Page 6 - The Vanderblue Team's Sellers Guide

Transaction Timeline

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 pre-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!