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What to expect during the escrow periodCongratulations on accepting an offer on your home! Please know that we are here to guide you through every step of the process. |
Home Inspection
It is common for buyers to schedule a home inspection before completing the purchase of a home. This inspection is typically optional, but it can provide important information about the condition of the property. The timing of the inspection can vary depending on the terms of the offer, but it often takes place within four days of offer acceptance. During this time, the buyer can hire a professional inspector to thoroughly examine the home and identify any potential issues or needed repairs.
It is common for buyers to schedule a home inspection before completing the purchase of a home. This inspection is typically optional, but it can provide important information about the condition of the property. The timing of the inspection can vary depending on the terms of the offer, but it often takes place within four days of offer acceptance. During this time, the buyer can hire a professional inspector to thoroughly examine the home and identify any potential issues or needed repairs.
After the buyer schedules a home inspection, your agent will inform you of the date and time. It is recommended that you vacate the property for at least three hours during the inspection. This will allow the buyers and their inspector to more easily examine the home and its features without interruption. The buyers may also schedule a termite inspection in addition to the home inspection.
After the inspection, the inspector will typically send the results to your agent within 48 to 72 hours. If there are any issues found during the inspection, the buyers will typically notify the seller in writing, stating the inspection results and their intentions. Depending on the terms of the purchase agreement, the buyers may request a credit in lieu of repairs or ask the sellers to repair or replace any items that are not up to reasonable standards. It is important to work with your agent to navigate these potential negotiation points and reach a resolution that is satisfactory for both parties.
Prepare for Inspection
As a seller, there are several things you can do to prepare for a buyer's professional home inspection. Here are some tips:
Appraisal
Assuming the buyers are satisfied with the inspection results, the next step is typically the appraisal. The buyer's lender will order an appraisal of the property, usually within seven days of the inspection being completed and given the "all clear."
During the appraisal process, an appraiser will need to visit the property to take pictures, measure square footage, and assess the condition of the house. This process typically takes around 30 minutes. After the visit, it can take anywhere from 1-2 weeks for the appraisal results to be returned.
If the appraisal comes back at or above the value of the purchase agreement and no repairs are needed, the seller is not required to take any further action. However, if the appraisal does not match the agreed upon sales price, further negotiations may be necessary to come to a fair resolution. If repairs are noted in the appraisal, it is generally recommended to address them as soon as possible to avoid any delays or complications in the closing process.
Prepare for Close
Once the appraisal is complete and all negotiations are settled, it's time to begin preparing for closing. This includes packing your belongings and preparing to move out of the home. However, it's important to remember to leave any attached items, such as window treatments, curtains, light fixtures, blinds, curtain rods, attached mirrors, attached shelving, fireplace doors, screens, storm windows, attached speakers, etc. for the buyers.
It's not necessary to worry about the utilities right away, as the buyers will typically arrange for them to be transferred into their name after the closing. However, it's recommended that sellers transfer the utilities to the buyer the day after closing.
About 5 days before closing, it's important to contact your city water department for a final meter reading. This is necessary to ensure that the final bill is accurate and that there are no outstanding balances or overcharges. If a final meter reading is not done, an escrow may be held until the next bill comes, and it will be pro-rated accordingly. By taking care of these details, sellers can help ensure a smooth and successful closing process.
Clear To Close
At this stage, the closing process is almost complete, and we're just waiting for the buyers to receive their "Clear to Close" notification. This means that all conditions have been met, and the buyers have been fully approved and are ready to close on the sale of your home. However, it's common for the Clear to Close notification to be received very close to the scheduled closing date - often on the day before. Banks and other lending institutions can become overwhelmed with paperwork and other tasks, causing delays in the process. While it's always great to receive the Clear to Close notification early, it's not uncommon to receive it just a day or two before the scheduled closing date. So, there's no need to be alarmed or think that something is out of sorts if we don't receive it until the last minute. Just remain patient, and trust that we're doing everything we can to ensure a successful closing process.
