The typical Real Estate Transaction

The quick glance at a typical Real Estate transaction in Tri Cites starts with the listing that the selling agent uses to advertise a house for sale on the market. This starts the flow of the home selling process. The selling price and the commission effect how long the house will be on the market also the area in Richland, Kennewick or Pasco will also affect the resale value. The seller (home owner) must make the final decision about what price they are willing to sell their home for. Although, the selling agent will make a strong recommendation on a good selling price that most home owners will follow.
After the house is listed on the market home buyers will be able to see the newest house that is available on the market. A buyers agent is going to see if the house is a good buy for their customer and they are going to see the amount of commission the sellers have offered the agent for bringing a qualified buyer. The normal contract structure will have a 6 percent commission with a 3 percent split between the agents.
A typical offer in Tri Cities will be for the seller to pay for the buyers closing cost. Therefore, it is common for a buyer to lose up to 10 percent of a home sale profit in closing cost. This is created by the 6 percent in agent fees, 1.78 percent in excise tax and the 3 percent in the buyers closing cost. There are also other smaller fees that are included that the seller has to pay at closing.
The buyer has to worry about their down payment, appraisal and inspection fees. These all have different cost but the normal down payment that a buyer is required to put down is 3.5percent for a FHA home loan and 5 percent for a conventional home loan. If the buyer is using a VA home loan then they get 0 down payment benefit. The buyer must talk with a lender to see what their good faith estimate will look like before they put in an offer. This way they will have a chance to get pre approved and know what price of a home they should buy. Also, owner occupied rules apply to down payments and interest rates always change so talking over the details with a lender is the best first step for a home buyer to take.
It is common for a Realtor to find ways to help clients sell their home. Therefore, don't be afraid to tell a Realtor what the payoff is of your home and see if a reduced rate will work for you. I offer discounts to clients whenever I see the need to make the deal go work for everybody.