It’s important to get all the details right when you’re engaging in a real estate transaction. This is true whether you’re purchasing the property or selling it. There’s a lot of money on the line, especially in a place like New York, where real estate is at a premium. You don’t want to overlook anything.
Of course, every real estate transaction is going to be unique. But there are a few key areas that it’s important to focus on, no matter what side of a transaction you may be navigating.
First and foremost, a contract has to be set up properly and it’s important for all parties to understand what is required of them per the terms of any particular arrangement. An offer to make a purchase is a contract and can be legally binding, for example. But it may come with contingency clauses. If these clauses aren’t met, then the contract may no longer be binding. Buyers and sellers will often negotiate over not just a price, but what clauses are going to be included in an agreement.
Appraisals and valuations
Next, just because a property can be listed for any amount of money doesn’t mean that a particular figure is what it’s worth. A property should be appraised. This is often done by looking at comparable properties in the area that have recently sold. It’s important to get the right comps so that a property’s list value is accurate. Comps that have sold for far less or far more can derail a sales process and cost one or both parties a lot of money.
The closing process
Finally, there may be some questions at closing. How soon will a buyer actually take control of the property that they purchased? Has a title check been performed to make sure that the title is clear? Are there any other steps that need to be taken and paperwork that needs to be signed?
It’s especially important for first-time buyers to know what to do at closing because it can be an extensive and sometimes overwhelming process. As such, those who are engaged in a real estate transaction can benefit from seeking legal guidance as proactively as possible.