Buyer Process
PRE-HOME SEARCH
The agent meets with the buyer to discuss needs and preferences related to their home search, as well as their budget. The agent would then create a DealTrail registration link by filling out the New Buyer form on DealTrail. The link will then be sent to the buyer via text/email.
Once the buyer clicks on the registration link, they will be prompted to create a password. Once a password is created, the buyer gets registered to the Agent’s DealTrail and they will be brought to the Buyer Room dashboard where they will be prompted to sign an exclusivity agreement with the Agent. (This is not required at this point, but the prompt will detail perks of signing the agreement including access to the DealTrail Educational Portal where they can view exclusive course materials for homebuyers)
The buyers will also have an Action Request to send their pre-approval letter (which is not immediately required until the time the buyer wants to send an offer for a property). They can either click on this or go to their File Room and click on Submit File, selecting the Pre-approval letter from the "What type of file/document are you submitting?" dropdown, and then uploading the letter from their device.
HOME SEARCH
The buyer's agent will start looking for properties for the buyer. Once he finds a property that would fit the buyer's needs, he'll post a new announcement on the Buyer Dashboard by clicking on "Create Post > Announcement", entering the property address, property details and then pasting a link to the property (Zillow or Redfin). An alert would show up on the buyer’s dashboard advising them that a new listing was found that may fit their needs.
The buyer can then ask questions about the property by commenting on the post, same way you do on Facebook.
If the buyer likes the home, he can schedule a showing by clicking on "Request for Showing" under the Listing Post. If it's their first time requesting a showing, they will be brought to the Calendar page where they can set their available times and dates.
The buyer's agent will then get notified of the request and book a schedule with the Listing Agent. He can go to the DealTrail link posted on the listing’s showing remarks to schedule showings.
They will then be prompted to Sign In, and will be asked to select for which buyer they are scheduling it for, before setting up a showing. The schedules would reflect on the Seller and the Buyer room once set, and a Deal Room will be added to both the Seller and Buyer Room. A day before and on the date of the showing, the Buyer room will receive a reminder on their dashboard.
After the showing, the buyer can also provide feedback on the showing by commenting on the Listing in the Buyer Room Dashboard. The agent can then relay it to the Seller room by going to the Deal Room, clicking on Send Feedback on the Listing and providing details, then click on Send. This will notify the seller
In this phase, the agent can also provide educational resources on the DealTrail Educational Portal (provided that the buyer signed an exclusivity agreement) such as how Escrow works, etc. to prepare the buyer for the next phase.
OFFERS AND NEGOTIATIONS
Once the buyer wishes to move forward with a property they like, they click on "Draft Offer" on the Deal Room. This will bring them to the Buyer-Broker Exclusivity Agreement in DocuTrail, which will require them to sign before moving forward with sending an offer as a way of "gatekeeping". They can choose to sign it with their initials/printed name, sign directly on the page by mouse/tablet, or submit a PNG of their signature (the same way Adobe Acrobat works). This will officially move them to the Offers/Negotiations Phase of the Transaction Timeline.
Once signed, they will now be brought to a survey form where they can fill out information about their proposed offer terms. These details will auto-populate on a Residential Purchase Agreement template once submitted. The buyer's agent will then be notified that the offer terms have been filled out for them to review, edit if needed, and complete, all via DocuTrail. Once completed, the buyers will be notified that their Purchase Offer is ready for their signature; and once signed, the agent will get notified and he can send it to the Seller room by clicking on Submit Offer.
If a counter-offer is received, the Buyer room will get notified of this through their Dashboard. After discussion through the private chat function or the thread in the Transaction Management page, the buyer's agent can do the following:
Accept: The buyer's agent will click on Accept Counter-Offer, which will notify both Agent and Buyer to sign said document. Upon signing, the agent sends the signed Counter-Offer to the Seller room.
Send Buyer Counter-Offer (BCO): The Buyer's Agent clicks on "Send Counter-Offer", which will bring them to a BCO Template in DocuTrail where they can outline the terms of the counter-offer. Once finished, DealTrail will notify the buyer for signature, then it will be sent to the Sellers' Side the same way as the previous documents.
Reject: Agent clicks on "Cancel Offer", which will notify the buyer for confirmation. This will tag the Deal Room as "Rejected", although it won't be deleted -- in case the buyer changes its mind and they still have a chance to accept or make a counter-offer, they can click on "Revive Deal" under the Deal Room. This will notify the buyer's agent, who will now try to reach out to the Listing Agent. The seller's side will be notified as well when a buyer backs out of making an offer on the property.
