Seller Step by Step November 24, 2018

Step 15: We Couldn’t Come to an Agreement

Now what?

Unfortunately, sometimes we aren’t able to come to an agreement with the buyer.

If so, it’s disappointing, but the best thing we can do is move on quickly and look forward.  We’ll continue with showings, open houses, marketing, etc.  Keep your chin up. We’ll find the right buyer.

 

 

 

Seller Step by Step November 24, 2018

Step 16: The Home Inspection

 

The buyer’s Realtor will schedule the inspection through Showing Time, and you will confirm or decline.  Most inspectors do not work evenings or weekends so usually the inspection takes place on a weekday during business hours. It’s essential that the home inspection occur quickly as it often takes the inspector 1-2 days to write the report after the inspection is done.

Sellers should not be present for the home inspection. Instead, it’s a time for the buyer and the buyer’s Realtor to be alone on the property with the inspector.

For condos, plan to be gone for 2 hours.  For single-family homes, the inspection can take 3 – 4 hours depending on the size of the house.  The home should look just like it did for the showings with beds made, dishes put away, pets out of the home, etc.

The buyer will review the inspection report, and either the buyer’s Realtor or attorney will ask us for any credits or repairs the buyer wants via a Buyer’s Inspection Response.

We’ll then negotiate back and forth with a Seller’s Inspection Response and hopefully come to an agreement. If significant problems are found during the inspection, the buyer does have the right to walk away from the deal, and the earnest money will be returned to him/her.

Any agreed-upon repairs need to be completed a week before the final walk-through, which usually occurs the day before or the day of closing. Receipts need to be provided to the buyer showing the required work was completed and paid for in full before the walkthrough.

 

 

Seller Step by Step November 24, 2018

Step 17: The Appraisal

 

If the buyer is purchasing the home with a mortgage, the lender will require that an appraisal be conducted.

So, what is an appraisal?

I highly recommend this article from the  National Association of Realtors on Appraisals, filled with all of the answers you’re looking for.

Who orders the appraisal?

The buyer’s mortgage lender orders the appraisal, but the buyer pays for it.

When does the appraisal occur?

Usually during weekday business hours.

Do I need to attend the appraisal?

No, you will not attend the appraisal. The appraiser will schedule his appointment through Showing Time, and you will accept or decline via text.

How long does the appraisal take?

Usually for about 30 minutes.

How long until we know if the property appraised for the purchase price?

Usually a week to 10 days after the appraisal appointment. Once the appraisal report is written, the mortgage lender forwards it to the buyer to let the buyer know whether the property appraised at the purchase price, below the purchase price, or above the purchase price.

If the property appraised at the purchase price, nothing further needs to be done and the closing process will proceed.  If the property appraised for less than the purchase price, we have a problem. The bank will only give the buyer a loan for the appraised value.  In this case, the buyer will often ask us to renegotiate the purchase price down to the appraised value.

If we say no, then the buyer has to come up with cash at closing for the difference between the appraised value and the purchase price. Many buyers can’t or won’t do that. For instance: if the purchase price is $500K, but the appraisal came in at $475K and we will only agree to lower the price to $480K, then the buyer has to decide if he or she is willing to pay extra $5K on top of the down payment and closing costs, or walk away from the deal.

If the buyer walks away, his or her earnest money is usually refunded.

 

 

 

 

Seller Step by Step November 24, 2018

Step 18: Schedule the Closing Date on Your Calendar

Now that the Inspection and Appraisal period has ended, it’s safe to put the closing date on your calendar.  The sellers and buyers attend closing with their agents, along with a title officer.

 

 

 

 

Seller Step by Step November 24, 2018

Step 19: Hire Movers and Start Packing!

 

Now that you are through the inspection and appraisal process, it’s time to hire movers and start packing!

Call now to get moving estimates and secure a mover as they often get booked up weeks in advance. Also, if you’re moving into a condo building check with the HOA president or property management company to see if you need to pay any move-in fees, reserve an elevator, or if there are move-in restrictions, etc.

