Real Estate Transactions

What Happens During a Real Estate Transaction?

The phases of a real estate transaction process vary depending on the customers involved. But they all have a start and a finish or closing if all goes according to plan! 

 

1 – List your home for sale or look for the ideal property

The seller lists his property for sale, and the buyer looks for the perfect home. Before looking for your next home, the first step is to get pre-approved by a lender. This letter states the money you will borrow from the bank and the amount you plan to pay upfront for the property.

 

2 – Offers

The buyer has their real estate agent draft a purchase agreement outlining the price, conditions, and deadlines they want to bid. The price at which a property is advertised, known as the “listing price,” is not always the price a buyer pays for the house.

 

3 – Negotiation

This is usually the most nerve-wracking aspect of the deal. The seller has the right to examine the bid and then make a counteroffer with the price and conditions that they prefer. During this phase, a seller can only deal with one offer at a time. Even if there are several offers on the property, the seller will select the most valuable deal, forcing the other buyers to start the hunt again. The “purchase price” is the final price agreed upon following negotiations. The date on which all parties agree to accept the final counteroffer is the “effective date of the contract.”

 

4 – A title company or a lawyer

The buyer or seller may choose the title company or a different representation can be retained. The buyer pays an initial fee, generally called “earnest money,” to the title company that will maintain it in a non-interest-bearing escrow account until the home closes. The escrow officer keeps track of this money and ensures it is available at closing.

 

5 – Appraisal, inspections, and repairs

The next phase of the transaction has begun, along with all of its pitfalls and concerns. The mortgage company needs to ensure the house appraises for the price the buyer wants, so it will send a third-party appraiser to do a full report on the home’s price about other comparable homes in the neighborhood. Home inspections are ordered and completed, and the seller is given a list of required repairs. The listing and selling agents then negotiate to see how many found fixes the seller is willing to fix and how many the buyer is willing to fix themselves. If the seller refuses to complete the repairs or give the buyer a closing cost refund, the buyer typically revokes the bid, and the process begins again.

 

6 – Contingency removal

In the real estate process, several deadlines must be met. The buyer must obtain funds and unlock the contingency by a specific date. Inspections include contingency deadlines that enable all negotiations to be completed by a particular date. Before the transaction closes, agreed-upon repairs must be made and receipts issued.

 

7 – Closing

The title company or lawyer has to prepare all closing papers for the buyer and seller to sign to transfer possession of the land. A title check will ensure that the seller has the legal right to sell the property and that the title is free of any problems that may postpone the closing. The mortgage firm will issue a “clear to close,” which allows everybody to exhale a sigh of relief because the buyer’s mortgage is now finalized, and the funds are ready to be transferred to the seller. A notary must be present to notarize the papers that the buyer and seller are signing.

 

Basic Steps for Closing a Real Estate Transaction

As the closing process is one of the essential parts of the real estate transaction process, people often look to know how it happens. To understand the real estate closing between two parties, you need to follow these steps: 

• Choose a real estate transaction attorney or company for closing transactions.
• Submit an initial deposit to your agent to retain your titled account.
• Collect all the insurance and coverage proofs because the mortgage company requires proof to close a transaction.
• Make sure that your title company is issuing title insurance.
• Fulfill all the terms and conditions of the mortgage company to access a complete buyer list of items. 
• Be prepared to move by packing up your luggage and hiring movers.
• Briefly review the closing disclosure sent by your entitled company. Check whether all the home-associated cost purchases are mentioned or not. Furthermore, the buyer is supposed to submit the final due amount to the title company even before closing, 
• Verify all the house maintenance issues by a final walk of the house before closing. 
• Collect and prepare all documents required for closing, such as photo, license, and proof of transaction transfer to an agent and a checkbook. 
• As closing occurs at the real estate attorney’s office, all the dealings will be done there. The buyer will get his keys, the company will get his funds, and the seller will get his due transaction after signing the document. 
• Remember to take advantage of the homeownership benefits and residential exemptions. 
• Remember the monthly coupon of the mortgage company that you will have to pay for a few months of mission closing. 

 

Role of Different Parties Involved in Real Estate Transaction

Here are some main parties involved in making a real estate transaction successful.

 

1- Real Estate Agent

A real estate broker or agent works for one of the main parties: seller and buyer. Sometimes, the same agent works for both parties to close a transaction. An agent is important in transferring a property from buyer to seller. Every party comes with its real estate agent. 

 

2- Buyer

Buyers contact a real estate agent to purchase a real estate property through a whole argument. The main purpose of the buyer is to contact the agent to seek help negotiating the property’s price. 

