Typical Home Purchase Procedure


In negotiating the purchase of your new home, the initial step will be to instruct your REALTOR® to make an offer to purchase.  This offer should be in writing and accompanied by an “Earnest Money” check to show “good faith.”  (This should also be done AFTER the Buyer has procured a “Pre-Qualification Letter” from the lender of their choice to accompany their offer.)


The offer should include:

  • Disclosure of the type of financing you will use.
  • Your name(s) exactly how you would want them on the deed.
  • Correct legal description
  • The amount you are willing to pay.
  • The amount of your Earnest Money check
  • Where you would like to close this transaction (Title Company, Attorney’s Office, etc.)
  • When you would like to close on this transaction (the process usually takes approximately 6 weeks in this area)
  • The date of possession.
  • Any additional accessories, equipment & systems not already listed in the contract.
  • The date when you want your inspection period to begin and how long you want for your inspections.
  • Amount you are asking the seller to pay for any repairs needed found in the inspection(s) reports.
  • Whether or not you want Title Insurance or an Attorney’s Title Opinion.
  • Whether or not you are asking the Seller to provide a “Mortgage Inspection Certificate” or you want a pin survey and who will pay for this.
  • How long Seller will have to correct any Title Issues, if any.
  • If you want a Home Warranty and who will pay  for this.
  • Any other Additional Provisions.

The Contract is reviewed by the Buyer and his/her REALTOR® and the Buyer’s Agent then proceeds with presenting the Contract Offer as soon as possible.


When your offer is presented, the Seller’s options are to:

  • Accept – if the seller signs the contract YOU WILL BE IN A BINDING CONTRACT as soon as you are notified of the acceptance.
  • Reject – If the seller rejects your offer, you will be released from any obligation of that contract.  Make sure you get the rejection in writing.
    • Counteroffer - If the offer is not accepted, further negotiations may take place to attempt to reach terms agreeable to both buyer and seller.
    • Withdraw – You can withdraw your offer right up until you’re your offer is accepted.  However, if you want to withdraw your offer AFTER acceptance, be sure and consult an attorney before doing this.  Loss of earnest money and a lawsuit for damages may be at risk because of your actions.


When the buyer and seller agree on the terms of the contract,

  • The Buyer immediately follows up with their lender and proceeds with the process to acquire their loan. (The Lender will need a copy of the signed contract.)
  • The REALTOR® proceeds with arrangements with a Title/Closing Company.


Inspection Period:

  • The Buyer chooses the inspectors of his/her choice and schedules all inspections to be completed within the time frame designated in the contract.
  • A Treatment, Repair and Replacement request form is delivered to the Seller’s Agent within the allotted time period and the Seller decides whether or not to approve the repairs.
    • If the repairs are approved, the process moves forward.
    • If the repairs are not approved, and exceed the repair cap, the contract must be renegotiated between the Buyer & the Seller.


Once the Appraisal has been completed and all other contingencies satisfied and removed from the contract, all parties will move towards closing.  (Buyer and Seller may agree to start Abstract and Title work prior to the appraisal and other contingencies being completed.  However, all parties must be aware that fees will be incurred that will have to be paid by respective parties should the transaction not close.  Buyer must sign a Buyer’s Authorization form agreeing to pay bills incurred on their behalf during this process.”


When the Abstract has been brought  up to date, an Attorney will look it over and make sure the Buyer is receiving “clear Title.”  Once this is completed, a Title Insurance Commitment (if purchased) will be issued.


A final closing date will be scheduled.


Review the Documents – A  Settlement Statement will be prepared (no later than 24 hours prior to closing) called a “HUD” for all parties to review prior to closing.  You may request to review any other closing documents prior to closing such as your lender’s documents, Title Insurance Commitment, etc.


Make arrangements for a Certified Check, wiring of funds or a Cashier’s Check for payments due at closing.  The check should be made out to the Closing Company.


Buyers will perform a “Final Walk Through” of the property


Make sure the utilities have been transferred into your name and your Home Owner’s Insurance Policy is in effect the day of closing.


After all documentation is signed and all monies paid, possession is usually transferred.  You will receive the keys to your new home!  Congratulations!  You are a new Home Owner!