<h1>You’ve Accepted an Offer On Your Home, Now What</h1>

 

Congratulations! You’ve now selected a contract and everyone is excited! The buyer us excited about your home and you (the seller) are excited that you are about to sell your home BUT as the great Lee Corso would say “Not So Fast My Friend!”

 

Going under contract is just the beginning of things, most contracts will have contingencies, two of the most common contingencies are appraisals and home inspection.

 

<h2>Home Inspection: Peeling back the layers of your home with a professional</h2>

 

Fairly quickly after a buyer goes under contract it is time to order the home inspection. Typically The buyers will 7 days (depending on where you live it might be different) from the ratification date to conduct their home inspection. The home inspection can take anywhere one hour to three hours depending on how large the home is. The seller’s agent likely will not be in the home since whatever is found in the home inspection become a latent defect and listing agents and homeowners must disclose all known latent defects.

Also, the listing agent won’t have much to say or do so there is no point in the listing agent or seller to be in the home at the time of the inspection.

The home inspector will inspect everything from the roof, attic, major systems, and plumbing to the basement and possibly the foundation. This is why the home inspection takes as long as it does. As you can imagine a condo home inspection will likely only be an hour while a three-story 2000 square foot home will take upwards of three hours.

 

The home inspection is over, now what? 

Ok, now the home inspection is over the buyer’s agent and buyer(s) will likely take a few days to discuss what was inspected and what they would like the seller to address. Keep in mind that after a home inspection a buyer can void the contract if the home needs to many repairs in the eyes of the buyer. Once the seller’s agent send the list of repairs to the seller, the sell will have the option to give the buyer a credit for the repairs or make the fixes to the home. Keep in mind that the seller can negotiate how many repairs they want to make. In essence, if the buyer asks for 10 items to be repaired you can opt to repair 2 of the items or 9 of the items or give the buyer a credit. The buyer can cancel the contract depending on what repairs you decide to make. The buyer cannot cancel the contract if you decide to fix everything they ask for. Once the home inspection is squared away we move onto the appraisal.

<h3>Appraisal: Finding Out the Valuation and the Last Contingency</h3> 

The appraisal is the lender’s valuation of the home, the appraiser, who is the eyes and ears for the lender. Your agent nor yourself can interact with the appraiser, banks do not allow this as they do not want information that may alter the opinion of the appraiser. The appraiser will only be at the home for 15-20 mins at the home at the very most. The appraiser is looking to make sure there are no major issues with the home and to make sure the home actually exist.
What Happens In The Appraisal Is Below The Contract Price?
In the event the appraisal comes in below the contract price there are three options buyers have. The three options are:

 

Option 1. The buyer can pay the difference between the appraised value and the contract price.

Option 2. The buyer can ask the seller to come down from the contract price to appraised value. (Most likely option)

 

Option 3. The buyer can ask the seller to split the difference between the two values.

You as the seller get to decide if you will accept what the buyer decided option.

If you do not want to accept the buyer’s presented option then the buyer gets to decide if they will void the contract or choose one of the other options.
Option 1 and option 3 require the buyer to pay the difference in cash at settlement. 

Once both parties agree upon an option then we move forward.

Once the appraisal is completed its time to make whatever repairs you’ve agreed to (if you agreed to them) in the home inspection. If you have time in the contract its best to wait for the appraisal to be completed to make the repairs because the appraisal is the final remaining contingency in which the buyer can void the contract. The last thing you want to do is to make any repairs to the home only to find out there is an issue with the appraisal so I always say wait for the appraisal to be completed to put any more money into repairing anything.

<h4>We’ve Gotten Past the Appraisal, Are We Done Yet?</h4>

Fantastic! You’ve gotten past your appraisal, now it is time to wait for your buyer’s loan to be approved by the lender and for the lender to issue the clear to close. The clear to close is oftentimes abbreviated as CTC. CTC are the best three letters when it comes to selling your home because the CTC means we are closing! Once the CTC is issued the title company will call you to schedule a time to settle and sign documents. Once the buyer signs their documents and settles all funds will be disbursed and you would have officially sold your home!

Congratulations! You’ve sold your home and this may seem lengthy but honestly, it isn’t and the timeline really does move quickly because the contract does have timelines to abide by.

Still have questions about the home buying process? Give me a call/text or email!