.
Step 5: Inspection & Insurance
After your offer is accepted you will need to set up, coordinate and interpret
various inspections, including insect, radon, building quality, oil tank, title,
etc. You will also need to arrange for homeowners insurance and finalize the
This is a major step in the buying process and there are many potential problems
that can be discovered during this period. These include a leaky roof, radon
gas, termite damage, a foundation problem, and wall cracks, to name a few. These
problems happen all the time. The difference between closing on your dream home
and starting the process all over again is what occurs during the negotiations
between you and the seller.
Your CENTURY 21® Real Estate Professional can help make these discussions go
more smoothly. In most states you will also have the option of a "walk through"
before the closing. This is your last chance to make sure that all of the items
that you have agreed upon were completed to your satisfaction.
Step 6: The Final Closing
Before you arrive at the closing, make sure all the necessary paper work and
deposits have been completed. If the mortgage, title work, homeowners insurance
and other items necessary under local and state laws are not completed and
brought to the closing table, the closing may not happen on time. And, depending
on what the contract says, this could result in further action including
financial penalties and even the loss of your rights to the home.
Once you close, it's official - you own the house! But there might be a few
things you want to do before you lay out the welcome mat. These include
arranging for an alarm system, turning on the electricity, subscribing to the
local paper, cleaning or replacing the carpet, arranging for lawn services, etc.
This could also be a good time to make some needed renovations.
sure to turn to your CENTURY 21â real estate professional for guidance and
information about many money-saving offers available to CENTURY 21 customers.