Chad Hegrat
Finding the perfect property can be a time-consuming and exhausting process when you’re in the market for a new home. Between sifting through listings, scheduling showings, traveling for tours, gathering information, and communicating with sellers or agents, it can feel like a full-time job. Once you finally discover a home that feels like the right fit, you may feel ready to make an offer. But what happens next? Securing that ideal property is just one step in a much larger journey, and many buyers are surprised to learn what follows after they’ve made an offer.
Once you’ve found the perfect home, the process involves more than just telling the seller, “Hey, I want to buy your home for X amount! Are you interested?” While this might be a part of the initial discussion, a formal offer must be submitted to the seller. This is typically done through a legally binding purchase agreement or sales contract. Once submitted to the sellers, the formal process of purchasing a property begins.
The sales agreement/contract outlines the price you’re willing to pay for the home, the terms of the sale, and any contingencies that you may want to include. The contingencies are conditions that must be met before the sale can go through, such as securing financing and homeowners’ insurance, passing an inspection, or even selling your current home. This is where you, your real estate agent, and potentially an attorney come into play to ensure that all the necessary details are addressed.
After submitting the offer, the seller has a few options. They can accept your offer as-is, reject it outright, or make a counteroffer. This counteroffer may involve adjusting the sale price, the closing timeline, or certain contingencies. It’s important to note that negotiations can go back and forth a few times before both parties agree on the terms.
Once both you and the seller agree to the terms and sign the contract, the process moves into escrow. Escrow is a neutral third-party service that holds the buyer’s earnest money deposit and oversees the transfer of ownership. The escrow company ensures that all the contractual obligations are met by both parties before the transaction is finalized.
Once all contingencies are met, inspections are completed, and financing is secured, the closing process begins. During the closing, you and the seller will sign the final paperwork that legally transfers the property to you. This includes the deed of sale, mortgage documents, and other necessary legal forms. You will also need to pay closing costs, which can include things like attorney fees, title insurance, recording fees, and the remaining portion of your down payment.
In summary, purchasing a home is far more than just finding the right property and making an offer. From negotiating the purchase price to securing financing, conducting inspections, and ultimately closing the deal, there are many steps involved in the process. Understanding each stage can help you prepare for the complexities of homebuying and ensure a smoother, more informed transaction. If you are a first-time buyer, working closely with a trusted real estate agent, an attorney, and a mortgage broker can be invaluable in navigating the process and avoiding any unexpected surprises.
With the right preparation and guidance, you’ll be able to move confidently through the homebuying process and, before long, unlock the door to your new home.