If the offer has been accepted by the Seller's Side, an Announcement will appear on their dashboardand a push notification on their phone/email/text, and they move to the Escrow Phase of the Transaction Timeline.
ESCROW
- Opening
Upon opening Escrow, the Buyer and buyer's agent will be notified of the following on the Buyer Room Dashboard:
Wiring Earnest Money Deposit (within 1-3 days), including the wiring instructions.
Adding buyer's lender onto DealTrail (if buying with a Mortgage)
Contingencies and other escrow-related deadlines, which will show on the DealTrail Calendar.
- Loan
The buyer’s agent sends an invite link to their lender of choice via email. Clicking on this link will bring the lender to the DealTrail login page where they can login using their DealTrail login account, or sign up when they don’t have one yet. After this, they will be added to the Deal Room. This allows the lender to communicate internally with the agents and other parties involved in the transaction and to communicate with the buyer on the Buyer Room Dashboard.
The buyer would then be notified to submit requirements for their loan application (bank and loan statements, previous tax returns, pay stubs, etc.) by going to the File Library > clicking on Upload File > Selecting "Loan Documents" from the "What type of file are you uploading?" dropdown > Selecting the documents from your device > Clicking on Upload.
Once all documents have been provided, the lender posts an announcement on the Deal Room and Buyer Room dashboard that underwriting has started, including ordering a home appraisal to make sure that the property's value aligns with the loan amount. (Adding the Appraisal Ongoing tag would also open an Appraisal thread on the Transaction feed)
If the property is appraised below purchase price, the lender will send an Announcement to the Deal Room. The seller and buyer side will then discuss on the transaction feed whether the buyer shoulders the difference, the seller reduces the purchase price, or a combination. If seller and buyer cannot come to an agreement, the buyer is free to cancel the contract as long as they are within appraisal contingency period (if there's any) through filling out a Cancellation of Contract form on DocuTrail and having both buyers and sellers sign. DocuTrail will then send the fully-signed document to the Deal Room File Library, who will confirm cancellation of escrow. The Transaction will then be marked as canceled on the DealTrail Transaction Management Page. Otherwise, the buyer’s agent prepares an Addendum outlining the agreement to resolve the appraisal through DocuFlow, send it to the buyers and then the sellers side for signatures. Once fully signed, it will automatically go to the Purchase Agreement folder, and the lender and escrow officer will be notified through the DealTrail dashboard.
If the property is appraised at purchase price, the underwriting process continues. The lender will notify all rooms about this and the buyer's agent fills out a Contingency Removal form for the Appraisal. They then send it to the buyer and seller room for signatures, then DocuTrail will send it to the Deal Room.
In the event that the lender would need additional documents from the buyer during the underwriting process, he can send an Action Request to the Buyer room by clicking on Request for Files on the dashboard or the File Library. The buyer would then need to upload requested files through the notification or by uploading it from the File Library, same way as when uploading their documents for their loan application.
At the end of underwriting, the lender would notify the buyer if their home loan has been approved.
If the loan is rejected, the lender notifies all rooms through the DealTrail dashboard, and provides details about the reason on the Buyer Room dashboard. If the buyer is still within loan contingency, they can choose to back out of the deal and submit a cancellation of contract through DocuTrail, or search for alternative lenders. In the case of a second lender coming in to the transaction, they would also be given a DealTrail account and would have access to the loan documents the buyer has previously submitted during their first application.
The buyer may have to request for an extension of the loan contingency, and to do this, the buyer's agent would have to submit an Addendum outlining the request to extend loan contingency. The buyer would then sign it and DocuTrail will submit it to the Deal Room for the seller side’s review and signature.
If loan is approved, the lender would notify the Buyer, Escrow and Deal room about the approval, and the lender sends the following documents:
To Escrow
Loan Documents Package (promissory note, mortgage or deed of trust, Truth-in-Lending Act (TILA) disclosures, and other legal agreements)
Instructions for Closing
A letter verifying that the funds for the loan are in place and ready to submit to escrow
To the Buyer
Loan Approval Letter outlining the terms of the loan, including the loan amount, interest rate, and other relevant details
Loan Estimate and Closing Disclosure including estimated costs associated with the loan including interest rates, fees and other charges.
Conditional Loan Approval Conditions: If the approval is conditional, the lender will provide a list of specific conditions that need to be met before closing. These conditions might include providing additional documentation, explaining certain financial aspects, or resolving outstanding issues.
Final Loan approval Letter confirming that the loan is ready for closing
- Inspections
Buyer's agent will then request for inspections by going to the Vendor Portal > Clicking on Request Appointment > Selecting the type of Inspection > Selecting preferred vendors (these vendors can be added at an earlier time. If none have been added yet, they will be notified to add a new vendor by clicking on Add Vendor) > Selecting a preferred date and time range > Clicking on Submit Request. This will send an email to the selected vendors with a link where they can confirm a date and time.
