05
The Closing Process
This process begins once we accept an offer on the home. Here are the major milestones to expect:
Escrow: The typical escrow period is 30-45 days with a loan & shorter if you are buying all cash. Escrow is a neutral third-party account that holds funds until the transaction is completed. When escrow opens, the buyer, within 3 days, wires a 3% earnest money deposit into an escrow account as a sign of good faith.
Buyer's Due Diligence Contingency: The buyer has 17 days to conduct inspections of your home which usually start with a general, termite, & sewer. Additional inspections may occur to ensure the property's condition - mold, roof, foundation, etc. Buyers will take reports & submit a request for repairs to negotiate credits or a reduction in price for any issues/concerns found at your home. This is all a negotiation.
Appraisal & Loan Approval: The appraisal period is 17 days & ensures the property's value matches the purchase price. A loan contingency is also 17 days & finds the lender evaluating your home's value & the buyer’s financials to determine if the buyer can qualify for a mortgage.
Final Walk-through: 5 days prior to closing, the buyer conducts a final verification of property condition to ensure the property is in the agreed-upon condition.
Closing Day: The buyer signs the deed, mortgage documents, & pays closing costs. Keys are provided to buyers once the property records with title. Typically within 24 hours & escrow has closed the file, you will be wired the proceeds from the sale.
