Overview of the Buying & Selling Process:
The Buyer
1.Considers the purchase of a Dallas metro home, condo, or property.
2.Interview us as your potential real estate agent.
3.Determines your needs and wants.
4.Apply for financing, gets pre-qualified for a loan.
5.Views & researches possible homes.
6.Makes an offer to buy.
The Seller
1.Decides to sell property.
2.Selects a real estate agent.
3.Determines needs.
4.Prepares home for marketing.
5.Agent markets the home.
6.Accepts or counters offer.
Once an Offer is Accepted, and the Contract is Fully Executed (both parties have agreed to all items in the contract and signed it):
1. The earnest money and option fee checks are collected from the buyer. The earnest money is given to the title
company, and the option fee is given to the seller.
2. The buyer has a home inspection and a termite inspection done by a licensed inspector. These inspections are done as soon as possible after the contract has been executed, and must be done during the option period
(specified in the contract).
3. The buyer finalizes the financing with the lender during the timeframe specified in the Third Party Financing
Addendum.
4. The lender will order an appraisal of the home.
5. The buyer secures homeowner’s insurance for the new home.
6. The title company will perform a title search, and work on clearing up any issues
that must be resolved before closing, so that a title insurance policy can be issued.
7. The lender gets final closing documents to the title company.
8. The title company prepares all of the paperwork for the closing
9. Both the buyer and seller go to the title company to sign papers for the closing. The buyer brings a certified check to closing for the amount that must be paid (down payment plus closing costs, as specified on the Settlement Statement / HUD 1 form) and Drivers License(s).
10. The purchase is “funded” by the lender through a wire transfer of funds from the lender to the title company.
11. The buyer takes possession of the home upon confirmation of funding.
12. The title policy, deed, and title are filed in county records by the title company.
Benefits of Home Ownership
Credit:
Owning a home helps you establish financial credibility.
Independence:
Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.
Investment / Equity:
As you make more payments and build equity in your home, you add to its investment value. Most improvements you make will also add to its value. Consult your agent before making major improvements, as some improvements do not increase the home’s value equal to the cost of the improvements.
Pride:
A home reflects its owner’s values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.
Tax Advantages:
Interest on your mortgage loan is deductible on your yearly personal income tax return. Some of the closing costs associated with purchasing your home are deductible, as are your property taxes under current tax laws. Most people can’t afford to not take advantage of these deductions. In most cases, capital gains (profit) made when you sell a home are exempt from income taxes. Up to $250,000 in capital gains if you are single (or file your taxes separately) or up to $500,000 in capital gains if you are married and filing jointly, are exempt from taxes. To meet the requirements for capital gains exemption, the home must have been your principal residence for two of the five years preceding the sale. This tax exemption can be used every two years. Certain circumstances, such as large medical expenses faced by the homeowner, can make a home sale qualify for the capital gains exemption more frequently than every two years. An accountant can fully explain the possible exemption circumstances.
Security:
A home can provide security against inflation if the value of your home increases.
Stability:
Being established in a community provides a sense of belonging, stability and security.
Finding the Right Home
Real Estate Agents
You should meet with your real estate agent and discuss the kind of home you want and need. Let your agent know the area(s) in which you are interested, the type and style of home you want, the amenities you need, and everything you really prefer in your next home. Real estate agents can help you by accessing a Listing Service that covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. An agent can guide you through the entire process.
Newspaper Ads/Internet
Many people go through the real estate classified section or browse the Internet to find homes to view. However, your real estate agent will have many listings available that may not appear in the newspaper or on the Internet on a continuous basis. New listings come on the market daily.
Multiple Listing Service (MLS)
Master Realtors has access to the local Multiple Listing Service (MLS). Usually, MLS data includes the following details about homes and properties for sale:
Location
Price
Photograph
Utilities
Amenities
Annual property tax
Current financing
Approximate Room Sizes
Listing company
When Previewing A Home...
· Write notes about the homes you see so you will be able to discuss the details later with your real estate agent.
· Ask questions about the home and discuss any objections or concerns you may have.
· Ask about the community, schools, shopping and transportation.
· Ask specific questions about the construction of the homes and the major components such as electrical, plumbing, heating and cooling systems, etc.
· Stay with your agent!
Have Fun!
Relax. Finding your new home can be a rewarding experience. Have a good time and enjoy the process.
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