Yay! You’ve signed a contract with the buyer for your home, you can breathe a little. You’re almost there, but still there are some things you need to do before you close the deal. You need to cooperate with the terms of the contract. For example, you may need to repair or fix some problems that are needed to be fixed if it’s written in the contract. You and your listing agent will need to make the home available for inspections such as termite, radon, asbestos, drainage issues, lead paint, and roofing issues. If there are problems with the home, the terms set forth in the contract will determine your next step. The buyer can terminate the contract, open a new round of negotiations, or proceed to closing.
Appraisal of the home is also another thing, if the price is agreed upon prior to the appraisal and the home is valued higher than the sales price, you cannot renegotiate the price higher. If it’s the other way around, the buyer might have problem financing because the lender will limit the credit based on the appraisal value. The buyer would have to shoulder additional cost to cover the financing gap or may ask you to renegotiate the contract. Consult your agent what is the best option for you in this situation.
You also have to consider the settlement date, you and the buyer should agree on this. If you are not ready to move out by that time, you can negotiate with the buyer and pay rent for the duration of your stay in the house, usually the rent back period lasts up to 60 days. Longer than that, the lender would require the buyers to finance the home as an investment property. You can also allow the buyer to move in before settlement. Whatever the case is, it is important to have a written agreement to know the responsible party should anything happen in the transition period.
Another thing to agree upon is the settlement services. In some cases, the buyer chooses the settlement company, in some cases it is the seller. Once the settlement services are arranged, the buyer will provide funds to purchase the house. This will also determine what payment you’ll receive. When the title is transferred to the buyer and once the settlement papers are signed and the keys transferred, the challenging process of selling your home is over and you’re ready to move on.
Read more: CHECKLIST FOR SELLING A HOME
Are you selling your home? We can help! The J Michael Manley Team go above and beyond to get your home sold in the market. Our marketing efforts are geared toward getting your home sold as quickly as possible for top dollar.
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