Real Estate

What Does “Closing” on a Housing Purchase Look Like?

You hear all about this “closing” thing… what is it? Here’s a quick look at what could happen if you were looking to buy corporate housing Corpus Christi and you needed to deal with the closing process on that building.

An offer is made followed by a deposit: Bob’s been looking for a house for a few months. Finally, he finds one that he likes that is on the market at $165,000. Bob then makes an offer on the house for $150,000 (it’s recommended you offer 8-10 percent less than the asking price for your first offer, even though that doesn’t always work). Along with his offer, he gives a $1500 (about 1% of the price) deposit. The seller then has the option to take the money and thus, the offer, or to give the money back, rejecting the offer. They may also counteroffer.

Contract, contingencies, and inspections: After Bob and the seller agree on the price, they then sit down and talk about the contract. On this contract are contingencies, which are requirements that have to be met for the sale to close. The government requires an inspection of the house, so Bob and the seller agree that anything that’s found to be wrong with the house is the seller’s responsibility before closing.  The seller makes sure that Bob has secured a loan for the home before the contract is signed, and Bob, being a smart consumer, had done that before he even looked at houses.

Closing documentation and costs: Lots of paperwork is involved in closing out a home. Settlement sheets must be distributed to both parties involved in the selling of a home; these sheets talk about all of the costs involved in the process. Then, the costs get paid and you’re ready to get everything taken care of.