Delivery of Property
Buyer Walk-through
The buyer and their agent will typically conduct a final walk-through of the house 24 hours before the scheduled closing time. During this walk-through, they will ensure that the house is clean, undamaged, and free of any remaining personal possessions belonging to the seller. It's important to note that the walk-through is not an opportunity for the buyer to renegotiate the terms of the sale, but rather to ensure that the property is in the same condition as it was when the purchase agreement was signed.
Closing Day
All parties involved in the sale, including the buyer, seller, and their agents, will typically meet at the office of the closing attorney on the day of the closing. It's important to bring a valid form of identification to the meeting, such as a driver's license or passport. If the seller needs to bring funds to the closing, a bank cashier's check made payable to the title company is usually recommended. While personal checks may be accepted in some cases, it's best to check with the closing attorney beforehand to ensure a smooth and efficient closing process.
Seller F.A.Q.’s
Do I need to attend the closing?
While it is generally recommended for sellers to attend the closing, there may be exceptions depending on individual circumstances. It's important to discuss your options with your closing attorney to determine the best course of action for your specific situation.
Do I need to be there for the home inspection?
It's best for the seller to leave the home during the inspection so that the inspector and buyer can feel free to discuss any issues or concerns without feeling like they might offend the seller. It's also a good time for the seller to run errands or do something else outside of the home.
If buyers ask for repair or dollar amount in lieu of repairs, do I have the right to counter their request?
Yes, as a seller, you have the right to counter the buyer's request for repairs or a reduction in the sales price. If you disagree with the requested repairs or the proposed reduction, you can suggest an alternative solution that you believe is more appropriate. This could include offering to complete some, but not all, of the requested repairs, or proposing a different amount for the reduction in price. Ultimately, any changes to the contract will need to be agreed upon by both parties in writing.
Once under contract will lockbox still be needed?
The lockbox is typically used by various parties involved in the home buying process, including the inspector, appraiser, and the buyer for the final walkthrough. It is important to keep the lockbox in place until the sale has closed and the buyer has officially taken possession of the property.
Should I allow buyer showings after we accept an offer?
It is up to you whether or not you want to continue allowing showings after accepting an offer. Some sellers prefer to stop showings to avoid any potential complications or conflicts with the accepted offer, while others prefer to continue allowing showings for potential backup offers. You should discuss your preferences with your real estate agent and make a decision based on your individual circumstances and needs.
When should I start final packing?
You should start the final packing after the appraisal results are in and you and the buyer have agreed on the final sales price.
How likely are we to close by the contract closing date?
The closing date specified in the Purchase and Sale Agreement is an estimated date, and it is not guaranteed that the deal will close on that date. Loan processing times, inspections, and other factors can cause delays that may push the closing date back. Even if the closing date is set for 30 days out, there is still a good chance that it may not close on time, unless the buyer has excellent financial credentials. It's important to be prepared for possible delays and work with your real estate agent and closing attorney to address any issues that may arise.
When will we know if we are closing on time?
Typically, the clear to close is issued by the lender 24 to 72 hours before the closing date. This is due to the fact that lenders have many files to process and they prioritize them based on closing dates. Therefore, it's common to not receive the clear to close until a few days before the scheduled closing date. However, your real estate agent or closing attorney will keep you informed of any updates regarding the closing date and whether it is expected to be delayed.
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. ***
After the inspection, the inspector will typically send the results to your agent within 48 to 72 hours. If there are any issues found during the inspection, the buyers will typically notify the seller in writing, stating the inspection results and their intentions. Depending on the terms of the purchase agreement, the buyers may request a credit in lieu of repairs or ask the sellers to repair or replace any items that are not up to reasonable standards. It is important to work with your agent to navigate these potential negotiation points and reach a resolution that is satisfactory for both parties.
