Top Ten Tips to Sell Your Home Quickly
Gaithersburg City History
Is a Handyman Right for You?
Extreme Makeover: HomesDatabase.com
Why Use a REALTOR® to Buy or Sell Your Home?
Home Improvements Turn Average Homes into ...
Eco-Friendly Remodeling
Are You Ready to Buy?
Are You a “Closet Clutterer?”
16 Ways to a Greener Life
Expect the Expected from Your Settlement Company
City of Gaithersburg - Frequently Asked Questions
Living Green - Sustainable Lifestyles
The National Association of Realtors® Code of Ethics:
Kitchen remodeling - A Good Investment
Gaithersburg City History
Is a Handyman Right for You?
Extreme Makeover: HomesDatabase.com
Why Use a REALTOR® to Buy or Sell Your Home?
Home Improvements Turn Average Homes into ...
Eco-Friendly Remodeling
Are You Ready to Buy?
Are You a “Closet Clutterer?”
16 Ways to a Greener Life
Expect the Expected from Your Settlement Company
City of Gaithersburg - Frequently Asked Questions
Living Green - Sustainable Lifestyles
The National Association of Realtors® Code of Ethics:
Kitchen remodeling - A Good Investment
10 Steps to Home Ownership
- Make an Offer
Your REALTOR ® will provide forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role.
While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers — or additional costs. Terms are extremely important and should be carefully reviewed.
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property’s mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through. - Get Insurance
No one would drive a car without insurance, so it figures that no homeowner should be without insurance. The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:
Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes “lenders” policies, which protect buyers up to the mortgage value of the property, and “owners” coverage, which protects owners up to the purchase price. In other words, “owners” coverage protects both the mortgage amount and the value of the down payment.
Homeowners’ insurance provides fire, theft and liability coverage. Homeowners’ policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.
Home warranties for existing homes are typically one-year
service agreements purchased by sellers. In the event of a
covered defect or breakdown, the warranty firm will step in
and make the repair or cover its cost.
- Closing
The closing process is also known as “settlement.”
In practice, closings bring together a variety of parties who are part of the “transaction” process. For example, while the history of property ownership has been checked, it’s possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.
What to expect
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.
What you need to do
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes. - What’s Next
You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the homebuying process?