Page 11 - Partner Directory 2019

Once an Offer is Accepted

Once there is an offer and acceptance (a fully executed Binder with a check for 1% of the initial offer made
to the selling agency), and a per-qualification letter from the mortgage company, a standard sequence of
events typically occur. It is as follows:

Inspections
The buyers will have a building inspection at their expense. This should occur within one week of the fully
executed binder. The inspector will check the condition of the structure from basement to roof, the utilities,
the appliances that are to remain as part of the sale, for termites, for lead in all houses built before 1978,
for radon, the septic tank and well, the pool and oil tank if applicable. The inspection takes approximately
three hours. As a courtesy to the buyers, you should not be present during the inspection.

Contracts
Once the binder is fully executed and before inspections are completed, you will need to contact a real
estate attorney who will draft a contract and forward it to the buyer’s attorney. Within ten days, the
buyer(s) should sign formal contracts. By that time, any building inspection issues should be resolved.
Upon signing the contract, the buyer writes a check for 10% of the purchase price, less the binder deposit.
This check is typically placed in your attorney’s escrow account. Contracts are then returned to your attorney
for review and your signature.

Mortgage Contingency

There is a mortgage contingency involved in most transactions. The mortgage amount is indicated in
the binder and again in the contracts. The buyer generally requests a period of 3 - 5 weeks for mortgage
approval—this, too, is stipulated in the binder and the contract. Once the buyer makes formal application,
which should be done immediately, the mortgage company will contact a licensed appraiser to complete a
formal appraisal of your home. The appraiser will arrange to visit your home through the real estate agents.
This is most often done within three weeks of the fully executed binder, although I encourage it to be done
sooner.

Final Preparation of Sale

Once the mortgage contingency is fulfilled, there are a few details that need to be attended to (please refer
to your “closing checklist”). It’s “the home stretch,” and your home is nearly sold!

Closing

The closing is generally held at your attorney’s office. There are times, however, when the lender requires
that a closing be held in the office of their attorney. The buyers will complete a “final walk through” and
will personally inspect your home to see that it is in the same condition as when they binder it. If there
were repairs to be made as a result of the inspection, the buyers will want to ensure that they were done
according to the contractual agreement. The “final walk-through” is usually just a formality and is arranged
through the real estate agents involved in the sale. The date of closing was agreed upon during the
negotiating period and is indicated in the contract. The time of closing is usually determined within the last
week of the closing date. By this date you are all packed and ready to go. Except for a few incidentals that
might need your attention your selling journey is over and you have reached your goal. It’s time to celebrate!

Seller’s Guide

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