House Purchase Process


House Purchase Process:  Action Steps for Buyers

Step   Action                                                     $                                                       Timeframe*

1

Offer

-Initial action step

$1000 deposit

Personal check OK

Preapproval letter from bank follows within 24 hours.

Immediate

2

Offer Accepted

-Offer is negotiated and accepted.  If the offer is not accepted the $1000 deposit is returned to buyer.

When offer is accepted, the $1000 deposit is held in escrow by the seller’s realtor or attorney to bind the offer. 

Usually 24-48 hours to respond initially and a reasonable amount of time thereafter to put the deal together.

3

Home Inspection

-Inspectors are licensed by the state.  The list is available at WWW.Mass.Gov

About $350-500 depending on services requested and the size of the house. Buyer pays on the day of inspection.

Within 7 days of accepted offer.

4

Purchase and Sale (P&S)

-A formal contract written and reviewed by attorneys for the buyer and seller.

5% of the purchase price.  This amount includes the initial $1000 deposit.

Personal check usually OK.

Within 10 to 12 days of the accepted offer.

5

Mortgage Contingency

Bank funds the purchase and issues the closing package to the attorney

Usually about 2-3 weeks from P&S. Varies with each bank.

6

Close

Your attorney will determine total funds required to close.

Certified check required. A HUD statement is issued to buyers and sellers that lists all fees associated with the transaction.  As a practical matter, upon leaving a successful closing, the buyer is the immediate owner of the property.  Keys are passed at closing.  However, the change in ownership must be recorded at the Registry of Deeds.  This is the actual and official act that places the transfer of property “On Record.” Your attorney will take care of recording the title at the Registry.

Total time from accepted offer to close is typically about 5-7 weeks.  Timeframe may be shorter or longer as mutually agreed.  Cash deals are usually quicker since there is no bank involved.

 

 

  • Prior to an offer the buyer should work with a bank/mortgage company to establish a preapproval for a mortgage.   This will establish purchasing power (i.e., $550K and under) as well as supply the preapproval letter that’s required when an offer is presented to sellers.

 

  • Buyer team is made up of: real estate broker, bank/mortgage broker, real estate attorney, home inspector, insurance broker, and other specialized vendors as required.

 

  • The morning of the closing, or the evening prior to the closing, a brief walk-thru of the property is standard procedure to determine actual condition prior to closing. 

* Timeframe will vary, determined by the schedule set between seller and buyer.