A Common Person’s Guide to Real Estate Transaction Process
It takes a person on average between 30-45 days to close on a home they’ve put an offer in on. If you’re purchasing a home, one thing you’ve got to know about is the real estate transaction process.
Knowing what the process entails will help you temper your expectations and prepare for each part of the journey properly.
Who’s Involved in the Transaction?
Before we get into the real estate transaction checklist, you must understand whose involved in the process. Parties including yourself are:
- Real estate agent
- Home inspector
At some point in the process, you will have spoken with each of these people. Now that you’ve got knowledge of who will be involved in the process of your purchasing your home, it’s time to get to the process.
Home is Listed
The first thing that will happen in this process is the seller will list their home for sale. As someone looking to purchase a home, you’ll contact your real estate agent and request a tour of the home.
Before touring the home, you should get pre-qualified so that you’ve got a better understanding of the budget you’re working with, and it lets the seller know you’re serious about purchasing a home.
Make Your Offer & Negotiate
Once you’ve determined that a home you’ve toured is the one you want, it’s time to put in your offer. After you’re offers been submitted to the seller, you will wait until the deadline for the seller to either accept or reject the offer.
Sometimes the seller will reject your offer by countering with their own. You should speak with your agent to ensure the next offer you make is one the seller will accept.
Earnest Money Deposit
When your offer is accepted, the next thing you will do is present a deposit to the title company. This is called earnest money and the initial payment.
We recommend you do some research to understand which is better, a wire transfer vs. ACH.
Inspections, Repairs, and More
During this phase, there will be several things that happen, including a home inspection. The inspector will determine what repairs need to be made, and your agent will submit a list of the repairs that you wish for the seller to make.
The home will also be appraised to determine the home’s value compared to the other homes present in the area.
The day you’ve been waiting for, it’s closing day. Prepare to sit with the seller and both your agents to sign the necessary paperwork.
Sometimes closing can take an hour, while other times it can take hours. We recommend you bring your pen and get ready because you’re going to spend quite a bit of time signing paperwork and taking photos before receiving your kids.
Real Estate Transaction Process: What to Expect?
We’ve detailed the real estate transaction process for you above, beginning with the home’s listing to closing day. The process can be long, but it will be worth it.
We hope you found all the information you were looking for and encourage you to check out some of our other posts.