The Real Estate Transaction Process
If you’re not a realtor, the real estate transaction process probably isn’t familiar to you. When most people think about real estate it’s: house hunt, secure a mortgage, sign papers and move in. However, the full transaction process requires lots of paperwork, multiple people, and tons of time and energy. Throughout the real estate process, having someone, like a Transaction Coordinator, who is trained to tune into all the details, can help tremendously.
The Real Estate Transaction Process
If you’re not a realtor, the real estate transaction process probably isn’t familiar to you. When most people think about real estate it’s: house hunt, secure a mortgage, sign papers and move in. However, the full transaction process requires lots of paperwork, multiple people, and tons of time and energy. Throughout the real estate process, having someone, like a Transaction Coordinator, who is trained to tune into all the details, can help tremendously.
What is a Real Estate Transaction
The simple truth is, a real estate transaction is the transferring of ownership rights of a unit of property from one owner of said property to another owner. But so much goes into the real estate transaction process in order to make it happen smoothly, and legally. At a minimum, 16 different people are impacted by a transaction and it is, most definitely, a process!
A homeowner lists a property for sale so that buyers can see it, tour it, and decide if it’s the property for them. Usually, buyers secure pre-qualification from a lender so they know what they can spend on a house.
Once a buyer finds the perfect property that they can afford, their real estate agent prepares an offer and that is submitted to the seller’s realtor. Then there’s negotiations on price, but once the offer is accepted, the process moves forward with a buyer deposit through a title company or a lawyer.
After that, inspections and appraisals are done by specific dates, and all repairs agreed to be done by the owner are completed by a certain date. Once all of these are completed, the contingencies are removed, funds are provided to the buyer and everyone moves towards closing!
Depending on the state you live in, the closing process can be left to a title company or lawyer. All of the closing documents must be prepared for the buyer and seller so everything can be signed. The final stamp of approval before signing paperwork is for the mortgage company to give the clear to close.
Paperwork’s signed, and keys are handed over and hopefully the room’s full of happy faces!
How Does a TC Help During a Real Estate Transaction
So, who’s involved in the transaction process when buying and selling real estate? What do all of these people do during the real estate process? Let’s break it down.
Real Estate Broker/Real Estate Agent
A seller of a home, and a buyer of a home, hire a real estate agent or broker to represent them during the real estate process.
Seller
Lists a home for sale with a real estate agent so they can advertise their property.
Buyer
House hunters usually work with a realtor to help find a home that fits their needs and budget.
Mortgage Lender
Before starting the house hunting process, anyone who wants to purchase a home will sit down with a mortgage lender to find out how much they can pay for a house. A pre-qualification letter is provided, so when they head to a real estate office the realtor knows what price ranges to hunt for homes in.
After finding a home, the mortgage lender will then be the place to get the mortgage so the house can be purchased and closed on.
Home Inspector
Home inspectors step in and evaluate the quality of the home. They’re tasked with finding all the issues the house may have that weren’t disclosed by the seller. Oftentimes, the seller may not even be aware of some of the condition of the house. Homeowners don’t always know black mold is present in the house.
Once the inspection report is provided, buyers can request repairs or they can ask for the price to be dropped so they have the money to make repairs once the new owner takes over ownership. A home inspector is an integral part of the process and should always be brought in and be highly recommended.
Title Company or Lawyer
Depending on the state you live in, a lawyer is mandatory during a real estate transaction process. Other states, a title company will suffice. Either way, these entities are the ones who do a title search to make sure the title on the home is clear. They then issue a Title Insurance Policy and complete the necessary paperwork and close the transaction for both the buyer as well as the seller.
Transaction Coordinator
If you’re lucky, your real estate agent or the agency the realtor works for, will have a Transaction Coordinator. TC’s are the ones getting down and dirty with the details so your real estate agent can give you all the attention you need, instead of focusing on paperwork and all of the behind the scene details, and all the others involved in the real estate transaction process.
The Transaction Coordinator’s main task is to create a positive and smooth experience for the buyers and sellers, so that no one feels overwhelmed or anything slips through the cracks. If any fires need to be put out, they’re solving problems!
Be Happy TC Provides Real Estate Agents with Independent TCs
Working with a real estate agent can be an amazing experience. Usually, the best experiences with realtors happen when there’s a Transaction Coordinator included in the real estate transaction process. Be Happy TC provides numerous California Real Estate Agents with TC services, and have moved with them from one agency to another.
If you’re starting your house hunting process, you can learn a lot about the realtor from the independent TC working with them! Our best piece of advice for anyone looking to start a real estate process: find realtors who have a great relationship with the Transaction Coordinator involved in your transaction!
