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Purchasing a Home
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Discusses the specific steps involved in buying a house. Devises a strategy for acquiring the house you want.... More...
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Paper Abstract:
Discusses the specific steps involved in buying a house. Devises a strategy for acquiring the house you want.

Paper Introduction:
Buying a house is a process involving a number of specific steps, some of which may be optional but all of which should be considered by the buyer in devising a strategy for acquiring the house that he or she wants. The strategy must begin with the decision to buy a house and continue through to taking possession and paying off the mortgage. Warner, Serkes, and Devine (1990) make a good point when they note that two of the most important steps begin with the decision to buy a house--deciding what sort of house you want, and determining what sort of house you can afford. The two must be matched until the buyer understands the type of house sought and the price he or she is able to pay for it. The authors offer this advice: "Trust yourself, not experts" (p. 2). In order to do this, though, you have to be certain of what you want and have

Text of the Paper:
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There are certain legal requirements that have to befollowed. A listing price in whatever form is only a generalindication of what the seller will accept. The two must be matched until the buyer understands thetype of house sought and the price he or she is able to pay for it. Shenkman and Boroson (1989) note that there are two ways adown payment can affect what house to purchase. In orderto do this, though, you have to be certain of what you want and have enoughunderstanding of the market to know a good deal when you find it. Removing contingencies includes inspectioncontingencies and financing contingencies. The seller's listing price is not a legal offer, though somemay believe it is. Opening and closing escrowentails a number of detailed and often overlapping steps. In escrow, aneutral third party does the following: 1) holds onto and then exchangesdeeds for money; 2) pays off existing loans; 3) records the deeds; 4)prorates the property tax payments; and 5) helps with other details of thetransfer. Openhouse situations can be found on Sundays, and the buyer should visit to getan idea of the market as well as to find the right house. 16/5). Opening an escrow account may be done differently in differentparts of the country. If the buyer has the financing in place and if thehouse is in excellent condition, escrow can be closed in 3 to 6 days. 15/1). Once the buyer knows the type of house he wants and theamount he can afford, the next step is to begin looking for a house thatfits the criteria he has developed. Buying a house is a process involving a number of specific steps,some of which may be optional but all of which should be considered by thebuyer in devising a strategy for acquiring the house that he or she wants.The strategy must begin with the decision to buy a house and continuethrough to taking possession and paying off the mortgage. Berkeley, CA: Nolo Press, 199 . Once the contingencies areremoved and the buyer gives a final physical inspection of the property,escrow can be closed. Once the offer is written, the buyer or his representative contactsthe seller and sets up an appointment for delivering the offer. A counter counteroffer may thenbe made by the buyer. The buyer and the sellermust examine and sign the papers in the escrow holder's office. Once the buyer has found a house that matches his or her ability tomake a downpayment and to meet monthly payments, it is time to make a housesales contract. The buyer may also bring in athird party for this task. During this time, the buyer can revoke his or her offer inwriting before the seller communicates acceptance either to the buyer orthe buyer's agent. Just as thereare many ways of attaining the money for the downpayment, so are there manyways to search for and find a house--professional contacts, personalcontacts, house scouting by car, seeking out foreclosures and estate sales,even television listings on cable in some markets. Theauthors offer this advice: "Trust yourself, not experts" (p. To close escrow, the escrow holder must record adeed naming the new owner and must issue checks to the seller and allothers entitled to be paid from the proceeds. This begins the search for the right house. Legally binding meansthat the offer is specific and lays out the price and the terms and thatthe seller has the opportunity to accept it in writing before either theoffer is withdrawn or the time period for its acceptance passes (Warner,Serkes, and Devine: p. The offer willinclude the name of the escrow holder chosen. To be legally valid, the offer to buy must be in writing, deliveredto the seller or his agent, and contain specific terms so that if theseller agrees, the deal can be completed. It is also possible that the seller willmake a specific written legal offer to sell the house and the buyer willaccept it. Work CitedShenkman, Martin M., Warren Boroson, How to Buy a House with No (or Little) Money Down. The offer is then presented at an offerconference, at which time the seller or the seller's representative willread the offer. Then, the buyer should find a good professional, thus gainingaccess to the market, access to the broker's in-house listings, and thebroker's knowledge and experience. The seller's acceptance mustalso be in writing. The offer becomes a legally binding contract whenbuyer and seller agree to all the terms in the offer and sign it (Warner,Serkes, and Devine: p. A valid contract to transfer ownership requires that the buyermake a specific written legal offer to buy the property and that the sellerlegally accept this in writing. Warner, Serkes, and Devine indicatecertain things the buyer should do before seeking a professional, and theseare things that the buyer should do in any case: 1) prepare a detailed listof wants, including location; 2) determine affordability and estimatecosts. If the offer is accepted, there are still other tasks to becompleted. The buyermay have the money, be able to borrow, have access to a government loan, orhave an existing house that with equity that can be used to buy a newhouse. The seller can make a counteroffer which accepts someof the buyer's terms and modifies others. The Offer to Purchase begins with a statement of Financial Terms.Escrow is indicated second. The first legally binding offeris usually made in writing by the prospective buyer. The buyerthen deposits a cashier's check for the down payment and closing costs. Warner, Serkes, and Devine (199 ) make a good point when they notethat two of the most important steps begin with the decision to buy a house--deciding what sort of house you want, and determining what sort of houseyou can afford. It is possible to adjust the way you pay for a house to make it moreaffordable, and this is determined in part by the size of the down paymentyou can make. New York: John Wiley & Sons, 1989.Warner, Ralph, Ira Serkes, George Devine, How to Buy a House in California. He may also suggest a counteroffer, and negotiation may continueuntil both sides agree on the terms. Ifthe offer is contingent upon the buyer selling an existing house or ifinspection reports disclose a number of physical problems to be corrected,escrow could take several months or more. The buyer can do this personally orleave it to the real estate professional. Offers usually give the seller a short time in whichto accept. First, since a certainpercentage is required, the size of the down payment is directly related tothe amount one afford for the house. It is necessary next to open an escrow account, removecontingencies, obtain title insurance, and close escrow. The buyer should pick anegotiator to handle the transaction. Raising the money for the down payment can be part of the procedurefor buying a house, but there are many ways to accomplish this. Second, the size of the down paymentwill also determine the monthly payments, and the buyer has to be certainthat he or she will be able to afford those monthly payments as well (pp.14-15). 2). Escrow is the process by which a disinterestedthird party, which is usually a title or escrow company, transfers thefunds and documents among the buyer, the seller, and their lenders,following instructions provided by the buyer and seller. In some cases, it is possible to substitute a second mortgage for adown payment. The timeremaining before the close of escrow is dependent on what remains to bedone after the signing. The seller may accept on the spot, reject, or ask for moretime. Houses can be found inclassified advertisements in the newspaper and in other publications. A formalpresentation is usually a good idea and includes the opportunity for theseller to ask questions about the offer. The buyer may do the searchpersonally, which can entail considerable effort, or he or she may workwith a real estate professional.

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