The Contact Process: From Offer Acceptance to Closing Day (For Buyers and Sellers)

Introduction: Whether you’re a buyer or a seller, the contact process plays a crucial role in the journey of buying or selling a home. It involves several important steps that lead to the ultimate goal of closing the transaction. In this blog, we will explore the key stages involved, ensuring both buyers and sellers are well-informed and prepared for this significant milestone in the real estate process.

1. Earnest Money: Upon accepting a purchase agreement, negotiable earnest money is collected from the buyer and deposited into a trust account. This step ensures the commitment of both parties and provides a level of security throughout the transaction.
2. Verification of Funds: For buyers requiring financing, sellers may request a review of the pre-approval letter provided by the buyer’s lender. In the case of a cash sale, the seller may ask for a verification letter from the buyer’s bank to confirm sufficient funds. This step ensures financial capability and builds confidence between buyers and sellers.
3. Contingency Period: Buyers are granted a specific timeframe, known as the contingency period, to conduct inspections and investigations on the property. Sellers may need to provide relevant documents, such as insurance information or condominium/homeowner association details. Once the buyer is satisfied with the information, contingencies are removed, and the transaction moves forward.
4. Title Work: Title work is an essential part of the pending process. A title company conducts a search to ensure that the seller has the legal authority to transfer a clear and marketable title to the buyer at closing. This step provides reassurance to both buyers and sellers regarding the property’s ownership.
5. Appraisal: In most cases, the buyer’s lender orders an appraisal to verify that the property’s value aligns with the purchase price. This third-party assessment helps ensure that the home is being sold at a fair market value. Both buyers and sellers benefit from this step, as it validates the pricing of the property.
6. Settlement Statement: The settlement statement is a final document that outlines all the debits and credits associated with the sale transaction. It provides a comprehensive overview of seller proceeds and informs the buyer about the amount due at closing. Reviewing this statement together ensures transparency and clarity for both parties.
7. Final Walk-Through: Before closing, buyers have the opportunity to conduct a final walk-through to ensure the property is in the same condition as when they initially made the offer. This step allows buyers to verify that any agreed-upon repairs have been satisfactorily completed. Sellers benefit from this process as it helps ensure a smooth and successful closing.
8. Closing Day: The highly anticipated closing day marks the culmination of the buying or selling process. The timing of this day depends on various factors, such as the type of transaction and any specific contract or lending requirements. Both buyers and sellers are involved in the closing process, signing the necessary documents and officially completing the transaction.

Conclusion: The contact process is a crucial aspect of buying or selling a home, involving various steps that bring buyers and sellers closer to their goals. By understanding and actively participating in each stage, both parties can navigate the real estate journey with confidence. With the guidance of experienced professionals, such as CENTURY 21 North East agents, buyers and sellers can ensure a successful and satisfying real estate experience. Embrace the process, communicate effectively, and look forward to the exciting day when the transaction is closed and new chapters begin.