Q1. What steps are involved in buying a home?

Once you’ve made the decision to purchase a home and established a budget, it’s time to contact your preferred area real estate professional. Experienced real estate agents can provide vital knowledge and local information you will rely on throughout the process. Compare and consider potential lenders to obtain financing your home beyond your home’s down payment. If you need help locating or choosing a local lending institution, just ask your real estate professional. Getting pre-qualified for a loan is recommended. It not only will determine what you can afford, it will define to sellers you as a serious and qualified buyer. Following the pre-qualification process, your real estate professional can arrange home and neighborhood tours. When you’ve found the right home, your agent will present your offer to the seller — first offers are typically less than the asking price. The seller will likely negotiate your purchase price with a counter offer closer to the home’s initial asking price. When buyer and seller settle on a price, the agent will cooperate with the local title insurance agent and/or escrow officer to draft and prepare necessary documentation and paperwork. A closing meeting date will be determined to complete the negotiation process and transfer ownership from seller to buyer.

Q2. Please explain the home selling process.

The stages of home selling process are comparable to the steps associated with the home buying process. When you decide to sell your home, an asking price must be established. Some sellers are successful selling their homes independently, the for-sale-by-owner arrangement can prove to be problematic, time-consuming and difficult. You can avoid this unnecessary anxiety and inconvenience by hiring a real estate professional. A professional agent can help determine a competitive and appropriate asking price for your home or property. They will coordinate marketing efforts including signage, MLS listing and preparation for showings. Once an offer is made, you can choose to accept the potential buyer’s price or make a counter offer. Once a price is confirmed by both parties, your real estate professional will cooperate with a title insurance agent and/or escrow officer to draft official documents. A date will be scheduled for all involved parties to meet for closing. At closing, the transaction is finished and ownership is formally transferred from seller to buyer.

Q3. Why do I need title insurance?

A title insurance policy provides protection for home buyers against loss resulting from property title errors. The premium requires a one-time payment and lasts until a change in property ownership. Title insurance is unique, as it provides protection against existing flaws in the title.

Q4. What is a 1031 exchange?

A §1031 exchange applies to legislation permitting an investor to sell a property, reinvest the profits in a new property and waive capital gain taxes. Asset Preservation Incorporated (API) is known as a national leading Qualified Intermediaries, with a confirmed reputation for successfully leading investors through the exchange process.