What To Do Next

Real estate transactions don't just happen to you. They follow patterns, have phases, and contain decision points you can anticipate. This page maps what typically comes next and when—so you can navigate the process rather than react to it.

The Path Through a Real Estate Transaction

Real estate transactions follow a predictable pattern, regardless of the type of sale. Understanding these phases helps you evaluate each step as it unfolds.

The five phases:

1. Negotiation/Offer — Reviewing terms, countering, reaching agreement

2. Contract Execution — Signing the purchase agreement

3. Due Diligence — Inspections, title search, buyer verification

4. Financing Contingency — If applicable, the loan approval window

5. Closing — Document signing, fund transfer, deed recording

Each phase has specific decision points where you need to take action. Each phase also has exit opportunities that narrow as the transaction moves forward.

Knowing this map before you start allows you to recognize where you are and what comes next.

How Exit Rights Narrow

Your ability to walk away from a transaction without consequences changes at each stage.

Before you sign the contract: Full freedom. You can reject any offer for any reason. No obligation.

During contingency periods: Some flexibility. If the buyer fails to meet contingencies (financing falls through, inspection reveals problems), the contract can end according to its terms.

After contingencies expire: Limited options. If you cancel at this point, you may have to give up the earnest money to the buyer and could face a lawsuit for damages.

After closing: Done. If problems arise, your options shift from contract-based solutions (cancellation, keeping earnest money) to legal action (lawsuits)—which are slower and more expensive.

The key moment is when you sign the contract. Before signing, walking away costs you nothing. After signing, walking away has consequences that grow with each phase.

Verification: What to Check and When

Verification follows a sequence. Some steps matter more before you sign the contract, when you have the most leverage.

Before signing the contract:

• Buyer identity — Who is actually buying? Is the name on the contract the real purchaser?

• Entity verification — If it's an LLC, is it registered with the state? Check your state's Secretary of State website.

• Proof of funds — For cash offers, ask for a bank statement or letter from a financial institution

• Contract terms — Review how long the inspection period is, what contingencies exist, and how much earnest money is required

After contract, before closing:

• Title search results — Any liens, claims, or title problems?

• Survey — Do property boundaries match what you expected?

• Inspection findings — What did the inspection reveal?

• Financing status — If applicable, has the buyer's loan been approved?

Before you sign, you can walk away from problems without consequence. After you sign, acting on problems may require formally terminating the contract.

For specific questions to ask, see Questions to Ask Before Signing.

When to Engage Professionals

Professionals work for whoever hires them. When you engage them determines whether their work protects your interests.

Attorney Have an attorney review contracts before you sign. Once you sign a contract, it's binding. A legal review after signing can identify problems but can't prevent them.

Title Company In most transactions, the buyer or their agent picks the title company. You can hire your own title company or attorney to independently review the title work if you want.

Tax Professional Talk to a tax professional before agreeing to creative financing (seller financing, subject-to, installment sales). Tax treatment varies a lot by structure and affects how much you actually receive. Finding out about unfavorable tax treatment after you've agreed may leave you with few options.

The common thread: Engaging professionals before you commit lets their expertise shape your decisions. Engaging after you commit means their work can only advise, not protect.

Timeline Benchmarks by Structure

Standard timelines give you reference points to evaluate proposed schedules.

Typical closing timelines:

• Cash sales: 14-21 days

• Financed retail sales: 30-45 days

• Loan assumptions: 45-90 days (the lender needs time to approve the new borrower)

• Short sales: 90-180 days (the bank needs time to approve the sale)

These are typical ranges, not guarantees. Individual deals vary based on complexity, title issues, and how quickly people respond.

What unusual timelines might mean: A proposed timeline that's much shorter than normal (like a cash closing in under 10 days) might mean the buyer is trying to lock in the price before you can get other offers or change your mind.

Knowing the standard range lets you compare. Differences aren't always problems, but they raise the question: why is this different?

Key Decision Points

Transactions have specific moments where you need to act. Knowing these ahead of time lets you prepare instead of react.

Standard transaction decision points:

1. Accepting, rejecting, or countering an offer — Your first choice

2. Responding to inspection findings — Ask for repairs, request a credit, or accept the property as-is

3. Responding to appraisal issues — If applicable

4. Reviewing closing documents — Before you sign them

5. Authorizing the deed transfer — The final step

Additional decision points in creative deals: Subject-to sales and seller financing add complexity:

• Deciding to keep your name on the loan (subject-to) or hold a promissory note (seller financing)

• Setting up a way to verify payments are being made

• Defining what happens if the buyer stops paying

After the deed transfers: Your options shift from contract solutions (cancellation, keeping earnest money) to legal action (lawsuits, foreclosure). Legal solutions are slower, cost more, and have less certain outcomes.

The Process as Leverage

The pattern across this entire page is the same: knowing the process gives you the ability to navigate it.

Seeing the process helps you evaluate it. When you know the standard phases, you can assess whether each step makes sense. When you don't know the path, every step comes as a surprise that needs an immediate reaction.

Timing creates leverage. Verifying before you sign lets you reject problems without consequences. Engaging professionals before you commit means their expertise can protect you. Keeping exit rights before contingencies expire preserves your options.

Benchmarks reveal differences. Knowing standard timelines lets you spot when a proposed schedule is unusual. Knowing standard earnest money amounts lets you notice when commitment seems low. Knowing standard inspection periods lets you recognize when a buyer is asking for unusual flexibility.

The original assumption—"I'll figure out next steps when I get there"—expects the path to become clear as you walk it. Reality is different: the path is knowable in advance, and knowing it changes what you can see and what you can do.

This doesn't mean every transaction follows the same script. It means having a reference point to compare against what's happening. When the map matches the territory, proceed. When it doesn't, ask why.

The process isn't something that happens to you. With knowledge, it's something you move through with awareness of where you are and what comes next.

Learn More

For understanding specific offer types:

• Cash and Wholesale Offers — How investor offers work

• Loan Assumption — When existing loans can transfer

• Subject-To Transactions — What "taking over payments" means

• Seller Financing — When you become the lender

• Lease-Options — Rent-to-own arrangements

• Short Sales — When you owe more than the property is worth

For decision support:

• Red Flags and Warning Signs — What to watch for

• Questions to Ask Before Signing — Specific questions for verification

This page provides general educational information about real estate transaction processes. Individual transactions vary based on structure type, location, and specific circumstances. Consider consulting appropriate professionals for guidance on your situation.