Making an offer
Once you have selected a property we will make an offer. The CMA (comparative market analysis), together with the seller’s disclosure and inspection reports will help you decide an offer price. A CMA is a comparison of similar homes with common features that have sold recently, which will give you a good idea of market value for the property. The seller has four ways to respond, 1) accept offer, 2) counter offer, 3) send a seller’s invitation to submit new offer, or 4) not respond.
Option period
Once a contract is accepted the option period begins the following day. However, in order to receive this right the buyer must pay the seller an option fee no later than 3 days after the effective date of the contract. The option period is negotiated in the contract allowing the buyer to perform due diligence. During this time frame the buyer has the right to terminate the contract for any reason and receive a full refund for the earnest money.
Contract pending
I will make sure your lender and Title company have all the signed paperwork required to close the deal. Your lender will order an appraisal of the property, re-verify your credit and again most likely up to the day of closing. It is important not to make any purchases during this span of time that could impact your debt-to-income ratio or negatively affect your credit score.
An appraisal is required on all residential transactions that involve financing to determine if the property will be sufficient collateral for the lenders loan.
Closing process
At this stage in the process the Title company will perform a title search to determine if the property is insurable. If so, a title commitment will be issue from the seller to the buyer. The Title company will order the survey and ensure all conditions of the transaction are met. One the day of closing the buyer will close first followed by the seller. After all documents have been signed, funding has been completed, a deed will be conveyed to the buyer, a process known as closing and funding. As of 10/3/15, new disclosure rules went into effect increasing time-to-close to 45-60 days in many situations.
The above process is a general overview of a real estate transaction
