It’s Offer Time- What’s next for buyers and sellers?
So you found that perfect home and It’s Offer Time. What’s next for the buyers and sellers process?
Well, first we negotiate until we have ab agreement on price and terms. It’s Offer Time with lot’s of variable to consider other than price including:
- Length of Escrow
- offer price financial terms
- what’s does the sale include?
- is there a home warranty?
- contingencies of the sale including loans, home inspections and seller disclosures
- closing and terms of possession
Once both parties are satisfied with the terms, then we sign off on everything creating a Contract and open Escrow.
Now the real fun begins. Escrow is there to ensure the terms of the contact are fully met. But there’s more. We now begin to go through the paperwork and inspection process. A home inspection comes next and the buyer and seller then get to further negotiate any major defects in the home- usually they will be health and safety related but can also include certain other operational defects. This can be tricky but usually the two parties work through their issues and reach an agreement regarding repairs or a credit. Note that many cosmetic defects are not a consideration of a home inspection.
Concurrently the buyers are provided with disclosures galore. Hazard disclosures, seller disclosures, HOA documents (if applicable) etc. It’s a lot to consider but important to ensure that you are buying what you think is a good home. This is indeed a mine field but with good guidance from your Realtor, it can be easily navigate and understand this process.
It’s Time For Contingency Release
Then at 17 days, we should be ready to release all inspection contingencies provided everyone has done their respective job which is usually the case. Buyers and sellers are encouraged to read all documents or get legal help to do so.
Now we wait for the lender to complete their work. We have 3 more days to get the loan approval from the lender. In the case of a cash sale, we can expect to close at anytime both parties agree to do so or simply wait for the agreed upon closing day.
Escrow at this time will be finalizing the numbers and provide the buyer and seller with estimated closing costs and the buyer only with information on the wire funds transfer as outlined in the contract. Also, last minute paperwork is wrapped up so that once all the ducks are in a row, Escrow will schedule the recording with the county. Shortly thereafter the county records the sale and the terms of the contact are complete. At this time the buyer’s agent gets the keys and welcomes their clients into their new home.
For more information, please see This article from the California Bureau Of Real Estate for more information.