After I Get A Contract on My Home, When Do I Have to Move Out
Timing of the Home Sale
You listed your home for sale that you have lived in for many years and accepted an offer. Now What? The offer now becomes a contract which specifies dates that must be met, including the date for closing the sale. The closing date is when you must move out, unless you have an agreement with the buyer giving you more time.
Here is the Timing of the Home Sale:
- The Buyer Pays for an Inspection First – Inspectors almost always find something wrong and notifies the buyer of what it will cost to correct any problem(s) found. Sometimes, there are open permits that must be closed before the sales process can proceed. This can take weeks, which is why it is critical to get the inspection done shortly after the contract is signed. If the cost to correct the problems are too high, the buyer can walk away. The seller can decide to fix the problem or take the cost off the sales price to save the deal.
- Next is the Appraisal – If a buyer is getting a mortgage to buy the home, the bank will require an appraisal. They want to make sure the value is there before they will lend the buyer money. If the appraisal comes in too low, the buyer and/or seller can walk away or renegotiate the deal. If the appraisal comes in higher, the buyer will be happy. Since the buyer is paying for the appraisal, the seller will be told the appraisal was fine, but not what it actually appraised for.
- The Buyer’s Mortgage Application and Appraisal goes to Underwriting – The lender will take time to verify all the buyer’s financial information as well as the appraised value of the house. If everything looks good, they will give a “mortgage approval” and send the documents to the attorney or title company to close the sale. This whole process typically takes a minimum of 30 to 45 days.
- Condo and Homeowners Associations – Most condo associations and some homeowner associations require an application be filled out and background information obtained on new buyers. The buyer may be required to pay a fee of at least $100 to accompany the application. Buyer’s can be turned down by an association and many need a minimum of 30 days to provide an approval. Especially in condo associations, buyer’s cannot close without the condo approval. It is imperative buyer’s start this process right after the inspection.
- Cash Buyers – In a cash deal, where the buyer is paying all cash for the property, the time frame is shortened dramatically. Cash buyers do not need to do inspections or an appraisal, although some choose to. They do not have to wait on an approval from a lender, but still must apply to the association if there is one.