BUYERS / SELLERS
For Buyers
You're ready to buy your new home. Now what? Buying a home involves a lot of research, meetings, phone calls and preparation. Not being prepared for the new adventure in front of you can cause unnecessary costs and frustration. Knowing how to buy a home, what documents to have on hand, and how the general process works will make finding your dream home easy and hassle-free.
Defining What You Want
Figuring Out What You Can Afford
Shopping For Homes
Making an Offer
Inspection & Insurance
The Final Closing
Step 1: Defining What You Want
Start by creating a prioritized list of features you want in your next home and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to your real estate professional about where you want to live. Location is a huge part of any move. CENTURY 21 professionals are trained to help their clients narrow down their choices by sharing market trends and local information like neighborhood statistics and community links.
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Step 2: Figuring Out What You Can Afford
Now that you know what you want, it's time to see what you can afford. You can start by crunching the numbers yourself using our selection of calculators.
When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much house you can afford and what your monthly payments would be. Second, it tells the seller that you can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.
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Step 3: Shopping For Homes
Once you know what community you'd like to live in and have an idea of how much house you can afford, its time to start checking out actual properties. Beginning this search online can help save you time since it can help you target homes that meet your search criteria. Our home notifier can even email you when properties come on the market that meets your search criteria.
Next, begin visiting homes in person. Ask your local real estate professional to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the property. Is the property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?
Remember to keep an open mind when you are looking at homes. Use a virtual home planner to help you imagine what the house could become with you as the owner.
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Step 4: Making an Offer
Once you find the home you want, you need to make an offer for the house. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a real estate professional, negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.
This might also be a good time to consider purchasing a home protection plan. These insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.
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Step 5: Inspection & Insurance
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon, building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgage.
This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream home and starting the process all over again is what occurs during the negotiations between you and the seller.
Your CENTURY 21® Real Estate Professional can help make these discussions go more smoothly. In most states you will also have the option of a "walk through" before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.
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Step 6: The Final Closing
Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local and state laws are not completed and brought to the closing table, the closing may not happen on time. And, depending on what the contract says, this could result in further action including financial penalties and even the loss of your rights to the home.
Once you close, it's official - you own the house! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.
Be sure to turn to your CENTURY 21 real estate professional for guidance and information about many money-saving offers available to CENTURY 21 customers.
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For Sellers
When you're ready to sell your home, there are a million things to consider. Where will you go? How much is your house worth? What should I do to prepare? These questions can be frustrating, but with the right knowledge, your house is as good as sold.
Creating a Marketing Plan
Setting the Price
Showtime
Protecting Yourself
Making the Deal
Step 1: Creating a Marketing Plan
Create a marketing plan for your home that will help distinguish it in your local marketplace and attract buyers to your property. This may include advertising in the newspaper, posting your listing on the Internet, holding an open house and more. CENTURY 21 Sales Professionals often use the CENTURY 21 Customized Marketing System to create a personalized selling program for clients. Its purpose is to sell a home at the best price possible in the shortest amount of time.
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Step 2: Setting the Price
A key part of the marketing plan is setting the list price. If a home is priced too low, it may cost you money. If a home is priced too high, potential buyers may be scared away. To determine the best asking price review the cost of recently sold homes, evaluate the competition and study marketplace trends. CENTURY 21 Sales Associates are trained to use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.
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Step 3: Showtime
Now it's time to get your home ready for the spotlight. Start with a good cleaning, then eliminate any clutter, add a fresh coat of paint and tidy up the yard. Talk to your real estate professional about other tips that can help boost a home's curb appeal and impress potential buyers once they're in the door. One way to make a home more attractive is to purchase a Home Protection Plan. This insurance protects you, the seller, from paying repair or replacement costs of major items during the listing period. It also protects the buyer during their first year of homeownership.
In addition, make sure you are aware of all the federal, state, and local disclosure laws. This information can be obtained by the specific local and federal government agencies or from your local CENTURY 21 Office
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Step 4: Protecting Yourself
In some cases, a home sale can also be an invitation for danger. Here are some things you can do to make the process safer.
- Ask for identification
- Ask for pre-approval letters
- Lock up and hide collectibles and valuables
- Remember "For Sale" signs bring in buyers. Do not allow your children to open doors to strangers.
- If you have pets, make sure they are controlled
- Remove any dangerous items
- Talk to your CENTURY 21 Sales Professional about additional safety tips to help protect you and your family.
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Step 5: Making the Deal
A buyer has made an offer - now it is time to negotiate. Rely on your real estate professional to guide you through this process. He or she will help you arrive at an acceptable price, terms and conditions. Once you have accepted an offer, help keep the deal together by meeting deadlines and criteria, including home inspections, appropriate buyer visits, scheduled deposits and other steps. In fact, during this period there may be a renegotiation of the accepted offer price depending on the outcomes of these visits. As the closing nears, you may also need to perform repairs or do additional work to the house as agreed upon in your contract. In addition, you will need to have the house "broom clean" prior to the closing so that the buyer can complete a final walk through. When you finally arrive at the closing table, come prepared with the appropriate certificates and approvals as required by your town, county and state. Ask the appropriate agency or get a list of what you need from your local CENTURY 21 Office. Once the money has exchanged hands and all the papers signed it's time to hand over the keys and concentrate on your next big project - getting YOUR new home in order.
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