Accepting an Offer to Closing To-Do List
Congratulations – you accepted an offer on your home! Now what?
Before you do anything, take a moment to savour that signed Sale & Purchase Agreement. It typically means all the energy you spent marketing your home has led to the right offer. It’s a major milestone – but it also means you have a new set of tasks ahead of you. If you’re selling your home on your own, use this to-do list to make sure you’re on the way to a successful sale!
Hire a Solicitor or Conveyancer
Even if you think you don’t need to hire a solicitor, it still might be a good idea. A solicitor will make sure your paperwork is in order and that your rights are protected. Sometimes transactions get complicated – especially when there are questions of title, mortgages, caveats, etc. Having a solicitor to sort through all the red tape can be a lifesaver.
If you decide to hire a solicitor, try to do so immediately after the sale & purchase agreement has been signed. That way, your solicitor can review the contract right away and negotiate any repairs or adjustments to the terms.
Prepare for the Appraisal and Inspection
Two of the biggest steps to closing on a house are the appraisal and the inspection.
An appraisal is an estimate of the fair market value of your home, typically ordered by a buyer’s lender during the mortgage loan process. This means a licensed professional will evaluate your home’s value based on things like age, condition, upgrades, location and the surrounding housing market. The purpose is to let a lender know the proper loan amount to provide. If an appraisal comes in below the sale price, a buyer and seller may be forced to renegotiate to cover the difference.
Similar to an appraisal, a home inspection is ordered by the home buyer to evaluate the structure and systems of a home, from the roof to the foundation. It covers things like the home’s heating system, air conditioning, plumbing, electrical systems, windows, doors, ceilings and floors. The main purpose is to find out if any major repairs are needed, in which case you may need to cover the cost.
So, how do you prepare for these home evaluations? Ensure that there’s easy access to all areas of your home and take care of the little things that could raise bigger questions. Replace burnt out light bulbs, which could point to electrical problems. Eliminate slow drains with any of your sinks to remove doubts about the plumbing. Change your air filters and be sure your smoke alarms are working. Basically, get your home in the best shape possible to pave the way for a smooth appraisal and inspection.
Negotiate Repairs
If there’s an inspection contingency in your sale & purchase agreement, that means the buyer can negotiate repairs based on the findings of their home inspector or cancel the contract. The purpose of a home inspection is to identify major defects that would require a major investment of time or money – not to come up with a list of minor repairs for you to take care of so the home is in flawless condition. Keep that in mind when the home buyer comes to you with their list of issues.
You’ll most likely need to do some haggling. Resist agreeing to fix all cosmetic issues like cracked tiles or loose doorknobs, as these are minor inconveniences that a buyer could have easily seen when touring the home. Major defects you should address include mould, electrical issues, or leaking roofs – the types of issues that will require major investments of time or money.
No matter the extent of the repairs you agree to address, it’s wise to provide inspection credits as opposed to taking care of the repairs yourself. The buyer will likely be far more critical about the work done than you will be. Providing cash value for repairs upfront will likely spare you and the buyer from tension down the road.