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Buying a Home? Understand the Process and More!
Buying a home is a big decision. However, home buying is also about understanding how the buying process works and what to expect. We provide an outline of the process and basic terms you’ll need to know below. After reading this, you will be more confident when making your next real estate purchase.
Find a real estate agent
The first step to successfully buying a home is finding a real estate agent. The housing market moves quickly. According to US News, houses in November 2021 only spent 22 days on the market. A real estate agent will help ensure that when the house of your dream pops up it becomes yours! This is why finding a real estate agent is step number one in buying a home.
Getting the right help when making such a big purchase is crucial. A real estate agent will help you understand the aspect in this article more in-depth, but most importantly your agent will help you with the following:
Always on Your Side
When buying a home your realtor has the fiduciary duty to assist you in making informed decisions. This means Your realtor will always have your best interest in mind. They will help you make the best buying decision possible and help you avoid common pitfalls. When putting in an offer your realtor will assist in navigating the many factors that influence home sellers.
Know the Market
A real estate agent knows the market. They can help you find a home that meets your needs and fits your budget. Your realtor will also know trends from across the industry to understand if you should be looking to buy right now or hold off as market conditions change. Real estate agents are also aware of the kind of home you want to buy. Sometimes your agent may become aware of a house becoming available before the public. This home-buying advantage can lead to putting in an offer before anyone else and may even save you money!
Navigating the Process
Agents can help buyers navigate the entire home-buying process. All sorts of issues can arise during the process, from finding financing options to negotiating with sellers and managing paperwork during closing. Your agent can help you navigate these problems relieving your stress and letting you focus on finding your perfect home.
Start to Finish
Your agent will also be there for you from start to finish, walking you through the entire process. In addition, a real estate agent can help you understand the large amounts of paperwork you fill out during the home-buying process. A firm understanding of documents before signing provides peace of mind to many home buyers.
Understand the Home-Buying Market
The housing market is a key part of our economy. Many factors affect the housing market and the price in which you may pay at any given time, including:
Interest rates
Interest rates move up and down depending on how banks feel about lending money to consumers. If banks are nervous about lending money, they think there might be too many defaults on loans (people not paying back their mortgages). Lenders may then raise interest rates so that lenders can get compensated for taking on more risk.
Home Availability
Home prices themselves are affected by multiple factors. The availability of homes plays into this equation. When fewer homes are available for sale, the demand increases, which drives prices higher. If there are too many homes for sale compared to the number of people looking to buy them, then prices will fall.
Economic Conditions
Economic conditions also play a factor in the pricing of homes. Inflation and federal interest rates play a large part in the economy. Times that the economy is growing at a healthy rate and inflation is low, home prices tend to rise. When inflation is high, home prices tend to fall.
The housing market is large and complex. Due to the complexity of home buying, many seek help from a professional.
Mortgage Basics
Mortgage interest rates are the cost of borrowing money for your home. The rate is expressed as a percent and can vary depending on the market conditions and the lender. You can shop around lenders. Don’t hesitate to see which home lender will give you the best deal. In addition to shopping lenders, consider looking at different types of mortgages.
Interest Types
There are fixed-rate and variable-rate mortgages; each has its benefits and drawbacks. Fixed-rate mortgages maintain a set interest rate for the life of the loan, making it easier for you to budget for your monthly payments. However, if rates go down or up after you’ve locked in your rate, your interest rate will not change. If you choose a variable-rate mortgage, your interest rate will adjust with the market. Your mortgage and interest payment adjust with the market conditions, good or bad.
Mortgage types are options for home buyers and each has different strengths and requirements.
FHA & VA
An FHA (Federal Housing Administration) Mortgage is an insured mortgage through the federal government. These loans require a lower down payment of 3.5%. They normally are associated with easier credit qualifications and low closing costs. These loans may also require PMI (Private Mortgage Insurance) if the down payment is less than 20%.
VA (Veteran Affairs) mortgages are similar to an FHA loan but these are held specifically for veterans, service members, and their surviving spouses. VA loans may even require no down payment or mortgage insurance. If you may qualify for a VA loan make your real estate agent.
