How a Real Estate Transaction Works

real estate transaction

No need to scramble when an offer comes in. You are in control.

For those sellers (and buyers) who have never experienced the rush of a real estate deal, I am going to break down what the process looks like when the initial offer comes in.

Scroll down for the video about the lifespan of the offer.

How it Typically Happens

By Phone

A phone call from a buyer agent will most likely trigger the start of the offer process.

“We are going to be submitting an offer.”

Music to your ears. But that is all that is said, and then they hang up.  Was it all a dream? A call from a buyer agent means diddly squat.

You need to get the offer in writing. 

What Should My Offer Look Like?

Email with a PDF Attached

Always ask the buyer agent to send the offer in an email with a pdf attached.

If the offer is submitted by an agent it should be written on provincial real estate forms. Each province has its own set of forms. You can tell if the forms submitted are regulated by the governing body of that province by looking for their information somewhere in the margins. For example, the Nova Scotia forms have the text: “Published by the Nova Scotia Association of Realtors” located at the bottom left of the form, along with the date the form was published.

Signed by All Buyers

E-Signature or Hard Copy

Make sure the entire document is signed

The first page of the offer should indicated who the buyers are. Make sure ALL buyers have signed the entire document. There will be a number of spots where the buyers will need to sign.  Have a careful look to see no initials or signatures are missing.

Confirm Receipt

Email the Buyer Agent

Shoot the buyer agent a quick email saying you have received their offer.

After you confirm you have received the offer by emailing the buyer agent a simple sentence or two, you now have time to review the details of the offer.  There is a lot of work ahead, so make sure you take the time to read every aspect of the offer before taking action.

 

Watch the Video of How a Real Estate Transaction Works

Author: Joshua Svec

Joshua Svec is a licensed real estate agent and Founder & CEO of Air Realty. Diving into the real estate industry at age 21, Josh purchased his first cash flow property while completing his Masters degree. Since then Josh has been involved with real estate investing, accumulating a portfolio of over 85 beds, property management, and sales. Josh’s mission is to teach sellers and investors every aspect of the real estate transaction to ensure they save big.

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