Once we have mutual acceptance, there are a variety of steps in the process that are almost always taken including:
Almost all Buyers conduct an inspection on their new house. We want them to pick an option that will have short time frames(5 – 7 days after mutual acceptance) and that will provide you an opportunity to correct any issues identified during the inspection. In a raw land or investment purchase, this step is called a “feasibility study”. The Buyers will have a designated time period to let us know what they would like you to repair and you then will have 3 days to respond. There is often some negotiation involved in these situations although, if the request to repair the inspection issues is not agreed upon, the Buyers do not have to buy your house.
This item is often included to allow the Buyers to review the local community to ascertain whether or not the crime rate, location of registered sex offenders, etc, is acceptable to them. This usually includes up to a 3 day time frame. I often recommend we shorten this clause as it can be an “out” clause.
The Purchase & Sale Agreement will have a time frame for the Buyers to complete their loan application.
If this property has a well and/or septic system, at a minimum you should be prepared to provide the Buyers with a bacterial or coli form water test from the well and proof that the septic tank has been pumped & the system inspected. Additional information that might be asked for include a well flow test or separate well inspection, organic compound test, & so on.
On occasion, if your Buyer’s credit scores are fabulous and/or they have a substantial down payment on your house, the lender will waive getting an appraisal. Usually, however, an appraisal is required. An appraiser’s job is solely to establish market value and not address condition. From time to time, a house might present itself in an appraiser’s eye as maybe needing an outside specialist in a particular field to assess a particular situation. An example of this would be if a roof looks like it’s on its last legs, an appraiser might order a roof inspector to certify the roof for 5 years. If the appraiser asks for specific work orders in order to close the house, I can help you locate resources to assist you.
There is currently in existence a national data base for insurance companies called the “CLUE” system which keeps track of home claims when those claims are determined to be caused by a construction type problem. For example, if your house has had a severe water issue and had a claim for repair, this data base will have that claim in the system. This may mean that the insurance rate for the house is higher than average. The Purchase & Sale Agreement has specific time frames for the Buyer to apply for insurance and then specific time frames for the Buyer’s ability to back out of a transaction based on specific insurance pricing in excess of ½% of 1% of the sales price. Pay attention to this, because if these deadlines pass, the Buyer cannot rescind on your Purchase due to insurance costs.
Final Walk Through:
Many Buyers will include in the contract their ability to walk through your house within 5 days prior to closing to verify that the house is the same condition as when first viewed.