Congratulations! You’ve got a ratified contract. But what happens now? Here’s what to expect as you move towards closing.
Professional home inspection. For peace of mind, you’ll probably want to have a professional home inspection. If an inspection contingency was added to the contract, an inspection must be done within the number of days agreed upon – usually within a week. The cost is your responsibility. A good yardstick is $1 for every $1,000 of home price. In some areas inspections are priced by square footage.
Inspections normally take 2-4 hours, depending on the size of the home. As the buyer, you’ll absolutely want to attend. That way, you’ll get a firsthand view of everything the inspector notes. You’ll also see where everything is – pipes, valves, circuits, etc. – and get the chance to pick the inspector’s brains on home improvements.
The inspector will provide you with a complete written report. It will list anything the inspector thinks you should take a closer look at. This report, along with a contract addendum, is the basis of any repair requests you make. You may request that the seller fix anything that your contract says should be in “normal working order.” This usually includes such things as major appliances, plumbing and heating. Owners typically do not address less essential items, like carpeting.
In our experience, few deals fall apart after the inspection, unless the inspector uncovers a significant problem. And even if the seller can’t or won’t fix a problem, you have the second option of asking for a credit to be added to the contract.
Learn more about inspections:
Loan application. It’s best to speak to a lender before you sign a contract. A pre-approved loan application adds strength to your contract/offer. If you haven’t lined up financing, Corus Home Realty can put you in touch with an excellent mortgage broker.
Appraisal. Unless you’re paying cash, your lender will require an appraisal. This ensures them that the property is worth what the lender is financing.
A professional appraiser will evaluate the home based on “comparables” in your neighborhood, homes of roughly the same size and features that have recently sold.
Termite inspection. This is something else lenders will require. If you have elected to pay for the termite inspection, Corus will coordinate it for you. Normally, it must be done within 30 days from settlement. If the inspection uncovers “visible evidence” of termites or other wood-destroying insects, the seller must pay for extermination or any structural repairs.
Well and septic. Most properties are on public sewer and are served by public water. If, however, your property is on well and/or septic, the contract requires an inspection of these services to ensure that they meet government standards. If either does not meet government standards, the seller must fix the problem at their expense.
Radon. While this is not a required test, Corus recommends that you conduct a radon test. We also recommend that language be included in the sales contract that obligates the seller to fix the problem if radon levels are too high.
Review of HOA or condominium documents. If you’re buying in a community with monthly homeowner or condominium fees, the seller must give you a “disclosure packet” including all the rules, bylaws and financial statements. If you’re not satisfied with the information, you have the right to cancel the contract.
Access to property. Prior to settlement, the seller isn’t obligated to let you back in the house. But normally, if you want to take measurements or start thinking about color schemes, sellers are happy to work out a convenient time for you to do so.
Utilities. Before the day of settlement, you’ll need to change the heat, water and other utilities over to your name.
Pre-settlement walk-through. On the day of settlement, or maybe a day or two before, you and a Corus agent will walk through the home one last time. This is your chance to make sure that all inspection items have been addressed. You’ll also want to make sure no problems have cropped up since the inspection. If any problems are identified at the walk-through, the listing agent should be contacted and attempts made to resolve any issues prior to settlement.
Learn more:
What not to overlook on a final walk-through settlement. A closing agent for the title company oversees the settlement. He or she will explain the details of the financial statement, known as the HUD-1, before you review it with the help of your Corus agent. Settlement usually takes an hour. If you cannot be there, you must send someone with power of attorney. For buyers, the representative with Power of Attorney may require approval from the mortgage company several days prior to settlement. For sellers, the representative with Power of Attorney may require approval by the title company. You’ll need to bring a certified check for any leftover costs. The seller will bring all extra keys, garage door openers, etc.
Post-settlement. Once you’ve completed all the paperwork, you’re done. The house is yours. You’re an official member of the Corus Family.
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