Selling a home...please help me understand the process

[cajunrose]

We are officially 'under contract' on our home that we are selling. It's a LONG closing date...December 29th is the tentative date right now. We are going through the inspection on Wednesday. My husband and I can't think of anything that would cause problems. I KNOW stuff will come up b/c that's just what happens..but nothing major..no termite damage, new roof, no plumbing problems that we are aware of, etc.

 

Buyers are pre-approved for over the amount that they are getting this house for.

 

My husband..from now until the time we close, will only be home for 2 weeks and 2 days. We have a LOT to do in those weeks!!! We are moving 12 hours away. I made the comment to my realtor that we are taking stuff from my storage shed and moving things up there. We have a LOT in storage...probably several trailer loads for sure. If we don't get started now, we will never get moved in time. He won't even be home for closing! *panic* Anyway...realtor said "I really wish you wouldn't start moving yet..I would hate for you to get disappointed if something happens." I KNOW stuff can happen, but if we don't start now, we won't get out in time.

 

If we get through inspection ok, and get through appraisal (will appraise at well above what they are paying), then would it most likely go through? When can I start breathing easy? If you can't start moving when you have a contract, when CAN you move??? It's so hard with my husbands work schedule. I can't do this on my own (did I mention I have a broken hand too???) and he can't take off of work. 2.5 weeks isn't a lot of time to pack up a house and haul several loads 12 hours away!!

 

Starting to panic...can you tell? Talk me down please.

[1Togo]

You can breathe easy(ier) when your buyers have lifted the inspection and appraisal contingencies. After they sign off, then it's usually a go. However, there can be problems even on closing day, but those are usually related to financing. Buyers are cautious these days. I wouldn't start moving until the contingencies have been lifted. It takes fortitude to sell a house these days.

[Mama Geek]

Hire help...I don't know if you financially can it will make things better. Banks can be bad enough that deals fall through.

[Mommyof4ks]

Most of the tome everything works out just fine. We have had closing pushed back and almost not happen over loan issues that popped up the day before closing, so yes anything can happen. Thankfully for us our buyers were able to get it worked out, but it was scary for a bit, because we were scheduled to close on our new house that afternoon.

 

If you have already bought the other house, and you are moving either way, then I would go ahead and move. We packed and move in 48 hours, but we moved within the same town and had a trailer which helped a lot. Try not to panic. It will be ok.

[1Togo]

Yes, don't panic. You can pack in 2+ weeks. Forget school and focus just on having a good move.

[cajunrose]

We haven't bought a house but know where we are moving. This stuff in the storage shed has to get moved one way or the other...and it's not stuff we use day to day..it's just a lot of 'stuff' that has to get moved. We aren't moving anything in our home yet...that'll be at the very end..or as close as we can get it.

 

We are going up next week with a load and my parents are hauling one too. While we are up there, we will hopefully find the home we want to buy and make an offer contingent on our deal closing.

 

This is SOOOO stressful and I'm doing it 90% on my own..and my van broke down today and is in the shop, and I just found out about my broken hand that might need surgery. I think I'm going to loose my mind.

[lmrich]

When is the due diligence time period up. It is my understanding that buyers can change their minds during the due diligence or during the inspection negotiations. Otherwise they are under the contractural agreements.

 

If you start moving stuff up there worst case situation is.... You move it back or it is up there in storage? Or?

 

Best of luck and congratulations!

[cajunrose]

You know, I'm not sure about the due diligence. I'll ask. Good to know.

 

Stuff is going from one storage unit here to a storage unit up there. No big deal really. Yes, I know we should get rid of all of the 'stuff' but this is stuff we cleaned out of the house to declutter to sell..and my husbands antique truck collection (real trucks..lol) and motorcycle collection, and a few pieces of furniture and odds and ends.

[TranquilMind]

cajunrose: We are officially 'under contract' on our home that we are selling. It's a LONG closing date...December 29th is the tentative date right now.

 

Why so long?

