How Does Real Estate Work?
Published by Cash Flow Deals · Last updated 2026-08-04 · Published and reviewed for compliance by Camilo Palacio, a Florida Licensed Realtor
Real estate works through the same core steps no matter what's changing hands: a property gets listed, a buyer and seller agree on price and terms in writing, the buyer's lender orders an appraisal and underwrites the loan, and a title company or attorney closes the deal and records the deed. Agents are optional guides through that, not a legal requirement. Cash Flow Deals runs a version of the same process, connecting sellers directly with real FHA or conventional buyers.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| How the sale is structured | Property is listed, marketed, and sold to whoever makes the winning offer | Seller is connected directly with a real financed buyer through Cash Flow Deals' network |
| When the seller knows their number | Net proceeds depend on final negotiated price, repairs, and closing costs | Net price is locked before repairs are scoped |
| How title moves | Standard purchase and sale, title transfers from seller to buyer at closing | Title transfers once, directly from seller to buyer, through novation |
The Four Stages Every Deal Goes Through
Almost every real estate transaction moves through the same four stages. Listing and marketing is where a property gets priced and put in front of buyers, whether that's on the open market through an MLS or through a direct connection outside of it. Since August 17, 2024, MLS systems can no longer publish offers of buyer-broker compensation, a change from the NAR Sitzer/Burnett settlement, so buyer-agent pay now gets negotiated separately instead of posted on the listing. Offer and contract is where a buyer and seller agree on price, terms, and contingencies, and put it in writing. Financing and appraisal is where the buyer's lender verifies the buyer can afford the loan and orders an appraisal to confirm the house is worth what's being paid for it. Closing is where a title company or attorney confirms clean title, the money moves, and the deed gets recorded with the county.
Who's Actually Involved in a Deal
A real estate agent represents the buyer's or seller's interests and isn't required by law in any state, though most people use one. A lender underwrites and funds the buyer's loan if financing is involved. An appraiser gives the lender an independent opinion of value. A home inspector checks the physical condition of the property for the buyer. A title company or real estate attorney, depending on the state, confirms there are no ownership disputes or liens on the property and handles the actual transfer of the deed at closing.
How Money Actually Moves
Earnest money is a deposit the buyer puts down after signing the contract to show they're serious, and it's held by a title company or escrow agent, not the seller directly. At closing, the buyer's loan proceeds plus their remaining down payment come in, and from that total, the seller's existing mortgage gets paid off, any agreed commission or fees get paid out, and whatever is left goes to the seller as net proceeds. Every one of those numbers gets itemized on the closing statement both sides sign.
Different Paths to the Same Closing Table
Most people picture one path: list the house on the open market, wait for offers, negotiate, and close. That's the traditional route, and it works, but it isn't the only structure. Some sellers sell without an agent at all. Others work with a company like Cash Flow Deals, which connects a seller directly with a real FHA or conventional homebuyer whose own lender funds the purchase, locks the seller's net price before repairs are ever scoped, and structures the sale so title transfers once, directly from seller to buyer, through novation. Every path still ends at the same closing table, with a deed recorded and money moved. What differs is how much certainty the seller has about their number before they get there.
Common questions
What's the difference between 'under contract' and 'closed'?
Under contract means a buyer and seller have agreed on price and terms and signed a purchase agreement, but the deal hasn't finished. Closed means the deed has been recorded and the sale is legally final.
Who pays closing costs?
Both buyer and seller typically pay some closing costs, and exactly who pays what is negotiated as part of the contract. It varies by transaction and by what's customary in the local market.
How long does a typical real estate transaction take?
A financed sale takes longer than a cash sale because the buyer's lender has to underwrite the loan and order an appraisal before anyone can close, and both of those steps take real time. Transactions without financing can close much faster since there's no loan to approve.
What is title, and why does it matter who holds it?
Title is the legal right to own and control a property. Whoever holds clean title can sell it, and a title company's job during closing is confirming there are no competing claims, liens, or disputes before that title transfers to the buyer.
Do you need an agent to buy or sell a house?
No state requires it. Plenty of people buy and sell without one, but an agent brings experience with contracts, negotiation, and the local market that most people don't have on their own.
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What this means for your options
Every path to selling a house has real tradeoffs. Cash Flow Deals is built for the middle: faster than a traditional listing, more money than a cash investor.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. Usually within one business day.
See your selling options before you decide anything.