An ideal real estate transaction is easy and straightforward.The buyers’ workshop held in June was small, but fun. We talked about foreclosures, financing, current market conditions and how to buy a home. The following is a brief summary from the workshop about how an ideal real estate transaction should be conducted. It holds true for the buyer and seller, and whether you do it yourself or work with a realtor.
The offer is written and presented to the seller. Negotiations occur at that time, and a counter offer may or may not happen. Once all terms are agreed upon, the contract is signed by both parties. The buyer transfers an initial deposit, or earnest money, to a neutral escrow account. This money will be held in escrow until closing. This process usually only takes a day or two.
Escrow is opened, and the work begins. The buyer schedules, attends and pays for a building inspection in the allotted time. All loan documents have been given to the lender prior to the offer, and now the offer is given to the lender and he or she goes to work. The lender orders the appraisal for the property, compiles all of the buyer’s paperwork and submits the package to the underwriter. The underwriter will scrutinize the buyer’s documents to assure that it’s a safe loan to make.
The seller will complete and submit a sellers disclosure form to the buyer within the first few days of acceptance. If it’s a single-family home, staking or surveying is ordered. There’s usually a termite inspection that needs to be ordered. If you are selling a condominium or a home in a subdivision, CC&Rs and HOA documents will be ordered and delivered to the buyers.
A reminder to buyers: It is crucial that during the escrow period, do not make any large purchases. If you buy a car or furnishings for your home, it might show up on your credit report. A major purchase might disqualify you for the loan, and the lenders will check this prior to closing.
Both the buyer and seller should stay in touch with the escrow company or their realtor to assure all is going along smoothly and nothing has fallen through the cracks.
Chris Bakeman, broker, has been a realtor since 1997, selling in both buyers’ and sellers’ markets. Now with her own company, she offers an affordable way to sell your home starting as low as $4,000 full service on the MLS. Contact Chris Bakeman Realty LLC at 283-6126 or www.chrisbakeman.com.