 

 

Buyers are pre-approved for over the amount that they are getting this house for.

 

 

I had a "pre-approved" buyer once who couldn't get financing and kept trying to change programs. In fact, more than one. Ask that proof of funds to close be sent to you immediately so you don't get tied up with one of these jokers who can't actually close the deal. Everything in writing. Trust no one's word.

 

Anyway...realtor said "I really wish you wouldn't start moving yet..I would hate for you to get disappointed if something happens." I KNOW stuff can happen, but if we don't start now, we won't get out in time.

 

 

 

Tell your Realtor that you are only interested in financially solid buyers for whom nothing will happen (absent tragedy or something truly unexpected).

 

If we get through inspection ok, and get through appraisal (will appraise at well above what they are paying), then would it most likely go through?

 

Only if the Buyer actually has the funds to close. Find out the terms of the deal, for example, is it Conventional fixed, with 20% down, or what? Then ask that proof of those funds be provided. No money, no deal.

 

When can I start breathing easy? If you can't start moving when you have a contract, when CAN you move???

 

Well, you have to move, right? I presume you have another place to live lined up. So move, and pray the buyer can close and that the inspection doesn't reveal something awful. And if it does, get your own 2nd opinion.

 

I hope it all works out for you. But be ready to push it through yourself.

[cajunrose]

Why so long?

 

It's a VA loan...i guess they take longer

 

 

I had a "pre-approved" buyer once who couldn't get financing and kept trying to change programs. In fact, more than one. Ask that proof of funds to close be sent to you immediately so you don't get tied up with one of these jokers who can't actually close the deal. Everything in writing. Trust no one's word.

 

Realtor has the pre-approval letter in his hand and has actually talked to the loan officer and they are good to go with the loan. Is that what you mean?

 

Tell your Realtor that you are only interested in financially solid buyers for whom nothing will happen (absent tragedy or something truly unexpected).

 

 

 

Only if the Buyer actually has the funds to close. Find out the terms of the deal, for example, is it Conventional fixed, with 20% down, or what? Then ask that proof of those funds be provided. No money, no deal.

 

No money down and we cover closing for that reason (we upped the offer price for this reason...took us a while in haggling to realize that was their problem...they needed US to cover closing

 

Well, you have to move, right? I presume you have another place to live lined up. So move, and pray the buyer can close and that the inspection doesn't reveal something awful. And if it does, get your own 2nd opinion.

 

I hope it all works out for you. But be ready to push it through yourself.

 

No other place to live YET but we are going up next week to find a house...hopefully

[SebastianCat]

We bought a new house 3 years ago, so the market may be different now.

 

But we bought our house for a fair market price. We had been looking for 6+ months so we knew the market well and our price was solid. However, the surplus of foreclosures and short sales on the market made our appraisal come in much lower. Because we were financing only 50% of the purchase price, it wasn't a big deal for us.

 

But my sister was buying a house at the same time. She and her husband ran into the exact same issue. Their appraisal came in low, and the bank would not lend more than 80% of the appraised price of the home. It didn't matter what amount they qualified for. They had to scramble to find a way to get the mortgage down to less than 80%, which they were able to do, but LOTS of people were not able to purchase homes for this exact reason at that time.

 

And even if your home is in good condition, expect a long list of "faults" from the inspection. Find a good handyman now, or get a referral from your realtor, to have those issues fixed. Our realtor referred us to a handyman that we've ended up calling many times since.

[cajunrose]

We bought a new house 3 years ago, so the market may be different now.

 

But we bought our house for a fair market price. We had been looking for 6+ months so we knew the market well and our price was solid. However, the surplus of foreclosures and short sales on the market made our appraisal come in much lower. Because we were financing only 50% of the purchase price, it wasn't a big deal for us.

