1. Earnest Money Deposit- Most contracts require Earnest money or "due diligence" funds to be deposited fairly quickly within the contract acceptance < 1 week. This is the buyer essentially "putting their money where their mouth is." The earnest money on the contract is binding in both ways to the buyer and seller ways. Meaning if you cancel the contract you would have to not only refund the buyer's earnest money, but you would also typically pay the amount of earnest money put down in liquidated damages. This is general information and varies from state to state and depends on how you, your realtor, or attorney writes the contract. Regardless, this is a pretty standard part of a contract. Find out what it is called in your area and ask your representative to explains in detail how, why, and when you would lose this deposit on the contract in the case of default. Earnest money is held by a third party- you will not get access to this money until the contract is defaulted or completed.

2. Submit Loan to underwriting- Usually within 48 hours of getting under contract- a buyer's loan officer will start this process.

3. Seller disclosures- Generally all purchase contract include a clause that requires the sellers to disclose any known defects in a home (whether or not it predates your residency) If you know about it, you need to disclose it in writing. This can cause huge liability issues post closing if you knew about an issue (roof leak you complained to a neighbor about or posted about on social media), but did not disclose it and now the new buyer sues you in court using the neighbor or social media post as proof. To be safe -disclose, disclose, disclose. Also, sending a buyer proof of clean title, any restrictions on the property, or HOA documents, needs to be done in this time frame as well. A title company usually helps to take care of some of that last part. Communicate with your agent or title company on what needs to be done by when and by who.  You need to send these disclosures usually within the first week of the contract, but check your specific contract deadlines. If you do not get these documents over in time YOU ARE IN BREACH OF CONTRACT, and the buyer has the right to cancel and have you pay them liquidated damages according to your specific contract.

4. Due diligence Deadline- Usually a buyer has about 2 weeks from contract acceptance to back out of a home and get their earnest deposits back as long as the "due diligence clause" in a contract in intact. A home inspection needs to be completed BEFORE this date and a buyer will need to let them you if there is anything they want you to fix/renegotiate the purchase price down for. If a buyer wants to back out because of structural issues/zoning/”vibe” problems, they also need to do it before their due diligence clause is up. As a seller you are not required to do any repairs unless specified in writing in the original contact (common in FHA/VA loan offers). But you risk losing the buyer if you do not do what they ask. This is where having a realtor who knows what is commonplace in the market at the time in regard to requests is very valuable, so you are not unreasonable, but not taken advantage of.

5. Appraisal Ordered- Buyer's Lender orders a third party appraiser to evaluate the property. Typical turn times on receiving an appraisal is 10-14 calendar days from the date of order. Can usually pay a "rush" fee to get it back faster. Rush fees vary from $100-$1000 depending on lender and speed in which it is needed back. You will usually be contacted within the first 2 weeks for the appraiser to come inspect your home.

6. Title company estimates- The title company will contact you to start going over all the final numbers and order a payoff statement from your mortgage company to pay off the mortgage for you when the time comes. Make sure you continue to make your mortgage payments on your home until you close.

7. Financing and Appraisal deadlines - Usually 3 weeks from contract acceptance if the contract includes these clauses. If the appraisal comes in low, the buyer will try to renegotiate the price down. If you and the buyer cannot come to a consensus, the buyer will probably back out and take all their earnest money depending on contract terms. If it comes in at or above appraised value, the buyer moves forward no questions asked, no negotiations needed. You as the seller do not have access to the appraisal. So in the case the appraisal comes in above value usually you do not know about it.

8. The financing part of this deadline is for the buyer's loan. If the buyer decides they don't like the loan or financing terms, even if they do qualify for the loan but just don't feel right about it- they can back out before the financing deadline and get their earnest money back (the part that is refundable if they have some non-refundable portions). Once you get past these contingencies, you can breathe a little easier as a seller.

9. Final Home inspections- The buyer can walk through the property one more time before closing to make sure everything is in order and no new damages have happened. Usually within 48 hours of closing

10. Closing- Typically as a seller you go to a title company 1-3 days before closings and sign the documents. This is fairly quick and usually takes 15-30 minutes. If documents are signed before noon and all the monies are already at the title company, a home usually records the same day of signing as long as all parties have signed. If papers are signed in the afternoon it usually does not happen until the next day. The home is not officially sold until the deed is recorded at the county. After recording is when the title company will wire you the proceeds of the sale of your home.

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