It’s exciting to close your first real estate deal. All of your hard work in getting to this stage, such as finding the ideal property, coordinating the closing, arranging to finance — are finally coming to fruition.
Sometimes closing a real estate deal is quick and easy, however unexpected issues may arise that could delay closing as well. It’s important to understand the closing requirements so potential issues can be mitigated in advance. The following list of real estate closing expectations from Hirsh Mohindra may assist in providing an overview of what to anticipate for your first closing.
Educate yourself: Determine what is required to close on your deal. If you are working with a lender, that lender will have specific requirements. Be sure to understand those requirements in advance so you can work with the lender to satisfy their items. In addition, you may be working with a title company. Title companies have specific requirements as well. They will require information on the property as well as on the parties involved in the transaction. Identify what is needed in advance so you can be prepared on your end to close quick.
Have your Team Ready: When buying real estate, you will likely need the services of other professionals. Attorneys, title companies, lenders, real estate agents, home inspectors — may all be needed to facilitate your deal. Identify your team in advance to help you find the right property, make sure it’s the right deal, and close quickly.
Find the Right Property: when searching for the right property, numerous factors come into play. Location, price, demand, are some of the key metrics you should consider. Hirsh Mohindra often suggests working with a real estate agent to help understand a neighborhood, and to find the right property. Real estate agents know trends in their markets. They know what areas are hot and what are not. By leveraging their expertise — it can help you source the ideal investment property.
Understand the current trends in the area: Real estate markets change quickly. Some areas become hot overnight, and others cool down unexpectedly. Study the most recent sales data for the area in which you are interested in buying. By understanding what past deals have transacted for — you can have a realistic expectation of what your deal may look like.
Property inspection: Once you find a property you’re interested in — make sure you get it inspected. Home inspectors are experts in identifying damage and potential risks. They are trained in finding issues that are currently present or that may arise in a short time frame. Work with a home inspector to thoroughly inspect the property prior to closing.
Understand the Deed and Title of the Real Estate: Make sure you understand the title and deed or any other material document associated with the property. Hirsh Mohindra routinely advises people to review the documents yourself, but also leverage a skilled real estate attorney to review the paperwork. Nuances in deeds and easements may create restrictive covenants on the property. By understanding these documents you can minimize surprises at closing.