A lot goes into buying or selling a home, and understanding the whole process is crucial. Buying a house is a process that can be both exciting and scary. You might wonder if you'll be able to find a home that meets all of your needs, or you might worry about getting into a bidding war.
As a seller, on the other hand, you might be excited to sell your property but worried you wouldn't sell it at a profit or as quickly as you'd like.
Whether you're doing it for the first or tenth time, knowing how each stage takes in buying or selling a home will save you worry and give you some peace of mind. Here is an outline of the home buying and selling process.
The timeline for buying a home
Predicting how long it will take to buy a house can be challenging. Closing on a house can take a month or two, or even longer. Buying a home starts way before you can actively get out and look at houses. The passive home buying stage includes:
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Deciding to buy a home
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Saving for a down payment
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Creating a budget
Here are the steps in the process of buying a home.
1. Get mortgage pre-approval (1-2 weeks)
A mortgage preapproval is a declaration of the amount of money a lender is willing to permit you to borrow to purchase a home. Talking to a lender first is crucial because you don't want to look at houses and fall in love with them only to find out that you can't afford them. The lender will ask questions about your assets, debts, and income.
You can obtain mortgage pre-approval in one to five business days, but to ensure you get the best price, take the time to compare lenders and mortgage products. After speaking with several lenders, choose the one you are most comfortable with and who you feel has the best offer for you.
2. Hire a realtor (1 day+)
Buyer's agents help you find homes, talk to the seller, and work out the sale details. Do your research and find a realtor you're comfortable working with. Your mortgage lender can give you the names of agents in your area. You can also find a realtor through recommendations from family and friends.
An experienced realtor will know the area well and give you information about the local housing market. Choose a buyer's agent specializing in the Arizona real estate market to get the best deal. It's crucial to find a real estate agent who works for you and not one who also works for the seller.
3. Shop for your new home (8 weeks+)
Think about the features you must have in your new house, such as the number of bedrooms and the features you desire but could live without. List these features as must-haves, nice-to-haves, and deal-breakers, then send the list to your real estate agent.
Once you come up with the list of qualities to look for in a home, it's time for your realtor to arrange home viewings. How long it takes to find the home you like will vary according to your wants and the market.
4. Make an offer (3–5 days)
Once you have found a home you are interested in purchasing, your real estate agent will assist you in making an offer on the property. After you finish all the paperwork for a written offer, it is the Buyer's Agent's responsibility to give the offer to the Seller through the Listing Agent. The next step is to wait for the seller to accept or reject the offer or engage in further negotiations.
5. Loan processing and underwriting (1 day+)
Loan processors review your mortgage application and ensure they have everything they need to approve your mortgage. The next step is for the application to be checked by the underwriter. Underwriters look for problems in your credit report, credit score, and details about your property. During this phase, you'll also finish other closing tasks, including:
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Home appraisal — To figure out how much your house is worth, your lender will hire a qualified expert to do an appraisal. Most of the time, it takes a week to set up the appraisal and three more days to get the report.
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Home inspection — A home inspection offers information on the current state of a home. Home inspectors examine the inside and outside the house, checking everything from the foundation to the plumbing.
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Title search — Title companies do a title search to determine who owns and has the right to sell a piece of property. The goal is to ensure that the seller has the right to sell the house and protect the buyer's right to own it in the future.
6. Closing on your new home (1 day+)
Now that the complex parts are over, you have one more long appointment to close on your house. A final walk-through and home inspection are a good idea to ensure everything is ready for moving in. Once you make the down payment and closing costs, sign a staggering amount of paperwork, and complete the closing process, you officially become a homeowner.
Timeline for selling your home
Most people want to sell their homes quickly, but selling a home can take time. In most cases, sellers prepare their homes for sale at least two months before putting them on the market. Putting your house on the market is the first step in home selling. Assuming you don't need to relocate immediately, you should first decide when you want to list it.
1. Two months before listing your home
There is a lot of groundwork before considering putting your house on the market.
Do your research
The more you understand finances and the market, the more prepared you will be to make decisions in the selling process. Do these tasks when you're about two months away from putting your house on the market.
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Get to know the local market
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Prepare your paperwork
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Find out how much it will cost to sell the property
Being as prepared as possible will make the selling process go smoothly.
2. Six weeks before listing
As the time keeps ticking away, it's time to check on two of the most critical things on your to-do list.
Hiring an agent
Before you put your house on the market, you should hire a listing agent who can advise you on what to do and what not to do. An excellent real estate agent will be familiar with your area and be able to work within your budget.
To find the best real estate agent, talk to your family and friends about their experiences, or look for customer testimonials online. Once you've narrowed it down to a few candidates, ask them a few questions to get a better sense of who they are.
Make repairs and upgrades
Before putting your house on the market, ensure you have enough time to perform any necessary repairs or upgrades. A pre-sale home inspection can help you figure out what repairs are required. You'll be able to get more competitive offers if you take care of these issues immediately, rather than waiting for the buyer's inspection. However, take time before you invest money in renovations, as there's no assurance that you'll get your money back.
3. Four to two weeks before listing
Before you put your house on the market, there are a few other things you need to take care of.
Get your property appraised
Mortgage lenders will do their own "formal" evaluation of your property. However, pre-home sale appraisals are an option; they'll give you a better idea of what your house is worth.
Start moving out
Moving is a great time to sort through your belongings and eliminate things you no longer use. Get a storage pod or unit, and begin packing little by little. Having less clutter in your home will not only make it easier for you to relocate, but it will also make it more appealing to potential buyers. Packing now will also make your home appear larger than it is, reducing the amount of clutter.
Discuss your plans to sell your home with your neighbors. Letting them know that you'll be leaving also helps with the home's marketing, as your neighbors may already have friends looking for a new home in your area.
Deep clean, declutter, and stage your home
Thoroughly clean, declutter and depersonalize your home. Next, your realtor will help you stage the house to look like a model home as much as possible. The idea is to ensure buyers can visualize themselves living in the home.
Prepare for marketing
As you approach the listing date, now is the time to finalize your marketing materials. Your home should have been repaired, cleaned thoroughly, and decluttered. Hire a professional photographer or videographer to take images and videos of your home for use in the Multiple Listing Services (MLS).
4. After listing
Once you put your house on the market, people will start making offers on it. It is impossible to predict how long it will take you and the new owner to negotiate a price for the property.
You might get lucky and find someone who believes the price that is advertised is reasonable, but more often than not, the procedure will take several weeks. When a buyer makes an offer, don't hesitate to negotiate and let buyers know exactly what you want.
5. Before closing
After you have bargained with the buyer and accepted their offer, you or your real estate agent will be required to make your home accessible for a home inspection and an appraisal. In most cases, the buyer's mortgage lender is the one that places the order for the evaluation.
The lender wants to ensure that their collateral, which is your house, will cover the loan cost if the buyer cannot make payments. Even if you have a report from a pre-sale house inspection that you can show them, likely, they will still want their own review done. After signing the paperwork, you'll make a final appointment and turn in your keys.
Buy or sell your Arizona home through Adrian Heyman
With more than 16 years of experience in the real estate industry, Adrian Heyman is one of Arizona's top real estate agents. Adrian prides himself on providing a level of service that goes beyond his clients' expectations. Do you need help buying or selling your Arizona property? Contact Adrian today.
