Beyond the Contract

ContractCongratulations! You’ve got a new contract on your new home, or on the one you are selling. However, getting to a contract on your house is a great start – note the emphasis on the word “start.” Your agents’ role now becomes like that of an orchestra conductor – overseeing and coordinating the many events that must take place to insure a seamless transaction and smooth closing.

Hopefully, before you sign a contract on your dream home, you have been made aware of what transpires during the transaction so that none of this sneaks up on you or comes as a surprise. Let’s assume that the contract has been properly filled out – with all the legal signatures required. Please know now that this contract must be adhered to with respect to all deadlines and performance. Your realtor should take a lead role in assuring compliance with all parties involved. All the contact and pertinent information should be sent to all parties – including the buyer, seller, mortgage company, attorneys, inspectors, appraiser, et al. – to insure no hold ups or miscommunications.

Next, it’s a matter of “orchestrating” the rest, including:

  • Deposits – Making sure all deposits are made on time and properly handled.
  • Mortgage Contingency – If there is a mortgage commitment contingency, the application has to be made immediately and pursued with diligence. Ensure that the appraisal is done and that it meets the value needed to satisfy the loan. Even if the buyer has a pre-approval, there probably will still have to be an appraisal done on the property. If it’s a new construction, there will have to be a final inspection to insure total completion.
  • Inspections – Most existing homes and even some new construction will have inspections or tests. These need to be completed timely with satisfactory results. Your realtor should attend in order to assist with any issues that might arise. FYI, it’s a good idea for buyers to be at the inspection to understand all components of the property. Should there be issues as a result of inspections, they need to be addressed immediately.

Hopefully, at this point you now have a contract with all contingencies fulfilled and you are ready to look to the closing. While your attorney will have a checklist of items required by the mortgage company, many times the file does not get looked at until several weeks before the closing (if that). It is always a good idea to stay on top of these issues well in advance.

Orchestrating the closing “to-do’s” include**:

  • A2 Survey – If there is a A2 survey required, it should be called for well in advance of the closing. Also, be aware that the bank may require special certification which may take time and hold up a closing.
  • Homeowners Insurance – Homeowners insurance will always be required by the mortgage company.
  • Utilities – Before the closing you will need to call to set up or changeover service. We recommend you call well in advance of the closing (at least several weeks) to set up service. We have a list of utility company numbers in addition to various emergency numbers, i.e. plumber, electrician, etc.
  • Misc. Items – Arranging the walk through before the closing, insuring deposit checks are brought and keys and/or GDO are present, and a packet of information for the buyers – i.e. warranties, mechanical info, etc. – are handed over.

** Please Note: Most banks require virtually everything done one week before the closing. Most will not allow the mortgage documents to be prepared until all (t)s are crossed and (i)s are dotted.

We at SUNSET CREEK REALTY are fully prepared to insure your transaction goes smoothly so you can sit back, listen to the music, and enjoy the ride!

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