After the Sale - Before the Closing
Once a purchase agreement is signed, a clock starts ticking for several items that must be completed in a timely manner.
The Inspection:
The inspection time begins the day after the purchase agreement has been fully signed by all parties. The buyer usually has 10 calendar days to get all inspections completed and to have all issues of concern negotiated with you. If the buyer does not request any items fixed by you then on the 11th day it is assumed the buyer is moving forward with the sale. Normally there ARE items that need attention. If the buyer does request repairs to be completed then you will have 3 options: agree to complete the
repair before closing, negotiate with the buyer to split the cost of the repair, reject doing the repair. If during the 10 day inspection period the buyer and seller cannot come to terms all parties agree to sign a cancellation of the purchase agreement and earnest money is returned to the buyer.
Once the inspection is complete and items of concern are negotiated between buyer and seller, we now move forward toward the closing. It may seem as though nothing is happening at this point, but now a lot of behind the scenes work is being completed for both the home and the buyer.
The Home:
After the inspection is complete, the mortgage banker representing the buyer will order an appraisal. Once ordered, the appraiser will have up to 10 days to respond. Again, the job of the appraiser is to determine that a fair market price has been agreed upon for the home. The buyer pays for the appraisal and you will be notified when the appraiser needs to visit your home.
At the same time, the seller will have a title company investigate the current title on their home to prove they have “clear title” and are passing that assurance to the buyer at the closing. Small issues sometimes do arise but usually get resolved before closing.
The Buyer:
At the same time the home is going through various inspections and investigations, the buyer is also being investigated by the mortgage company. A buyer makes mortgage application and answers questions asked by the mortgage banker. Those answers justify the pre-qualification letter given to buyers when shopping for a home. After the buyer finds a home, the mortgage company needs to verify all the answers given by the buyer. The mortgage company will verify:
The Inspection:
The inspection time begins the day after the purchase agreement has been fully signed by all parties. The buyer usually has 10 calendar days to get all inspections completed and to have all issues of concern negotiated with you. If the buyer does not request any items fixed by you then on the 11th day it is assumed the buyer is moving forward with the sale. Normally there ARE items that need attention. If the buyer does request repairs to be completed then you will have 3 options: agree to complete the
repair before closing, negotiate with the buyer to split the cost of the repair, reject doing the repair. If during the 10 day inspection period the buyer and seller cannot come to terms all parties agree to sign a cancellation of the purchase agreement and earnest money is returned to the buyer.
Once the inspection is complete and items of concern are negotiated between buyer and seller, we now move forward toward the closing. It may seem as though nothing is happening at this point, but now a lot of behind the scenes work is being completed for both the home and the buyer.
The Home:
After the inspection is complete, the mortgage banker representing the buyer will order an appraisal. Once ordered, the appraiser will have up to 10 days to respond. Again, the job of the appraiser is to determine that a fair market price has been agreed upon for the home. The buyer pays for the appraisal and you will be notified when the appraiser needs to visit your home.
At the same time, the seller will have a title company investigate the current title on their home to prove they have “clear title” and are passing that assurance to the buyer at the closing. Small issues sometimes do arise but usually get resolved before closing.
The Buyer:
At the same time the home is going through various inspections and investigations, the buyer is also being investigated by the mortgage company. A buyer makes mortgage application and answers questions asked by the mortgage banker. Those answers justify the pre-qualification letter given to buyers when shopping for a home. After the buyer finds a home, the mortgage company needs to verify all the answers given by the buyer. The mortgage company will verify:
- Employment
- Income
- Investments
- Rental or ownership history
- Credit
- Tax returns (for self-employed persons)
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