Once a buyer has submitted an offer on a property and it has been accepted by the seller, the real estate transaction enters the next stage. In this stage, there are a few important steps that both the buyer and seller must take in order to ensure a smooth and successful closing.
Deposit
One of the first things the buyer must do after their offer has been accepted is to provide a deposit. This deposit shows the seller that the buyer is serious about the purchase and is willing to put down money as a sign of good faith. The deposit is typically held in an escrow account and will be applied towards the purchase price at closing.
Inspection
After the deposit has been provided, the buyer will typically have a certain amount of time to conduct an inspection of the property. This inspection is important because it allows the buyer to identify any issues with the property that they were not aware of before making the offer. If any issues are discovered, the buyer can request that the seller make repairs or provide a credit at closing to cover the cost of the repairs.
Appraisal
Once the inspection is complete and any necessary repairs have been made, the lender will typically order an appraisal of the property. The appraisal is an evaluation of the property's value and is necessary to ensure that the lender is not loaning more money than the property is worth. If the property appraises for less than the purchase price, the buyer may need to renegotiate the price or come up with additional funds to cover the difference.
Title Search and Insurance
During this stage of the transaction, the title company will conduct a search of public records to ensure that the seller is the rightful owner of the property and that there are no outstanding liens or other issues that could affect the buyer's ownership of the property. The title company will also issue title insurance to protect the buyer against any future claims against the property.
Closing
Finally, after all of the necessary steps have been completed, the transaction will move towards closing. At closing, the buyer will sign all of the necessary paperwork and pay any remaining funds due, including the down payment and closing costs. Once all of the paperwork has been signed and the funds have been exchanged, the buyer will receive the keys to their new property and the transaction will be complete.
Overall, the period between the acceptance of the buyer's offer and the closing of the transaction can be a complex and sometimes stressful process. However, by following these important steps, both the buyer and the seller can ensure that the transaction is completed smoothly and successfully.
