- CONTRACT NEGOTIATION: When someone makes an offer on your home, they do so in the form of a contract. Your broker is obligated by law to present every contract to you no matter how ridiculous it may seem. When you receive a contract, you can: 1) Accept it “as is”, 2) Reject it completely, or 3) Negotiate modifications in the form of a “counterproposal”.
The counterproposal process is where the terms and conditions of the sale are negotiated, including price, possession dates, inclusions and exclusions, inspection time frames, closing date, etc. You are not “under contract” while a counterproposal is being negotiated and can still entertain other offers. The counterproposal process may require going back and forth a few times. You can choose to reject the offer at any time during this process and walk away without penalty – as can the buyer. You will be officially “under contract” when you and the Buyer come to terms … but even then a few steps still remain.
- UNDER CONTRACT: INSPECTIONS & DUE DILIGENCE: Once you are under contract, the “due diligence” period begins. This is when the buyer will have the property inspected to make sure that the home is sound and that all appliances, critical elements, and systems, including plumbing, electrical, heating, cooling, mechanical, and roofing, are in good working order. The buyer can include anything in the inspection, from crime rates to environmental conditions, and can decide for any reason to reject the property based on any subjective criteria.
The buyer can choose to reject the property altogether or request certain repairs if there are any problems or defects in the property. As the seller, you may accept or reject all or parts of the request, and/or offer credits against the purchase price in lieu of some or all of the repairs. The buyer will also inspect the title work (called a “Title Commitment”) during the due diligence period.
- APPRAISAL: An appraisal value is a requirement of every lender. The lender’s appraiser will physically inspect and measure the property, compare it to similar sales in the immediate area, and determine its “Fair Market Value”. If the market value is less than the purchase price then the buyer is not obligated to pay more than the value and can walk away from the sale if a compromise is not negotiated. If there are any “conditions” to the appraisal, i.e. the appraiser requires certain items to be repaired for the loan to be made, the seller will have to comply with the appraiser’s conditions prior to closing in order to complete the sale.
- THE BUYER’S LOAN APPROVAL: Once the inspection issues are satisfied and the appraisal is completed, the buyer’s loan package is submitted for final approval. If the buyer’s loan is not approved or they were unable to obtain the rate and terms specified in the contract, they can still walk away without penalty. If the buyer’s loan is approved, their lender submits the final figures to the closing agent, which is usually the title company that’s providing the title insurance. The title company will tabulate all the figures and will provide the buyer and seller with settlement sheets setting forth the debits and credits, as well as other closing documents. As your broker, I will carefully review all documents and figures to ensure a smooth and accurate closing.
- CLOSING: The closing is where all the documents are signed, money is exchanged, and the title is transferred from you to the buyer. Closing usually takes about an hour. You can choose how you wish to receive your net proceeds: cashier’s check, money wired into your account, or a title company trustee account check. A cashier’s check or having the money wired to your account is the safest, but there is a charge for the service, usually around $25.00.
- SOLD: Congratulations! You have just completed the sale of your property!
As your broker, I will make sure that you are aware of and are protected through every step of the process. For my 30-Point Action Plan as it pertains to your sale, go here [link to 30-Point Action Plan]. For tips on a good showing, go here [link to Tips for a Good Showing].
For more information about the selling process or if you’re ready to sell your home, call me today: 3037598811