The Ultimate Guide To Real Estate Transactions

A real estate transaction is the process that occurs when a seller offers their home for sale, and a buyer agrees to purchase that property. There are many steps involved in buying a house, and the steps vary depending on the type of transaction and the state regulations.

Key Players in a Real Estate Transaction
Real Estate Agent/Broker: Works for either the seller or buyer, and is responsible for guiding them through the transaction process.

Transaction Coordinator: Supports the broker or agent by keeping the deal on track, handling administrative tasks, and ensuring all documentation is submitted.

Seller: Formally agrees to list their home for sale with a real estate agent and authorizes the agent to market their home to attract buyers.

Buyer: Works with a real estate agent to find their perfect home, negotiates the purchase offer, and applies for a mortgage.

Mortgage Lender: Assists the buyer with the mortgage application process and provides pre-qualification letters.

Home Inspection Company: Evaluates the property to ensure it is in good condition and up to code.

Title Company/Lawyer: Handles the closing process, ensures all documents are signed and notarized, and updates public records to reflect the new ownership. Read Information

The Real Estate Transaction Process
Listing and Marketing: The seller lists their home for sale, and the agent markets the property to attract buyers.

Offer and Negotiation: The buyer makes an offer, and the seller and buyer negotiate the terms of the sale.

Inspections and Due Diligence: The buyer conducts inspections and reviews the property's condition.

Mortgage Application: The buyer applies for a mortgage, and the lender processes the application.

Closing: The buyer and seller sign the final documents, and the title company updates public records to reflect the new ownership.

Get the Keys: The buyer receives the keys to the property, and the transaction is complete.

Commission Distribution
The selling agent receives a gross commission from the deal, typically around 6%. This money is split equally between the buying and selling brokerages, and the commission distribution between the brokerage, agent, and other team members depends on the company's commission structure.