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What to expect during the escrow periodYou have accepted an offer on your home, congratulations!! know that We will walk you through every step of the process. Home Inspection
The Buyer will usually schedule a home inspection (this is optional). Depending on the offer, the home inspection usually takes place within 4 days of offer acceptance. |
Your agent will let you know when the Buyers have scheduled the home inspection. Plan on being out of the home for at least 3 hours for the home inspection. When Seller is not present, Buyers feel more relaxed and your inspector will have an easier time showing Buyers the home and how things work. Buyers may also have a termite inspection. Inspection results will likely be sent to your agent within 48 to 72 hours following the inspection. If the inspection is not a positive one, the Buyers will likely notify Seller in writing of results along with intentions to move forward, request a credit in lieu of repairs or, ask Sellers to repair or replace items that not up to reasonable standards. Tips on getting ready for a home inspection.
Appraisal
Assuming the Buyers are happy with the results of the inspection, an appraisal will be ordered by Buyer's Lender. Usually the appraisal is done within seven days after the home inspection has been given the "all clear". An appraiser will have to be inside your home for about 30 minutes to take pictures, measure square footage and appraise the condition of the house. From there, the appraisal results could take from 1-2 weeks to come in.
If the appraisal comes back at the value of the purchase agreement and repairs aren't needed, nothing further is required of the Seller. If the home doesn't appraise for the agreed upon sales price, we are back to the negotiating table to figure out a reasonable price that works for all parties involved. If repairs are noted, try get the repairs done as soon as possible.
Prepare for Close
Once we cross the appraisal hurdle, it is time to start packing and prepare for closing. When packing, make sure to leave any attached items, including window treatments, curtains, light fixtures and chandeliers, blinds, curtain rods, attached mirrors, attached shelving, fireplace doors, screens, storm windows, attached speakers, etc.
Don't worry about the utilities right away, the Buyer will have them transferred to their name. We do recommend Sellers transfer utilities day after closing.
About 5 days before closing, contact your city water department for a final meter reading. If no final meter reading is done, an escrow will be held until the next bill comes and it will be pro-rated.
Clear To Close
At this point, we are waiting for the Buyers to get a “Clear To Close”. A clear to close means all conditions have been met and the Buyer has been completely approved and ready to close on the sale of your home (98% of the time we don’t get the clear to close until the day before the scheduled closing date). Banks often get overwhelmed and wait until the last minute for whatever reason. Sometimes we get it earlier and that’s awesome, but don’t be alarmed or think something is out of sorts if we don’t get it until a day or two before the closing date.
Buyer Walk-through
Typically 24 hours before closing, the Buyer and his agent will walk through the house one last time to make sure it’s clean, undamaged and emptied of your possessions.
Closing Day
Everyone involved in the sale will meet at the closing attorney's office with a form of ID such as drivers license or passport. If you have to write a check or bring cash to closing to sell your house, it should be in the form of a Bank Cashiers Check and must be made payable to the title company. In some cases they do allow personal checks but that should be verified with your closing attorney.
Seller F.A.Q.’s
1a. Do I need to attend the closing?
Yes! but there are exceptions. Speak with your closing attorney regarding your options.
1. Do I need to be there for the home inspection? No, you should leave the home. Usually this is a time for the inspector and the buyer to get to know the home. They usually like their privacy so they can talk privately without worrying about offending the Seller.
2. If the buyers ask for me to repair or replace something or a dollar amount to be reduced in lieu of the repairs, do I have the right to counter their request? Yes, you have the opportunity to suggest a counter.
3. I accepted an offer, will the lockbox still be needed?
Yes, the inspector and appraiser will use it for access to the home. It will be needed for the Buyer to do their final walkthrough.
4. Can I still show our house to prospective Buyers after we accept an offer?
Yes! After you accept an offer we should continue to show for potential backup offers. If you do not want to continue showing your home, just let us know.
5. When should I start packing?
Start the final packing after the appraisal results are in and, we have agreed on the final sales price.
6. Is it guaranteed that we will close by the contract closing date?
No, absolutely not. Typically loans can take time in today's market. Lenders are now very thorough in the underwriting process, so if you’re closing date is 30 days out, there is a better than 50% chance it may not close on time unless the buyer is very clean financially. The closing date is an estimated close by date, only. Very rarely does a deal close earlier than the close by date, and if it does close on time, it is usually the closing date agreed upon in the Purchase and Sale Agreement.
7. When will we know if we are closing on time?
Crazy as this sounds, we won’t get the clear to close until 24 to 72 hours before closing. That’s just how lenders work. With thousands of files to go through, they prioritize them by closing dates. Don’t be worried if the purchaser buying your home doesn't get their clear to close until a few days before closing.
