Buy.Sell.Invest.

1. The Purchase Contract - the real estate transaction process begins with a purchase contract -- an agreement between both the buyer and seller.

2. The Offer - the initial offer includes the purchase price and stipulations that allow either party to back out of the contract in certain situations.

3. Counter-Offer and Acceptance - once both the buyer and seller agree to all the terms of the contract, the last party to receive the offer or counter-offer adds his signature to it, and the home is officially under contract.

4. Earnest Money Deposit - the earnest money provided with the offer is deposited into an escrow account. That money is credited toward the purchase at closing.

5. Obtaining Financing -  the buyer works with a mortgage lender and begins the loan process.

6. Title Examination - the seller is required to guarantee that the title to the home is clear of liens. A title company performs research to determine what, if any, liens exist.

7. Home Inspection - the purchase contract typically allows the buyer to complete an inspection of the property. 

8. Appraisal of the Property - the sale of a property is typically contingent on the property appraisal; if the property  is appraised at less than the amount of the accepted offer, the buyer may back out of the contract, or renegotiate the sale price. 

9. Walk-Through Prior to Closing - the buyer of the home may complete a walk-through of the property prior to closing. This physical inspection is to determine that the home is in the same condition as when the offer was accepted.

10. Settlement and Closing - the mortgage lender goes through the mortgage documents with the buyer. The buyer signs or initials each page. The buyer also provides certified funds for closing costs and the downpayment. The escrow officer goes through the paperwork with both parties to complete the transfer of ownership. The buyer receives keys to the property and the escrow officer sends the documents to the county recorder's office where the deed is recorded with the new owner's name.