Once a vendor confirms on a schedule, they will "claim" the inspection -- meaning that if, for example, 3 requests are sent out to home inspectors, the other 2 home inspectors won’t be able to book the appointment any longer. Once a schedule is confirmed, the vendor will receive an email with a link to the Inspection room, where they can upload their inspection authorization form, which the buyer needs to sign.
Once inspections are done, the inspector will upload the report to the Vendor Portal; but it will be locked for viewing until the buyer settles the invoice. Once paid, the buyer would need to upload a screenshot/photo of the receipt/proof of payment onto the room for the vendor's confirmation. Once confirmed, the report would be available for view on the Deal Room.
If in case the buyer's side wants a second opinion, they can book an inspection again by going through the same process above.
If there are any questions about the inspection, it can be discussed either in the Deal Room Dashboard, or privately through the Buyer’s Room.
If an issue has been found during the inspection, the Buyer and Seller side can discuss how they'd want to resolve it by discussing it in the Deal Room. Both parties can agree to one of these options:
Repairs - Requesting for repairs may involve asking for an estimate from a qualified contractor (some inspectors include repair estimates on their report as well). The buyer's agent would prepare a Request for Repair form on DocuTrail and send it to the buyer’s side for signature. Once signed, the buyer's agent will be notified to send an email outlining the breakdown of repairs needed and the quoted price. When the email is sent, the Seller room will get notified that the Request for Repairs and the related Inspection Reports are available for them to review and sign. If they agree to the terms, the sellers will sign the document and DocuTrail will send it over to the Buyer room; otherwise, they might respond by sending a signed Request and Response to Request for Repairs (RRRR) form, in which they can sign to agree, negotiate further, or back out of the offer.
Once an agreement has been reached, the buyer's agent/Transaction Coordinator would then prepare a Repair Addendum through DocuTrail outlining the repairs needed to proceed with the transaction. Once filled out, the buyer's agent will send it to the buyer for signature, then to the seller, and finally, the fully-signed addendum will be submitted to the Escrow room. The repairs should then be performed.
Request for Credits - Buyer may request for credits in lieu of repairs on closing. Once terms have been agreed upon, the buyer's agent/Transaction Coordinator would create an Addendum the same way as the first option, except the terms would be for a credit request instead. Once agreed upon by the seller, they would sign the form, which will automatically notify the escrow officer. The fully-signed addendum will also be automatically sorted into the Purchase Agreement folder.
Price Reduction - Buyer can also ask to reduce the price of the property to offset the issues found. The buyer's agent/Transaction Coordinator would create an Addendum requesting for this on DocuTrail, send it over to the buyers for signature and then to the sellers for review. Further negotiations may be necessary, which can be done through the Inspection thread on the Transaction Feed. Once agreed upon by the seller, they would sign the form, which will automatically notify the escrow officer. The fully-signed addendum will also be automatically sorted into the Purchase Agreement folder.
Back Out of the Offer - In case of cancellation of escrow due to inspection issues (provided that there is inspection contingency on the agreement), if buyer is still within their contingency period, the buyer's agent can then create a Cancellation of Contract on DocuTrail. It will be sent to the Buyer and then to the Seller for Signatures, then finally to the Escrow Officer who would then confirm and mark the Transaction on the Transaction Management Page as Canceled. This status will reflect on both the sellers and buyers room.
If there were no issues found on all the inspections, The buyer can now send an Inspection Contingency Release. The buyer's agent fills out the Contingency Removal form on DocuTrail, has the buyer sign, then it goes to the seller for review and signature, and finally it goes to the Deal Room’s File Library.. Escrow will then send a notification confirming that inspection contingency has been cleared.
Agent Inspection
Done during the inspection period, the buyer's agent would also perform their own visual inspection. They would focus on observing the property's visible features, components and any potential issues. The agent then takes notes and possibly takes photographs during the inspection to document their observations.
After this inspection, the buyer's agent compiles their findings and fills out the Agent Visual Inspection Disclosure (AVID) form with it through Docusign and signs it. They then send it to the buyer so they could discuss the agent's findings. Based on the findings, the buyers side may opt for a professional inspection (if none is performed yet), negotiate with the seller or back out of the deal if they're still within the inspection contingency period.
- Pre-Closing
The buyer's agent also schedules a final walkthrough of the property to make sure the condition of the house remains the same as the first inspection.
If repairs were ordered, this is where the buyer's side would also confirm if the repairs were finished to the contract's satisfaction. If so, agent would then submit a Contingency Removal for Inspections through DocuTrail.
