An offer is made on a home. The price offered can fluctuate greatly from city-to-city and is generally something a real estate agent helps advise you on. They can inform you or the buyer of what the average sales price is in a give city or town which helps the buyer decide on what to offer the seller to get the ball rolling. The offer is generally a pretty thick stack of papers which cover what is included with the purchase, such as drapes, appliances, home warranties, pets (haha! kidding on this one, but as they say “anything” is negotiable!)
Mutual Acceptance is reached once the buyer and the seller come to an agreement on the terms of the contract, and it is delivered to the other party involved in the transaction. Mutual Acceptance is a date many of the subsequent timelines rely on – such as the earnest money deposit and inspection deadlines.
Earnest money is essentially a commitment to buying the house. In the simplest terms, it’s like putting a monetary promise down to do what you can to make the sale of the house go through. This includes following the stipulations laid out in the contract and making application in time for your financing. In the state of Washington, this is due 2 business days after mutual acceptance.
The inspection is done by the buyer and at the buyer’s expense. The buyer should reach out to an inspector they have found or one recommended to them to have them do a full examination of the structure. This is so the buyer has an idea of what they are getting into. Often the inspector can let the buyer know what they recommend for repairs and when they should have a professional come out to inspect a specific component of the house (such as a roofer or structural engineer.) The inspection period also offers the buyer the opportunity to ask for repairs from the seller.
The appraisal is the process of attaching a value to the property being sold/purchased. This is to ensure that the lending institution isn’t giving out more money than the asset is worth should it foreclose. The appraisal price should be at the agreed upon sales price or higher to ensure no hiccups along the way. If the price comes in lower, that is referred to as a low appraisal.
Final Walk Through
The final walk through is an important part of buying a home because it gives you a chance to give the house one more look over and ensure that any repairs that were negotiated have be completed.
What most people refer to as “closing” is just the signing of documents. For a property to close, the buyer and seller must both sign, the loan (if there is a current one) must be paid off, and then the documents must be sent to the court house, so they can “record” the sale. At that point the ownership of the home transfers; however, the actual time that possession of the home takes place may differ depending on the contract.
Thinking about buying or selling a home?
Check out www.hardiegroup.com or give us a call 509-456-4500