When does "Sold" mean "Sold"?

The other day I drove through a neighborhood and saw the word "sold" above a yard sign. I'm certain that because the buyer and the seller have agreed upon a price, they are convinced the house has been sold. This is not necessarily true. So when does "sold" really mean "sold"?

A property has been sold with at least the following:
1. both parties have agreed upon price of the property,
2. the buyer has been fully approved by the bank (this is major these days),
3. a property appraisal has been completed and has been approved by the bank,
4. insect infestation and water inspections have been done,
5. the septic system has been inspected (if private septic),
6. a home inspection has been done,
7. both parties agree to what will be repaired,
8. both parties agree as to who will pay for the repairs,
9. both parties agree to terms of the entire purchase agreement,
10. a radon gas inspection has been done,
11. any title issues have been resolved.
12. homeowner's insurance has been secured.

Some properties may require even more to be completed, depending upon the location, the home itself, or the type of financing. A few examples of this would be: flood insurance certificates or road maintenance agreements may be necessary. Buyers and sellers may wish to purchase a home warranty before closing. For homes built before 1978, a lead-based paint inspection may be necessary.

Now more than ever it is crucial that you seek the advice of a a real estate professional when it comes to the largest investment you will make in your lifetime. A REALTOR can not only save you money, but can also keep you from making costly mistakes you will regret. Contact your REALTOR today if you are considering buying or selling a home.