Under Contract

Once an offer is accepted, and all paperwork has been signed by both parties, the buyer and seller enter into a contractual agreement, known as being "under contract." At this point, the buyer typically provides a due diligence fee (if applicable) and / or an earnest money deposit.

The due diligence period begins once the contract is signed. This is a period for inspections, an appraisal, a title search, and finalizing loan details before the transaction is clear to close.

The Due Diligence fee is a negotiable good faith deposit that goes directly to the seller.

The buyer is showing they are commited to purchasing the property and the seller is compensated for removing the property from the market. This amount is non-refundable (unless seller breaches contract or cannot provide clear title).

The Earnest Money deposit is negotiable and typically held by the closing attorney, in a trust account, until closing.Should the buyer terminate the contract during the due diligence period, the earnest money is typically returned to the buyer. If the buyer terminates the contract after the due diligence period, the earnest money can be split between the seller and real estate broker.

Assuming everyone adheres to the terms of the contract, and moves forward with the sale, both the due diligence and earnest money amounts are credited to the buyer’s down payment and closing costs on the settlement date.

During due diligence period, a buyer may inspect the property. This is a pivotal phase in your home-buying journey, marking the stretch between making an offer and sealing the deal. Investigating the property you plan to purchase protects your investment and helps ensure you're making a well-informed, confident decision.

HOME INSPECTION:

A thorough home inspection conducted by a professional is essential to uncover any hidden issues with the property. From the foundation to the roof, plumbing to electrical systems, this step can save you from future surprises and expenses. Depending on the findings, you may renegotiate the deal, request repairs, or sometimes, decide to walk away.

Scan for more information on Home Inspections

Other Inspections / Evaluations may include, but not limited to :

• Septic Evaluation
• Well Evaluation
• Radon Inspection
• Pest Inspection
• Survey

APPRAISAL:

If financing, our lender may require an appraisal to determine the home's market value, ensuring the loan amount does not exceed the property's worth.

Keep an Eye on Deadlines:

Each condition comes with a deadline. Staying organized and responsive is key to ensuring these deadlines are met without a hitch, keeping the sale on track.

Addressing Inspection Findings: Talk It Out

It's common for home inspections to unearth a few issues. Depending on what's uncovered, we may need to negotiate repairs, or price adjustments, with the seller. Rest assured, we'll strategize together to make decisions that align with your best interests.

A homeowners insurance policy protects you against certain losses your new home may experience. Coverage is generally required by lenders prior to closing. Some lenders collect the insurance premium as part of your monthly mortgage payment, place it in an escrow account, and pay the insurer on your behalf.