Every story of buying and selling a home is different, but there are many common steps that potential buyers and sellers should be familiar with before embarking on their respective journeys. This guide explains the steps and roles involved in purchasing and selling a home. This information is not a comprehensive look at every homebuying experience, nor is it intended as legal advice.



Buying a home


Deciding to buy a home
Who’s involved: the buyers
Potential buyers need to decide if buying a home is right for them. Many people look at the market and how long they intend to stay in a home when deciding to buy or rent.


Getting prequalified
Who’s involved: mortgage lender, buyers
The buyers contact a mortgage lender to get prequalified for a loan once they decide to start looking for a home. Prequalification typically involves a phone conversation between the buyers and lenders discussing credit, employment and collateral. The prequalification amount gives the buyers an idea of what they can afford to spend on a home. Buyers can choose which mortgage company they want to use for the prequalification process.  A real estate agent often has a list of companies he or she can recommend.


Searching
Who’s involved: buyers' agent, buyers
The buyers often use a real estate agent to lead the home search. The buyers' agent learns the criteria the buyers are looking for, including price, size and location. The real estate agent can set up a search so the buyers know when a home that meets their criteria hits the market, and many agents will learn of properties even before they are listed. In Central Texas, buyers should be prepared to move quickly on houses they want to purchase.


Offer
Who’s involved: buyers’ agent, listing agent, buyers, sellers
When the buyers find a house they want to pursue, they put in a purchase offer. The buyers’ real estate agent writes up an offer and presents it to the sellers’ listing agent. The listing agent takes the offer to the sellers, who can then accept, counter, decline or not respond. If the sellers deem the offer acceptable, a sale contract is executed.


Due diligence
Who’s involved: inspector, buyers' agent, buyers, sellers, listing agent
Buyers then contact a home inspector. Often real estate agents have a list of potential home inspectors in the area the buyers can use. Depending on what the inspector finds, he or she may recommend other professionals look at the property, such as companies that specialize in foundation repairs, pest control or roofing. The buyers may use the information to negotiate for repairs or a modified selling price, though the sellers are not obligated to agree to the negotiated terms.


Finance
Who’s involved: lender, lending company employees, appraiser, buyers
The buyers often use the mortgage or lending company they were prequalified with, but they do not have to use the same company. The buyers submit documents necessary to process the loan such as pay stubs and tax returns. The lender submits this information to an underwriter and then the lending company's closing department.  The mortgage company also executes an appraisal. The appraiser determines if the value of the home matches the selling price. Though there are multiple people processing the loan throughout this process, the buyers are typically interacting with the lender.


Closing
Who’s involved: title company, listing agent, real estate agent, buyers, sellers, lender
If the financing is approved and the buyers and sellers have agreed upon any negotiations that arise, a closing date is set. The closing process often takes place at the title company, which is responsible for ensuring the documents involved in the closing process are legitimate and provides an agent at the closing. Both the buyers and sellers go through the paperwork, but usually at different times. After the closing process, the buyers may move into their new home.



Selling a home


Deciding to sell a home
Who’s involved: the sellers
Potential sellers may decide to sell their home based on employment changing, needing to upgrade or downsize, or wanting to change locations.


Finding a listing agent
Who’s involved: listing agent, sellers
The first step in selling a home is usually to identify a listing agent. Though some homes are sold by the owners, the vast majority of homes are sold by real estate agents. Sellers often interview agents to see who will best represent their interests.


Preparation
Who’s involved: listing agent, sellers
The listing agent and sellers get the home ready to be sold by doing yard work, painting or large-scale repairs. A staging professional can also be hired to help make the home attractive to buyers.


Marketing
Who’s involved: listing agent, sellers
The listing agent takes photos and puts them on different listing services along with information such as the home's listing price, square footage, and number of bedrooms and bathrooms. Some sellers hire aerial photographers to take photos using drones.


Offers
Who’s involved: buyers' agent, listing agent, buyers, sellers
In Central Texas, many homes for sale receive multiple offers. Though this can drive up the price, the sellers may not always accept the highest bid if other potential buyers are offering cash, a quicker closing date or other terms amenable to the sellers. The sellers can counter, decline, ignore or accept the offers presented.


Negotiations
Who’s involved: listing agent, sellers, buyers, buyers’ agent
After the buyers perform their due diligence by getting the home inspected, the sellers can respond to any negotiations the buyers may put forth. For example, if the air conditioner needs repairs, the sellers may offer to replace it, reduce the home's list price or ask the buyers to move forward as is. If both parties agree to the negotiated terms, a closing date is set.


Closing
Who’s involved: title company, listing agent, real estate agent, buyers, sellers, lender
If the financing is approved and the buyers and sellers have agreed upon any negotiations that arise, a closing date is set. The closing process often takes place at the title company, which is responsible for ensuring the documents involved in the closing process are legitimate and provides an agent at the closing. Both the buyers and sellers go through the paperwork, but usually at different times. After the closing process, the buyers may move into their new home.


Sources: 
Cindy Crawford, Keller Williams Real Estate Agent
512-522-5002
www.cindycrawfordhomes.com


E. Lee Smith, Georgetown Mortgage
512-930-7888
www.georgetownmtg.com