From Listing To Closing When Buyer Has a Mortgage
Once the market analysis, property condition and pricing strategy have been reviewed and it has been determined which types of financing your home is eligible for, decide on an asking price and agree to adjust every two or three weeks if an offer is not received. (Days on the market are the enemy to a home’s value.) Sign the listing contract and pre-marketing agreement.
Finish up the items that need to be cleaned, repaired, and completed, to prepare for your staging and photoshoot appointments.
Once the staging is done and photos are edited, your property goes live on over one hundred websites, a sign is installed in the yard, and directional signs are placed at intersections.
Showings will be scheduled by Realtors with qualified buyers, so make sure your home is available for showings during daylight hours. Feedback from the showings will be requested, received, and relayed to you, usually the same day.
Offers are received, negotiated, and bottom-lined.
The Buyer submits earnest money deposit and applies for funding. If inspections contingencies are part of the purchase agreement/contract, they will be performed at this time, and should require not more than 5 business days to complete. In multiple offers, this time frame should be shorter. The purpose of an inspection is not to create a list of repairs for the Seller; it is to make the Buyer better informed of the condition of the property. This contingency is removed in writing, or automatically removed when the inspection period expires, if that is how it is written in the contract. (Repairs can be addressed when negotiating the purchase agreement.)
An appraisal will be ordered when Buyer applies for the mortgage, if that is how it is negotiated in the contract. The appraiser will contact the listing agent to schedule an appointment. The listing agent will meet the appraiser to assist with questions about local market conditions, improvements and appurtenances, and other items that relate to the home valuation. The appraisal report is usually not shared with the Seller unless it is a problem for the transaction.
Prepare to move while the Buyer’s financing and title company preparations are being finalized. Start packing and cleaning, make a list of address changes that need to be sent out, arrange utility transfers, cancel services such as; landscaping, trash service, propane delivery, cleaning services, etc. Wait until you have actually left the closing table and have your proceeds check in hand before canceling your homeowners insurance.
The clear to close is one of the final stages of the Buyer’s loan being funded. The buyer must then sign a closing disclosure and wait three business days before closing. On the day of closing, the Buyer will do a walkthrough of the property to make sure it is in the same condition as the day that they wrote the offer. They are also checking to make sure any other contractual obligations have been met, such as the Seller moving all of their personal belongings are gone, and the items that are supposed to stay, such as appliances, are still with the property. All parties meet at the title company and sign documents to fully execute the contract. The title company makes sure all of the Seller’s fees and costs such as bills for taxes, utilities, mortgage payoff, liens, inspections, commissions, home warranties, and etcetera are paid, and that any escrows that were agreed to are held accordingly. The Seller will collect their proceeds check this day.