Selling your residential property is a big step. But with the right sales force behind you, your home will be under contract in no time. Once your home is under contract, what happens? Let’s take a look at what happens after the offer has been signed and accepted.
Due Diligence Period
After a price has been offered and accepted by both parties, there is a period of time called “the due diligence period.” During this time, a buyer has the right to terminate the contract for any reason. Reasons could include another offer going through on a different house, buyer’s remorse, and cold feet. When a buyer wishing to terminate a contract, you’ll receive a notice of termination and the deal is called off. It doesn’t happen often, but it does happen. Once this period ends in seven to 14 days, the buyer cannot back out except under a contingency in the contract. A buyer is legally allowed to back out because of financing or a lower appraisal value.
During the due diligence period, your home will be inspected by a certified home inspector in your state. It is their job to find everything that is currently wrong with your house or that could go wrong in the near future. Once the inspection is complete, it is not unlikely to receive a 30-page document about their findings. The document will contain problems, potential problems, and information on the systems of the house. If anything is wrong with the property, the buyers may ask you to fix it before buying the house or they could revise the offer and offer less money. As the seller, you have the option of fixing the problems, negotiating an amount to compensate for the faults, or not do anything. If you don’t do anything, it could mean you lose the sale and have to start over.
After the inspection, your home will be appraised by the financing company. If a buyer has to back out because of financing, you are allowed to keep their earnest money deposit or could even sue for damages. The financing period is usually between seven to 30 days after the contract has been signed. If the appraisals go well, you are ready for settlement. If the appraisal doesn’t match the offer price, the buyer can ask for a lower price but you have the option to walk away from the new price or to take the deal. After this, your residential property is officially sold! Selling your home can be a lot of ups and downs, but with the right agent at your side, your home will be sold in no time! For the right agent, call Clagett Enterprises today!
Residential Sales with Clagett Enterprises!
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full-service real estate company that’s ready to help you with your real estate needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.