How to Sell & Buy a House

For many people, buying and selling a house will be the largest financial transactions of their life. It can also be risky. The home mortgage crisis of 2008 showed us that being too eager to buy can put you in a costly position when it becomes necessary to sell. When approached with prudence, buying and selling a house can be profitable and satisfying.

Instructions

1. Determine whether it is time to buy a house. Buying a house has far more to do with your current situation than the state of the real estate market. If you have saved enough for a down payment, have good credit and have decided that you want to plant roots in a particular area, then you are ready. When there are a lot of houses for sale, it is called a "buyer's market." This is the best time to buy. You can take your time and be selective. When you find the house you wan, you can bargain hard since the seller knows you can buy another house if they don't make a deal. Even when it's a "seller's market," you should be selective. Buying a home is a major decision. It is better not to buy a house than to buy a bad one.

2. Determine whether it is time to sell. Homeowners sometimes have to sell because of relocation, loss of income, change of family situation or economic hardship. If you have to sell, you may not be able to command the price you want. Other times homeowners sell to upgrade to a better home or cash in on profits generated from their home's appreciation. In these cases, sellers have the luxury of waiting until the right buyer comes along.

3. Find the right real estate agent. Whether you are buying or selling, a real estate agent can help you with the process. If you are a buyer, you don't have to pay an agent anything. If you are a seller, you must pay your agent and the buying agent a commission. This is usually 6 percent of your selling price. Finding the right agent is essential. Interview several before making a decision. It must be someone with extensive experience in your area. The agent must be easy for you to work with and be very honest. Real estate agents get paid when they make a sale. Don't let your agent push you into a sale just because she wants to close the deal.

4. Look for resale opportunities. Most home buyers eventually sell their homes. When you are looking for a house, always be thinking about the day you will sell. Factors like neighborhood, schools and nearby essential services are important to most buyers. Even if they aren't important to you, consider them for resale potential. Likewise, when you are selling, emphasize these features of your home. Also, don't buy a home that is too unusual. If it is a strange design, it will appeal to fewer buyers.

5. Get the right loan. The home mortgage crisis of 2008 taught us to be careful what we borrow. Just because someone is willing to lend you a lot of money doesn't mean you should take it. Borrow only what you can afford to pay back. Don't get an adjustable rate loan unless you can afford the rate change that will be coming. Know what you are getting into, or you could end up losing your home, your equity and your good credit score.

6. Have a real estate attorney review everything. Even if your state doesn't require real estate attorneys to look at contracts, it is still a very good idea. This applies to both buyers and sellers. A real estate attorney can make sure you don't get ripped off and can help negotiate the best terms for your deal.