From Offer to Close

What Happens Now?

There are a lot of moving parts and people that need to come together for the purchase and sale of a home. Here is an overview of what the process generally entails:

Write The Offer

The first step is preparing the Purchase and Sale Agreement (PSA for short). This is the document we prepare and I present to the seller that outlines all the components and conditions regarding the purchase and sale of the home. This is a legally binding document, so it is very important that you understand what you are signing. The seller can either reject, counter or accept your offer.

Deposit Earnest Money

An earnest money deposit communicates to the seller that you're serious. It is typically 1-3% of the purchase price and is deposited into an escrow account to be held until closing. Earnest money (or EM) is credited towards your down payment but is refunded to you in the event certain contingencies are not met and the deal is terminated. You can lose your earnest money if you fail to perform and the seller terminates the PSA.

Home Inspections

You can make your offer dependent on the results of home inspections. This is called an inspection contingency. I recommend my clients get a radon test and termite inspection in addition to their general home inspection. Inspections allow you to get a more thorough look at the property, and will often provide the opportunity to renegotiate terms of the purchase and sale agreement such as repairs or purchase price.

Appraisal

Appraisers are objective third-party professionals hired by lenders to verify that the home you want to buy is worth the money you are borrowing. The appraisal report belongs to the buyer and lender, and the results are not shared with the owner of the home. If the home appraises at value, the home is worth the amount of money you are paying and the deal can continue. If the home does not appraise, this opens the door to negotiation between buyer and seller but if a solution cannot be agreed on, it could be the end of the deal.

Final Walk-through

The purpose of the final walk-through is to verify that the home is in the same or better condition than it was when you first went under contract and/or after the inspection period and any negotiated repairs. This usually happens a day or so before closing.

Closing

When all contingencies such as inspection, appraisal and financing have been satisfied the only item left is executing the final documents. You will be given instructions on when and how to wire funds as well as where and when we will meet for your closing. Closings typically take place at an attorney or title office and takes about 45 minutes to an hour. Bring your ID and a well-rested hand - you'll be dotting a lot of "i's" and crossing a lot of "t's"! If possession of the home is the same day as the closing, I'll hand over your keys!

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