Once you have cleared the inspection process, let your lender know. They will order a home appraisal to verify that the value of the home you're purchasing is worth the loan amount. In California, buyers have 17 days to complete the appraisal, starting from the day it was ordered.
When you receive an offer on your house, it is imperative that you review it carefully. The offer tells you the price the buyer is willing to pay and under what terms. We will review the offer with you. You may also wish to consult with an attorney before you sign it, and it becomes a contract of sale.
Usually, the closing date will be 30 – 60 days after the seller accepts the offer.
A closing date is established
Your purchase offer will include a date by which the deal needs to be completed. In most cases this is within 30 to 60 days after the offer is accepted. The closing date is when you sign paperwork and take ownership of the home.
Once your offer is accepted, the sale contract and purchase agreement will be updated to reflect any negotiated terms, and you and the seller will sign it. This is called “going under contract,” meaning both parties have agreed to proceed with the transaction.
Some buyers may be able to negotiate an immediate possession date. This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs.
A buyer can back out of a home purchase even after signing a contract if all agreed-upon contingencies are not met. Common reasons for buyers to back out include issues revealed during a home inspection and problems with financing. Having a backup offer in place can help soften the blow in case a deal falls through.
California law, on the other hand, limits the amount of earnest money that can go to a seller should the deal fall through to 3% of the purchase price. There are some exceptions, Stuart says, but this law makes it so few earnest money deposits exceed 3% in the Golden State.
Your contract states how long you have to perform inspections. On average, buyers request 7-10 days. It's important to schedule inspections ASAP. If you set them up toward the end of the inspection period, you risk not finding an inspector in time or making a rushed decision.
While the house seller not responding isn't common, it happens especially in a multiple-offer situation or bidding war. Sellers often prioritize the offers they'll consider and respond to while ignoring the rest.
The typical response time for a seller after receiving an offer is 24-72 hours. However, it could take longer, depending on market conditions and other factors. Sellers want time to thoroughly review an offer's details, get feedback from their agent, and potentially wait to see if other competitive offers come in.
If the offer is within the expected price range and you answer these questions favorably, it's a good idea to accept it. On the other hand, if the offer isn't as close to the expected sale price as you would like, consider giving a counteroffer.
The short answer is yes, a buyer is free to withdraw their offer at any time. However, depending on the contract, there may be penalties for doing so. Many purchase agreements typically include various contingencies meant to protect both parties from a deal that has gone wrong.
Make the letter brief, express thanks, and state that you accept the offer. Outline any important terms again – salary, start date, vacation time, working schedule – to ensure nothing is missed. Finally, proofread the letter a few times before sending.
Is Earnest Money Refundable? Earnest money isn't always refundable. The good news for buyers is in most situations, as long as a buyer acts in good faith, earnest money is refundable. As long as any contract agreements are not broken or decision deadlines are met, buyers usually get their earnest money back.
The purpose of earnest money is to provide the seller with compensation in the event that the buyer backs out of the deal through no fault of the seller and in violation of the agreements in the purchase contract. If that happens, the seller gets to keep the earnest money.
Earnest money is returned to the buyer at closing. The buyer can choose whether to apply the funds toward a down payment, closing costs or other settlement costs. But in some cases, if certain provisions of the purchase contract are broken, the buyer will have to forfeit the earnest money and the seller will keep it.
There are certain contingencies covered in most real estate contracts protecting the buyer. If you back out of the contract for an approved contingency, you will get your earnest money back. You can expect your earnest money back if: The home doesn't pass inspection.
Here's some good news: Backing out of a contract won't directly affect your credit score, because terminating a purchase contract isn't reported to credit bureaus.
The answer is yes, but there are very specific circumstances where this would be possible. For example, for homes that are currently pending or under contract, it might be possible to get the seller's current real estate agent involved in the negotiation process again.
The short answer is yes, this is possible when your real estate agent puts a sale-leaseback in the sales contract. Today we'll talk more about what a sale-leaseback is, how to find sale-leaseback companies, and how you can get this extra time at your old house.
On closing day, one of the first things you should do is pack for your move, if you haven't already. Depending on how long you've been in your current house and how many possessions you've accumulated, boxing everything up may be a Herculean task.
It can take a couple of months between signing a purchase agreement and reaching closing day. For homebuyers, closing is the day they officially take over ownership of the property and receive the keys. For sellers, closing is the day they'll receive proceeds from the sale.