How To Tips: Closing a Real Estate Deal the Right Way
Finding the right home in the perfect Montana city or neighborhood is quite a quest. However, finding the house that meets your specific criteria is half the battle, closing a real estate deal is the other half.
And, while it may not be as glamorous as home shopping, it’s a necessary phase. Don’t worry, though; armed with the right information, it won’t be scary at all. Let’s take a look at everything you need to do before moving in.
Closing a Real Estate Deal In 7 Easy Steps: A How To Guide
First Step: Making The Offer
Once you have found the house that speaks to you, you have to make the offer. Keep in mind that the asking price is often different from the selling price. When making the offer, there are certain things that you need to do:
- Propose the price that seems fair to you (counteroffer)
- Specify the time frame that you need for paying the price and moving in
- Specify the down payment that you can offer
- Outline any conditions that you want to be met before buying the house
Pro tip: if you really love the house, don’t lowball your offer and risk losing it to other buyers.
Second Step: Home Inspection
Having a the home inspected by a professional can save you from a lot of hassle and money. The buyer needs to ask the inspector for references and then CALL THEM. Once you pick a well referenced one, you can make the appointment and proceed. You will know exactly which areas need renovating, what appliances need changed and whether your roof needs and major repairs. Don’t think of it as an extra financial burden; consider it an investment. Plus, if you have a professional home inspection, you can use it as leverage in the negotiation.
Third Step: Negotiating
Again, don’t make a very low offer just to see how much you can drive the price down. Extremely low offers can change the sellers emotions in such a way they will not even respond to your offer nor allow you to purchase the property. Remember that, at the end of the day, both you and the seller need to be happy with the outcome. Suggest a price that seems fair to you and one that you can afford.
Fourth Step: Signing The Contract
Signing the contract is not as easy as pulling out your pen and literally signing your name. Before that happens, you and the seller have to agree on the price. Plus, you and the seller have to agree on the terms of the sale.
Ideally, you should have a lawyer or a real estate agent take a look at the contract. If you don’t want to do that, be sure to ask questions about any clauses that seem unclear to you. You need to understand every word of the contract before you put pen to paper.
Fifth Step: An Appraisal
After an inspection, you need to get an appraisal from your financial institution. They will determine and notify you, if the house you plan to buy is worth the asking price. When using a lending institution an appraisal is required and in Montana lenders and buyers don’t get to pick the appraiser. There is another company that assigns appraisers. If the home or property does not appraise for the asking price you can cancel the contract or renegotiate the deal. Make sure you have a real estate agent help with the contract so you don’t get in a bad situation.
Sixth Step: Loan Approval
This is the easy part for closing a real estate deal. Your lender will call you and inform you that the requested loan amount has been approved. If all your papers are in order and if your credit history is good, then this step shouldn’t worry you at all. And if you know us, you’ll know that we recommend getting pre-approval before you even start looking for a new home!
Seventh Step: Closing the Deal
At this stage, the seller will transfer the ownership of the house to you. This is also the part that you may want to involve your attorney in so that the transfer goes on well without surprises. Real estate agents use local title companies to transfer the ownership and they hire an attorney to prepare the deed. That’s it!
You are now ready to move into your Montana dream home! If you still find the process too complicated, take a look at all the resources we have put together for Montana home buyers. And remember: you don’t have to go through all this alone. The right real estate agent can make closing a real estate deal seem like a breeze!