Three Weeks to Close: Seller Side
Congratulations! You’re a lucky seller who actually has a contract on the house you’re selling. Now let’s hope these next three weeks go smoothly so you’ll be able to move on with your life.
Week One
The contract on the home went full binding last week (or in escrow). You’ll spend some time this week out of your house while the buyer has inspections completed.
Home Inspection - You *can* be present for the home inspection, especially if the inspector notes problems. For example, an inspector recently noted on one of my listings that the wiring going from the new HVAC unit to the house was incorrect. My seller pulled out his inspection report and showed HIS inspector specifically noted that the wiring WAS correct. Generally, though, most sellers are absent during the inspection. Special note: I do note in my contracts that the buyer’s agent must be present during the inspection.
Termite Wood Destroying Organisms Inspection - Depending on the stipulations of the contract, either the seller or buyer will order the termite inspection. Pray there is no evidence of active termites because if termites are found, the seller can pay anywhere from $600 UP depending on the infestation and damage.
Septic Inspection - Many times the county or city can conduct a septic inspection. Other times a home inspector may complete it. Again, depending on the contract either you or the buyer will arrange this.
Week Two
You’re about two weeks from closing at this time. Here’s when you should receive the Repair Inspection Contingency Removal form and negotiate the repairs to be made. In your contract, you’ll have agreed to pay up to a certain amount in repairs or replacement costs. This is where the rubber meets the pavement - you put your money where your mouth is. Sometimes sellers can negotiate to simply give X amount to the buyer at closing - a 50:50 chance the offer will stick. Buyers may not want to mess with having to ”fix” something once they move in, or they may see the value in just accepting the money as the repairs won’t cost as much as the amount offered. If there is a major repair to be made, however, there’s little chance the seller will keep from having to make the repair. If the house needs to be re-plumbed, for example, the buyer can walk away if the seller won’t repair. That’s why the inspection contingency is there.
Start packing!
Week Three
If you haven’t already been called, the title or closing attorney will be asking you for the contact information for your mortgage holder or other lien holders. They are getting the payoff information so the proper amount can be collected and checks cut to pay these bills.
If you bought your house less than five years ago, you may be able to get credit for your title insurance. Find your title and fax it to the closing company.
You may at this time have to challenge your mortgage company - especially if they try to charge you a prepayment penalty when you don’t have one. Yes, this has happened. Yes, the seller was correct. But don’t think you can get out of the interest they’re charging you on the loan because interest is paid in arrears, or at the end of a month. They may also charge you other little fees that add up. If you’re getting a new loan, you may be able to sweet-talk your way out of it, “I’ve done business with you for many years and hope to continue to do business with you if you’ll work with me on this…”
Attend the closing with your agent! Congratulations and happy trails to you. Move!
Again, there are a gazillion other details that go into a selling a house and this is just a sampling of what could happen. Every transaction is different. Every transaction has unique challenges, twists and turns.
