The Real Estate Transaction Step by Step

(Single Family Residence)

  1. Property search
  2. Touring homes
  3. Selection of one or several properties of interest on which to bid
  4. Comparative Market Analysis
    This is a process of comparing homes of similar size, condition, style, etc of SOLD properties and the subject property, to determine value.

5. Offer / Counteroffer
Once value is established, an offer is written proposing the terms and price for the purchase of the subject property. The seller may accept, reject, counteroffer, or do nothing with the presented offer. Parties may remain in negotiation until they reach agreement or until one or both sides determine reaching agreement is unlikely.

6. Deposit Earnest Money
Once under contract, the earnest money will be deposited with an escrow company according to the terms agree upon in that contract. It will be deposited within 1 business day of mutual acceptance unless stated otherwise in the contract.
You will need to speak with your insurance agent and obtain an insurance binder at this time.

7. Title Report Review
A clear Title is required for institutional financing. There is also a public records search completed on the Seller as well as Buyer.

8. Building Inspection
Not required, but certainly recommended for all properties. This determines property condition, not the value.

9. Work Order Negotiation
There are three results of the inspection:

10. You may approve the inspection and waive the contingency.

11. You may disapprove the inspection and cancel the transaction.

12. You may disapprove the inspection and ask for repairs to be made or financial modifications to be made to the contract.
The transaction will fail at this point unless new agreement can be reached.
When an inspection contingency is part of the contract and the transaction fails because of a disapproved inspection the earnest money is returned to the Buyer.

13. Appraisal
This is ordered by the bank but paid for by the Buyer, and determines value.

14. Final Loan Approval
Throughout the transaction you will be in contact with your loan officer and their processing department. They may ask you for documents, statements, letters, or other underwriter requirements. Provide these as quickly as possible.

15. Signing
This usually takes place at the escrow officer’s office. Your real estate agent and/or loan officer may come with you but do not offer advice at this stage of the transaction.

16. Funding and Recording
When the lender funds the loan, funds are wired to escrow. The lender releases the escrow company to record the new deed with the county. Once those two things have happened the Buyer own the property.

17. Key Transfer & Possession
There are a variety of ways of transferring the keys and we handle that in a way that is convenient to all parties

18. Congratulations! You now have your new home.

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