What to Expect When You've Got a Contract
This blog is part 2 in a short series going through the steps we will take together when you choose to list with me to sell your home. If you haven’t read last month’s blog, it covers the steps from making the decision to sell to when you get an offer on your home.
I’ve got an offer. Now what?
In the last blog, I covered the parts of the contract we will review together when someone makes an offer to buy your home. After going through the contract together, you will need to decide whether you ACCEPT the offer as-is, REJECT the offer outright, or COUNTER their offer with a revision.
If you choose to REJECT the offer: you are choosing to not negotiate with this potential buyer. They can either go away or come back with a better offer. We’ll go back to marketing your house to others and eventually find the right buyer.
If you choose to COUNTER the offer: you are sending the offer back to the potential buyer with revisions to suit your needs. Sometimes these revisions are about price - how much they are going to pay for the home, how much you require in earnest money in order to move forward - and sometimes it is about other terms, for example, the closing date is too soon. Either way, we are opening the door to finding the perfect terms for everyone involved to move forward, but we aren’t quite there yet.
If you choose to ACCEPT the offer: a lot of things begin simultaneously. Keep reading…
We’ve accepted the offer. Now what?
The buyer makes the earnest money deposit.
Your house goes to a “Pending” status in the MLS, which means any future open houses or showings will be cancelled and we won’t schedule any new ones.
Your contract is submitted to a title attorney for them to begin their work. They research HOA assessments and if you’re up-to-date on them, any property liens, change the deed, and get all the closing documents prepared so everything goes smoothly. They will also schedule the closing with you, and you’ll be in contact with them throughout the contract-to-closing period.
The inspection period begins. Your buyer has the right to get the property fully inspected by professionals before they commit fully to buying it. It is the BUYER’S responsibility to schedule the inspection(s). Once they get the results of the inspection, it is possible you may have to NEGOTIATE on certain repairs, or that they may cancel their contract depending on the condition of your home. (This is why our work together at the beginning before we list is so important.)
Scheduled to Close
If everything above goes smoothly, you will have a closing date and now your job is to get yourself packed up and ready to go! Properties need to be left in “sweep clean” condition, which means everything is out (unless you negotiated leaving furniture) and the home has been swept and shelves and counters have been wiped down. There are special cleaning services that handle move-out cleans if you aren’t up to the task yourself.
Now is also the time to schedule the day you want your utilities to end and cancel or transfer your homeowner’s insurance.
Cleared to Close
If the buyer is getting a mortgage, you have to wait for the FINAL clear to close once the mortgage has been approved. This usually happens a few days before the closing. After this is received, the buyer and his/her realtor will schedule one last walk-through the property to verify its condition prior to the transfer of ownership. This can happen anytime up to the time of closing, sometimes the walk-through is right before!
After that, it’s all document signing and money transfers. The attorney handles the closing with the buyer so you don’t have to and they arrange for the balance of your loan to be paid off with the proceeds from closing. If you are receiving additional money back from closing once your loan has been paid off in full, your attorney will either wire transfer those funds to you or you can stop by his/her office to pick up your closing check. And that’s it! You’ve sold your home!