Understanding the process
Selling your home can seem like an emotional rollercoaster. For some it’s quick and easy and for others that ‘messy middle’ between getting an offer and getting to the closing table takes years off their life. Having an understanding of the process ahead of time makes it less stressful. Having a good Realtor who works well with other agents and who can remain calm and professional also make the process less stressful.
Offer Acceptance: YEAH! You got an offer! Once we've received an offer on your property and you've accepted it, we move into the closing process. Negotiations between you and buyer or seller can include some back and forth on items other than price. Who pays for the title policy, survey, closing costs and home warranty are examples of things your Realtor will work with to get the best offer for you.
Title Search and Examination: The title company will conduct a thorough search of public records to ensure there are no outstanding liens, claims, or other issues with the title to your property. This step is crucial for confirming that the buyer will receive clear and marketable title to the property. The title company will also receive the earnest money and option fee (if there is an option period) and hold those funds in escrow.
Home Inspection and Appraisal: In most transactions, buyers want to have an inspection performed to know if there are any major issues with the property. Inspections are performed by a licensed inspector and the report could lead to further negotiations depending on what, if anything, is found. Additionally, the lender will likely require an appraisal to determine the fair market value of the property. The home inspection is performed during the option period, allowing the buyer the right to terminate the contract if they choose to and have their earnest money returned to them.
Mortgage Approval and Underwriting: The buyer's lender will begin the process of approving the buyer's mortgage loan. This involves verifying the buyer's financial information, assessing the property's value, and ensuring that the loan meets all necessary criteria. The underwriting process can take some time, so it's important to be patient during this stage!
Closing Disclosure: Prior to closing, the buyer will receive a Closing Disclosure from their lender outlining all of the final terms and costs associated with the loan. This document must be provided to the buyer at least three business days before closing to allow for review.
Final Walk-Through: Shortly before closing, the buyer will typically conduct a final walk-through of the property to ensure that it is in the same condition as when the offer was accepted and that any agreed-upon repairs have been completed. By this step, the seller should be completely moved out and ready to turn over keys.
Closing Day: On the scheduled closing day, all parties involved will meet to sign the necessary paperwork and complete the transfer of ownership. This typically takes place at a title company or attorney's office. As the seller, you'll sign documents transferring ownership of the property to the buyer and receive payment for the sale. As the buyer, you will sign documents for your loan and pay any downpayment.
Funding and Recording: Once all of the paperwork has been signed and funds have been disbursed, the transaction will be recorded with the appropriate government office. This officially transfers ownership of the property from the seller to the buyer.
Possession: Finally, once the closing is complete and ownership has been transferred, the buyer will receive the keys and they'll take possession of the property.
