Are you wanting to know what to expect when buying or selling a house in the Mobile or Baldwin County areas? As some of you may know your home is bought price per square foot. When you hire a Realtor to represent you, no matter if you are buying or selling, your agent should bring price per square foot to your attention. An appraiser is going to find comparable properties that have sold in the area, in the past 6 months, that are similar to the home you are buying or selling. If it is more than everything else that has sold like it, in the past 6 months, price per square foot, then guess what!? THAT’S RIGHT! The bank will NOT give the money for a mortgage and unless that buyer has cash to buy the house with, you will NOT close! Of course there is the 1 in 500 deals that is not normal and the Realtor, lender and appraiser work it out BUT do not count on that and it is not normally for a house in a residential area. Also do NOT count on a cash buyer to come a knocking!!! Most people that have enough money to pay cash have worked very hard to get it and are not going to just write a check for something over priced. At least not in a suburban area where they can buy another house in the same neighborhood yours is in.
Lets talk about the process after a buyer and seller have signed a contract! Most contracts will have earnest money (good faith money that the seller can keep if the buyer backs out for some reason not stated in the contract. When you close as agreed upon, the earnest money is then credited back to the buyer at closing.) this money is held in an escrow account if you are working with realtors and/or attorneys. If you wrote contingencies (a contingency is where you have written in the contract a reason the buyer or seller can back out of the contract at no fault) which normally have a time line to be removed, then you start taking care of them. Examples of a few common contingencies are: Home Inspection, survey, insurance quotes that are acceptable to the buyer, obtaining a mortgage, being able to transfer clear title and especially here in the humid south, your home being clear of termites, mold, and fungi. OK, Now we know our property lines, we are happy with the condition of the house and we can afford the insurance. Yay! Now the buyer tells the lender to order that appraisal we were talking about in the 1st paragraph. Depending on how backed up the appraisal companies are (you always want a local appraiser that knows the area well. Especially in our area because the value can greatly differ based on where your home is.) it typically takes around a week before the lender has the appraisal in hand. During that week of waiting on the appraisal to come back it is VERY VERY important that your lender has received ALL documentation they have been asked for. Real Estate is on a time clock, time is of the essence! PLEASE if you are a buyer get your lender everything they need quickly. It can make or break a deal! Now, the lender has everything they’ve asked for and the appraisal has come back without any problems. I hope you are packing fast at this point! We are going to underwriting!!!! I know I am using a lot of exclamation points but this is a BIG deal and exciting! An underwriter (which is a mysterious troll that works in a dark room and no one ever sees them) looks at your file and says YES, NO or MAYBE but 1st I need a few more things before clearing it. If your lender calls and says they need a few more things don’t panic, it’s OK, it’s very common, just get them to your lender quickly so you can move. HOORAY! You have final loan approval! Now we go to the Closing Department. This is a place where that encyclopedia sized folder of paperwork you have to sign is put together. Your closing attorney or Title company works with them closely and a date is set. Stretch your forearms and get to signing. Congratulations! You just bought or sold a house!
The process can be tricky if problems arise, that is why it is very important to have an amazing team working for you. It is people like me and Tiffany that stand by your side, educating you so you can make wise decisions for you and your family. We also know who to trust, who to call and what to do when those unforeseen problems happen. You can ask any of our past clients, we will stress for you and fight for you. Call us today because we love what we do!