Conventional
A conventional mortgage is uninsured by the government. This means there is a higher risk for the lender. To compensate for this higher risk home buyers must have between 3% and 20% down and a good credit score. If you have a down payment of less than 20% you will be required to have PMI (Private Mortgage Insurance).
Private Mortgage Insurance
If you put a down payment of less than 20% of your home’s value, your lender requires private mortgage insurance. A down payment of 20% will help you avoid paying private mortgage insurance (PMI). This added insurance protects the lender in case you default on your mortgage. Once you have put down or paid off 20%of your mortgage, you can remove the insurance from your loan. Removing private mortgage insurance will decrease your monthly payment. It will also allow you to make more payments toward your principal, which will pay off your loan faster!
Down payments
A larger down payment helps the bank evaluate your creditworthiness. A larger down payment can lead to a lower interest rate and reduced fees. It also will bring down the monthly payment of your new home. Most importantly, it can decrease the amount you pay in interest over time. Decreasing your interest rate can equate to tens of thousands of dollars or more in savings!
Get pre-qualified and pre-approved for a mortgage loan
The first step in buying a home is getting pre-qualified or pre-approved for a mortgage loan. You’ll need to do this before you start looking at homes. It will help you narrow down what kind of house you can afford.
Many times your real estate agent will have a lender they have a relationship with that they trust and can recommend. Ask your real estate agent which lender they would recommend.
Pre-qualification
A pre-qualification is when they’ve analyzed basic information about your financial situation. Your lender then determined that you could qualify for a certain amount of money on your house purchase. This does not mean this is the final amount you are eligible for but a rough estimate.
Pre-approval
Pre-approval means your lender has run checks on other factors such as credit score, employment history, etc. Once they have analyzed these factors and have found you creditworthy, they’ll provide a pre-approval letter. This letter means they are conditionally ready to lend money for your new home purchase. You can now go out shopping for a house and be confident that you will be able to get a mortgage for the amount of money provided. Once you find your dream home and it costs more than your pre-approval letter, you have options. However, you will need to convince your lender or find another lender that you can qualify for more. If this does not work, you will need a larger down payment to make up the difference between their lending amount.
Finding your dream home
Once you are pre-qualified and have your real estate agent lined up, it’s time to start looking for your dream home! The first thing to do is research what you may want in a home. Are there specific features that are important to you? Do you have kids or plan to have kids in the future? Once these things are determined, then be sure to look at homes that fit those needs. Keep in mind, many times you may compromise on some of your wants. For example, you may want a big backyard and still be within 10 minutes of grocery stores and other retail establishments. Upon searching, the only place you can find in your price range has only half the yard you wanted. Understanding or ranking your wants and needs can help you stay objective throughout the process.
Fixer-Upper or Move-in Ready?
Also, consider whether or not you want an easy-to-maintain property or are willing to put work into repairs. If something needs repair now or soon after moving into the home (such as plumbing), you will be responsible for addressing these issues after closing. Keeping in mind the level of work you are willing to do yourself or pay for is something to keep in mind.
Neighborhood
If you’re looking to live in a specific area, then be sure to read up on the local crime rates and other factors that might affect your decision. For example, if you want a quiet neighborhood and are worried about safety, try finding a home with plenty of streetlights or other features that help deter criminals from hanging around!
View Homes
Once you’ve found a few homes you are interested in, schedule time with your real estate agent or the buyer to view the home. Once you’ve found a home that ticks most or all of your boxes, it’s time to put in a contingent offer.
Make an Offer on Your New Home
Once you’ve found a home you want to buy, it’s time to make an offer on the property. The seller will likely have a list price in mind and may accept or reject your bid based on whether or not they think it meets their expectations.
If they accept your offer, you’re one step closer to owning your dream home!
However, if the seller rejects your offer, they may be willing to negotiate with you on other terms, such as who pays for closing costs. You could also choose to walk away from the deal and keep looking. A real estate agent is perfect for navigating these kinds of real estate deals.
