Steps of a real estate transaction with a developer
A lot of the people I meet for my work are not familiar with real estate transactions, it’s often the first time they buy and I think this short article may help them… and you if it’s also your case.
1. Try to be sure of your goal.
You need to know if it’s an investment or your future place of living because clearly knowing your goal is indispensable for the rest of the process. You can always change of course and it’s good to find a property you like and would feel good in even if it’s “just” an investment.
2. Find out your preferences.
This one is not as easy as it sounds and it’s sometimes really hard to find out what we really need before we miss it once we settle in our new house/condo. Consider the number of rooms and minimal space you need for your current needs, add some to it in order to be able to see things coming and not to have to relocate if your family grows. If you can, try to decide if you want a garden, its size and its use.
3. Know your budget.
You have to evaluate your payment capacity, loan included if you plan to ask for one. I advise to have a margin in your price range, some properties are really wonderful and you may experience the “love at first sight” like some of my clients, it’s hard to repress it when it happens.
4. You need an expert
You now need to find a real estate broker / agent to assist all throughtout the buying process. Real Estate Practitioners will then prequalify you and will be able to tell you if you can avail a loan if needed.*
5. Find the property you like and visit it
Your agent/broker has provided you with a selection of listings fitting your requirements, he/she will help you to choose. It’s now time to plan a visit in order to see it in real, nothing is better to reinforce your choice and sometimes you may see something “wrong” and then reconsider. In case of a pre-selling, your agent will show you all the available replicas of your maybe future house: floor plans, sketchs…
6. The transaction with the developer
Here we are, you are very close now but stay focused as the marketing staff and your broker/agent will explain you important things regarding the property, the contract, the financing…
Now you can take your final decision, if you agree, you can fill up the reservation agreement and pay the reservation fee. This will initiate the sale and you will now need to submit the necessary requirements… I will talk about this in my next article.
None of the details you share with your real estate broker/agent are disclosed to anybody apart from the developer and the bank of course, it’s part of the ethics of our function to keep your personal informations private.