The end goal for most people who sell their homes is to get the final payment and move on with their lives. Even though money begins to change hands as soon as a bid is placed on your home, you won't see any of it until the day of closing. Our real estate agents can help you navigate the experience. The process of selling a home has several steps, each one equally as important as the others. Money is spent throughout the process, but as the seller, receiving your payment will take place during the final step. This usually occurs on the day of closing when all the papers are signed and you turn over the keys.

• Earnest money goes into an Escrow account – If someone is interested in a home, they will put down earnest money to prove they want to pursue purchasing your home. This can be any amount. Normally, people will put down $500 or more as a good-faith gesture so that they will be able to find financing and pay any other fees that may be required during the sale.

• Inspections, disclosures, contingencies, appraisals, and repairs – There are many expenses involved when purchasing Crookston homes for sale. An inspection will sometimes uncover minor repairs that need to be made before the sale can be completed. Disclosures, contingencies, and appraisals also play important roles in the process of selling a home. Contingencies are included in the negotiating process and may involve several counteroffers before a final agreement is reached.

• The down payment – Once a final agreement is reached, the next step is obtaining the down payment. A good down payment falls between 10% and 20% of the purchase price. The buyer will pay the down payment minus whatever was paid into Escrow in the form of earnest money. The additional funds will be put into the Escrow account or held by the real estate agency until the day of closing. The down payment isn't usually paid until the lender has approved the mortgage for the home.

• Closing costs – There are several fees that must be paid on the day of closing. These closing costs can include a title search, transfer of title fee, and other costs. The real estate agents will also be paid. The closing costs are often taken from the Escrow account (if owed by the seller) and by check (if owed by the buyer). All the monetary transactions are thoroughly documented and recorded so both parties have a copy.

• Signing the contract – One of the last steps in the process is signing the final contract. Every detail of the sale will be gone over and approved. Any questions that arise will be answered and discussed so that both parties are in agreement. As soon as all the signatures are in place and the seller has turned over the keys to the property, the final transfer of funds can take place.

• Final payment – The final payment will be received after the contract is signed and closing costs have been paid. You will receive your payment in the form of a cashier's check that can be deposited directly into your bank account.

The steps in the process of a home sale aren't difficult to follow. It can be challenging, however, to follow when the transfers of money occur throughout the process. Contact our office if you have any questions about when payments need to be made and received throughout the process. We will guide you through the experience so you fully understand everything that is going on.