2019 Home Design Trends & Tips for Buyers/Sellers

So you’ve made an offer on your dream home, and the seller has accepted…what are the next steps?

Several things still need to happen before the deal can close, and the house can officially become your home.

The closing process (also called the escrow process) generally takes 30-60 days to complete. Much of the work is done behind the scenes by the team of real estate professionals handling your transaction. But you’ll also be involved in several of the upcoming steps.

Here’s an outline of what buyers can expect during the closing process.

Appraisal and Inspections

The home appraisal is a formal valuation of the property. It is done more for the mortgage lender than anyone else. The lender needs to know that the house is worth the price the buyer is paying. The home is the collateral for the loan; if the buyer defaults, the lender can take possession of the property. So the lender wants to make sure the property is worth enough money for them to give the buyer the loan.

Then there are the inspections. Generally, all buyers should at least have a general home inspection conducted to bring any visible issues to their attention. Additional inspections (requiring specialized professionals for items like chimneys, drainage pipes, and roofs) may also be a good idea.

The goal of the inspections is simply to make sure buyers are aware of the actual condition of the property before closing the deal. If you find something unacceptable during the inspections, you have the option to 1) ask the seller to make repairs, 2) ask the seller for a price reduction or closing credit, or 3) walk away from the deal.

Securing Financing

Savvy buyers know to get pre-approved for a loan even before the home search begins. That way you can be reasonably sure you won’t have trouble securing financing when you find the right home.

Once you have an accepted offer, you’ll need to provide your most recent financials to your lender (bank statements, tax returns, pay stubs, etc).

From this point until the deal is closed, don’t do anything to change your financial situation. Don’t change jobs, don’t buy a car, don’t even pay down a large amount of debt or accept a raise. Anything that changes your finances would require the lender to start your approval all over from scratch. Save any financial changes for after the closing date.

Signing the Paperwork

There will be a lot of paperwork to be signed and notarized. Request a copy of all the documents before your signing appointment so you can read through it at your leisure, and be ready to just flip and sign when you’re sitting with the notary.

The Final Walk Through

Immediately before closing, you’ll have a chance to walk through the property one more time. This allows you to make sure the property is still in the condition it was in when you made your offer and that any repairs requested following the inspections were completed.

Paying Your Closing Costs and Getting Your Keys

With everything in order, you can wire your closing costs (the down payment, prorated taxes and insurance, and transaction fees) to your escrow company. This typically happens a day or two before the official closing date so funds can be received on time.

On closing day, you can get your keys, and let yourself into your new house.

Welcome home!

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of Realty Executives International. This post was written by Michelle Clardie. Michelle is a professional real estate blogger, specializing in ghostwriting Realtor® blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at www.michelleclardie.com

WHAT SELLERS NEED TO KNOW!

That 30-60 day period between accepting a buyer’s offer and closing the deal is a busy time for both parties.

While the buyers are focused securing financing and making sure the house is as it appears to be, sellers are mainly concerned with 1) proving that they have the right to sell the property, and 2) making sure the buyers are aware of the true condition of the property.

Here’s an outline of what sellers can expect during the closing process.

Disclosure and Clear Title

First, you’ll probably need to disclose any material facts about the property to the buyers. The requirements vary by state, but often include items like known water damage, structural issues and liens.

You will also need to address any clouds on title. If the title company finds any discrepancy in ownership or encumbrance that could invalidate your clear title, these will need to be removed before title can transfer to the buyer. Common title issues include things like foreclosure proceedings, liens from contractors who have not received payment for their work on the property, and probate issues when the owner of record has passed away and the house is being sold by the deceased’s estate.

Appraisal and Inspections

An appraisal will be completed (at the buyer’s expense) to assure the buyer’s lender that the property is worth the sales price. Sellers typically don’t need to do anything except make the property available to the appraiser.

The buyers will also probably want a home inspection, so the property will need to be made available to the inspector. Inspections often uncover maintenance issues in the home that may require repairs. The buyers will notify you shortly after the inspection to make any requests for repairs or to ask for a price reduction to account for the cost of the required repairs.

These requests are entirely negotiable. You can agree to some, or all, of the requests. Or you can refuse and risk losing your buyer. A good real estate agent is invaluable at this stage of the transaction. They know industry standards regarding who typically pays for what, they can offer practical advice, free from the emotion that goes with being the homeowner, and they can often save a deal threatened by the results of an inspection.

Waiting

At this point, you have a bit of waiting to do, typically a couple weeks while the seller works with their lender to secure financing. But you’ll probably be so busy packing you won’t miss the hustle of the transaction!

Signing the Paperwork

Just a few days before the closing date, you’ll get to sign the small mountain of paperwork that accompanies every real estate transaction.

It’s generally helpful to request a copy of the documents before your signing appointment so you can read everything through in your spare time. That way you won’t be rushed through while the notary waits for you to read the docs at the signing appointment.

Moving Out

That’s it! Now you just need to leave a few things for the buyers: keys, garage door remotes, appliance and system manuals and warranties, etc.

Then you can turn off the lights, lock the doors, and embrace a new chapter in your life!

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of Realty Executives International. This post was written by Michelle Clardie. Michelle is a professional real estate blogger, specializing in ghostwriting Realtor® blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at www.michelleclardie.com