Jul. 16, 2006 - How is a Real Estate Transaction Like a Pregnant Woman?
The real estate transaction, like a pregnancy, breaks down into Trimesters. Also, as in a pregnancy, the first trimester is the most disruptive to the buyer's daily schedule, the second trimester becomes more relaxed and the last trimester involves a final, and sometimes (but not always) intense event, the net result of the intense event being life changing!
Just as the body goes through many changes in the first trimester of a pregnancy, that can leave a woman feeling absolutely nauseous most of the time, the first trimester of a real estate transaction can leave a buyer's head spinning. In succession, and sometimes simultaneously, many things transpire at the beginning and need to be completed about 1/3 of the way through the time frame.
The offer is made, negotiated and accepted.
The buyer applies for their mortgage, supplying all documents needed to process the loan.
The home inspector is selected, appointment made and results negotiated.
The appraiser goes out to check that the sale price represents a good value for the lender.
All parties receive, complete and return escrow instruction paperwork for the closing agent.
In a 30 day escrow, almost everything the buyer needs to do is completed in the first ten days, sometimes all at once. It can leave a buyer with their head spinning, dizzy and sometimes nauseous in that first ten days, the same as a pregnant woman in her first trimester.
Also like in a pregnancy, the second trimester should be the easiest. It's as if everything has settled in and a full 1/3 of the total time is a respite between the first trimester and the last trimester.
The third trimester starts off with a bit of worry that leaves you feeling tired and ready for all this to be OVER! Is everything done? Did I do everything I need to do so that the final event is successful? Am I packed? Am I ready for all this?
Just as a woman heads off to the hospital for the final event, at the end of the third trimester, a buyer heads off to the closing agent's office to complete the final paperwork that results in their owning a new home. Some people are in and out with no major pain, while others seem to agonize and sweat and take forever to get all of those documents signed properly.
The end result of both is a joyous event. A new baby! A new home! Three trimesters, the first the most world shaking and the second the easiest and the third the most eventful!
The good news is, unlike a pregnancy, where each trimester lasts 3 months, most trimesters of a real estate transaction last only 10 days. 3 x 10 = 30 day escrow.
| 
RSS Blog Feed
