Listing Under Contract Information
Congratulations, your home is Under Contract!
I am sure that you are as excited as we are in accomplishing this task together. Now we have to focus in on the journey between the contract and closing which is a critical phase of the real estate transaction.
Buyers of Residential Real Estate in North Carolina are given a period of time known as the “Due Diligence Period” to examine and inspect all aspects of the property. **Important** The buyer can terminate the contract at any time prior to closing for any or no reason. In order to receive their Earnest Money Deposit (EMD) back however they must notify us in writing of any such termination prior to 5pm on the day that “Due Diligence” expires which is stated in the signed contract.
It is helpful for buyers and sellers to be reasonable with each other regarding necessary repairs. Unfortunately, we have limited control of the buyer and what the buyer asks for. We do our very best to encourage the buyer’s agent to set a reasonable expectation with their client regarding requested repairs. Obviously, our goal is to control your cost as the seller, yet keep the deal together. It has been our experience that a seller’s “spirit of cooperation” increases the probability of the transaction going to closing. Total rejection of necessary repairs puts the contract at high risk of failure. Once the repair request (if any) has been signed by both parties, we will work with you to find contractors to perform the work.
The buyer has a lot to accomplish during the Due Diligence Period. Below are the majority of the tasks that are required of the buyer prior to the end of the Due Diligence Period.
Buyer must be complete these items before 5:00 PM on the Due Diligence Date:
- Perform their Home Inspection
- Inspect the well and/or water quality (if desired)
- Inspect the Septic System, if applicable
- Inspect for Termites & obtain the Wood Destroying Insect Report
- Get a loan commitment from underwriting
- Perform and Review the Appraisal
- Obtain a Survey (optional)
- Review the Covenants & Restrictions of the subdivision, if applicable
- Uncover any zoning issues
- Uncover any Flood hazards on property
- Make written Due Diligence (repair) Request
- Confirm availability and affordability of all required insurances
- Re-inspection of completed/agreed repairs
- Any other items not listed above that are desired by Buyer
During the Due Diligence Period, your property is marked in the Multiple Listing Service (MLS) as PENDING. This alerts other agents that there is a contract on your house, but has not yet closed. Once the deed is recorded and at that time; the property is considered and marked SOLD.
Reminders & Recommendations
- Buyers (or their Agent) regularly drive by the property as they are excited about their “soon to be” new home. It is important to continue with regular care of the exterior. Keeping the yard mowed and clean is a must. Remember, the buyer needs to remain emotionally engaged with their decision to buy the house.
- Do not discuss the sales price with friends or neighbors. If the contract terminates, “everyone” will know the new price!
- Do not request for the electricity to be cut off before or the day of closing. I suggest that you notify Duke Energy (or other) and ask them to expect a request for new service as you are selling the property. Providing a 1 day grace period is common courtesy and prevents unnecessary power surges that can create damage to systems or allow moisture levels in the house to increase. The buyers will perform a final walk-through of the house prior to attending closing. A house without electricity will cause a less than desirable experience for the “soon to be” homeowner – especially if the temperature is cold or hot.
- Do not cancel your homeowner’s insurance until the deed is recorded
- Please allow plenty of time to vacate the property. Typically, the buyer will perform a final walk-though the evening before the day of closing. We recommend that the house is vacated 24 hours prior to closing.
- Make sure to leave any warranties or manuals for appliances or other equipment staying in the home. Leave the garage door openers, alarm instructions, fan remotes, and any touch up paint you have left. Clean out the sheds and garages. Clean up the house and make sure all your personal items are removed before the final walk-through.
- A clean house and property free of debris at the walk-through is required and stated in the NC contract and is expected by the buyer and their agent. We have experienced buyers that refuse to go to the closing table due to a house that was not left clean. With the stress that is associated with a move, my recommendation is to hire a cleaning company that is familiar with move-out cleaning. We have cleaners available if you need help.
- The buyer’s attorney will send me a request for seller information. I will send this to you to fill out and send back to me. The closing attorney will order the payoff from your mortgage company. In order for them to obtain this information, they will need your Social Security number (s). Your Social Security number is also needed for required reporting to the Internal Revenue Service (even if you do not have a payoff/mortgage). If you feel more comfortable, you can leave that section blank and then call the paralegal directly to provide it.
- If you are receiving Net Proceeds after closing, please let me know if you desire a check or if you prefer the closing attorney to wire transfer the money to your bank account. If a wire transfer is preferred, you will fill out that information on the seller information sheet from the buyers attorney.
- You should receive a preliminary settlement statement (closing disclosure/CD) for review before the closing. We will review this and go over it with you when received from the closing attorney.
- You do not need to attend the buyers closing and will sign at a separate time, likely prior to the buyers closing, scheduled by the buyers attorney.
- You will need to prove who you are with a government issued ID – please don’t forget to take it with you.
We will monitor the required tasks carefully and keep you informed along the way. We look forward to a smooth process as we work through the final details.
Thank you for choosing The Chris Luther Team! If you have any questions, please let us know.