The countdown is on. You are just a few weeks away from a successful closing, but unfortunately, you're not in the clear just yet!

It's easy to start spending the money from the proceeds of the sale of your home just as soon as you've gone to contract, but there are many benchmarks before the closing that you need to get past. With professional assistanc,e you have a higher likelihood of making it to closing and doing so on time!

Escrow. Escrow begins when the purchase and sale contract is effective and the earnest money has been sent to the "escrow holder". Escrow completes when the property is officially sold and title has transferred to the new home owner and registered at the county assessor's office.

Title Company and Escrow Holder. Depending on which state and/or county you are selling, who selects — and pays for — title will vary. However, this is still a negotiating point in the purcahse and sale contract and just because it is standard, doesn't mean it's required. It's whatever your contract states. But, generally speaking, whoever is paying for title usually selects the title company. The role of the title company is to research the recorded history of the property and ensure that title is free and clear of all encumbrances by the closing date AND that new encumberance (i.e. the new mortgage) are properly added to title.

Contingencies. Most purchase and sale agreements give the buyer a certain amount of time to inspect the property, review disclosures, obtain financing and insurance, etc. before they complete the purchase. You can think of each milestone as one step closer to pay day! But, keep in mind that these contingencies, especially the inspection contingency, are often planned by the buyer as additional points to renegotiate the contract, most likely the price and/or concessions back at closing. This is where you really need a listing agent experienced in negotiations to help you form your response to the buyer.

Inspections. The buyer has the right to have a wide variety of property inspections to determine the property’s condition and the cost of any necessary repairs or upgrades. Inspections may include roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, or mold. If the buyer uses the inspection to back out of the contract or to renegotiate terms, you may have right to the report.

Appraisal and Loan Approval. Try and get a pre-approval letter rather than a pre-qualification letter with the purchase offer. A pre-APPROVAL is much stronger than a pre-QUALIFICATION. However, that doesn't necessarily mean that things can't come up prior to closing. During this process, the lender will send an appraiser out to the property to ensure that the bank is protecting it's investment and that the property is, in fact, worth the sales price.

Preparing Your Move! Make sure that you don't start packing too soon (although it's still a good idea to send any clutter away during the marketing/showing stage). So many times, transactions can fall apart and then your house is back on the market and you've got boxes and packing material everywhere just in time for new ready, willing and able buyers! We can help you time that process so that you're not left with a mess to clean up!

*We are not attorneys and recommend that you seek professional legal advice if necessary.

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