The Buying & Selling Process From Contract to Close

If you’re interested in buying or selling a home, the process can seem a little daunting. What happens after an offer is made? Let’s break down the buying and selling process one step at a time.

Acceptance
Once both parties have agreed to the terms of an offer by signing a contract, the buyer’s agent then delivers the contract and “earnest money” (typically 1% of the sales price) to the title company, where the money is held in escrow during the closing process. The title company will then act as a liaison between all parties and will collect documentation, maintain the escrow account, ensure that the property has no claims against it and that the title can be transferred, etc.

Inspection & Option Period
During the option period, which typically lasts 7 to 14 days and usually costs $100 – $500, buyers have the opportunity to have the property inspected and negotiate repairs. During this time, buyers have the right to cancel the contract, although they would not receive a refund for the option fee.

I highly recommend having the inspector conduct a Wood Destroying Insect (WDI) inspection in addition to the normal check of plumbing, electrical, and structural systems of the home.

Appraisal
Since most lenders require an appraisal, one will be scheduled on the buyer’s behalf. The buyer is usually responsible for the cost. Following this, the buyers will be in close contact with the lender, ensuring that they have all the paperwork they need to meet underwriting approval. During this time, the title company will search for liens on the property, such as unpaid property tax.

Clear to Close
When the underwriter is satisfied, the lender clears closing, sends documents to the title company, and schedules a date for closing with the buyers and sellers.

A final walk-through will be scheduled within 24 hours of closing to ensure that the home remains in good condition and that negotiated repairs have been made.

Closing
The final step! The seller’s appointment is usually 30 minutes long, while the buyer’s lasts roughly an hour. After everything is signed, the lender must approve funding. This usually happens on the same day. The buyer then receives the keys and the seller receives their proceeds.

Are you interested in buying or selling a home? Contact us today at 713-364-5883 or info@angelfultzrealty.com.