 

3- Seller

A seller is a person who deals with a real estate agent by giving him authority to market his home to attract potential buyers. 

 

4- Mortgage Lenders

Mortgage lenders are those who assist buyers in fulfilling the necessary paperwork. Whenever you plan to buy a home with a real estate agent, contact a lender first to seek guidance. Because the lender will pre-qualify you for the finances you can get. It will help you in selecting the home to buy accordingly. 

 

5- Home Inspection Companies

The role of home inspection companies is also of great worth. It’s because they can evaluate the quality of the house in a better way. Such companies will ensure that the house is in good condition and made up of high-quality construction materials. 

 

6- Real Estate Transaction Attorney

The conventional way is to do all the paperwork done by the title companies. However, the advanced and reliable way of fulfilling a real estate transaction is through an attorney. The key responsibility of a real estate attorney is evaluating the home’s title to clarify the easy transfer of the home to the buyer. 

Before signing a transaction contract, your attorney’s lawyer will ensure whether the seller legally owns the property. Give three to four weeks for your lawyer to check the clarity of all matters before finalizing the paperwork. 

 

Reasons You Need a Real Estate Attorney To Handle Transactions

Only some people want to retain their property, security, and money. Investing without any investigation can be very risky. You should hire a real estate attorney to avoid and reduce such risks. Hiring a real estate lawyer will provide you ease and convenience as your lawyer will work to protect your savings and interests. It will not be wrong to say that a real estate attorney is a shield system for investors. 

 

The following are some reasons why you need a real estate attorney to make your real estate transaction smooth and stress-free. 

 

Clarity

Only some people can understand the legal and official things to get clarity and comfort. When you have a real estate lawyer, he will study all the agreements, documents, and contracts to achieve high transparency in the transaction. There is no need to worry if you cannot understand a legal term. All you need is to contact and communicate with your lawyer to check the validity and transparency of the transaction. 

 

Protection

Another advantage that you can get from your real estate attorney is protection. Because a real estate lawyer will evaluate all your needs and help you to negotiate the overall cost, having a lawyer will work as a support system for you in all situations. It will protect you from investing your money in less beneficial properties. It depicts that seeking attorney help can save you and your family from loss. Feel free to protect your savings by seeking legal counsel to resolve all your problems. 

 

Savings

If you want to save your investment, there are better options than ignoring the need to hire a real estate attorney. You can do more damage to your investment rather than safeguarding your savings. Your investments and savings can be safeguarded by reviewing negotiations and legal documentation. Get experience in financial savings and real estate property knowledge with the help of a lawyer. 

 

Tips For Finding The Best Real Estate Attorneys

You must work with the best attorneys to get value for money during a real estate transaction. However, not all attorneys can meet your needs and expectations during such a process. Some of them will end up complicating matters for you. Below are some tips that can help you hire the best attorneys.

 

Being Specific

This is one area where many people need to improve. They contact any lawyer that comes their way to help out in such transactions. The truth is that only some attorneys understand real estate. This is because of its complex and ever-evolving legislation. Ensure you choose a lawyer with vast knowledge and experience in real estate.

 

Reviews Are Crucial

Hiring a real estate attorney without considering his performances in the past with other clients is similar to shooting yourself in the legs. This is because you could end up getting burnt. Today, there are numerous online platforms where you can learn more about an attorney before making any financial commitment.

 

Contacting The Bar Association

With the bar association, finding real estate attorneys rendering legal services around your area will be easy. Another benefit it can offer is ensuring you choose a registered and licensed attorney.

 

Asking The Right Questions 

It is quite shocking to know that people are prepared to hire the services of real estate attorneys without asking important questions. This can make you hire a different lawyer. You need to ask questions about the services you are searching for. These are questions like:

• Do you outsource tasks or handle them yourself?
• Have you handled a real estate transaction like this before?
• Can you tell me any possible complication that is likely to arise?
• Can you render any professional advice for this transaction?

With questions like these, you will know whether an attorney is good enough or not to handle your real estate transaction.

 

Real Estate Transaction Attorney Near Me

Our team has extensive knowledge and has worked with clients in all areas of real estate. We work hard to achieve the best possible result for our clients by considering their goals and conducting a thorough and objective analysis of the most effective way to achieve them. You can enjoy fair, high-negotiating, and smooth processing through our real estate transaction attorney. We assure you to make the transaction process transparent and clear. 

If you or your loved one are looking to move or purchase a new home, contact Attorneys Real Estate Group today. Please contact us online; we look forward to assisting you.