You Have a Offer to Purchase! Now What Happens?

The first thing we do is personally review this offer with you, going over each of the terms. We also verify the qualifications of the buyers to finance the purchase. If you agree with what the buyer has offered you for your home, then you will sign the offer.

If you want to change anything, then you are making a counteroffer to the buyer. Items such as price, closing date, escrow deposits, repair limits, and assisting with the buyers closing costs are some examples of commonly changed details. We then return the contract to the buyer for them to review and accept, or wait for their counteroffer. Up to 24 hours can be allowed for the buyer and seller to review the offer and each counteroffer.

Once the buyer and seller have come to a final agreement, we’ll have an executed contract in which both parties have agreed to the terms and conditions for the home to be purchased. But there’s still more to do.

Title Company

The next step is to choose a title company that will assist us with closing the transaction. We then deliver a copy of the sales contract along with the agreed upon escrow deposit to them. The escrow deposit is kept in the title companies “escrow” account until the closing.

Now the title company will begin to do some research on the property which is commonly called a Title search and Title exam. You’ll want to know that no other individuals or entity has a right, lien or claim to the property. The title company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.

It is customary for the seller to pay for a title insurance policy to protect the new buyer in the event of any hidden hazards that may emerge after closing. Some possible hazards are; forgeries, clerical errors, and unknown heirs of a previous owner who is claiming ownership of the property. You can possibly receive a "reissue credit" or a discount on the search and exam fees by providing your Owners Title Policy to the title company.

The title company will contact you for personal information needed to obtain the payoff figures for your 1^st and maybe 2^nd mortgages. They’ll also need information to contact the homeowners association, if any, to let them know that ownership of the home will be transferred and verify current fees. They remain in contact with the lender to provide necessary documentation needed to close the transaction. The title company will also obtain property tax records and determine a prorated amount of taxes to be credited at closing.

Inspections

Typically buyers have 10 business days to complete any inspections. Common inspections include an overall inspection of the home, termites or other pests, radon gas, and mold. These inspections are all completed at the buyer’s expense. Sometimes it is necessary for the seller to make some repairs to the home prior to closing, if provided for in the contract. We’ll help negotiate and coordinate those repairs. Additional tasks that need to be performed at the buyer’s expense are an appraisal of the home along with a survey of the property. However, a previous survey may be utilized in some cases. All these items need to be done prior to closing.

Follow-up

As your agent, we are continually following-up to keep you informed on the loan process, inspections, repairs, the Title Company’s progress and other necessary items to make sure that all tasks are being accomplished, so the closing process continues to go smoothly. One important item we are looking for is the buyers “loan approval”. This means that the mortgage lender’s loan underwriter has reviewed the buyer’s financial position, debt to income ratio, reserve funds, employment, etc. and determined that the lender will grant the loan to purchase the home. This process can go quickly or take several weeks, depending on the lending institution.

Ok, we’re getting close to the closing date and things are looking good. The buyers and sellers may want to arrange for the utilities to be transferred so there is no disruption in service. At this point, we also schedule a date and time for the "closing" and the final "walk-thru" when the buyer inspects the home prior to closing.  The "walk-thru" is generally scheduled for the day before or day of closing.

Bring your drivers license, house keys, garage door remotes, access gate remotes, and any other important items that need to be passed along to the buyer. In most instances, you will be packed and ready to relocate to your new home.  We’ll be right there with you at the closing to review the closing statement or HUD. The HUD is essentially your sales receipt along with the Proceeds Check you will receive. Congratulations!