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Real estate transaction

A real estate transaction is the purchase/sale of real estate, the equivalent of a trade in the world of investments.

Expanded Definition

A typical real estate transaction varies somewhat with the various state laws and regional customs, but certain steps are usually involved--

  • The real estate agent prepares information about the property usually entered into the listings on Realtor.com or other similar databases of properties for sale. The realtor also advertizes the property and conducts various activities to market it including open house.
  • A buyer typically will meet with a realtor to represent his interests, but sometimes will contact the selling realtor directly from the listing.
  • The buyer makes an offer on the property of interest by submitting a signed sales contract with earnest money through the realtors. Buyer and seller negotiate a price through their realtors.
  • Once the sales contract has been accepted by the seller, buyer has 10 days to inspect the property or hire experts at his expense to investigate various aspects. Results of the inspection can result in requests to have defects corrected or negotiations for an allowance from the seller.
  • The mortgage lender has the property appraised to see that it is worth the money being loaned on it. As part of this, the property is often surveyed to insure its description in the title is accurate.
  • Once all is ready, the buyer and seller meet at close where buyer presents payment and seller turns over the keys and title.

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