Home selling process, part two
You have done all the hard work getting your house listed and we have put together our top notch marketing designed to get the attention of all the home buyers out there, what happens next? The next steps are divided into two distinct periods of time - when your home is on the market and when it is under contract. Let’s take a look at what happens during each stage.
On the market!
We won’t kid you, it’s a weird experience having your home on the market. If you are lucky, your house has been the location of many special memories and even if it’s not perfect, it’s been YOUR home. It helps if you can shift your mindset from it being your home to it being a product you are selling.
As soon as your home is listed, you can expect to receive requests for agents to show it to buyers. You will have the ability to approve or decline all showings. We have a handy checklist to prepare for each showing and we get feedback from all agents after each appointment so that we can keep you informed about the level of interest. While on the market, we update you on market activity, telling you about new listings as well as homes that go under contract. If the feedback from showings and other market activity indicates a price adjustment is in order, we will strategize with you and make a plan.
When the market is hot and your property is appropriately priced and well marketed, you can expect your home to be on the market for an average of about 60 days (based on data from the local multiple listing service in 2019). Some homes will sell more quickly and others will take longer and we will be honest with you about where we think your specific property will likely fall on the continuum.
Getting from contract to closing
While the time between listing a house and getting an acceptable offer is variable, the process from contract to closing typically takes 6-8 weeks. A closing can happen more quickly if the buyer is paying cash and doesn’t need a mortgage and it can take longer with certain types of financing (government backed mortgages such as FHA and VA can require protocols that conventional mortgages do not). Closing dates are negotiable and it’s possible that you (or your buyer) will want a delayed closing and if so, that will be part of the negotiation process. In New York State, the closing date is a target, not a guarantee and while we keep in contact with all the parties throughout the process, the date is often in flux until a few days beforehand, which can be frustrating.
As soon as the contract is signed, we provide you with a checklist of what to expect next and we keep track of the progress to ensure everyone is moving toward closing. The first thing you will do once the contract is signed is have your real estate attorney review and approve it.
After the contract is approved, the buyer will likely hire a licensed inspector to go through the home to ensure there are no major issues. A substantial defect is a single item that costs in excess of $1500 to repair. If any substantial defects are found, the buyer may request either a credit or ask you to fix the issue prior to closing. We will assist you in negotiating any structural issues raised.
If the buyer is getting a mortgage, an appraiser will schedule a time to view your home. We will stay in contact with the buyer’s agent to ensure their mortgage application process is proceeding as expected and will let you know when they have received mortgage commitment.
While the buyer is getting their financing in order, you should start preparing for the move. It’s a good idea to get quotes from several moving companies, as prices can vary quite a bit. As the closing approaches, contact service providers (power, trash, cable/telephone, etc) to turn off or turn over to the new owners. We advise against calling National Grid, as it’s best for the buyer to initiate contact with the utility company, though we do suggest you call immediately after the closing to confirm the service is transferred. The buyer will request a final walk through, either the day before or the day of the closing. All personal items should be out of the home before the walk through if at all possible.
Sellers can pre-sign the closing documents if desired or can attend the closing. It can be a nice opportunity to share information with the new owners of your home and to hand off the keys, but if you prefer to pre-sign, we can do that for you.
While it’s not an easy process, rest assured that McSharry and Associates is with you every step of the way!