Great news – you’ve received an offer to purchase your home! …Now what?
In this 2-part series, we’re walking you through everything to consider when reviewing an offer to purchase your home for a successful and smooth transaction. If you missed PART 1, you can find it here.
Now that we’ve reviewed the offer, checked out all the loan info and gotten a settlement date, it’s time to discuss Inspections, Warranties, Contingencies, and Post Settlement Occupancy.
Most contracts have the following contingencies:
- Home Inspection
- Radon test
- HOA disclosure
- Financing & Appraisal
When the JS Realty Team is representing the seller we want to keep the timeline for these contingencies to be as short as possible. The sooner we can close the contingencies, the better chance for a smooth settlement!
So, who is responsible for ordering the pest/termite inspection?
We like our clients to be in control of that process. Termite companies don’t make money on inspections; they make their money treating homes for pests. Therefore, we want to make sure we hire a reputable company.
Ideally, the home inspection and radon test are done within 7 days of ratifying the contract. If there is an issue with the home that the buyer is not comfortable with, we want to know as soon as possible. That way we can solve the problem or release the buyer and get the home back on the market immediately.
If the seller’s home is located in a HOA, then the seller needs to order their resale disclosure packet as soon as contract is ratified. By Virginia law, the buyer has a prescribed time (dictated by how the disclosure packet was delivered) to review the disclosure packet. If the buyer is not comfortable with the rules or finances of the community, they can void the contract. It is very important to get this contingency released as quickly as you can.
Appraisal – this takes, on average, 2-3 weeks. The lender orders the appraisal so
you need to give them time. Financing is typically 3-4 weeks and it is the weakest of the contingencies. The buyer has control over the home inspection and HOA disclosure contingencies; however they do not have as much control over the appraisal and financing. That is why we want the Home Inspection completed and HOA documents reviewed as early on in the process as possible.
Another item to consider when ratifying your contract is whether or not you need a Seller Post Occupancy period. This needs to be negotiated at contract time where the seller has the most leverage.
JS Realty also offers a home warranty for our seller’s during the listing period. If we have agreed to purchase the buyer’s a warranty for their first year, it would be put into place at settlement.
As you can see, staying on top of all the different components of the sales contract is essential to a smooth transaction. Again, the sooner we can close the contingencies, the better chance for a hassle free settlement! The JS Realty Team strives to ensure that our sellers have the best possible outcome in the many facets of the Real Estate transaction.
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.