Real Estate Transactions Basics You Need to Know
When it comes to investing in property and making a success of it, the steps are the same, regardless of what all those investing shows on TV might say. Even if you are a pro when it comes to buying real estate, don’t be tempted to skip these simple yet crucial steps below.
Property Information
When it comes to investing in property, numbers are all important and you should pay attention to the projected costs of any updates or renovations needed, as well of course as the actual selling price. Keep in mind that a property’s current listing price should be seen as a starting point, and it may be different from the final selling price. It’s worth using the expertise of a good contractor if crunching numbers just isn’t really your thing, and they can provide you with realistic and accurate figures, helping to make the decision to buy or not buy that much easier.
Seller Motivation
If you are buying real estate, you can’t really persuade a buyer to sell if they just aren’t ready to do that, or make them change their mind on the asking price. However, if your seller has their home for sale because of a divorce, a transfer at work to another part of the country, or is being threatened with foreclosure they are motivated to sell and your chances of sealing the deal are a lot higher. Moving on to the next potential deal is your best approach if you feel your seller just isn’t ready to sell, although keeping in touch with them should be on your to do list.
Understand Financing
You typically have between 30 and 45 days for your lender to approve your offer and close on the house, if you are financing through a lender. Most sellers are more likely to do business with a potential buyer who has hard money funds or can access capital, and if you are in that position, your chances of buying that property are higher. Buying real estate becomes much more of a challenge if you don’t have your financing in place.
The Offer
Upping your offer amount is always a possibility if there is little demand for a particular property, although if the home is in high demand, you should offer as close to the asking price as you can. Remember that you are investing in property to actually make a profit, and looking carefully at your numbers is part of the process. Focus on the next property if your offer just isn’t going to be accepted.
The Closing Process
Don’t skip having the property inspected, which is one of the most important parts of the closing process, and the opportunity to see if it really is a sound investment. Buying real estate isn’t the simplest process, and using the services of an attorney experienced in property transactions can make all the difference. And remember that your lender can close the sale a lot faster if you have ready access to the paperwork you will need, such as bank statements, a business license, and tax statements.