The process of selling your home can seem intimidating and opaque, especially if you’ve never done it before. Even though you went through the buying process when you purchased the property, being on the other side has its own set of considerations. Your home is a huge investment, and I want to make sure that you realize as much profit as possible when you sell! A big part of my role as your Realtor® is making sure that you understand and are comfortable with the process – that you feel informed and in control at each step. This is Part 3 of a 4 part series on the home selling process - check out Part 1 | Part 2, and then read on!
Part 3:
You’ve listed your house, had showings, and hopefully received a few offers! Where do we go from here?
Once you’ve chosen an offer that is the best fit for your selling goals - and you’ve signed it - you are officially under contract! The buyer will submit their earnest money to the title company, and your agent and the title company will get to work sharing disclosures, HOA documents if applicable, title insurance information, and more. At this point, as the seller, you want to keep the home clean and uncluttered, and allow the buyer reasonable access to the home to perform their inspections.
One of the main ways a buyer gathers more information about the property is by performing their inspections. These can include a general inspection, a sewer scope, a radon test, and potentially others, depending on the condition of the property. The buyer will schedule their inspection and then run the time by you - if there is a specific time that you cannot allow the buyer access for the inspection, it’s a good idea to let your agent know as soon as possible. Depending on the size of the home, the inspection can take 2-5 hours. You should be gone during that time, to give the buyer and their inspector an opportunity to freely inspect the home. It’s generally a good idea to provide any due diligence documents that the buyer has requested (these can be manuals, invoices/receipts, permits, blueprints, and other reports) at the time of inspection.
Once the buyer has completed their inspections, they will submit an inspection objection, which lists the items that they are asking you to repair or resolve. If the buyer limited the scope of their inspection objection at the time of their offer, you may not see too many items on this list. Keep in mind that an inspection objection is a wish list, and there may be quite a bit of negotiation required to find a resolution.
A buyer may ask you to repair an item of concern; in lieu of repair, you may offer a credit at closing, also called a concession. This comes out of your proceeds at closing, so if cash is tight, it may be easier. Additionally, if the buyer is asking for a fix that may take longer to schedule or resolve (i.e. longer than the contract period), a credit may make more sense, so that the buyer can have the work done themselves.
While the objection is the buyer’s wish list, the resolution is the document that memorializes the repairs that both parties have agreed to. Once the resolution is signed, it is your responsibility to address those repairs before closing. You’ll need to provide your receipts/invoices to the buyer, so make sure you keep those. If you agreed to a concession (or a price reduction) in lieu of some repairs, both parties will need to sign an amendment to the contract to document those changes.
Making small repairs, like replacing smoke detectors and burnt out bulbs, fixing leaky faucets, and having your furnace cleaned and serviced, can help reduce the number of items on the inspection report (and therefore on the inspection objection)!
It’s always a good idea to make everything is inspection-ready - make sure there are no clothes in the washer or dryer, no dishes in the dishwasher, pilot lights are lit, etc.
If your appliances are older but still functioning, it may be helpful to preemptively offer a homebuyer’s warranty that will cover those appliances (and other systems). These can cover your home through the listing and contract period, then
Up next: What happens once you’re under contract?
This has been steps 6-8 of the selling process! If you have any specific questions, please contact me and let’s talk it through – I would love to be a resource for you.
You can also peek at the whole timeline below:
