Home Page For Home Buyers For Home Sellers On Seniors Homes Office Directions

Selling your home can be a bag of mixed emotions! Exciting, if you upgrade to a larger home in a more prestigious town, sad, if your move is forced because of a job transfer leaving family and friends behind. Yet, it can also be a new beginning for empty nesters, who are ready to give up their big homes to move in to a Condo/Townhouse and prefer to spend the winter months in a warmer climate. Whatever the reasons, selling or buying a home is not an everyday occurrence and we all can use some hints of what to expect during this process. Hopefully, the following information will give you a general idea of what is involved in the process of selling a home and who is responsible for making this a smooth transition. While each situation has its own nuances, here are the various steps in the process.

1. Selling your House

Now that you decided to sell your home, the next decision is which real estate company to call in and, which sales representative to entrust with the Listing/Marketing of your home. Shop carefully and ask to see the marketing plan, after all, the real estate company is your vital link to the buyers who will make the offers. When interviewing agents make sure you are comfortable with the proposed marketing activities and don’t hesitate to compare another agent’s selling plan to Weichert’s ’35 Step-by-Step Home Selling Process’.
Person Responsible: Seller and Realtor/Sales Representative.

2. The Offer

 

Your house has been on the market for some time, you had a number of ‘Open Houses’ and a buyer just expressed an interest in making an offer on your home. The buyer, after consulting with their Realtor arrived at an appropriate offer. Many a time the offer they make is less than the asking price, other times, the offer may be the price the property is listed for. All offers are made in writing on a contract form and must be presented to the Seller. If a first offer is not accepted, the Seller is expected to make a counter offer. This process may be repeated until a final price is agreed on. After all parties have accepted the offer you have a Contract, which now goes to the next step in the process, the Attorney review. The written offer should be accompanied by a check (initial deposit) of $1,000 payable to the Trust Account of the Realtor.
Person Responsible: Buyer and Realtor/Sales Representative.

3. Attorney Review

The time has come to select an attorney who will represent you during this transaction. The guidance of a skilled attorney who specializes in real estate transactions is essential to protect your interests. The attorney review period is three business days (Saturday, Sunday and Holidays are excluded). During this time the attorney reviews the contract to determine whether the terms are favorable to you. Many a times the attorney consults with the Buyer’s attorney and they will agree on the terms of a “Rider” which becomes part of the contract, once signed by both parties. The attorney will also meet with you and address any concerns you may have with the contract or its terms. At this first meeting the attorney should also give you a written estimate of your anticipated closing costs. Once the attorney review is finished you are ready to go on to the next steps.
Person Responsible: Real Estate Attorney and you the Client.

4. Home Inspection

Now is the time for the Buyer to arrange for a professional home inspection. This is an examination of the structural integrity of the house, the condition of its mechanical and electrical systems, and the heating, plumbing and air conditioning systems. The inspector also inspects for wood damaging insects and radon. The inspection should be completed soon, normally within 10 days after the contract is finalized.
The inspector issues a written report to the Buyer, their attorney and the Realtor. If the Buyer has any concerns with the report they must notify their attorney at once since there are time limits the attorney must follow. If it’s a “resale” house rather than a new one, the Buyer should be aware that Sellers do normally not correct minor deficiencies and cosmetic items. (The condition of the house is usually reflected in the negotiated purchase price). If major items of concern are found, the Seller must be given ten days to correct the problems.
Person Responsible: Buyer’s Home Inspector, Sales Representative and both Attorneys.

5. Balance of Deposit is Due

The balance of the deposit is due on the tenth day after Attorney Review is over. The Buyer‘s attorney usually instructs his client when the remainder of the 10% (less the $1,000 you paid at time of contract offer) must be paid. It is common for the deposit to be held in escrow (trust) until closing by either the Realtor or the Seller’s attorney.
Person Responsible: Buyer and Buyer’s Attorney.

6. Mortgage Application.

Unless the purchase of your home is an all cash transaction, this is the time the mortgage application should be started, if not already in progress, since it usually takes 4 - 6 weeks for processing.
Person Responsible: Buyer and Buyer’s Attorney.

7. Title Search and Survey.

Once the Buyer has a mortgage commitment, the transaction is considered “firm”. At this time the buyer’s attorney will order a title search of all public records to make sure that your (seller) title on the property is good enough to be passed on to the Buyer. If there are any defects or clouds attached to the title, the buyer’s attorney will not close title until the problems are remedied. Unless a survey of the property was made within the last three years, the buyer’s attorney will order a surveyor to the property to prepare a written survey map.
Person Responsible: Buyer’s Attorney, Title Company, Surveyor.

8. The Final Walk Through the House

The day of the closing and usually after the home owner has vacated the house, the Buyer, Seller and Real Estate Professionals walk through the house to check that all is in working order and as stated in the Contract of Sale.
Person Responsible: Buyer, Seller, and Real Estate Professionals

9. The Closing

The closing date on your contract is an “estimated “ date. Everybody involved in this transaction will try to make the actual closing as close to that date as possible. But, if you are not ready, the mortgage banker isn’t ready or the buyer is not ready, reasonable postponements are allowed. Hopefully, your closing will be one of the 99%, which close on a date agreeable to all with cooperation from both sides. At the closing (usually in the buyer’s attorney’s office) both sellers and buyers meet, with their respective attorneys as well as the real estate professionals involved in the transaction. Normally the buyer’s attorney will represent the title insurance company and will close the mortgage documents as well as go over the closing statements and collects the moneys due from the Buyer. The buyer’s attorney then examines the documents presented by your attorney (Deed, affidavits, etc.) to make sure that they are in order. If all is found to be in order, the money will be turned over to you in exchange for the keys to your home!
Person Responsible: Sellers, Buyers, Attorneys and Real Estate Professionals.