Here are the steps to close the sale once the purchase and sale agreement has been signed by both parties. Please know I will walk you through this step by step to make sure this is a smooth and enjoyable process.
Step 1 – Removing contingencies: The most common contingencies are financing, home inspections and the sale of your current home. These conditions must be removed or waived before the sale on your new home can close.
Step 2 – After the home inspection there are bound to some items that are of immediate concern the purchaser would like to have repaired before taking possession. Often there are issues with the home that really are not necessary to attend to immediately, but are just part of the wear and tear of owning a home. For example, the water heater may be 10 years old as well as the roof. In our current market the seller as a rule is not going to replace his roof for you and probably is in no hurry to replace the water heater if it is in working order.
However, issues with the electrical box, outlets not functioning properly or dripping/leaking faucets are more likely to be addressed by the seller. Usually the wording on the inspection addendum would go like this:
“Seller hereby agrees to have the electrical box repaired by a licensed electrician before settlement and receipts thereof provided at settlement and to have a licensed plumber repair the leaking faucet in the master bedroom with receipts thereof provided at settlement.” In the addendum, one would be a bit more specific on what the inspector found wrong w/ the electrical box/outlets though and attach a copy of the home inspection.
Instead of asking the seller to make certain repairs or replacements of items, it is sometimes easier for all parties to merely ask for a credit of $x.xx towards the purchaser’s closing costs.
Step 3 – Appraising the property: Your lender requires a formal appraisal to confirm the value of the home you’re buying, to be used as collateral to secure the loan. In some situationas the listing agent or selling agent (buyer agent) will prepare comps ahead of time to make the case as it were to to the inspector that justifies the sales price so that there will be no issue with the loan being approved. There are times when I meet the appraiser at the property if I think it will be a close call.
Step 4 – Termite inspection
Step 5 – Preparing closing documents: Most often real estate attorneys prepare documents that confirm the transaction, pro-rate funds, and so on.
Step 6- Walk through of the property to make sure everything is in working order and that no damage was done to the property in the process of moving.
Step 7 – Signing closing documents: Even after both parties have signed closing documents and deposited funds, the sale may take a few more days to close.
Step 8 – Recording the deed and disbursing funds.
Step 9 – Receiving the keys from the seller.
Step 10 – Welcoming the moving van.