After the Contract
What to expect once you have a contract on your home
80% of all contracts lead to a sale. 20% most likely fall through due to buyer financing problems or a negative home inspection. Your REALTOR® will maintain constant contact with you and keep you informed of the progress of your contract, the financing status of the potential buyer and the inspection process.
Home inspection : This is something the buyer requests and the cost of the inspection is paid by the buyer. In most cases the buyer will have five business days to inspect a home. Sometimes the selling process isn't as smooth as we would like it to be. Be prepared for minor setbacks because more often than not there are challenges. Something invariably will be found that does not meet the inspectors expectations (inspectors find problems in brand new homes so don't take this to heart). A buyer has the following options if something is found to be wrong with the home.
- Buy the property as is
- Request the seller to make repairs
- Re-negotiate the purchase price or ask for an allowance to be given at closing
- Rescind the offer and void the contract
Once the buyer has approved the home inspection you should begin your moving arrangements. Ask your realtor® for a moving checklist if one has not already been provided.
Seller inspections : The septic system, gas lines and termite inspections are to be completed if requested by the buyer. . The seller chooses which companies they would like to use for the inspections, and your Realtor® will coordinate these for you.
Appraisal: More than 90% of all home appraisals turn out fine. But, there is the possibility that your home will appraise below the contract price. If this occurs there are four options to consider.
- Buyer buys the home at current contract price (understand that the buyer will have to pay the difference between the appraisal and the contract price in the form of a larger down payment).
- You and the buyer negotiate between the contract price and the appraisal price.
- The buyer buys the property at the appraised value.
- The contract is canceled.
Occupancy: Transfer of all the keys, garage door openers, warranties, etc. The buyer takes occupancy of the home according to the dates in the contract.