Contingency clauses
A contingencies clause is an agreement between two parties that their contingencies must be satisfied before the party is obligated to perform their end of the bargain. The clause allows the party to leave the deal if any of the conditions listed aren’t satisfied.
For example, you want to buy a house and put down 20% as your down payment. However, your lender requires no liens against the property (like a tax lien) before approving you for financing. In this case, we have a financing contingency related to your lender. In addition to liens and other title check issues, a lender, seller, or home buyer may add contingencies related to home inspection, appraisal, and more.
When you are negotiating a purchase contract, make sure to include contingencies in the document. The contingency will save you the hassle and money of losing deposits or having legal issues.
Get A Home Inspection
It is always a good idea to have a home inspection before you purchase. A home inspection brings to light issues that can potentially stop closing or cost you money in the future. The price usually isn’t all that high, but it is money well spent because it helps prevent unpleasant surprises down the road.
A home inspection is even if you’re buying a new construction home. Many things can go wrong during construction and not be discovered immediately (or even after moving in). A builder’s inspection can help find fixable issues before you move in, but it may not find everything.
Close On Your New Home Purchase
When closing on your new home, there are closing costs. These are fees associated with drafting documents and processing paperwork needed for purchasing a home. Closing costs vary and can range from 2-5% of your purchase price (or more). The lender provides a cost estimate before closing. Be sure to ask about them! You can also negotiate who pays what percentage of the closing costs. Be sure to speak to your real estate agent to understand the best option for you.
In addition to closing costs, you should get title insurance. If you have a mortgage, title insurance is required. Title insurance is advisable, even if you are paying cash for your new home. Title insurance is a good idea for any real estate transaction and can provide peace of mind for buyers and sellers alike. It protects against potential title issues, such as liens, unpaid taxes, and past owners with a claim to the property. Approximately 20% of all real estate transactions have a deed or another potential issue that title insurance protects against, making it an essential part of the process for many buyers and sellers.
Conclusion
Buying a home is one of the largest investments most will ever make. If you are buying your first home, speak to experts in the field. Century 21 Realty Services is always here to answer your questions. Contact one of our team members at (717) 737-2121
Career as a Real Estate Agent, is it right for you?
What is a real estate agent?
A real estate agent is a professional who assists people in buying or selling properties. They network with individuals to build a strong book of business they can use to generate leads. In addition, real estate agents provide advice about the real estate market and help home buyers find their ideal home. Realtors in addition are held to a greater code of ethics. That is why brokerage firms like Century 21 Realty Services ensure that all real estate agents that work with us become realtors. Real estate agents help ensure the transactions are completed smoothly, guiding the home buyer or seller through the contract, mortgage, title, inspection, and escrow process.
Why become a real estate agent?
Being a real estate agent can be a great career choice for many people. It offers flexibility, autonomy, and the potential to earn a high income. Being a successful real estate agent requires having and learning many skills. The top skills for success are your ability to generate leads and create long-lasting relationships with clients. A strong network of people that will recommend you to their friends, family, and colleagues buying or selling real estate property will help you increase your earning potential without requiring as many hours of cold calling. Which saves you time and increases your earning potential.
Earning Potential
As a real estate salesperson, the more effort and dedication you put into your career, the more money you can make. It’s essential to stay informed of the latest industry trends and developments. You also will need training and guidance throughout the process to help you efficiently and successfully find and close deals. The level of mentorship, training, and tools your brokerage provides is key to your success.
Your real estate brokerage will be able to provide you with the information and training needed to stay on top of the ever-changing real estate market. Top brokerage firms will help you realize your potential. They will be able to provide you with technical advantages like market information but also the coaching, mentorship, and support to achieve your goals.
In addition, developing relationships with clients and colleagues can open up opportunities for increased success. Your network of both clients and peers helps you grow as a realtor and grow your career.
Flexibility
If you’re looking for a job that offers flexibility, becoming a real estate agent may be an excellent fit. You’ll have the opportunity to work evenings and weekends to help customers find their dream homes. Many customers will have a 9-5 job requiring real estate agents to show properties outside those hours.
