Purchasing a property is an exhilarating experience, although it may seem a bit overwhelming for some, especially if you’re a first-time buyer. Real estate agents work to ensure the transactions go as smoothly as possible. Each transaction is unique; some are fairly straight-forward and others require heavy negotiation and creative strategies.

This article will discuss how to achieve a smooth real estate transaction.

Making a Successful Offer

To make a successful offer, the buyer has to consider factors such as pricing in the market, closing date, amount of time the property has been on the market, property operating costs (insurance, taxes, utilities, etc), necessary repairs, and financing.

Being diligent in submitting the offer ensures the transaction has more potential for working out successfully for both parties.

Competing Buyers

There is usually more than one buyer interested in the property at the same time. The highest offer and the one with the best terms will generally succeed in getting accepted. It can be stressful for competing buyers, but it is a common part of real estate negotiations. The good news is that the seller essentially can’t entertain any other offers once a binding contract is in place (although backup or contingent offers can still be considered).

Counter Offers and Negotiation

If the seller does not accept the offered sales price and terms, he/she will either reject it or make a counteroffer and present a new set of price and terms. The buyer may accept, make a counteroffer as well, or decide to look at another property.

Transparent communication between the buyer’s and seller’s agents to openly discuss what both parties expect may help make this process easier.

Final Steps of the Deal

Once the buyer and seller agree on the price and terms, it is time for the real estate agents to organize the whole transaction in a timely manner. The following items have important deadlines in order for the transaction to go smoothly, thus one must stay informed of the requirements that must be fulfilled:

• Ensure financing is in place.
• Perform all necessary inspections.
• Provide the “earnest money deposit” for the realtor or title company to hold in escrow.
• Have the property appraised.
• Set up property insurance.
• Hire a title company to do a title search.
• Prepare cash needed for closing.

Final Thoughts

Preparation and timeliness are key! The many deadlines and terms one must consider for a real estate transaction require diligence and focus. Working with a real estate agent ensures a smooth real estate transaction by facilitating open communication between buyers and sellers, carrying out creative negotiations, and meeting the deadlines in place to complete the transaction.