From The Desk of the Transaction Coordinator
Whether you’re buying or selling, the process of a real estate transaction can be confusing and daunting because of all the moving parts and all the paperwork. My name is Larisa and handling this process for both buyers and sellers is my job: Transaction Coordinator. The process for buyers is different from the process for sellers, both are well defined, and both can get confusing. Detailing these processes sounds like a lot, but mostly it’s keeping emails, phone calls and invoices organized and well documented.
Herein lies the benefit of working with a real estate team: we handle all the little things for you.
First things first: for both Buyers and Sellers the transaction begins with trading of information; the most important things primarily are the contract, Due Diligence end date, the closing date and client preferred mode of contact. This information goes to:
· Buyers and Sellers agents
· Buyers or Sellers attorney, depending on who we’re representing
· If our client is the Buyer, I send a copy of the contract to the Buyers Lender.
I take the time to introduce myself to the client because it’s my goal to be the first point of contact as I’m the one moving all the small parts so that agents can focus on the big picture.
I schedule inspections next. Typically, there are only a few inspections scheduled:
· Home Inspection: $375.00
· Pest Inspection: $40.00
· Septic System Inspection: $400.00
The home inspection takes about five hours on average to complete. The pest inspection looks for termite damage as well as moisture damage. Pest inspections generate a document called the Wood Destroying Insect Report (WDIR). The home inspection details the function of all the elements of the home inside and outside, where the pest inspection details underneath the house and the structure itself. The septic inspection looks at the septic tank itself, the septic tank as a system as well as the pump and its functionality. The invoices from these inspections are also shared with attorneys and agents on both sides. When we’re working for the buyer, the WDIR is important to get to the Lender once we receive it.
The home inspection report and the WDIR help the buyer’s agent and buyer to generate the Due Diligence Repair Request (DDRR). This is where negotiations between agents come in and repairs paid for by the seller or buyer are detailed. Closing costs are sometimes included in these negotiations if they weren’t agreed upon in the original contract, they can also be changed on this Repair Request. This is money paid to either buyer or seller at closing in lieu of repairs detailed in the reports from inspections. Repairs begin once the request is agreed upon and signed by buyer and seller. After inspections are done, the buyer’s Lender schedules an appraisal to determine the value of the home. Sellers don’t get to see the results of this appraisal since it is paid by the Buyer.
Once the Due Diligence (DD) period ends, the repairs are finished and all the invoices that were shared with the attorneys and other agent get calculated into the credits and debits that will go to the buyer or the seller, largely this is work done by the attorneys on both sides. In the days between the end of DD and Closing, closing documents called the Closing Disclosure (CD) and American Land Title Association (ALTA) show how the money is distributed and includes amounts detailing:
· Lawyer fees, Realtor Fees, Excise Tax & Prorated Taxes
· Unpaid Repair costs
· Unpaid Inspection costs
· Seller Paid closing costs agreed upon in the contract
Drafts are sent by attorneys to be reviewed by buyer and seller and then a time is scheduled for closing documents to be signed. Sellers sign their documents before the official closing date at their convenience. Buyers usually sign official closing documents at their attorney’s office on closing day.
Each transaction is different and that’s where things can get intimidating: when the circumstances are unusual. Our team at Meese Property Group is well versed in navigating the ins and outs of the real estate transaction and seeking the answers for the questions that come up. The biggest thing to remember about buying or selling a home is that there are zero irrelevant questions in real estate.
Happy House Hunting!
From my Team to yours,