Moving Out Monday: The Real Estate Transaction

The real estate transaction process starts when the seller puts the house up for sale and ends when the buyer and seller meet at the closing. Many factors are involved from the time when the “For Sale” sign goes up until it is changed to a “Sold” sign. Below is a general guide through the typical real estate transaction.

If you are selling your home, you begin by hiring a listing agent. It is possible to sell your home without a listing agent, however it is best completed with the help of a real estate professional. A real estate professional knows the ins and outs of the transaction and can be of great help to the seller. Your agent will determine the value of the home by using a Comparable Market Analysis. This will show homes in the seller’s area that are up for sale, under contract and recently sold. The condition, features and amenities will also determine the price of the home. The Realtor will also go through the house and give advice to the seller on how the home should look for showing and will take photographs for marketing purposes. As the seller, you will sign a contract for a certain amount of time with the listing agent.

Next step is the seller’s disclosure of property condition. In this form the seller fills out all the appliances and features in the home as well as the working conditions of each item. The home service contract is also filler out that allows the sellers to either opt in or out of providing a home warranty for an extra incentive to buyers. The warranty may cover repairs to heating units, water heaters, air conditioners and appliances.

Fourth step is listing the home. This is when the home is given an MLS number and is listed across multiple real estate websites. The “For Sale” sign will be placed in the yard with the Realtor’s information as well as brochures for potential buyers. A lock is added to the front door so that other real estate professional may show the home to their clients. Typically, the seller will be called when a buyer is interested in viewing the home.

When the buyer chooses a home, a purchase offer contract is sent to the seller. This is when the real estate agents negotiate on behalf of their clients until an agreement is reached. When the agreement is made, the home needs to be inspected. Hiring a certified home inspector is important to check structural elements, exterior, heating system, air conditioning, plumbing, roof, electrical, etc. After the inspection the buyer needs to do a final walkthrough if any repairs had been made before the closing. The title company handles the closing. Both buyer and seller pay closing costs to the title agent. At this point in the transaction the lender will have approved the loan and the interest rate is locked in. Finally the keys are handed over, the real estate agents are paid and the seller receives whatever is left after the previous mortgage is paid off. 

For more information, head over to our Seller’s page.