Done right, a house Buyer (With the guidance of a trusty REALTOR) can set up a real MIRACLE!
The 7th step of successfully (and SMOOOOTHLY) buying a house requires pure focus and attention to detail.
This “First 10 Days” after Binding Agreement Date are critical.
It is during this period of time when the deal is most “at risk” for failure because it’s such a young, vulnerable baby.
The thrill of the negotiation is over, and now it’s now time to get to work to satisfy as many of the contingencies as quickly as possible.
There’s gotta be a method to this madness because there are deadlines to meet and a requirement for some finesse (strategy) to be sure that everything happens when it should.
New home Buyer, Don’t worry!
Your REALTOR is a trained professional who’s done this many times before and will manage the scheduling and coordination of all of the parts to be sure everyone performs as promised (and to keep everyone “Legal”).
A little known statistic is that, on the average, as many as 42 different people are involved in this part of the process . . . If any one of those 42 people drops a ball, it could result in a Delay of the closing (or worse).
Just for a bit of perspective, I’ll share a sample of one of my checklists . . . Yes – Just as an Airplane Pilot has a “Pre-flight checklist” so does your savvy REALTOR.
The scenario is that the final signature just landed on the final counter offer, and you and the Seller are hereby proclaimed to have a “Binding Agreement.”
This Binding Agreement Date (BAD) MUST be documented because most of the deadlines in the contract are based on that date.
With the ink of that signature still wet, we start our official “Contract to Closing Sequence”
- Audit the file to be sure that ALL required documents are present, signed, AND dated (If there are any missing pieces, fix them NOW)
- Secure the Earnest money check – make a copy – and deliver to the Listing Agent
- Distribute the Contract to all Parties – Buyer, Buyer’s Agent, Seller, Seller’s agent, Title Companies, and Lender
- Schedule all of the contractual deadlines on a calendar so as to keep everyone “Honest”
- Schedule the Home Inspection, Termite inspection, and any other inspections required per the contract
- You (Buyer) connect with the Lender IMMEDIATELY to be sure there is no “Homework” you need to be doing for them – Most closing delays center around missing documentation for the loan.
- REALTOR Connect with the lender to provide a Pre-Approval Letter and give instructions to order the appraisal to be done as soon as possible following resolution of the Home Inspection
- Home Inspection – Normally happens within 7 days of BAD – Ideal is Buyer can attend to actually see any issues found by the Inspector(s)
- Upon receipt of the Inspection report (usually next day), Buyer reviews and determines any significant issues the Buyer wants the Seller to Repair or Replace and prepares a proposal.
- Buyer and Seller work through proposals until they reach resolution – If resolution cannot be reached – The deal can fail.
- Appraisal – Ideally happens within a week of the Inspection Resolution. This is generally the last “Nail-Biting” phase of the process because if the house does appraise for at least the purchase price, we have a problem . . . Buyer and Seller can negotiate an agreement (Reducing price or Buyer bringing cash to make up the difference), or . . . Buyer can terminate the deal.
- Coordinate any repairs required by the home inspection and/or the appraiser
Relatively speaking . . . once all of the above is completed, all parties can “Coast” until we reach the “Last 10 Days” prior to the contractual Closing Date.
Step 8 deliniates what happens during those last 10 days (Which can sometimes feel like a sprint to the finish)
Tune in tomorrow
PS – You may be wondering about the “Miracle” I referenced at the beginning of this post? It’s a smooth, low stress closing. We at Pareto Realty pride ourselves in delivering these serene closings with regularity 🙂
Pareto Realty’s commitment as your Exclusive Buyer Agent is to cross every “T” and dot every “I” to systematically deliver the smoothest possible experience for you during this potentially stressful phase of the process. We “engineer” a pace & rhythm which will deliver optimal results. We are ever-aware that this is an extremely sensitive and time critical phase of your home purchase – When it comes to attending to the details . . .
Call us NOW to get this process started!