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My Reisterstown Home is Under Contract, Now What?

Under contract, now what?

Now that your Reisterstown home is under contract, what happens next?

When you list your home for sale, it is always your goal to sell your home. So after months of advertisements, open houses, and endless home visits, someone finally decided they love your Reisterstown, Maryland home just as much as you do and have put in an offer. After debating back and forth on the price, you came to an agreement and accepted their offer for $200,000. Now that you are under contract, what do you do? Well, keep reading to see what will happen over the next few weeks.

Due Diligence Period

After you have agreed on a price and accepted the buyer’s contract, there is a time called the “Due Diligence Period.” During the time, a buyer can terminate the contract on a house for any reason including cold feet. When a buyer wishing to terminate a contract, they send you a notice of termination and the deal is called off and you are back at square one. But don’t stress about it, this doesn’t happen that often. Once this period ends in seven to 14 days, the buyer cannot back out of the contract except under an application contingency like financing or appraisal value.

Inspection

During the due diligence period, a buyer will usually call for a home inspection by a certified home inspector. This inspector’s job is to find anything that is wrong with the home. It is their job to find everything that is currently wrong or that could go wrong in the home in the near future so don’t panic when you receive the 30-page document. This document contains not only the report of things that could go wrong, but it also provides you with other information. After the inspection, a buyer will often provide you with the report and will ask you to fix some of the items the inspector says needs to be fixed. While they could ask for everything to be fixed, many buyers choose the items that need to be fixed immediately and that is important to them. As the seller, you have the option of fixing the items or negotiating a dollar amount to compensate for the things you don’t want to fix. You also have the option of not doing anything, but this could be a deal breaker.

Financing and Appraisal Contingency

Financing and appraisal contingencies are the only way for a buyer to back out of their contract after the due diligence period.  If a buyer does back out of the contract, the seller can either keep their earnest money deposit or can sue for damages. The financing period on a home is usually between seven to 30 days after contract. As a seller, you should insist on a pre-qualification letter from a lender before accepting a contract. The appraisal contingency is sometimes a longer contingency and can last until the day before closing. Many lenders insist on multiple appraisals. They can even be scheduled until the day prior to closing. As a seller, you should keep in contact with the buyer’s agent and make sure that the first appraisal is ordered in a timely manner. Unfortunately, there is no way to know if the lender is going to order multiple appraisals or just one. If a property does not appraise for the contract price, the buyer can ask the seller to settle for the lower price. If the seller refuses to lower the price, they can either walk away. But if the seller settles for the lower price, the buyer is bound by the contract. After accepting the new price, the contingencies are over and the buyer is officially buying your house. Now it is time for closing! Let Simply Referable help you sell your home and in no time you’ll be at the closing table!

Selling a Home with Simply Referable

The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.