SELLERS CHECKLIST FOR CLOSING
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
Appraisal
Assuming the Buyers are happy with the results of the inspection, an appraisal will be ordered by Buyer's Lender. Usually the appraisal is done within seven days after the home inspection has been given the "all clear". An appraiser will have to be inside your home for about 30 minutes to take pictures, measure square footage and appraise the condition of the house. From there, the appraisal results could take from 1-2 weeks to come in.
If the appraisal comes back at the value of the purchase agreement and repairs aren't needed, nothing further is required of the Seller. If the home doesn't appraise for the agreed upon sales price, we are back to the negotiating table to figure out a reasonable price that works for all parties involved. If repairs are noted, try get the repairs done as soon as possible.
Prepare for Close
Once we cross the appraisal hurdle, it is time to start packing and prepare for closing. When packing, make sure to leave any attached items, including window treatments, curtains, light fixtures and chandeliers, blinds, curtain rods, attached mirrors, attached shelving, fireplace doors, screens, storm windows, attached speakers, etc.
Don't worry about the utilities right away, the Buyer will have them transferred to their name. We do recommend Sellers transfer utilities day after closing.
About 5 days before closing, contact your city water department for a final meter reading. If no final meter reading is done, an escrow will be held until the next bill comes and it will be pro-rated.
Clear To Close
At this point, we are waiting for the Buyers to get a “Clear To Close”. A clear to close means all conditions have been met and the Buyer has been completely approved and ready to close on the sale of your home (98% of the time we don’t get the clear to close until the day before the scheduled closing date). Banks often get overwhelmed and wait until the last minute for whatever reason. Sometimes we get it earlier and that’s awesome, but don’t be alarmed or think something is out of sorts if we don’t get it until a day or two before the closing date.
Buyer Walk-through
Typically 24 hours before closing, the Buyer and his agent will walk through the house one last time to make sure it’s clean, undamaged and emptied of your possessions.
Closing Day
Everyone involved in the sale will meet at the closing attorney's office with a form of ID such as drivers license or passport. If you have to write a check or bring cash to closing to sell your house, it should be in the form of a Bank Cashiers Check and must be made payable to the title company. In some cases they do allow personal checks but that should be verified with your closing attorney.
Seller F.A.Q.’s
1a. Do I need to attend the closing?
Yes! but there are exceptions. Speak with your closing attorney regarding your options.
1. Do I need to be there for the home inspection? No, you should leave the home. Usually this is a time for the inspector and the buyer to get to know the home. They usually like their privacy so they can talk privately without worrying about offending the Seller.
2. If the buyers ask for me to repair or replace something or a dollar amount to be reduced in lieu of the repairs, do I have the right to counter their request? Yes, you have the opportunity to suggest a counter.
3. I accepted an offer, will the lockbox still be needed?
Yes, the inspector and appraiser will use it for access to the home. It will be needed for the Buyer to do their final walkthrough.
4. Can I still show our house to prospective Buyers after we accept an offer?
Yes! After you accept an offer we should continue to show for potential backup offers. If you do not want to continue showing your home, just let us know.
5. When should I start packing?
Start the final packing after the appraisal results are in and, we have agreed on the final sales price.
6. Is it guaranteed that we will close by the contract closing date?
No, absolutely not. Typically loans can take time in today's market. Lenders are now very thorough in the underwriting process, so if you’re closing date is 30 days out, there is a better than 50% chance it may not close on time unless the buyer is very clean financially. The closing date is an estimated close by date, only. Very rarely does a deal close earlier than the close by date, and if it does close on time, it is usually the closing date agreed upon in the Purchase and Sale Agreement.
7. When will we know if we are closing on time?
Crazy as this sounds, we won’t get the clear to close until 24 to 72 hours before closing. That’s just how lenders work. With thousands of files to go through, they prioritize them by closing dates. Don’t be worried if the purchaser buying your home doesn't get their clear to close until a few days before closing.
SELLERS CHECKLIST FOR CLOSING
- Government Issued Photo ID – Driver's license or Passport is acceptable. If neither of these are available, get prior approval from attorney
- If a Power of Attorney is executing closing documents on your behalf, the original must be brought to closing, as it must be recorded. The executed Power of Attorney form must be approved prior to closing by the Attorney and the Lender.
- Keys and garage door openers
- Original Termite Letter and, if applicable, septic and well water inspections
- Home Warranty confirmation (if applicable)
- Repair Receipts and Warranties (if applicable)
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
