A real estate transaction is the process whereby rights in a unit of property is transferred between two or more parties, e.g. in case of conveyance one party being the seller and the other being the buyer. Wikipedia

 

Making offers

  1. Inspection period
  2. Disclosures
  3. Critical Dates
    • Inspection Date
    • Correction Date
    • Close Date
    • EMD Due Date
  4. Earnest Money Deposit EMD
  5. A-B Contract (if assignment of contract)
  6. After Repair Value ARV or Comparative Market Analysis
    • 3-5 recently sold properties
    • Time – previous 3 to 6 months (SOLD not pending or listed)
    • Area – same neighborhood, same schools, same type of street
    • + or – 1 bedroom
    • + or – 1 bathroom
    • + or – 1 20% finished sq ft above grade
    • + or – 10 year built 

Contract

  1. Purchase and Sale Agreement or Assignment of Purchase and Sale Agreement
  2. Equitable Interest
  3. Control
  4. Record a Memorandum


Due Diligence – What to do when your offer is accepted

  1. Construction Manager to complete property tour with rough scope and estimated renovation cost
  2. Pics
  3. Complete Comparative Market Analysis CMA
  4. Confirm market rent
  5. Desk appraisal (if required) $180
  6. Home inspection (if required) $600
  7. Worst Case Scenario Deal Analysis and Anticipated Scenario Deal Analysis


Closing

  1. Title
  2. Entity
  3. Assignment
  4. Lender/Cash