The Home Selling Contract Process
Once an offer is submitted, a whole new realm of services is opened up to you.
Word of an Offer – Oftentimes, if a buyer is interested in your home after a showing, their agent will call me and let me know that they’re going to be submitting an offer. This allows me and my team to prepare any required disclosures or documents that might be needed for the offer and get them over to the Buyer’s Agent.
Offer Received – Once we get the offer in, I’ll review it and then send it along to you. I’ll call/meet with you and discuss the terms and conditions. We can then decide if we think it’s a fair offer or if we want to write up a counter offer. I take pride in my negotiation skills and believe that we can always work with offers that are fair and just. If we send a counterproposal, I’ll keep you in the loop along the way.
Accepted Offer – Once we come to an agreement of terms and pricing, everyone signs and accepts the offer, and we go “Under Contract”. That means that since we have an accepted offer on the table, we should expect showings to slow down, though agents may still call me directly to check the status of the offer and to see if a showing is worth it.
Inspections – Shortly after the offer is accepted, the buyers will schedule an appointment with a home inspector to come out and look at the property – this is typically done within the first 7-14 days. They’ll check everything and this is usually a 3-4 hour appointment, during which you’ll need to make sure to be out of the house.
Inspection Objection – When the buyer’s agent gets the inspection report back, they’ll put together what’s called an Inspection Objection that provides us with feedback and details the items that the buyer is requesting we do before closing. A lot of times it’s simple and straightforward things, like making sure that any furnace or A/Cs are serviced by an HVAC specialist, but sometimes they can be more costly, like repairing or replacing the roof, for example. Depending on the care and condition of the house, what comes back in the Inspection Objection will vary.
Inspection Resolution – This is another negotiating point during the contract, and once you and I have had a chance to discuss what they’re asking for, we can prepare an Inspection Resolution that clearly outlines what we will and will not take care of.
Title Commitment – As the sellers, you are “providing” the buyers with a Title Commitment Policy. This is an insurance policy that states that you have the legal right to sell the property, and that anything past, present or future that may come up relating to the property is covered by the insurance of the Title Company. Typically, this step means more to the buyer than the seller, since it’s a chance for them to read all the legal documents pertaining to the property, and see if there are any liens, judgments, exceptions, etc. that they should be concerned about. There usually isn’t anything to worry about here, but it’s always a possibility.
Getting Closer to Closing!
Appraisals – Once the home inspections are cleared up and the Resolution has been agreed to, it’s time to get the house appraised. This is something that the buyer’s lender will schedule and arrange, and we will let you know when it’s going to happen. I always prepare a detailed packet for the appraiser and do my best to even meet them there, if scheduling allows.
Preparing for closing – Whether it’s been all smooth sailing, or had some rocky waters, we’re on track to our final date of closing! Closing is the date in which you are no longer the owner of the property, and get to hand it off to the lucky buyer! As we plan for closing, there are things that you will want to have prepared to provide to the buyer. If there are any Home Owners Association or Due Diligence documents, you will be required to pass those along for the buyer to review. If there are any questions about the title, the property or the area, those should have been answered by now. There could be a hundred little details that require attention between now and closing day, but that’s what I'm here for!
Final Settlement Statement Review – Ideally, a few days before our scheduled closing time and date, we should receive a settlement statement (sometimes referred to as a HUD-1 Statement) from the Title Company. This outlines the debits and credits for both buyer and seller, and provides final figures detailing exactly what each party is paying where and how much everyone needs to bring to the closing table. Ideally, you’ll be able to bring your ID and little else to the closing, but sometimes the Title Company will request something additional. After I receive the statement, I’ll review it and make sure that it’s all good and accurate and send it along to you for your review. If there’s any questions, or something seems off, now is the time to address it so that appropriate changes can be made well before the signing.
Congratulations! – As I’ve mentioned, I’m a big proponent of client relationships and building that trust between us. As a result, once you close on a deal, I’ll stay in touch from time to time to see how things are doing, and to offer any assistance you might need in the future. You are my business, and that’s the reason I do what I do! I will be available to answer any questions and assist you in any way that I can.
When you team up with me, you will have a peace of mind knowing that I will be working around the clock to ensure an easy and seamless transaction!