 

But my sister was buying a house at the same time. She and her husband ran into the exact same issue. Their appraisal came in low, and the bank would not lend more than 80% of the appraised price of the home. It didn't matter what amount they qualified for. They had to scramble to find a way to get the mortgage down to less than 80%, which they were able to do, but LOTS of people were not able to purchase homes for this exact reason at that time.

 

And even if your home is in good condition, expect a long list of "faults" from the inspection. Find a good handyman now, or get a referral from your realtor, to have those issues fixed. Our realtor referred us to a handyman that we've ended up calling many times since.

 

 

I wasn't aware of all of that with the appraisal, etc. Good to know.

 

My husband is a handy man...he is a jack of all trades. I'm not worried about any requests they make..he can do most anything. I only worry about them requiring a professional. My realtor said that that rarely happens here though. Inspection is tomorrow...I want it over with so I can breathe a little easier.

[Happy]

Once you are through the inspection process the contract is more solid. The two other 'big' hurdles are the appraisal and the buyers getting loan approval.

 

In my area, appraisals are not coming in as low as they did two years ago. That's welcome news here. I'll bet you won't have any problems with appraisal. A new roof is always a good thing. Have your realtor print comparables and leave them on the kitchen counter for the appraisor guy. He may not have time to look up the really 'good' comps for your property...by leaving them available you've 'spoken' your part. It's up to him to agree or disagree.

 

VA loans take a long time. I've personally been an agent on two separate deals involving VA loans. One we closed within 30 days...so it can be done.

 

One thing the VA will require is a termite inspection by an approved insect company--even if you've had a longstanding contract with a termite company. Any termite damage will have to be fixed before the VA will sign off.

 

I tell my clients that deals can fall apart at the last minute because I want them to KNOW it can. Does it often? No, but I warn them. A friend of mine had a deal fall apart at the closing table (because some people are just plain crazy...)

 

Start packing. Get your friends and family to help pack it all up. Hire a few teenagers to help out. Price out how much it would cost for a moving company to do the job...firefighters often have moving companies. Maybe they could be hired to help with some aspects--packing, etc.

 

Breath. You CAN do this. I once packed up our house so we could move overseas...guess where DH was for most of that month? Yep, scouting our new locale. Ask for help, pace yourself, and keep a positive attitude.

 

:grouphug:

Edited November 6, 2012 by Happy

[TranquilMind]

No other place to live YET but we are going up next week to find a house...hopefully

 

 

Well, I can't respond to exactly what you said if you quote within the quote, but let's see if I remember.

 

No, the Realtor saying he has a pre-approval letter means NOTHING. Does the person have FUNDS to close? Pre-approval means merely that IF the financial conditions are as represented by the Buyer when he gets closer to closing, with no new accounts opened or anything, then the Buyer MIGHT be able to close, unless you choose not to jump through the extra hoops of a VA loan. There are qualifiers all over that letter. Do you have a copy? You need a copy of every single thing pertaining to your sale.

 

I've done a lot of transactions, being a landlord. You get jerked around a lot unless you, not your Realtor, stay firmly in control.

 

Um, can't remember what else you said. Back after I look.

 

No money down? I didn't know they were even doing those anymore, after the crash. But yep, you can get a VA loan no money down and have Seller pay up to 6% of closing costs. And no PMI, which is a great deal, since the (insolvent) government is backing it.

 

You will probably be fine unless a job is lost or a credit thing pops up, but keep up on it. Well, I hope it works out for you! VA loan is better deal.

Edited November 6, 2012 by TranquilMind

[cajunrose]

Once you are through the inspection process the contract is more solid. The two other 'big' hurdles are the appraisal and the buyers getting loan approval.

 

In my area, appraisals are not coming in as low as they did two years ago. That's welcome news here. I'll bet you won't have any problems with appraisal. A new roof is always a good thing. Have your realtor print comparables and leave them on the kitchen counter for the appraisor guy. He may not have time to look up the really 'good' comps for your property...by leaving them available you've 'spoken' your part. It's up to him to agree or disagree.

