Contract to Closing

What happens once I get a contract?

It has finally happened…you’ve gotten a contract on your home. Now what? There are many things about the contract and the things that may follow:

Negotiating a contract

• A good idea is to decide your bottom line up front. How low will you go? Stay calm and focused no matter how tense negotiations may get. With help from your Realtor, you should be able to come to an agreement on a price, closing cost and settlement date.
• Get as much information on buyers as possible. They should provide a pre-qualification letter and a copy of the earnest money deposit check when they present the offer.
• Remember to consider all offers. You can do one of three things each time. You can either accept it on their terms; reject it, or counteroffer with a compromise. Rejecting a contract is never a great choice; let your Realtor® guide you through getting the buyer closer to your goal.
• Responding to an offer quickly is always a good idea. Remember, some buyers do get remorse so try to work out details in a timely manner to avoid them withdrawing their offer.
• Keep negotiations moving forward.
• Once you have come to an agreement, make sure to sign all documents completely and to initial all changes to the original. This creates a legal and binding contract!

Inspections/Appraisals

• The buyer will most likely request to have a home inspection done. They will hire a licensed inspector to give the house a thorough once over.
• Once they have had an inspection they may request repairs. This will be done using an addendum.
• There are certain time frames that your Realtor will make sure you follow.
• The lender will also send out an appraiser to evaluate the home. The house must appraise for the sales price. Again, your Realtor® will help you understand the different types of appraisals.
• As the seller, you are also responsible for having a termite inspection done and doing any treatments that may be necessary.

Closing
You will need to:

• Select a closing agent to represent you in the sale of your home. They will prepare the deed and have you sign it to convey the property to the buyers.
• Provide the closing agent with information on the balance of your mortgage so they can pay off the loan.
• Turn over keys to the house, any garage door openers, shed keys, or security codes.
• Provide copies of any applicable warranties or instruction manuals for equipment such as the heat pump, stove, etc.

You will not need to be present at the actual closing of the house. The closing agent can mail you (or you can pick up) your proceed check.