What To Expect – Sales Contract Process and Timeline
It is easy for Realtors to take for granted what we do every day. We know the general process and timeline for each transaction, though there is variation in every deal. A good Realtor considers their client’s point of view to educate them regarding both what is likely to transpire and what could potentially transpire. This article will cover the timelines of a contract from the seller’s point of view.
When a seller seems very surprised about something that happened in a real estate transaction, their agent should think “did I properly prepare my client?
During the first consultation, a Realtor should set expectations for their client, including timelines. Of course, things like value and commission should be discussed, but timelines are important as well. How long will it take the property to receive a contract? How long will it take for that contract to close? What about due diligence and appraisal periods?
Your agent can look at days on market, or how long it took for comparable properties to receive a contract. Depending on the property, this may be only a few days or several months. Knowing this sets expectations.
Once you an accept an offer, many sellers wonder now what? In our area, it is common for the buyer to have a due diligence period for a home inspection, an appraisal period for an opinion of the value of the home and a period for the buyer’s loan to be approved. There may be other timelines as well. For example, if the buyer has a home to sell, they may have a contingency period for their home to sell before purchasing yours.
It is common right now, for a due diligence period to be between 7-14 days depending on the buyer’s situation. An appraisal contingency is typically 7-25 days. There is a larger deviation here due to where the buyer may be in the loan process as well as how capable and efficient a lender is. It is wise to know as much as about the buyer and lender when considering a contract. The contingency for the loan approval is typically 14-30 days. Again, a wide range here is due to the many variables of both the buyer’s and lender’s situation.
When all is said and done, most contracts take 30-60 days to close. The closing attorney typically needs at least a week to run a title search on the property to investigate if there are any liens, title issues, etc. Knowing the timelines and what to expect ensure a smoother transaction for everyone.
Jess Barron is an Associate Broker with Lindsey’s Inc. Realtors and former President of the Newnan-Coweta Board of Realtors. υ