However, a lot of work can be done during normal business hours. This can be making phone calls to potential and current clients or looking for new properties for a new home buyer. Ultimately, all your work will be geared at satisfying your customers.
In addition, real estate agents can start at their own pace. As long as you are prospecting (searching for new leads) you can even begin your career with as little time as 4 hours a day, 4 days a week, 3 weeks a month. This will get your career started but you will need to be consistent to keep your business moving toward your goals.
Ultimately, the amount of time input into your business is up to you. Though, the more effort you put into your business as a real estate agent the more you can earn. The more homes you can show, prep, and sell will directly increase your earnings. Plus, you’ll be part of the exciting and rewarding process of helping people find their perfect homes.
Helping the Community
When you become a real estate salesperson (agent), you help people in your community daily. Whether the person is from outside Central Pennsylvania or a new family looking for a new home. You are part of the team that helps them accomplish their dreams.
In addition to helping the community, when homes are bought and sold in a community it brings in additional revenue for the entire community. The new owners will be purchasing new goods and services from around the area.
Also, a brokerage can give back to the community as well. Our Century 21 Realty Services brokerage does charitable drives and donations throughout the year to help support our community members and their families.
Skills needed for success
Being successful in real estate requires a combination of hard work, dedication, and the right skills. While some of these skills may come naturally, others require practice and guidance. Successful real estate agents must either possess or learn the real estate market, the laws governing the industry, and the basic principles of sales and marketing. Selecting a brokerage that supports the knowledge and skill growth of their team is vital for a new agent. Without a network of support from real estate experts, it can be very challenging to enter into the real estate business.
In addition to the learned skills, the “soft skills” are the real key to a successful real estate agent. You must have strong interpersonal skills, be an attentive listener, and be outgoing. These three skills will help you build a strong network of contacts and allow you to more readily generate leads.
At Century 21 Realty Services, we talk about having D.N.A. or Desire, Need, and Ability. To be successful as a real estate agent you must desire to be a real estate agent. No matter the reasons why having that desire will help you persevere and succeed. In addition, you must have the Need, which is the willingness to make calls and be told “no” along your journey. Lastly, is the ability. Real Estate Agents must have the soft and hard skills that are mentioned above to really make it in this field. Luckily, most of the skills are able to be learned!
Brokerage Questions
Finding the right brokerage that supports and provides guidance is important in helping you continuously grow in your career. While you are deciding on which brokerage to go with, ask questions to see what kind of guidance they provide. Asking questions such as:
- What kind of resources do you have available to help me develop my skills? How often do they provide updates and analysis?
- Do you offer tools to help me stay up-to-date on market trends?
- What educational resources do you offer to help grow agents’ knowledge?
These questions will help you determine if the brokerage is the right fit for you. Finding a brokerage that can provide you with the resources and guidance you need to develop your skills is essential to maximizing your success and that of your brokerage!
How to become a real estate agent in Pennsylvania
Becoming a real estate agent in Pennsylvania is an exciting and rewarding career choice. To become licensed, you must complete the necessary steps to become a fully licensed real estate agent.
You must be 18 years old and have earned a high school diploma or an equivalent. In addition, you must complete these four steps.
Step 1
Your first step is to complete the pre-license work. You can find the information you need to get started on the Pennsylvania Real Estate Commission’s website.
Read through the requirements carefully and set aside time to complete the 75 hours of approved real estate education. Additionally, online and in-person resources are available to help you gain the knowledge and skills you need to complete the pre-license work. One fantastic resource local to Central Pennsylvania is the Greater Harrisburg Area Association of Realtors. The association provides in-person and online training that will help you with your upcoming exam!
Step 2
Your next step is to take and pass the Real Estate Exam, which you can practice for and take at PSIexams.com. Passing the PA and National Real Estate Exams can be challenging, so it’s crucial to create a plan to help you stay on track and reach your desired timeline. Preparatory courses, like those offered by the Greater Harrisburg Area Association of Realtors, can help you to understand the content and prepare you for the exams. Set a timeline for when you want to take the exams and break down the material into manageable chunks. Ensuring you are prepared to take and pass the exam!