Prepare for Inspection
As a seller, there are several things you can do to prepare for a buyer's professional home inspection. Here are some tips:
- Clean and declutter: Make sure your home is clean and clutter-free, so the inspector can easily access and inspect all areas of the home.
- Organize important documents: Have all repair receipts, warranties, and manuals for appliances and systems available for the inspector to review.
- Check all systems and appliances: Ensure that all systems, such as HVAC, plumbing, electrical, and appliances are in working order.
- Replace light bulbs: Check and replace any burnt-out light bulbs, so the inspector can fully see all areas of the home.
- Check for leaks: Look for any signs of leaks or water damage, and have them repaired before the inspection.
- Test smoke detectors and carbon monoxide detectors: Make sure all smoke detectors and carbon monoxide detectors are in working order.
- Trim landscaping: Trim back any bushes or trees that may be blocking access to areas of the home or impeding the inspector's view.
- Leave utilities connected: Make sure to cause all utilities, systems and equipment to be on so that Buyer may complete all inspections.
- Leave the home: It's best to give the inspector privacy during the inspection, so they can focus on their work and not feel rushed or distracted.
Appraisal
Assuming the buyers are satisfied with the inspection results, the next step is typically the appraisal. The buyer's lender will order an appraisal of the property, usually within seven days of the inspection being completed and given the "all clear."
During the appraisal process, an appraiser will need to visit the property to take pictures, measure square footage, and assess the condition of the house. This process typically takes around 30 minutes. After the visit, it can take anywhere from 1-2 weeks for the appraisal results to be returned.
If the appraisal comes back at or above the value of the purchase agreement and no repairs are needed, the seller is not required to take any further action. However, if the appraisal does not match the agreed upon sales price, further negotiations may be necessary to come to a fair resolution. If repairs are noted in the appraisal, it is generally recommended to address them as soon as possible to avoid any delays or complications in the closing process.
Prepare for Close
Once the appraisal is complete and all negotiations are settled, it's time to begin preparing for closing. This includes packing your belongings and preparing to move out of the home. However, it's important to remember to leave any attached items, such as window treatments, curtains, light fixtures, blinds, curtain rods, attached mirrors, attached shelving, fireplace doors, screens, storm windows, attached speakers, etc. for the buyers.
It's not necessary to worry about the utilities right away, as the buyers will typically arrange for them to be transferred into their name after the closing. However, it's recommended that sellers transfer the utilities to the buyer the day after closing.
About 5 days before closing, it's important to contact your city water department for a final meter reading. This is necessary to ensure that the final bill is accurate and that there are no outstanding balances or overcharges. If a final meter reading is not done, an escrow may be held until the next bill comes, and it will be pro-rated accordingly. By taking care of these details, sellers can help ensure a smooth and successful closing process.
Clear To Close
At this stage, the closing process is almost complete, and we're just waiting for the buyers to receive their "Clear to Close" notification. This means that all conditions have been met, and the buyers have been fully approved and are ready to close on the sale of your home. However, it's common for the Clear to Close notification to be received very close to the scheduled closing date - often on the day before. Banks and other lending institutions can become overwhelmed with paperwork and other tasks, causing delays in the process. While it's always great to receive the Clear to Close notification early, it's not uncommon to receive it just a day or two before the scheduled closing date. So, there's no need to be alarmed or think that something is out of sorts if we don't receive it until the last minute. Just remain patient, and trust that we're doing everything we can to ensure a successful closing process.
Delivery of Property
- Grass should be cut: Make sure the grass is mowed to a suitable length before the closing date.
- Shrubbery should be trimmed: Trim back any shrubs or bushes that may be overgrown or encroaching on walkways or other areas.
- Driveway is blown off: Use a leaf blower or broom to clear any debris from the driveway, such as leaves or dirt.
- Pool should be treated with chemicals: Depending on the type of pool you have, there may be different chemical treatments needed. Consult with a pool professional or refer to your pool owner's manual for specific instructions. Make sure the pool is clean and free of debris before the closing date.