Recommended Movers

Whichever mover you end up using, we highly recommend asking them to bring wardrobe boxes for your hanging clothes. That way you don’t have to take everything off the hangers and pack the items up. The movers will simply grab all hanging items and put them on the rods in the boxes. When you get to your new home you can just grab the hangers and hang the items back up—it saves a ton of time.

Moving Supplies

Start gathering boxes and packing supplies.  Often you can find free boxes on Nextdoor or Facebook Marketplace.  Otherwise, U-Haul and Uline are great places to get moving supplies.

Pets

Moving can be incredibly stressful on pets so consider having them stay with a friend or in daycare for a few days while you move and get settled into your new place.

Items to Leave

Usually, anything attached to the walls such as shelving, curtain rods, curtains, and blinds/shades needs to stay.  Everything else needs to go with you. If you aren’t sure, ask us!

Follow the tips in our new moving day cheat sheet to help your big move go as smoothly as possible!

 

 

 

 

Seller Step by Step November 24, 2018

Step 20: Schedule to Disconnect Your Utilities

This is one of those annoying tasks that no one thinks about doing ahead of time, but is crucial, as you don’t want to forget and end up paying the buyer’s electric bill for the first month.

Call or go online to let the utility companies know that you’re moving. Have all the utilities disconnected on the day of closing. Assuming your new home is within the same utility service area, have all utilities taken out of your name at your current home on the day of closing, and the accounts transferred to your new home.

See Utility Info & Useful Phone Numbers for important information of companies servicing this area.

 

 

 

 

Seller Step by Step November 23, 2018

Step 21: Cancel or Transfer Your Homeowner’s Insurance

 

Be sure to let your insurance company know that you’re moving. You can decide to either cancel the insurance or transfer it to your new home. The transfer should take effect on closing day.

 

 

 

 

Seller Step by Step November 23, 2018

Step 22: Hire a Cleaning Person

While your home is only required to be left in broom-clean condition, it’s common courtesy to either thoroughly clean the home yourself or to hire a cleaning company.

Ideally, the final cleaning should occur AFTER you’ve moved all your belongings out but before the final buyer walk-through.  The walkthrough usually occurs the night before closing or the morning of closing.

 

 

 

 

Seller Step by Step November 23, 2018

Step 23: Mortgage Approval and Clear to Close

 

A few days before the closing date, the buyer should get the Clear to Close from his or her mortgage lender.  This means the buyer’s mortgage has been approved and the title company confirms the closing date.

Once the closing date, time, and location have been confirmed, the buyer’s Realtor will schedule the final walk-through of the property.  Again, this will be scheduled through Centralized Showing Services and you will approve or decline the date and time.

 

 

 

 

Seller Step by Step November 22, 2018

Step 24: The Final Walk-through

The final walk-through usually occurs the night before closing or the morning of. It’s a chance for the buyer and the buyer’s Realtor to walk through the property and make sure it’s in the same condition as it was during the inspection and that we made all agreed-upon repairs.

Generally, the walk-through takes about 15 minutes, and we attend in case any problems come up. It’s best if you are completely moved out, and the home has been thoroughly cleaned by the time the walk-through occurs.

Here’s what the final walk-through is:

  • A second chance for the buyer to make sure all the appliances are still working

  • An opportunity to make sure you didn’t damage anything while moving out

  • A time to make sure the property is clean

  • In Indianapolis, all attached items such as shelving, light fixtures, curtain rods, etc. are required to stay and transfer with the property, so the buyer checks that those items are still there as well.

  • When we explain to the buyer what day the trash is picked up, where the parking is, etc.

Here is what the final walk-through IS NOT:

  • It’s not a time to have the buyer’s parents or friends come look at the property, or for contractors to give them estimates, etc. All of that can happen once they’ve officially bought the property.

  • It’s not a time for the buyer to begin moving boxes or other items into the house. That has to wait until after closing.

  • It’s not when the buyer receives the keys. Instead, at the end of the walkthrough, we will give the buyer’s Realtor the keys and garage door opener, and the buyer’s Realtor will provide those items to the buyer during or after closing.

Please let us know if you have any questions regarding the final walkthrough. We’re almost there!