I saw this question posted in our local paper this morning and the answer that the papers "expert" posted did not really answer the question so I was inspired to answered it here.
First off, the "buying process" will involve a number of professionals before it is completed. The end result of the process of buying a property will require at least 200 pages of documents, more than 30 signatures and involve no less than 20 professionals. The process can last a few days, weeks, months or years.
As realtor, I am an expert at helping people work through the process and at every step of the way, I have practical advice to help people "move on" to the next step. A good approach to buying a property or home is to use a business like approach and I like to use a six step model.
6 Steps to Home Buying Success
1. Goal. Many people have a goal to own real estate. However, when you choose to make a purchase, you need to have a "goal" that is individual to the purchase at hand. Ask yourself, what is my real estate goal in the short run - say two years. Next, what is my mid term goal - say 5 years and finally, what is my longer term goal - say 10 to 15 years. I met John and Susan because they want to sell their condo to buy a smaller less expensive one. After we met a couple times and discussed their long term goals, it made sense for them to keep their condo (and save the fees to sell) and buy a larger home with a suite. Now they own two properties that generate income and they have a yard for their new baby.
2. A Plan, Preparation and Options. I have a plan which I use for all my clients to ensure that their needs, wants and desires come out early in the process. I ask questions and listen for their answers and I also steer my clients to other professionals to help them access the resources they will need later. Financing, Lawyers and Inspectors will all play an important role when purchasing a property. Having a plan helps to save time and money for my clients and it can also take the stress out of findings a home. Being organized can help buyers relax and focus on what's important and truly enjoy the process of buying. At this stage it is also important to learn the many options available to buyers such as Rent to Own, seller financing, zero down options and the many ways in which real estate can be financed.
3. The Search. Most people mistakenly believe that Realtors help people find properties. Nothing is farther from the truth. Today, most people find their own home. 95% of the best homes for sale are already on the internet with photos descriptions features and location. My job is to help you choose and evaluate - not find (All my listings are also on the internet so people can find them). Searching for a home is a process of elimination. And, only by searching, driving by, viewing and then evaluating will buyers be able to assess the best properties. Today, millions of data points exist in every real estate market and there and tons of choices and herein lies the problem. Too much choice can be problematic. I help people choose based on what makes sense for them plus what makes sense for the local market conditions.
4. Acquisition. When it's time to buy you will need to write an offer, choose the conditions that will protect you and then present the offer and negotiate. I believe that this step in the process is becoming a long lost art and this is where a good Realtor truly shines. Creating a win-win negotiation is not an easy thing to do. If the market is in flux (such as today and for the past three years) buyer and seller expectations can be very far apart. Negotiations and contract talks can take hours and hours and only the skilful Realtors bring deals together.
5. Usage. Now you have bought the property and moved in. You are enjoying your home and using the property for it's intended purpose. Based on your earlier plan this property may be a stepping stone to larger property or it may be your dream home. At this stage you need to keep focused on your plan because the next step will be disposal (or selling). What type of upgrades do you do? Should you renovate? Update or tear down? How about installing that pool? What about window upgrades? The most essential part of the buying process is what you do after you have bought the property. Nothing will affect the value or your financial position more.
6. Disposal (or selling). I firmly believe that each and every purchase should be made with a future sale in mind. I ask every client this question before they write and offer: When will you sell this property and under what circumstances will you sell it and to whom? Some people plan to live in the home until their end. Others plan to upgrade in a couple years and some may need to sell because of a new job. In each situation, we can plan and create strategies to help people achieve these goals - therefore we need to have goals and we need to use these in our planning.
This process is an excellent way to help people achieve real estate success. There are hundreds of discussion points in these steps that I have not included due to space. Suffice to say that each step in the process requires attentions to detail and skillfully asking questions and listening for answers to help buyers make good choices. And, sometimes the best choice is not to buy or to wait. When you do buy, you should feel in control and act based on a solid plan that fits your budget and your goal.
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