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Anatomy of a Real Estate Transaction
1. Decision to Sell
a. Seller considers factors to sell
b. Contacts Real Estate Agent
c. Determines potential selling price
d. Executes Listing Agreement
2. Buyer Decision to Buy
a. Buying factors influence buyer
b. Contacts Real Estate Agent
c. Pre-qualifies for loan
3. Marketing and Search for Property
a. Seller and Agent determine marketing strategy
b. Open houses, personal showings
c. Internet showings, newspaper, yard signs
d. Word of mouth
4. Selection of Property
a. Buyer views property
b. Buyer agent convinces buyer of need
c. Buyer executes Offer to Purchase
d. Seller accepts offer
e. Buyer receives notice of acceptance
5. Pre-closing preparations
a. Loan application and qualification
b. Inspections
c. Survey and appraisal
d. Title Insurance
5. The Closing and Transfer of Possession
a. Preparation of Documents
b. Computation of Buyer and Seller amounts
c. Execution and exchange of documents and money
d. Transfer of possession (delivery of keys)
6. What happens after the Sale
a. Recording of Documents
b. Delivery of Recorded Documents
c. Reporting of sale to IRS