It’s Not Over ‘Till It’s Over!  

Why going under contract is NOT the time to celebrate and why doing a specific list of things during this phase of the selling process will make or break your home sale 

The market has been shifting the past few weeks, but Louisville is still considered a hot Sellers’ market. Things are changing, but we are continuing to see record homebuyer demand combined with low supply resulting in increased prices.

If you’re thinking of selling, do you want to get the very most money for your home? If so, read on….

Most people don’t realize there is much more to selling a home than taking a few photos and throwing it on the MLS, especially if you want the very most for it.

This is why I created my series, “Get the Most for Your House Even in a Hot Seller’s Market” – to help you and anyone you know maximize the profits from your biggest investment and not get “caught up in what other people are doing.”

Over the next few weeks, I’m sharing my four steps to getting the most money possible when selling your home, even when a home can almost sell itself right now.

This is a must-read series, even if you aren’t selling a home anytime soon. 

In this article in the series, you will learn why going under contract is NOT the time to start celebrating the sale of your home. There is so much that needs to happen between now and closing and it’s crucial it’s handled correctly.  I promise, though, once the closing is finished, we can start throwing the confetti!

Today, you’ll learn what needs to get done and who does what so there are no hiccups during this crucial time of the selling process.

Think of me as the project manager or even the event coordinator from the time you go under contract to the closing and beyond. My job is to work with all parties to make sure everyone does what they are supposed to do so that we get to the closing on time and with the least amount of stress and hassles as possible.

I’ll be working with you, the buyer’s agent, the buyer’s lender, the title company, the home inspector, appraiser, and any other vendors we need to involve during this phase of the selling process.  My job is to assign tasks, continue to negotiate terms on your behalf, and make sure deadlines are met by everyone involved, and of course, keep you up to date on the progress along the way. 

More than anything, though, my job is to make sure the terms you agreed to when you signed the contract are carried out correctly and on time.  Often, the under-contract phase feels a little “quiet.”  That’s because there are more parties involved than during the pre-listing, on-market, and offer-review periods of time.  My goal is to make this phase less of a mystery for you and to let you know who is doing what when every few days. 

Here’s a quick summary of what typically happening behind the scenes from going under contract to closing:

• Estimated net sheet  – talk about the numbers and what to expect (for example, did you know the amount your mortgage says is your balance is NOT the amount of your mortgage payoff; we’ll be discussing what to expect there)

• Track important dates – The very first thing I do when we go under contract is plot all the important dates in a calendar and share that with you. Depending on the terms you agreed to in the contract, this could be anything from contingencies to document review periods to when the appraiser is coming to when the home inspection is happening.  I make sure you and I both know these crucial deadlines so we can work backwards and make sure everything is done on time and keep all other parties on time too. 

• Introductions – Next, I introduce myself and all the other parties involved in the process to each other and make sure they have everything they need, like a copy of the contract, to start their processing of the file. For example, I make sure the title company has a copy of the contract and your contact information so they can start working with you on things like the pay-off statement.  I introduce myself to the buyer’s lender and make sure he or she has what they need from our side to start the loan processing.  And, I make sure the lender and title company have each other’s contact information since they will need to work together closely throughout the process

• Order condo or HOA docs, if necessary – Next up, I’ll get the condo docs or HOA docs ordered on a “rush” so we can get those to the buyer and the buyer’s lender to review as quickly as possible.

• Earnest Money Deposit – Remember, depending on the contract terms you agreed to (Review my post It’s Not Just About Price, It’s About What’s Hiding in the Contract, you don’t always get this money back. So, we’ll review when the buyer can void the contract and get their deposit back and when you are in the clear to receive their deposit if something changes.

• Inspection Process – Right now, many buyers are waiving the home inspection contingency, but it does happen and so you want to be prepared. There are three parts to the inspection that we’ll discuss. Prepping for inspection, what happens during the inspection, and what happens after the inspection. Here’s a quick overview:

• Prepping: You want your home to look the same way it did when the buyers first fell in love with it. So, for this stage, you’ll want to be sure your home is clean, clutter-free and looking its best. 

• During the Inspection:  I’ll send you a detailed list of what the inspector will be looking at during the inspection so that you can be prepared. Things like water stains on ceilings/walls, stuck windows, GFCIs installed in bathrooms and kitchens, and clean and serviced furnaces and air conditioners are just some of the items included on any home inspector’s checklist. You’ll want to make sure everything on the list I send is accessible and in good working order. Hopefully, any safety concerns or damaged areas were identified and corrected during the pre-marketing period, but it’s critical that they are corrected now. Our goal during inspection is to present your home to both the inspector and the buyer in the best possible light.

