Posted on October 27, 2011
I have a quick question for home buyers and anyone who has ever been a home buyer …. You’re at the closing table, and your fabulous, talented real estate agent (wink, wink) hands you a gift in honor of your new home. Would you prefer a gift certificate (something you get to choose through an American Express or Natick Collection gift card, for example) or a gift that your agent has picked specifically for you?
This is something that I often wrestle with, and I usually opt for the hand-picked gift because I find it to be more personal. BUT I just posted the question on my Facebook page (linked here if you would like to comment directly on Facebook), and several wanted gift certificates instead. So please let me know your thoughts – I can’t wait to hear….
Posted on October 12, 2011
The other night, I was going over the process from offer to closing with one of my buyer clients in terms of the standard dates and typical timeline, and as I was doing so, I realized that I hadn’t put this pertinent information in a document and go-to place for easy access. Although we as Realtors know the standard timeline by heart, this can often be a new process for buyers – one that they might not have gone through in years. And so I hope that putting all of this in writing will help my buyer clients as well as other buyers in need.
As you may know, when you put in an offer on a property, you commit to a variety of dates to get you from the accepted offer to the closing. Here is a standard timeline and the events to which they are attached:
- Inspection contingency (including pest and radon inspections) – 7-10 days from accepted offer. This part of the process actually has two dates. The first is the date within which you as the buyer must have the inspection, and this is usually within 7 days of the accepted offer. The second is the date within which you need to come back to the seller with any inspection issues to be addressed, and this is usually within 10 days of the accepted offer. So let’s say, you put in an offer yesterday (Tuesday, October 11), and it was accepted today on Wednesday, October 12.* This means that you would have the inspection by Wednesday, October 19 and get back to the seller with any issues by Saturday, October 22. And more times than not, this will result in a back and forth – a.k.a. another negotiation – between you and the seller concerning the inspection issues.
- On another note, during the days from the accepted offer through the inspection contingency, you also need to do two other things. First, you need to talk to a few mortgage brokers about getting the best rate possible. The mortgage commitment date is coming soon (see below), and so you need to start working on securing your options for getting a loan. Second, you need to hire an attorney. Then once the inspection issues are resolved, your attorney and the seller’s attorney will work together to develop the Purchase and Sale Agreement (P&S), which is our next date/event.
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Purchase & Sale Agreement – usually 2 weeks from accepted offer. So using our example above, the P&S would be signed on Wednesday, October 26. This is also when you would put down the remaining 5% of the deposit (a deposit of $1,000 was put down at the time of the offer). And once the P&S has been signed, you would formally apply for a mortgage if you haven’t done so already thus fulfilling the mortgage application date, which is part of the mortgage contingency.
- Mortgage contingency/commitment – usually 1-2 weeks after the signing of the P&S (or 3-4 weeks from accepted offer). Most buyers want the date of the mortgage contingency/commitment to be two weeks after the signing of the P&S (or Wednesday, November 9 in this example) to have more time to make sure all of the mortgage paperwork is complete. And most sellers want the date to be one week after the signing of the P&S (or Wednesday, November 2) because it lessens the time that their house has been red flagged with an accepted offer (and basically not shown by the brokerage community, which is generally what happens). So if the deal falls through because you can’t get a mortgage, the seller has only lost three weeks of active market time instead of four.
- Closing – usually 60 days from accepted offer. And so the closing in this case would be Monday, December 12 (or thereabouts). The theory behind this is that you can lock in a mortgage rate in 60 days, and it generally provides adequate time for the lender to provide the loan to the buyer.
I think that’s about it from a timeline perspective. I hope this information helps, but keep in mind that the time frame from an accepted offer to closing can vary immensely based on the particular circumstances of the buyer and the seller. Closings can happen within 30 days and can also take four to six months. I’ve even had a situation in which the P&S and the closing happened on the same day – basically two weeks after the accepted offer. I’m hoping that laying out the typical timeline will give you a guideline from which to start to formulate a plan of action that works for you…. Good luck, and as always, I would love to hear any of your thoughts and experiences on this exciting time of the home buying process.
* Just a note that sometimes it can take a week for an offer to be accepted rather than a day, but in this example, we are going for the ease of a quickly accepted offer.
Posted on June 18, 2011
Last month, I featured a blog on “The Pre-Moving Day Checklist for Buyers,”and now it’s time to look at things from the seller’s viewpoint. Again, I’m hoping this list can help you focus on the task at hand given how crazy life can become leading up to moving out of and selling your home*. You’ll see some similarities on this list to the buyer’s pre-moving day checklist, but it also has some distinct differences:
Contact the utility companies – make sure that the gas/oil, electricity, cable and any other utility services know that you are selling your home and the day you will be closing on the property. They will likely schedule a time to do any appropriate final readings (i.e., your oil tank, propane tank and/or water meter). This helps ensure that you won’t receive utility and other bills on a home you no longer own.- Confirm receipt of your smoke/carbon monoxide (CO) inspection certificate and/or your Title V inspection certificate (if appropriate) – your listing agent will likely have coordinated this inspection with the town’s fire department for the smoke and carbon monoxide devices. There is a nominal fee payable to the town, and the final certificate is part of the closing paperwork. Similarly, if you live in a town with private sewerage, you need to have a Title V inspection done to make sure your septic system is functioning and compliant with the state’s regulations. The Title V inspection costs a few hundred dollars (depending), and it is also part of the closing paperwork.
