SELLER ADVICE FOR ON-TIME CLOSING and the DUE DILIGENCE OFFER TO PURCHASE
Be Prepared and Be a “Better Seller” There have been dramatic changes in mortgage lending regulations and real estate market conditions! Because those changes affect the selling process when using the standard "Due Diligence” Offer to Purchase and Contract form, Coldwell Banker Howard Perry and Walston has developed this advice to help Sellers better understand what will be necessary to have an on- time closing and understand the nature of the typical sale transaction using that form. The goal is to make you a “Better Seller". Sellers are encouraged to read and review with their listing agent the “Contract to Closing Timeline” and the "Sample" version of the Offer to Purchase and Contract, and any addenda that may be used. Being prepared and realistic, understanding the time under contract that will be required by most Buyers, as well as for yourself, and familiarity with the terms of the contract form that is being used will help make you a Better Seller. This will work to your advantage as discussed below. 1. Timing is everything! Know what is required. Most Buyers will have to obtain a mortgage to purchase your property. Mortgage regulations under the “Dodd-Frank Act” will require that Buyers ultimately receive a Closing Disclosure from their mortgage lender no less than 3 days prior to Settlement. Achieving this will, for a variety of reasons, require any Closing Attorney selected by the Buyer to have all the financial information needed from many sources, including you, no less than 10 days in advance. All expenses related to the transaction, including those paid before Closing, must appear on the Closing Disclosures and Settlement Statement. All parties to the transaction and their agents should work to complete all pre-closing activities approximately 14 days prior to Settlement to allow sufficient time for all that must be done and to report financial information to the Closing Attorney. This will mean, at a minimum, that the time from having an effective contract of sale to closing should be no less than 45 days . Your property needing substantial repairs while under contract, but before closing, or the Buyer’s lack of mortgage pre-approval and/or use of a subsidized or governmental mortgage program will require more time than this. Some of the “Better Seller” strategies outlined below can help reduce the time needed under contract. In any event, careful planning and coordination of the time needed by you and the Buyer should be accomplished before going under contract. 2. Better Sellers completely prepare the Property for sale . Cleaning, de-cluttering and “staging” are very important steps for Sellers. Your listing agent can provide many tips and resources about this. Beyond that, pre-marketing home inspection and repair, if necessary, helps avoid delay and additional costs. Even in a “Seller’s Market”, a pre-marketing home inspection that is shared with prospective buyers can be valuable to attract buyers to pay substantial Due Diligence Fees with less worry about the condition of the property and save Sellers from accusations of failure to disclose defects in the property. As you see in our listing agreement, HPW recommends that Sellers obtain a pre-marketing home inspection and decide, with the help of the listing agent what, if any, repairs should be made and make them before marketing the property. There are several good reasons to do this.
Coldwell Banker Howard Perry and Walston © 2021
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