Buying or selling a house is a very stressful job. There are lots of things to do. Things that need to be considered. In the Philippines, the buying or selling process is very straightforward. If you are a buyer, you look for a house for sale, communicate with the seller, negotiate for the price, if both parties agreed, seller will give the keys to the buyer and the title, in return, buyer will give the money or check to the seller.
In the US, it is different. Buyer searches for a property through various portals or listing sites. Then when he gets pre-approved for a loan or once he has obtained proof of funds, buyer needs an agent to represent him. Usually, seller’s agent and buyer’s agent will communicate. There will be exchange of offers and counter offers till both parties agree. If both agree, escrow phase begins. Then escrow closes once a new deed is recorded in the buyer’s name. On the seller’s perspective, the seller signs an exclusivity agreement after contacting an agent. Title search, property inspection and CMA report will be provided by the seller. Afterwards, the agent of the seller lists the property on the MLS and other listing sites. Then the agent of the buyer will communicate with the seller’s agent. If both parties agree, they will enter the escrow phase and same procedure will happen.
It is complicated, but if you will look at it, it makes a lot of sense. Having an agent is much better as they will be the one to do all the transactions for you. Question is, how can the buying or selling process be ideal? Here are some things that you need to ponder.
For the buyer, you need to determine how much you can truly afford. Do not get a house that is beyond your means. You need to be pre-approved and decide which mortgage suits you the most. It is best if you will use fixed rate. You also need to think if you can pay your monthly mortgage in the long run. You can do it by computing for your monthly costs, tax, insurance estimates, HOA fees and maintenance cost. In that way, you will have an idea on how you can budget your money. Lastly, before looking for a house, make sure you know what you want. Looking for a house takes a long time especially if you don’t know what you want.
On the seller’s side, the ideal process begins in the first part of the process. If you decide to sell your house, make sure that the house is free from repairs. Don’t wait for the inspection day wherein the buyer will go back to you and ask you to repair the damaged or broken part of your house. Remember, prevention is better than cure. Make sure you order a home warranty. It will be frustrating on the buyer’s end if he finds out that one of the appliances is not working a couple of days after moving in. He’s not gonna be happy shelling out a large amount of money if you can prevent it by getting a home warranty. Lastly, make sure that the selling price matches the worth of your property. If it’s overpriced, the transaction might be prolonged because, most likely, buyer will make a lot of demands.
If you follow these tips, for sure the stress when buying or selling a house will be minimized.