Step 3
Now that you’ve passed, you must join the brokerage. Real estate brokerages, like Century 21 Realty Services, are licensed by the Commonwealth of Pennsylvania to oversee real estate transactions and ensure that real estate agents adhere to the required legal standards.
Consider factors like brand recognition, customer service, research capabilities, and the level of coaching and mentoring they offer. The brand reputation that the brokerage and real estate firms have are important. Many customers must be convinced why they should buy or sell through you (the real estate agent), your brokerage, and ultimately your real estate company. Working with a brokerage like Century 21 Realty Services breaks down the barrier of selling your customer on your brokerage and real estate company. In addition, our mentoring and training provide the knowledge to help you sell effectively and efficiently, increasing your earning potential.
Another factor to consider is the amount of coaching and mentorship a brokerage provides makes growing your network of home buyers and sellers easier and faster. In particular, Century 21 Realty Services, provides training seminars and one on one mentoring experiences all at no expense to our affiliates.
Step 4
Once you have joined a brokerage you are eligible to submit a licensing application to the Pennsylvania Real Estate Commission. You must provide proof of completing the pre-licensing course and a criminal background check.
Upon completion of the above 4 steps, you are an official Pennsylvania real estate agent! Your new exciting career path awaits you. We wish you all the best as you embark on this journey.
Next Step
Once you become a real estate agent you could then become a Realtor. A Realtor takes the commitment to transaction oversight and customer service an extra step. Realtors are bound to a code of ethics that requires them to be honest, open, and communicative while helping customers. Becoming a Realtor provides extra credibility and knowledge which will help you throughout your real estate career.
Join our Team
Are you ambitious, have a growth mindset, and are interested in a career as a real estate agent? Our brokerage, Century 21 Realty Services, may be the right fit for you. We are looking to support local real estate agents achieve their goals. If the fast-paced career with unlimited earning potential is of interest to you, reach out to us today at century21rs@century21rs.com or (717) 737-2121.
Why Real Estate Agents Love Century 21 Realty Services
At Century 21 Realty Services we have been providing results-oriented personalized service to our clients for the last three generations. Century 21 Realty Services is the trusted source for full-package real estate services, offering our clients’ agents the highest level of professionalism and a concierge quality of service. Our team philosophy has earned us the title of the #1 Century 21 in Central Pennsylvania. Every agent also has total access to every member of our team, including Jordan Piscioneri, President of Century 21 Realty Services. He makes himself available on a daily basis to help our office’s commitment to excellence. We have been recognized with Century 21’s President’s award and countless other Quality Service Awards over the last 45 years of service to Central PA.
Defying Mediocrity
At Century 21 Realty Services, we believe that giving 100% is not good enough. We strive for 121%. In this effort, we are dedicated to providing our real estate agents and customers with an exceptional experience that exceeds their expectations. We never settle for anything less than the best and commit to providing concierge-level service to each individual who comes to us. We strive to be the best in the industry and are proud of what we achieved and continue to achieve.
It has become our standard to continually earn the highest available customer satisfaction ratings, along with countless awards and accolades. This commitment to concierge-level customer service has earned us a reputation in Central PA. This has led our clients to return for their next real estate need and refer others they know in need.
Why Be A Century 21 Real Estate Agent
At Century21 Realty Services, we strive to create an environment of mutual support and growth. Our motto of “We give of ourselves so that others may succeed” is our commitment to our real estate agents to go above and beyond, to invest in themselves, and their success. We are excited to invest in our agents and provide them with the resources they need to have a career worth having. Our team has seen great success in the past. We believe that with the knowledge, training, and support our real estate agents receive, we can continue to grow, become stronger, and reach new heights. We are committed to providing our agents with the best possible resources to help them succeed.
How We Support Our Agents
Century 21 Realty Services is an excellent choice for those looking to gain experience in the real estate industry. We are committed to helping our real estate agents with ongoing training and development, as well as guidance and coaching. We also offer various services tailored to help agents succeed, such as helping with marketing, contracts, and loan processing.
