Have you accepted an offer on your home? Feeling uneasy about the rest of the process?
Don’t worry! You’re not alone!
This part of the process is the one that most people are unfamiliar with because it’s basically a lot of paperwork, deadlines, and other boring steps…but all of it is really important! The sale of a house is a contract where you’re transferring ownership so to make sure there are no legal issues, these steps need to be followed. But don’t worry, we’ll break it all down for you.
Here’s What To Keep In Mind:
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When the offer is accepted, that means both sides have signed (or executed) the document. This is the purchase agreement. It will dictate everything else moving forward unless you agree to any addendums or changes afterwards.
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This is the date you have to be moved out by, so make sure it's realistic but also timely. Too much of a wait could scare off a potential buyer, as it could change what kind of deal they get on a loan, such as the interest rate. You will also need to either clean or hire a service to clean once all of your things have been removed.
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A buyer will normally put a certain amount of money up as what is called "earnest money" into an escrow account. This isn't a complete down payment, but is usually a sign of good faith on the part of the buyer. Sometimes, it’s split into two: once at the beginning of the transaction and then later after inspections are completed. As long as everything goes through and there are no issues, this money will simply become part of the down payment. If not, it all depends on the deadlines of purchase agreement - if followed, buyer will get it back, if not, you the seller gets to keep it.
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Repairs/fixtures should have been covered in the purchase agreement. Anything that needs to be repaired or replaced should be completed before the closing date. A "fixture" is something that is considered part of the property and will be sold with it, like ceiling fans or other built-in appliances. Make sure no ambiguity is left regarding what is a fixture and what will be leaving with you before closing day when the purchase agreement is handled.
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A title company will look into making sure that you can sell the home and that no one else has any claim to it. Any sort of lien or judgment against the property - like unpaid property taxes - will impede the sale, so it's best to make sure there are no issues. There may also be a home inspection scheduled to make sure the buyer is willing to take on any repairs or issues that may not have been covered under the purchase agreement. The only time this doesn’t happen is when the inspections are waived as part of the purchase agreement.
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This is normally when you're advised to start packing so you can be ready to move out, while the buyer is working with their lender. Often times a home appraiser will be called in to confirm the value of the house. During this time, should the buyer be alright with the appraisal, the buyer will finalize their mortgage details. Once they are approved, you’re on your way to settlement!
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If everything has gone well, the original closing date may still be applicable. If it has not - or any part of the process stalled - a new closing date will have to be agreed to. All paperwork will have to be signed, all monies will begin to be transferred and the buyer will now be the owner of the house. The day of settlement, you will need to be out of the house, bring any and all keys to give to the buyer, and have any other pieces of information with you to finalize the deal.
If you have any questions about this process - which is admittedly complicated - please reach out to us in the contact form below and we can assist you. You can trust our team to guide you through this process as we have tons of experience, not just with clients but fellow colleagues in the industry.
Let’s get started TODAY!