If you are looking to buy or sell a home, you must understand the real estate sales process. There are certain milestones that occur during the sale of a property, and each is critical to the success of the transaction. It is essential for homeowners and buyers alike to know when a house is considered sold, as this can affect tax consequences and mortgage prepayment penalties.

Technically, a house is not considered sold until the home seller no longer has ownership. This means that the deed has been legally recorded, the money for the home has been disbursed, and the title is in the home buyer's name. The home buyer is now the sole owner of the property, and he or she has the right to do anything with it that is legal in his or her jurisdiction. However, there are other intricacies to the process that can complicate things and potentially delay a sale.

One of the most important factors in determining when a house is considered sold is the closing date. The closing is a carefully coordinated meeting where all parties involved in the sale come together to finalize the deal. During the closing, the home seller signs the deed over to the home buyer. The money for the home is distributed, as outlined in the settlement statement. The home inspector will have completed his or her report, and the loan documents are executed.

A buyer's ability to make a purchase is another crucial factor in determining when a home is considered sold. Most prospective buyers will have been approved for a mortgage, and they will have submitted the necessary documentation, such as proof of income and credit. Some buyers, however, may need to wait until they have closed on the sale of their existing home in order to qualify for financing to purchase a new property. This type of situation is known as a contingency sale, and it can significantly delay the closing of the house.

The location of a home is also a major factor in determining its value. Homes in desirable school districts and those situated closer to amenities like shopping, restaurants, and parks are often more valuable than others in the same area. Additionally, the current state of the housing market can influence prices. If the market is booming, prices can be higher than they would be otherwise. Regardless of the market conditions, home sellers should carefully consider their motivation for selling before putting their homes on the market. Some reasons for selling include wanting to move to a different neighborhood, retiring, or needing to relocate for work. Other reasons can include needing to sell for tax purposes, such as capital gains or mortgage prepayment penalties. In these cases, the homeowner must be careful to consult a knowledgeable real estate agent about how best to proceed.