Stepping Stones of a Real Estate Transaction
Congratulations, you’re a first time home buyer or just have been out of the home buying process for some time – here are the stepping stones of a traditional real estate transaction. Whether you’re in the home market in Central Oregon or elsewhere consider these common practice nationwide.
1. The Offer
Your home search has come to one you can see yourself living in. It’s on budget, your desired location, and so much more. Now comes the business side of things, your offer. Your broker
is there to assist you in this process as the market and competition continually fluctuates. You don’t want to overpay and you don’t want to under offer only to lose the home. Consult with your broker to find the offer sweet spot.
2. Acceptance Between Parties
Yahoo, the offer is in and the current owners are on board. That is fantastic… Now what? Mutual acceptance generally comes with additional requirements like deadlines and earnest money. The deadlines pertain to how long an offer is good for as a homeowner doesn’t want to miss an opportunity to sell if their home is tied up with ‘tire-kickers’. Most often, there is a 30 day period for due diligence. Next would be the earnest money (aka deposit). Depending on the negotiations earnest money can be non-refundable if you come across an issue with the property or would like to walk away. Your broker is there to assist you as well.
Now we’re getting serious, a professional is inspecting your home to ensure it’s operating and constructed properly. Inspections are done by the buyer at the buyer’s expense. After inspection and depending on what arises, buyers can ask for repairs or renegotiate the offer if something comes to attention, for example, a faulty HVAC system.
Since most take out a home loan to purchase a property, the lender mandates a home appraisal to ensure the asset is in the range of the listing price in case of foreclosure.
5. Final Walk Through
It’s a big investment, here’s is the time to make sure you love this property and that any repairs that may have be negotiated have been completed – it’s the final walk through.
The light at the end of the home tunnel is here, closing time! This paperwork filled period requires both parties to finalize the deal. If there is a loan on the home, it must be paid off via the new loan and documents are sent to the courthouse to record the sale.