 

VA loans take a long time. I've personally been an agent on two separate deals involving VA loans. One we closed within 30 days...so it can be done.

 

One thing the VA will require is a termite inspection by an approved insect company--even if you've had a longstanding contract with a termite company. Any termite damage will have to be fixed before the VA will sign off.

 

I tell my clients that deals can fall apart at the last minute because I want them to KNOW it can. Does it often? No, but I warn them. A friend of mine had a deal fall apart at the closing table (because some people are just plain crazy...)

 

Start packing. Get your friends and family to help pack it all up. Hire a few teenagers to help out. Price out how much it would cost for a moving company to do the job...firefighters often have moving companies. Maybe they could be hired to help with some aspects--packing, etc.

 

Breath. You CAN do this. I once packed up our house so we could move overseas...guess where DH was for most of that month? Yep, scouting our new locale. Ask for help, pace yourself, and keep a positive attitude.

 

:grouphug:

 

 

Makes me feel a TON better!!! On the termite front...I have the termite company we are under contract with ready to come out and give us our certification. Just waiting on realtor to give me the go ahead there. I have no idea when appraisal will happen. Will ask realtor when he is here tomorrow.

[cajunrose]

Well, I can't respond to exactly what you said if you quote within the quote, but let's see if I remember.

 

No, the Realtor saying he has a pre-approval letter means NOTHING. Does the person have FUNDS to close? Pre-approval means merely that IF the financial conditions are as represented by the Buyer when he gets closer to closing, with no new accounts opened or anything, then the Buyer MIGHT be able to close, unless you choose not to jump through the extra hoops of a VA loan. There are qualifiers all over that letter. Do you have a copy? You need a copy of every single thing pertaining to your sale.

 

I've done a lot of transactions, being a landlord. You get jerked around a lot unless you, not your Realtor, stay firmly in control.

 

Um, can't remember what else you said. Back after I look.

 

The realtor has a copy and will give us a copy tomorrow. Good thing to know you need a copy of everything

[Scarlett]

We haven't bought a house but know where we are moving. This stuff in the storage shed has to get moved one way or the other...and it's not stuff we use day to day..it's just a lot of 'stuff' that has to get moved. We aren't moving anything in our home yet...that'll be at the very end..or as close as we can get it.

 

We are going up next week with a load and my parents are hauling one too. While we are up there, we will hopefully find the home we want to buy and make an offer contingent on our deal closing.

 

This is SOOOO stressful and I'm doing it 90% on my own..and my van broke down today and is in the shop, and I just found out about my broken hand that might need surgery. I think I'm going to loose my mind.

 

I am so sorry about your broken hand! My mom broke hers and it is VERY difficult to get anything done with one hand! :( Are you wearing a splint and sling? Hers is MUCH better since she has been wearing the splint but it has been 8 weeks. :( So sorry.

 

I would move the stuff from storage and not worry at all especially since it has to be moved either way. The sale will most likely go through but you will know more after inspection and appraisal.

[cajunrose]

This injury is 3 months old!! Still hurting so I went in to an orthopedist. MRI showed broken hand. :( I'm not wearing a splint or anything..I plan to when working with moving boxes mainly to remind me to baby it and not overdo it.

[Happy]

Makes me feel a TON better!!! On the termite front...I have the termite company we are under contract with ready to come out and give us our certification. Just waiting on realtor to give me the go ahead there. I have no idea when appraisal will happen. Will ask realtor when he is here tomorrow.

 

Just remember, the termite company has to be approved by the VA. There's a specific numbered form that goes with this....Just find the cheapest person with this qualification.

 

My clients had three years of receipts from a termite company showing regular inspections and treatments. They still had to have an inspection by an approved company...who didn't find anything to worry about.

[Scarlett]

I just sold a house. We closed August 3rd. The kids who bought it did so with no money down. So they put no earnest money up...which worried me,everything went through fine. The inspector did list a few picky things which enraged dh :glare: but I explained to him that it was just a game...and we had to remain calm. The inspector listed a few things that we refused to 'fix' and it was still ok.