- Before the closing date, sweep the floors and make sure all personal items have been removed from the property.
Buyer Walk-through
The buyer and their agent will typically conduct a final walk-through of the house 24 hours before the scheduled closing time. During this walk-through, they will ensure that the house is clean, undamaged, and free of any remaining personal possessions belonging to the seller. It's important to note that the walk-through is not an opportunity for the buyer to renegotiate the terms of the sale, but rather to ensure that the property is in the same condition as it was when the purchase agreement was signed.
Closing Day
All parties involved in the sale, including the buyer, seller, and their agents, will typically meet at the office of the closing attorney on the day of the closing. It's important to bring a valid form of identification to the meeting, such as a driver's license or passport. If the seller needs to bring funds to the closing, a bank cashier's check made payable to the title company is usually recommended. While personal checks may be accepted in some cases, it's best to check with the closing attorney beforehand to ensure a smooth and efficient closing process.
Seller F.A.Q.’s
Do I need to attend the closing?
While it is generally recommended for sellers to attend the closing, there may be exceptions depending on individual circumstances. It's important to discuss your options with your closing attorney to determine the best course of action for your specific situation.
Do I need to be there for the home inspection?
It's best for the seller to leave the home during the inspection so that the inspector and buyer can feel free to discuss any issues or concerns without feeling like they might offend the seller. It's also a good time for the seller to run errands or do something else outside of the home.
If buyers ask for repair or dollar amount in lieu of repairs, do I have the right to counter their request?
Yes, as a seller, you have the right to counter the buyer's request for repairs or a reduction in the sales price. If you disagree with the requested repairs or the proposed reduction, you can suggest an alternative solution that you believe is more appropriate. This could include offering to complete some, but not all, of the requested repairs, or proposing a different amount for the reduction in price. Ultimately, any changes to the contract will need to be agreed upon by both parties in writing.
Once under contract will lockbox still be needed?
The lockbox is typically used by various parties involved in the home buying process, including the inspector, appraiser, and the buyer for the final walkthrough. It is important to keep the lockbox in place until the sale has closed and the buyer has officially taken possession of the property.
Should I allow buyer showings after we accept an offer?
It is up to you whether or not you want to continue allowing showings after accepting an offer. Some sellers prefer to stop showings to avoid any potential complications or conflicts with the accepted offer, while others prefer to continue allowing showings for potential backup offers. You should discuss your preferences with your real estate agent and make a decision based on your individual circumstances and needs.
When should I start final packing?
You should start the final packing after the appraisal results are in and you and the buyer have agreed on the final sales price.
How likely are we to close by the contract closing date?
The closing date specified in the Purchase and Sale Agreement is an estimated date, and it is not guaranteed that the deal will close on that date. Loan processing times, inspections, and other factors can cause delays that may push the closing date back. Even if the closing date is set for 30 days out, there is still a good chance that it may not close on time, unless the buyer has excellent financial credentials. It's important to be prepared for possible delays and work with your real estate agent and closing attorney to address any issues that may arise.
When will we know if we are closing on time?
Typically, the clear to close is issued by the lender 24 to 72 hours before the closing date. This is due to the fact that lenders have many files to process and they prioritize them based on closing dates. Therefore, it's common to not receive the clear to close until a few days before the scheduled closing date. However, your real estate agent or closing attorney will keep you informed of any updates regarding the closing date and whether it is expected to be delayed.
SELLERS CHECKLIST FOR CLOSING
- Bring a government-issued photo ID, such as a driver's license or passport. If neither of these are available, get prior approval from your attorney.
- If a power of attorney is executing closing documents on your behalf, bring the original document 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.
- Bring all keys and garage door openers to the property.
- Provide the termite letter and any inspection reports for septic and well water, if applicable.
- Bring confirmation of any home warranty that was purchased for the property, if applicable.
- Bring any receipts and warranties related to repairs made on the property, 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. ***
