Getting your home ready to sell

There is a lot of effort put into getting a home Sale-ready…repairs, decluttering, cleaning, fresh painting, etc. Once a home is listed for sale, the home will catch the eye of a Buyer who will want to put in an offer. Once a contract has been successfully negotiated, what happens next? The following article discusses the sequence of events that occur in most Sales transactions.

  1. INSPECTION/DUE DILIGENCE PERIOD: This is a specific number of days set in the contract for the Buyer to evaluate the structural, electrical and mechanical components plus other aspects of the property. Even with an As Is contract, most buyers will do a home inspection and inevitably they will request a closing credit or a repair(s) to be made. As your Realtor, I will communicate with you about any repairs or credits that the Buyer may request. If you agree to make any repairs, they should be completed at least 5 days prior to closing to allow the buyer(s) time to re-inspect.
  2. LOAN COMMITMENT FOR FINANCED TRANSACTIONS: While it may be fun to plan how you will spend your Sales Proceeds, it is wise not to actually purchase or commit to purchasing any major item until the sale of the property is finalized and the money is in your bank account. Things happen, sales can be delayed due to weather or another catastrophe so it’s best to be cautious. If the Buyer is getting a Loan to Purchase your Property, the Buyer’s Lender will issue a “Conditional Approval” when the Loan process reaches the “Loan Commitment” stage. This means the Lender is committed to loaning the Buyer money as long as there are no last-minute surprises.
  3. APPRAISAL FOR FINANCED TRANSACTIONS: Even if a Buyer has agreed to a certain purchase price, if they are getting a mortgage, their Lender will require an Appraisal. As your Realtor, I will prepare a “Recently Sold” report of other properties that are Comparable to your property and meet the Appraiser at a designated time to provide access to the home and review the Recently Sold report. The Appraiser will determine the value of the property; this will usually take up to 3 days after visiting the home. If the value is equal to or greater than the Sales Price, we will be informed by a Buyer’s representative that the “Value is Sufficient”. If the Appraiser determines the property does not equal the Sales Price, then we will be informed of the Appraiser’s valuation and provided with a copy of the Appraiser’s report. It is rare that an Appraiser will change their value price, even if your Realtor strongly objects. We will review the options you have when the Value is less than the Contract Sales Price.
  4. Occasionally the Buyer will want to return to the property after the Inspection Period is over. Sometimes they want to take measurements, meet a contractor or show a visiting friend or family member the home. If the Buyer makes a reasonable request to enter the home while the transaction is in progress, please cooperate.
  5. DRAFT OF CLOSING STATEMENT: A day or two before closing, the Title Company or Real Estate Attorney (i.e. Closing Agent) will provide a preliminary copy of the Closing Statement. The Salefish Properties team will review it first to ensure it is correct to the best of our ability. If you have any questions or see an error on the Closing Statement, please notify someone immediately.
  6. FINAL WALK-THROUGH/RE-INSPECTION: The Buyer, and the Realtors representing the Buyer and Seller, will do a final walk-through just prior to closing to see that all repairs (if applicable) have been completed and to check that all property conveying in the sale is present and to confirm the property is still in good condition. Read about Seller Inspection Periods here.
  7. CLOSING: You will either go to an office to sign all the Closing documents or if you are not in the area for the Closing, you will receive the Closing documents through email a few days before the Closing date. You will print out the Closing documents and follow the instructions provided by the Closing Agent. If you are signing the Closing documents remotely, you will need to have a Notary Public witness your signature on some documents. Your driver’s license or another state/government issued ID will need to be copied to confirm your identity. Note that under Florida law, if you are married, your spouse must sign the deed, even if he/she is not participating in the sale or is not currently on title or on the deed.
  8. FUNDING: Customarily, the Buyer’s mortgage company wires the loan proceeds to the Closing Agent on the day of closing. If the Buyer is paying Cash or has an additional down payment to make, the Buyer will wire the funds to the Closing Agent directly. Please be advised that until these funds are received and verified by the Closing Agent, you will not receive your proceeds and the sale is not final. The keys and other hardware will not be provided to the Buyer until funding has occurred.

After Funding has occurred, it’s time to celebrate!

Special Notes:
UTILITIES: Keep the electric and water/sewer on, in your name, until the day after closing. Call your utility companies a week prior to closing to determine the process they require to disconnect your services for the day after closing. This is because water and electric need to be on for the final walk-through, and the Buyer can’t turn the water/sewer on in their name(s) until they provide the fully executed Settlement Statement received at closing. If the Closing Date changes at the last minute, make sure to update the Utility company(s).

INSURANCE: Do not cancel your homeowner’s insurance until after you leave the closing table or you have been notified that the property closed. Once you cancel your insurance, you should receive a refund of the unearned insurance premium. It can take several weeks to get the refund, so please be sure to follow up until you receive it.

Jackie Brown of Jackie Brown’s Real Estate Closing Coordinators contributed content for this article.