Your home has a contract! Now what?!?!
Posted May 10th, 2017 by Moving Station

Your home has a contract! Now what?!?!
So you have a buyer and you agreed upon a price and terms. What’s next?
Selling a house is progress of steps. Each state has laws that govern the sale process. Your experienced agent will share the specifics. In general, a home is not sold until it is closed. In real estate, the status of your home is now called: “under contract” or “pending sale.”
Typically, the following steps are next to occur:
• Buyer’s inspections: typically the buyer hires a licensed inspector(s) to inspect the property within 10 days or so of the contract agreement. The types of inspections vary depending upon the type of property. Commonly the buyer hires a licensed home inspector to review the general condition of the property. If the home has a well or septic system, the buyer will have a licensed professional inspect these systems as well. The buyer will likely negotiate repairs or a credit for the cost of the repair with the seller if unknown issues or defects are discovered.
• Potential contingencies. Your real estate agent should point these out when the offer is initially negotiated.
o Home sale or home closing contingency. A home sale contingency is when the buyer still needs to sell their current home in order to afford the purchase of your property. A home close contingency is when the buyer already has a buyer for their own home and is “under contract.” There are clear, defined dates with each of these types of contingency. Typically, there is also a clause that states if another buyer places an offer on your property, the original buyer has a specified timeframe to either remove their contingency and move forward with the home purchase or cancel the contract.
o A loan or financing contingency is typical for a buyer needing to secure a mortgage to complete the purchase of the home. The timeframe may vary depending upon what type of loan the buyer is getting. For example, nationally the average amount of days for a convention loan approval is about 30 days. Your real estate agent should share the typical timeframe of the type of loan when the offer is presented.
• Title is processed once the loan is approved and there is a clear to close from the buyer’s lender. The title company then will then comply with the new TRID RESPA guidelines to close as soon as possible.
• The TRID or TILA RESPA Integrated Disclosures began in 2015 and requires that the buyer MUST receive the Closing Disclosure 3 days prior to the closing date. If there are any changes in the buyer’s loan during this time period, a new Closing Disclosure may be required, which could extend the closing time period.
• Final walk-through typically happens a couple of days or as few as hours before the settlement or closing. The reason for the walk through is to make certain the condition of the property is the same as when the buyer made their offer. If there were repairs required as a result of the inspection, the buyer will also be confirming the agreed upon repairs were completed.
• Closing or settlement can happens 3 days after the new TRID RESPA is delivered to the buyer per federal law.
• Your home is considered SOLD once ownership changes to the buyer with the deed and once the buyer’s loan funds come through.

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