• After The Inspection: Once the inspection is complete, the ball is in the buyer’s court.  Depending on the terms of the inspection clause of the contract, the buyers may send a list of requests for repairs, they may accept the property in its current condition, request repairs, corrections, replacements, and/or pay for same, or void the contract. Depending on how the buyers move forward after the inspection, we’ll have a game plan—we’ll either move forward without having to do a thing, review the list of repair requests and negotiate what you will and won’t do before closing, or, in the rare instance where they void the contract entirely, we’ll discuss when and how to put your home back on the market for a buyer who will love it.

• Lockbox removal – Once the inspection period is over, I take off the lockbox immediately.  Why?  Because we don’t want anyone accessing your home—the buyer, appraisers, the buyer’s agent, etc. without me present between now and closing.

• Track the buyer’s loan – I touch base with the buyer’s lender at specific times during the under-contract period to track the loan, ensure that everything is going according to plan, confirm that financing and appraisal contingency dates are met and that the buyers have received their closing disclosure as expected, and to verify that the title company has what they need from the lender to close on time as specified in the contract. 

• Create an appraisal package and meet the appraiser – This is SO important. Homes are oftentimes selling for more than recent sales (aka “the comps”) would support.  Because of this, I want to make a strong case for the price that you and the buyer have agreed on.  I put together a package of material that supports your agreed upon price—things like the floor plans, including the square footage we measured, recent sales that support our price, a list of updates and improvements you’ve made to the home, and a summary of how many offers we had and why the price got where it did. I then personally meet the appraiser and review anything that’s important for them to know or that they might miss when doing their report.  

• Vendor list: If you need suggestions for any contractors like moving companies, housekeepers, home organizers to help you pack and unpack, and any agreed-upon repairs, I will supply you with a vetted list of contractors I personally use. As part of my concierge service, I will get bids for you and meet these professionals at your home when they are scheduled to be there, if you are unable (or unwilling) to be there yourself.

• Schedule De-staging—If we staged your home while it was on the market, I’ll work with the stager to make sure that you aren’t charged for another month of staging once our contingencies expire. We want to ensure that the staging items are removed before the buyer’s walk-through.

• Sign removal – Time to take down the sign now that we are headed towards closing!  I’ll take care of this when the contingency period expires.

• Coordinate the final walk-through – Next, I’ll coordinate the final walk-through with the buyers.  Typically, the buyer’s final walk-through happens right before closing. The point of the final walk-through is to make sure your home is ready for the buyers to take ownership and confirm that any repairs that were agreed to be fixed by you have been completed.

• Condition of home at closing – Speaking of the buyer’s walk-through, one question I get a lot is about the condition a seller’s home must be in for closing. The contract calls for your home to be in “broom clean” condition with all your belongings out.  A good rule of thumb is to leave the home you sold in the same condition you’d like to the home you are moving into left for you.

• Final To-Dos – About ten days before closing, you’ll receive a final list of to-dos from me.  It will serve as a reminder about when and how to do things like turn off your utilities, switch your homeowners’ insurance policies, and gather things like keys, garage door openers, storage keys, parking permits, alarm codes, etc.—all the “tiny” things the buyers needs so you don’t have to think about it on closing day.

• Review your final documents and numbers with you prior to closing – I don’t want the first time you see your final numbers and all the documents you have to sign to sell your home to be at the closing table. That’s why, a few days beforehand, as soon as those documents are ready from the title company, I schedule a time to review them all with you so closing is a breeze and you understand everything you are signing.

• Closing Day Logistics – I’ll make sure you know where to go, what you need to bring and what to expect on closing day.  If necessary, we can coordinate for you to sign prior to closing day or even from afar.

• Next Day Check In – Last, but not least, I’ll touch base with you after closing to make sure you’ve received your funds in full and answer any questions you have about your sale.

• Celebrate! Now’s the time to throw the confetti and finally celebrate. You’re officially DONE! 

Phew!  There’s a lot to do once you are under-contract to ensure everything goes smoothly.  But don’t worry, I’ll be with you every step of the way, working as your project manager and giving you updates weekly and at every important milestone. And, although I love having a plan so everything goes like clockwork, I’ve also got a Plan B and a Plan C so that no matter what happens, we won’t lose any time getting you to closing.

If you’ve been thinking about selling your home and want to know how to get the very most for it or you just want to handle over the keys and let me handle it all, I’ve got you.  The first step is for us to have a conversation about why you want to sell, where you are headed and when you want to be there.  You can schedule that with me here.

I can’t wait to talk about your plans and how I can help!