The Escrow checks and confirms that all contingency removals have been submitted, and will notify either side for any pending documents/contingency removals. If there are any, they can submit it by clicking on the Action Request, which will show a prompt to upload the needed documents.
Once all contingency removals have been submitted, Escrow prepares the settlement statement or HUD-1 statement providing a breakdown of all financial transactions and costs associated with a real estate transaction. This includes:
Basic Information: The property, the buyer, the seller, and the transaction's date.
Loan Information: If a mortgage is involved, the statement lists details about the loan, including the loan amount, interest rate, and lender information.
Purchase Price: The total agreed-upon purchase price of the property is stated on the closing statement.
Prorated Items: Certain expenses are prorated between the buyer and the seller based on the closing date. These can include property taxes, homeowners association (HOA) dues, and utility bills. The statement shows how these prorations were calculated.
Closing Costs: The statement itemizes all closing costs associated with the transaction. These costs can include loan origination fees, title insurance premiums, appraisal fees, attorney fees, and more.
Prepaid Items: Any prepaid items, such as property taxes or homeowners insurance, are listed on the statement.
Escrow Funds: If the buyer is establishing an escrow account to cover future property tax and insurance payments, the amount required for the initial escrow deposit is indicated.
Seller Credits: If the seller agreed to provide credits to the buyer, such as for repairs or closing costs, these credits are listed on the statement.
Adjustments: Any adjustments made to the purchase price, such as credits from the seller for repairs, are detailed on the statement.
Total Settlement Charges: The total amount of all costs and charges associated with the transaction is calculated and displayed on the closing statement.
Cash to Close: The amount of money the buyer needs to bring to the closing table is shown. This includes the down payment, closing costs, and any other fees.
Funds Provided by Buyer: The sources of the funds that the buyer brings to the closing are outlined. This includes the down payment and any additional funds needed.
Funds Provided by Seller: If the seller is contributing any funds to the transaction, such as for credits or repairs, those funds are listed.
Total Amount Due: The total amount due from the buyer is calculated, including the cash to close and any other adjustments.
Total Paid to Seller: The total amount paid to the seller is calculated, factoring in the purchase price and any seller credits.
Prorations and Adjustments Summary: A summary section often provides a breakdown of prorations and adjustments made between the buyer and the seller.
This document will be submitted to both the seller and buyer room for signatures via DocuTrail. Once signed, the Transaction Timeline now moves to its final Stage.
CLOSING
When the transaction reaches the closing stage, the escrow officer reminds all rooms of the target closing date on the Escrow room. The buyer room will then be notified to schedule signing the loan documents with a notary. This can either be done at the Escrow office or a Mobile Notary can go to the buyer's home. The buyer does this through the DealTrail Calendar. These loan documents can be signed straight from the platform through phone/tablet/computer.
1-2 business days after the signing of loan documents, the bank funds the remaining amount needed for the purchase. Once funds have been received, Escrow will post an Announcement on all rooms involved..
Escrow now will record the transfer of ownership with the County where the property is located, and notifies all involved rooms through the dashboard once completed. The documents produced from the process will also be uploaded to DealTrail as part of the Closing Documents package.
Once the transfer has been recorded, Escrow will now prepare a Closing Package for all rooms involved through the File Library. The buyers will be provided with the following:
Signed Closing Disclosure or HUD-1: This document outlines the final financial details of the transaction, including the seller's proceeds from the sale after deducting closing costs, fees, and any outstanding obligations.
Deed: The deed is the legal document that transfers ownership of the property from the seller to the buyer. A copy of the executed deed is sent to the seller for their records.
Closing Statement: The final closing statement provides a detailed breakdown of the financial transactions, showing all credits, debits, and adjustments related to the sale.
Any Additional Agreements or Addenda: If there were any specific agreements or addenda related to the sale, such as repair agreements or property disclosures, copies of these documents are provided to the seller.
Release of Liens and Mortgages: If applicable, the escrow officer ensures that any existing liens, mortgages, or other encumbrances on the property are released or paid off from the seller's proceeds.
Instructions for Funds Disbursement: If the seller is to get a credit from the purchase, the escrow officer provides instructions on how to access and use the funds.
Funds will then be disbursed to their respective recipients. This would include the commission being wired to the buyer's agent's brokerage, and any credits owed to the buyer based on agreement.
Finally, the key to the property is provided to the buyers. With this, the escrow is officially closed.
DealTrail will show a congratulatory banner for all rooms commemorating the close, but the transaction feed will remain open for follow-up communications and for retained access to all documents submitted and stored during the transaction.