- Reserve a safe place for important documents and items – this is important for sellers too during a move when things have a tendency to get rather chaotic. Put your passports, birth certificates, medications, etc., in a designated place so they don’t get lost in the move. In fact, I recommend putting them in your purse or briefcase so they are “on your person,” as they say, rather than on a moving truck.
- Confirm your moving logistics with the moving company – by this time, you will have hired a mover so check in with the company to confirm the arrival time on moving day and any other logistics.
- Pack up any last minute items – make sure not to forget the harder items to move or package, including plants and/or extremely fragile pieces that you want to transport yourself.
- Finish up any remaining home inspection items – after the buyer’s home inspection, there may be items that the buyer has asked you to address or repair. Before you close the door for the last time and before the buyer’s final walk through (see the next bullet point), take another spin around the house and make sure all of the inspection items have been properly fixed and completed.
- Make sure the house is “Broom Clean” for the buyer’s walk through - most buyers schedule a walk through of their new home the day before or morning of the closing. During the walk through, the buyer will check to make sure everything has been removed from the property (including all of the knick knacks in the cabinets and drawers) and that all inspection items have been repaired or resolved.
- Review the HUD-1 Settlement Statement with your real estate attorney – the HUD-1 Settlement Statement is usually available to review with your attorney prior to the closing. In fact, most sellers don’t usually attend the closing and will instead give power of attorney to their attorneys. So it’s important to make sure you’ve reviewed, understand and approved the settlement statement in advance of the big day.
- Remember the tax stamps – where we live in Massachusetts, the tax stamp rate is $4.56/$1,000. So if you’ve sold your home for $1,000,000, you’ll owe $4,560 in tax stamps at the closing.
Leave any appropriate keys, garage door openers or other relevant devices for the buyer – this is crucial because otherwise you will be getting a phone call from the buyer asking how he can get access to his new home.- Compile a list of vendors, operating manuals, warranties, etc. to leave for the buyer – this is a very nice and helpful thing to do for the buyer, and most sellers are happy to compile this information to pass along to the new homeowner.
- Complete a change of address form at your post office – it’s important to make sure that you are the one who gets your mail and not the buyer who just bought your home.
- Leave a personal note and/or gift for the new homeowners – I have seen this done several times, and it’s such a warm and gracious way to end the home selling process. It also coveys good karma all around.
- Have some bubbly – you have successfully sold your home, and it’s time to move forward with your life whether that be in a new home you’ve just bought or a condominium you’ve just rented – Bubbly Time…. Congratulations!
I think I’ve touched on almost everything…. When you sold your home, were there other things you did just prior to moving day that you would add to the checklist? I can’t wait to hear….
* This list does not include the packing of items and furniture and the determination of what is being given to goodwill or other family members, thrown away, potentially sold at a yard sale or to a consignment shop and/or moved to your new destination as these efforts are part of the overall and ongoing moving out process.
Posted on May 11, 2011
Moving Day is such an exciting time when buying a new home, but it can be stressful too. I have put together this list in an effort to help you focus on what needs to get done in the event that things become crazy leading up to the big day. Here are some things* to remember to do to make your move a bit less stressful and worry-free (I hope):
- Contact the utility companies – make sure that the gas/oil, electricity, cable and any other utility services have all been transferred into your name at the new house. At the same time, make sure you cut off service for those utilities at the home you are leaving.
- Complete a change of address form at your post office – this is a crucial step so that you can rest assured that your mail will be forwarded to your new home.
- Confirm school enrollment/information for your children – if you are moving to a new town, and your kids will be attending the public school in your new town, make sure that they are properly enrolled and that the school(s) have all of your up-to-date information. Even if you are moving within your town/area, make sure that the schools have your new contact information.
Take final measurements – take any last minute measurements of spaces in your new home to confirm that your furniture fits in just the right spot.- Reserve a safe place for important documents and items – this is especially important during a move when things have a tendency to get rather chaotic. Put your passports, birth certificates, medications, etc., in a designated place so they don’t get lost in the move. In fact, I might put them in my purse or briefcase so they are “on my person,” as they say, rather than on a moving truck.
- Confirm your moving logistics with the moving company – by this time, you will have hired a mover so check in with the company to confirm the arrival time on moving day and any other logistics.
- Find a babysitter or family member to watch your children – if you have younger kids, you may want to do this and/or schedule play dates so that the children are cared for during the closing and first hours of the move. This will help you focus on the task at hand.
Schedule your walk through – ask your buyer’s agent to schedule a walk through of your new home the day before or morning of your closing. During the walk through, you want to make sure that everything has been removed from the property and that any inspection items have been repaired or resolved.- Review the HUD-1 Settlement Statement with your real estate attorney – the HUD-1 Settlement Statement is usually available to review with your attorney the day before the closing. You can also wait to review it with your attorney at the closing, but many like to go over it in advance of the big day.
- Send out change of address cards – make sure all of your friends and family know about your move and your new address and phone number. It’s a fun way to reach out to and connect with your loved ones and share the exciting news. Congratulations on your new home!
I think that pretty well covers it…. Are there any other things you did just prior to moving day that you would add to the checklist? I can’t wait to hear….
* This list does not include the packing of items and furniture and the determination of what is being given to goodwill or other family members, thrown away, potentially sold at a yard sale or to a consignment shop and/or moved to the new house as these efforts are part of the overall and ongoing moving out process.
