The Process Of Purchasing Property In The US And A Useful Glossary
You’ve done your research, studied the topic, gathered the funds—and now all that’s left is to locate and purchase the property. So how does the process of buying a property in the U.S. actually work?
If you’re buying a home remotely, it’s highly recommended to work with a local real estate agent who knows the area well and has strong connections with other agents and property owners. Note: until recently, it was customary for the seller to pay the buyer’s agent commission, but in the past year new regulations have been introduced, and now the buyer may be responsible for paying their agent’s commission.
📝 Before working with an agent:
They’ll ask you to sign several documents:
Fair Housing Disclosure
Agency Disclosure Form (explaining your relationship)
Buyer representation agreement
Important: Read everything before signing. Make sure you’re not committing to a longer exclusivity period or higher commission than expected. Commissions vary by state and even by region and are often negotiable.
💰 Proof of Funds – A Must
To submit an offer, you’ll need to show that you can afford the property. This can be done in two ways:
Pre-Approval for Mortgage – If you’re financing the purchase, your lender provides a pre-approval letter.
Bank Statements – If you’re paying cash (or have the remaining balance after a mortgage), you must show the full amount is available in your name. This can be from a bank, investment account, or trust account.
📄 Submitting an Offer
Your offer should include:
Purchase price
Payment method (cash or mortgage, and the breakdown)
Proof of funds
Whether you’re requesting an inspection (strongly recommended)
Whether the offer is contingent on the inspection (inspection contingency)
Whether the offer is contingent on obtaining financing (mortgage contingency)
🧰 Inspection
Once the offer is accepted:
Schedule a home inspection with an engineer of your choosing (not one recommended by the seller).
Join the inspection and ask questions.
Based on the report, you may renegotiate the price or request repairs.
⚖️ Contract Signing with a Real Estate Attorney
Always use a local real estate attorney (your cousin who’s an Israeli attorney or your friend who does medical malpractice law in the U.S. won’t cut it).
At this point, you’ll typically deposit 10% of the purchase price as a down payment.
🏦 Appraisal (If Using a Mortgage)
The lender will send an appraiser to assess the property.
Provide comps (comparable sales) to support the price you’re paying.
🚪 Final Walkthrough & Closing Day
A day before closing, do a walkthrough of the property to make sure:
No new damage has occurred
Systems are working
The condition matches what you agreed upon
If financing, make sure you have homeowners insurance active on the day of closing.
🧾 Key Real Estate Terms You Should Know:
| Term | Definition |
|---|---|
| Deed | Legal document that transfers ownership (like a property title) |
| Foreclosure | When a homeowner defaults on mortgage payments and the lender repossesses the property |
| Short Sale | Selling the home for less than the outstanding mortgage balance (with bank approval) |
| As-Is | Property is sold in its current condition – the seller won’t make repairs |
🔑 Final Tips
Be patient. Real estate takes time.
If the numbers don’t work—walk away.
Always work with professionals—attorneys, engineers, agents.
Professional fees may cost you now but will save you from expensive mistakes later.
Thinking of buying a property in the U.S.?
Feel free to comment or message me privately.
I’m happy to help from my experience and walk the journey with you.
— Ari Afik
Licensed Real Estate Agent | Investor | Based in Long Island, NY
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