Things You'll Need:
- Cash or a Loan
- A quick education is Real Estate
- The desire to OWN "Real Property"
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Step 1
"Real Property" is loosely defined as Land and any "Appurtenances" (things permanently attached).
A House is an Appurtenance, so are Water, Air and mineral rights. Most real estate definitions use the inverted pyramid. This upside down triangle covers things below the ground such as water, valuable minerals and excavating rights. "Air" pertains to the space above the ground level, such as multi story buildings and "Condos".
Purchasing "Real Property" is the highest from of wealth.
Your first step in buying Real Estate should be an education. You must understand what Real Estate is and how the process works if you want to become a "Land Owner".
Ehow, Real Estate tutorials and a Licensed Realtor should be able to answer most questions and offer valuable information. -
Step 2
Armed with the knowledge, you must decide where to buy, how much to spend and how to pay for it.
A Real Estate transaction consists of two or more individuals executing an agreement based on mutual terms, conveying title ownership through the local Government.
Basically, you shake hands with the current owner, pay them and the City/ County/ State transfers the title or "Deed" into your name.
Of course, in this day and age it's always a good idea to hire an Attorney, have the title searched and insured, the property surveyed and the structure inspected or a feasibility study conducted on the land.
Most buyers simply contact a Realtor. -
Step 3
When Buying Real Estate, a Realtor represents YOU. In most cases and most states, this agent is trained, licensed and insured, and paid by the seller.
Align yourself with a good agent (interview several), and ask for references. The agent should be able to consult and refer other professionals such as a lender, inspector or contractor.
If you choose to go it alone, you can save money! Just realize that many potential sellers are more experienced than you and could have the upper hand. -
Step 4
Once you find the Property (with or without home), it's time to write an offer. This can be verbal, but most states require it in writing. All terms should be laid out clearly, in fact a pre-printed form is your best bet.
Earnest money (a good faith deposit), should always be held by a 3rd party (attorney or escrow officer). Also, make sure that you are within common rules or laws for YOUR RIGHTS as a buyer! You might need to back out of the deal, and unless you cover yourself you are open to a lawsuit!
Once you agree upon the terms with the seller, you are obligated to PAY the seller and complete the transaction unless it is conditioned on one or more "Contingencies". This could be as simple as you getting a loan, or complex as you obtaining necessary permits for your desired use. -
Step 5
Once the transaction is complete and money and deed have changed hands, you are now a "Land Owner"! Congratulations! You are among the World's Elite! (only a small percentage of the world population own private land).
Now, get ready to pay property taxes on your "Real Estate". Other requirements of land ownership can include: Insurance, Maintenance, Improvement and or Development, and even a barrier to keep others out (vacant land).
Next mission: Educate yourself about local laws and requirements (zoning) to stay within the rules. (Hopefully you already researched everything BEFORE the purchase).
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Thanks for your time and feel free to check out my other articles on Real Estate!