Century 21 Realty Services believes in the idea of the “One Stop Shop”, in service of that belief we began Purity Abstract in 1986 as an affiliated company. They handle title insurance and closing services for real estate agents across Central Pennsylvania. Like us, Purity Abstract is dedicated to providing the highest quality title insurance and customer service. With Purity Abstract, real estate agents can rest assured knowing that they are receiving the purest titles possible. Additionally, Purity Abstract offers concierge-level customer service that is unparalleled. This network of businesses offers a full suite of solutions for our agents and their clients. This allows our agents full control of their customer’s experience from the first viewing to closing. We understand the effort required to get a client to the closing table and that closing day should be a moment of celebration, we want them to remember YOU, not the issues at closing.
A Career at C21 Realty Services
With a career at Century 21 Realty Services, you enter the marketplace with credibility. Our clients come in with knowledge of our brand and a level of comfort that allows you to make the most of every interaction. Getting straight to selling or buying and not having to sell them on yourself and your company. Also, becoming a team member of a nationwide brand provides access to trends from across the country, allowing you to proactively develop new strategies. This powerful network helps assure your success as you continue to grow and develop your career. The Century 21 brand at your back and a large portfolio of tools to leverage allow our agents to deliver the concierge-level service our customers have come to appreciate. This experience is what keeps them returning and referring friends and family to your network.
Coaching and Tools
Joining the team at Century 21 Realty Services is an excellent way to take your real estate career and life to new heights. With our network of experienced agents and resources, you can benefit from the tools, services, coaching, and mentorship needed to help you succeed in the industry. In addition, our range of services and support help you reach more clients and maximize your earning potential. All realtors with Century 21 Realty Services are provided with world-class marketing tools that help you grow and track your book of business. With Century 21 Realty Services, you know you have the best resources and opportunities to succeed.
Also, we are here to help real estate agents make the most of their time. Our training programs provide you with the knowledge you need to succeed in prospecting for different clients, including luxury homes and commercial properties. With our marketing and prospecting tools, our real estate agents are able to take their careers to new heights. We help to demystify all the technology so that it’s easy to understand how to incorporate these tools into your business for maximum results.
How To Become a Real Estate Agent
Being a real estate agent requires wearing many different hats. As an agent, you will create a book of business through your network of personal connections, sphere of influence, and customers. Real estate agents also evaluate properties, negotiate contracts, help clients with paperwork, and provide advice throughout the entire process. Additionally, you will need to be knowledgeable in areas such as local market conditions, property values, financing options, and regulations. The role of a real estate agent requires excellent customer service, strong communication, negotiation, and problem-solving skills.
Becoming a real estate agent in Pennsylvania requires you to complete the necessary steps. To qualify you must be at least 18 years old and have earned a high school diploma or an equivalent.
In addition, you must complete the following steps:
- Pre-license work provided by the Pennsylvania Real Estate Commission.
- Pass a real estate exam.
- Join a brokerage.
- Obtain your real estate license!
Think a career in real estate is right for you? Learn more about the field and how to become a real estate agent here.
Throughout your career, you must also complete continuing education requirements. The Pennsylvania Real Estate Commission requires all licensed real estate agents to complete 24 hours of continuing education every two years in order to maintain their license.
However, in order to achieve your career goals, you must stay on top of industry and market trends. Brokerages like Century 21 Realty Services help real estate agents grow their businesses with many tools and support. Allowing you to make better deals and grow your business effectively.
Is Real Estate Your Career Calling?
Are you interested in starting your real estate career? Century 21 Realty Services is the perfect place for you! Our team of experienced staff has helped many ambitious and growth-minded individuals achieve success in the real estate industry. We offer a fast-paced and rewarding career that will help you reach your goals. We are always looking to expand our team. If a fast-paced, exciting career with unlimited earnings potential sounds like the fit for you. Reach out to us today at century21rs@century21rs.com or (717) 737-2121.
