Concepts That Constitute Real Estate
Before you get involved with a real estate business there are a few concepts that you should understand. The information could be beneficial when you get to a point when you need to sell or buy a home. There are agents needed to be present in such a transaction. A home seller is represented by a listing agent while a buyer is represented by a buyer’s agent. In a situation where there is only one agent representing the two this is known as a dual agency. It is an excellent decision to have an agent of your own.
For those with enough money they can buy the home they want and to those that don’t have they can always look up to lenders for assistance. In the real estate business it is important to have a pre-approval letter for the kind of person that will use a loan to buy a home. The letter should include the amount the bank is supposed to lend you. The agent will be able to know how much you have then calculated the necessary fees and offer you a list of houses that you can buy with the money. Any mortgage applications should come only after you have the pre-approval letter.
If at all you are buying a home with a loan there will be a need for an appraisal. At the time you are making an application for a mortgage, most if not all lenders request that you bring them an appraisal of the home to be bought. A proper appraisal with license is supposed to have an estimate of the value of the home plus the property’s investigation. The buyer by this time should have paid for the inspection and have done away with. Among the things to be investigated are electricity, foundation, plumbing, etc.
Then you have to know about contingencies. These are the conditions that you set which a home must meet before you finish the deal. You should be very careful when you get to the bridge that involves discussing the contingencies with your agent if you’re going to get your dream house. Of the many contingencies that there are some are derived from what was mentioned above, and they include appraisal and inspection contingencies. Another solemn process is the one involving offers and deals that need to be given a lot of attention when the time comes. If you can get an attorney then this is the point where their help would be very much needed. If you want to win the negotiations it is essential that you choose a good real estate agent who will help you through all these.
Seven day after a deal is sealed with the seller a title report is supposed to be handed over to you.