The Basic Elements of a Real Estate Purchase

The Basic Elements of a Real Estate Purchase

The Basic Elements of a Real Estate Purchase
Thinking about investment plans for asset and real estate purchases

Real Estate Purchases

Getting out of a rental and into your own home has been your priority for years. You have followed the advice of friends and family and stashed money away so that you will have enough for a down payment when the time is right. Purchasing a home is one of the biggest investments you will make. The process for someone who has never done it before is a little daunting, and some elements can be confusing. It helps to have a handle on the basic steps in buying a home.

The Contract

Finding the house you want to purchase is just the beginning. It is the most exciting part of the process. Once you find a home you are interested in, your realtor or residential real estate lawyer will submit an offer to the seller. It may take some going back and forth to settle on a price, but once you do, the parties will enter into a contract. The document serves to memorialize the terms and conditions under which the seller will transfer you the deed to the home. The contract is legally binding, so once you sign it, be prepared to see it through.

The Inspection Period

After you sign the contract, you will have a chance to inspect the property for damage or issues. Unless you are taking the home in “as-is” condition, the inspection is critical to moving forward with the real estate transaction. If there are major issues discovered, such as plumbing damage, roof leaks, or electrical malfunctions, you have the right to ask the seller to fix them. If the seller does not want to, you may either ask to reduce the purchase price or terminate the contract.

The Closing

The conclusion of a real estate transaction happens at the closing table. This is the moment when your lender funds the loan and you purchase the home. At the closing, you can expect to also bring the down payment in either cash or certified funds. The loan closing will actually happen before the home closing. It will mean a lot of signing on your part, but in the end, you will receive the keys to your new home.

A realtor can do much of the leg work in finding a home for you, but a residential real estate lawyer can help with much more. Contact an attorney before you sign a contract to ensure that the terms you agree to are the best you can get and that your first real estate transaction is a good one.