Once an offer is submitted, a whole new realm of services is opened up to you.
Word of an Offer – Oftentimes, if a buyer is interested in your home after a showing, their agent will call me and let me know that they’re going to be submitting an offer. This allows me and my team to prepare any required disclosures or documents that might be needed for the offer and get them over to the Buyer’s Agent.
Offer Received – Once we get the offer in, I’ll review it and then send it along to you. I’ll call/meet with you and discuss the terms and conditions. We can then decide if we think it’s a fair offer or if we want to write up a counter offer. I take pride in my negotiation skills and believe that we can always work with offers that are fair and just. If we send a counterproposal, I’ll keep you in the loop along the way.
Accepted Offer – Once we come to an agreement of terms and pricing, everyone signs and accepts the offer, and we go “Under Contract”. That means that since we have an accepted offer on the table, we should expect showings to slow down, though agents may still call me directly to check the status of the offer and to see if a showing is worth it.
Inspections – Shortly after the offer is accepted, the buyers will schedule an appointment with a home inspector to come out and look at the property – this is typically done within the first 7-14 days. They’ll check everything and this is usually a 3-4 hour appointment, during which you’ll need to make sure to be out of the house.
Inspection Objection – When the buyer’s agent gets the inspection report back, they’ll put together what’s called an Inspection Objection that provides us with feedback and details the items that the buyer is requesting we do before closing. A lot of times it’s simple and straightforward things, like making sure that any furnace or A/Cs are serviced by an HVAC specialist, but sometimes they can be more costly, like repairing or replacing the roof, for example. Depending on the care and condition of the house, what comes back in the Inspection Objection will vary.
Inspection Resolution – This is another negotiating point during the contract, and once you and I have had a chance to discuss what they’re asking for, we can prepare an Inspection Resolution that clearly outlines what we will and will not take care of.
Title Commitment – As the sellers, you are “providing” the buyers with a Title Commitment Policy. This is an insurance policy that states that you have the legal right to sell the property, and that anything past, present or future that may come up relating to the property is covered by the insurance of the Title Company. Typically, this step means more to the buyer than the seller, since it’s a chance for them to read all the legal documents pertaining to the property, and see if there are any liens, judgments, exceptions, etc. that they should be concerned about. There usually isn’t anything to worry about here, but it’s always a possibility.
Getting Closer to Closing!
Appraisals – Once the home inspections are cleared up and the Resolution has been agreed to, it’s time to get the house appraised. This is something that the buyer’s lender will schedule and arrange, and we will let you know when it’s going to happen. I always prepare a detailed packet for the appraiser and do my best to even meet them there, if scheduling allows.
Preparing for closing – Whether it’s been all smooth sailing, or had some rocky waters, we’re on track to our final date of closing! Closing is the date in which you are no longer the owner of the property, and get to hand it off to the lucky buyer! As we plan for closing, there are things that you will want to have prepared to provide to the buyer. If there are any Home Owners Association or Due Diligence documents, you will be required to pass those along for the buyer to review. If there are any questions about the title, the property or the area, those should have been answered by now. There could be a hundred little details that require attention between now and closing day, but that’s what I'm here for!
Final Settlement Statement Review – Ideally, a few days before our scheduled closing time and date, we should receive a settlement statement (sometimes referred to as a HUD-1 Statement) from the Title Company. This outlines the debits and credits for both buyer and seller, and provides final figures detailing exactly what each party is paying where and how much everyone needs to bring to the closing table. Ideally, you’ll be able to bring your ID and little else to the closing, but sometimes the Title Company will request something additional. After I receive the statement, I’ll review it and make sure that it’s all good and accurate and send it along to you for your review. If there’s any questions, or something seems off, now is the time to address it so that appropriate changes can be made well before the signing.
Congratulations! – As I’ve mentioned, I’m a big proponent of client relationships and building that trust between us. As a result, once you close on a deal, I’ll stay in touch from time to time to see how things are doing, and to offer any assistance you might need in the future. You are my business, and that’s the reason I do what I do! I will be available to answer any questions and assist you in any way that I can.
When you team up with me, you will have a peace of mind knowing that I will be working around the clock to ensure an easy and seamless transaction!
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6760 Corporate Drive Suite 300
Colorado Springs, CO 89019 |
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