The Life of a Real Estate Transaction
- from the buyers side -
Buyer Brokerage Agreement
• Choose your Realtor (I have a great suggestion if you need an agent)
• Review the Buyer Brokerage Agreement and negotiate a commission percentage your Realtor is entitled to.
• Sign the Buyer Brokerage Agreement
GET PRE-APPROVED
• Contact your lender/bank
• Obtain a pre-approval letter
• Be ready to ask for separate pre-approvals that are property specific
PROPERTY SEARCH
• Search properties on your own
• Go see homes with your Realtor!
• Consider properties sent to you by your Realtor
• Drive by homes that interest you
• Go to open houses.
WRITE THE OFFER
• Always offer your highest & best
• Review the offer with your Agent
• Ask every question you have
• Sign it and your Realtor will present the offer to the seller
RATIFIED CONTRACT
• Review any counteroffers
• Negotiate terms
• Achieve an accepted offer!
DEPOSIT EARNEST MONEY
• 1% Sales price is common shows how serious you are
• Typically due 3 business days from ratification
• Deposited to Escrow
TITLE SEARCH
• Ongoing from ratification
• Title company makes sure there are no clouds on title
• A Preliminary Title Report will be provided
SCHEDULE INSPECTIONS
• Professional home inspection
• Sewer scope
• Radon test
• Oil tank scan
• Other optional inspections
• Typically buyer expense
LOAN APPROVAL
• Begins when offer is ratified
• Ongoing process between you and your lender/bank
WRITE THE REPAIR ADDENDUM
• Review inspection reports
• Choose only the most important items
• Seller can agree, counter, or refuse and terminate contract
APPRAISAL
• Often ordered upon satisfaction of the inspection contingency
• Appraisal times vary from 2 weeks to 45 days
• Typically a buyer’s expense
the quiet period
• After repairs are agreed upon communication will significantly lessen
• Lots of background activities keep happening
• You and your Realtor may not have much communication but
• This is a great time to start packing and getting ready for your move!
FINAL UNDERWRITING
• Appraisal comes back
• Loan goes into final review
• Loan rates get locked in
CLOSING DISCLOSURE
• “CD” is sent to buyer to sign
• TRID rules require 3 day waiting period that docs must sit at title before signing.
CLOSE & RECORD
• Buyers final review of loan documents and deed
• Sign documents at title office, remotely from your home, or with a mobile notary
• Deed gets sent to county to record
GET KEYS!
• Once county records the house is yours!
• Your Realtor will give you keys
• Your Realtor will take some lovely photos of you in front of your new home
• Rejoice and relax! It’s Done!
WRITE SOME REVIEWS
• A good review is one of the best things you can do for your agent to help them in their business!
• Consider writing a review for your loan officer and title rep as well!
• Keep in touch and recommend your Realtor to family and friends. Remember they can still be your resource even after a deal closes!