 

The buyers for our house didn't even pay closing. They had a grant for that.

[cajunrose]

Just remember, the termite company has to be approved by the VA. There's a specific numbered form that goes with this....Just find the cheapest person with this qualification.

 

My clients had three years of receipts from a termite company showing regular inspections and treatments. They still had to have an inspection by an approved company...who didn't find anything to worry about.

 

Good to know too!!! I assume that realtor will let me know this..or make the call or whatever.

[cajunrose]

I just sold a house. We closed August 3rd. The kids who bought it did so with no money down. So they put no earnest money up...which worried me,everything went through fine. The inspector did list a few picky things which enraged dh :glare: but I explained to him that it was just a game...and we had to remain calm. The inspector listed a few things that we refused to 'fix' and it was still ok.

 

The buyers for our house didn't even pay closing. They had a grant for that.

 

These buyers DID put down earnest money thankfully!! We are paying closing..they didn't have the $5k cash for it (very young military couple..wife is a schoolteacher). The closing is what hung in the balance...once we realized that they couldn't finance the closing costs and they needed that cost covered, we re-worded the offer and they took it. Seems like it's all ok now.

 

Thank you guys! I feel more confidant now..and have more questions for my realtor for tomorrow. I'll let you all know how inspection goes tomorrow.

 

Keep the moving/closing tips coming...I can use all the help I can get..lol

[Happy]

I just sold a house. We closed August 3rd. The kids who bought it did so with no money down. So they put no earnest money up...which worried me,everything went through fine. The inspector did list a few picky things which enraged dh :glare: but I explained to him that it was just a game...and we had to remain calm. The inspector listed a few things that we refused to 'fix' and it was still ok.

 

The buyers for our house didn't even pay closing. They had a grant for that.

 

Some inspectors are better than others, aren't they? We had one joker write up the leaves in the gutter among a million other things.

 

I generally recommend doing a small price drop rather than fixing something. Taking $500 or $1000 ( more or less) off the purchase price rather than bringing in a professional who could find other things wrong.

[Scarlett]

Some inspectors are better than others, aren't they? We had one joker write up the leaves in the gutter among a million other things.

 

I generally recommend doing a small price drop rather than fixing something. Taking $500 or $1000 ( more or less) off the purchase price rather than bringing in a professional who could find other things wrong.

 

Yes, I agree about dropping price (better yet giving them the cash at closing because people ALWAYS want cash especially when buying a new house).

 

The inspector who did our house wanted us to put a drip pan under our water heater which was in the garage. Can you imagine the work that would have been for NO REASON? So we just said no and the kids were like 'ok.'

 

Remember that often times the buyers want the house just as much as you want to sell, so there is no need to break your back for their every whim. Just be reasonable and kind. And if your dh tends to flip out over things like that just keep him away from the realtors. ;)

[QueenCat]

I tell my clients that deals can fall apart at the last minute because I want them to KNOW it can. Does it often? No, but I warn them. A friend of mine had a deal fall apart at the closing table (because some people are just plain crazy...)

 

 

Ask me about the six hour closing on the house we sold in Georgia.... The closing attorney said it was the longest one she'd ever done, by several hours. We thought we were going to end up starting the selling process all over the next day but it finally closed that night (walked out of the office at 10pm).

[Scarlett]

Ask me about the six hour closing on the house we sold in Georgia.... The closing attorney said it was the longest one she'd ever done, by several hours. We thought we were going to end up starting the selling process all over the next day but it finally closed that night (walked out of the office at 10pm).

 

Ugh. And to what the PPsaid....yes some people are plain crazy. I do find that first time buyers want more house for what they can realistically afford...but they are easier to deal with during the process.

[cajunrose]

Not sure if these are first timers are not...they have a house already...and they are getting ready to sell it...but the realtor suspects 'daddy' bought it and put it in their name...mainly because she has been clueless about the process.