All You Need to Know about Closing a Real Estate Deal

Sujan Afi S

Alright! So, you have got your dream house and is about to buy that house. Almost everything is done, you say to yourself. But is that so? No, the most important part is yet to come. And, what’s that? It is closing the deal! 

You consult with several persons who give you hundreds of advices. All that you conclude is that the process of closing a real estate deal is not easy. May be because it includes a lot of paper works! Chill! After you go through this article, you will be able to handle everything properly. So, let’s go through the factors that are important to be considered for smoothly closing of your real estate deal.

  1. Make the offer for the property: It is an art to make an offer for a real estate property. The selling price of a property may be closer or away from the market price. Be aware of the current market price before making an offer for the property. The offer should be fair to you and don’t provide a lowball offer if you are serious about buying the property. For making the best offer try to keep in mind some factors like –
  • Including Specific time-bound in the deal
  • Make sure to include the payment process
  • Include the specific conditions (if any) for buying
  1. Pre-Approved Mortgage: If you are not a cash buyer or investor, then it will be better for you to ensure a mortgage before searching or buying a real estate property. Although pre-approval of mortgage is not necessary for buying a property if you can ensure your financial capacity before searching to buy a property then it will reach you a better position for bargaining while negotiating. It will also save your time and effort for closing the deal as you won’t require to invest your time for the approval of the mortgage. You will have to only look for the property that fits within your budget!
  2. Have an Escrow Account: To avoid any unwanted situation from the seller’s side you need to depend on a neutral third party. The escrow account is held by a third party (on the behalf of both the buyer and seller) which mitigates the risk of fraud during any kind of transaction for closing the deal. Therefore, it is very important to open an escrow account to smoothly close a real estate deal.
  3. Title Search and Title Insurance: Before buying a property or making a deal for buying a property try to have a title search and title insurance. Title search refers to the examination of the legal record of the determined real estate property. Try to ensure that there is no legal problem regarding the property. Further, title insurance protects you from any kind of financial loss resulting from any kind of damage or defects to the property.
  4. Hiring an Experienced Real Estate Attorney: Although hiring a real estate attorney is optional for buying a property, you can take the help of an agent to ensure legal aids as well as paperwork to be done smoothly. This will help you close the real estate deal in a hassle-free manner. Further, I would say that hiring an experienced real estate attorney is important if you are a new investor or home buyer. 
  1. Negotiate Closing Cost of the real estate property: There are some closing costs or junk fees included in a real estate deal like administrative fees, review fees, processing fees, inspection fees, ancillary fees, settlement fees, etc. Lack of knowledge regarding this may increase the amount of fees manifold! Therefore, you need to be aware of these fees before closing a real estate deal.
  2. Complete the Inspection of the property: Physical home inspection is very important before going for the deal. You can discover the problems that are associated with the property. Thus, you will be in a better position for bargaining or asking the seller to fix the problems.
  3. Renegotiate the Offer: Once you have completed the home inspection, you may renegotiate the price of the property if you think that the offer price is not reasonable for the property.
  4. Eliminating Contingencies: For closing a real-estate deal smoothly you need to remove all kinds of contingencies within a particular time frame.
  1. Lock the Interest Rate: If there is a mortgage then it is better to lock the interest rate for the loan in advance. Because the rate of interest is volatile and subject to changes depending on geographic region, property type, type of loan applied for, etc.
  2. Ensure Funding Requirements: You may need to deposit the earnest money when you sign the deal. Earnest money refers to the deposit that the buyers make to the sellers for ensuring his/her seriousness to buy the property, faith, and genuine interest in buying the property. The seller can get the money as compensation when the buyers are not able to finally buy the property. On the other hand, if the seller refuses to sell the property, then the buyers can get the money back.
  3. Final Walk-Through: Try to look over your property for the last time before signing the closing deal. You must ensure that there is no damage or any problem with the property since your last inspection. 
  4. Signing the Paper and Closing the Deal: So, you are ready to sign and close your deal! Paperwork is a critical process; so, don’t rush. Take your time and carefully go through all the lines of the agreement paper before finally signing them. Ensure that all the agreement terms are included. If you face any kind of difficulties or complexities to understand then don’t hesitate to go to the expert for understanding the issues. Once the paperwork is done then… congratulations… the property is all yours! 

Conclusion

You need to have patience and avoid being in a hurry while closing a real estate deal. It is better to follow the steps for long term benefits. If you are new in the field of real estate, it would be a good option to consult with a professional person.

At Roodland India you will get guidance from experts. Our experts will suggest the best for you and trust me, you are never going to regret it! Drop a mail at info@roodland.com to book an appointment. Also, visit The Real Talks to remain updated in the field of real estate!

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