Here’s what happens after a home offer is accepted.
So, you submitted an offer on a home and it got accepted—what happens next?
Whether you’re a buyer or seller, an accepted offer means the due diligence period begins. Normally, a real estate transaction must fulfill three or four big conditions to complete this period, and most of these are the buyer’s responsibility. There will be a document review that involves a variety of different forms, as well as a building inspection that identifies defects with the home. With investment properties, buyers may also have a condition that allows them to visit rented units.
Finally, buyers must show their unconditional financial approval from a lender. It’s important to do this in a timely fashion because if you can’t close on your conditions quickly, the seller will simply choose a different buyer.
After all these conditions have been met, there are still a few other things that must be done. Sellers need to provide an updated certificate of location—if they don’t have one from the past 10 years, it can take as long as five months to get a new one. So, make sure to start this process early. Additionally, buyers need to have proof of insurance before the signing date.
There’s also a big difference between the signing date and the occupation date. If you need the proceeds of your home sale to buy a new one, you cannot sell and give occupation on the same day because your funds will not clear in time for your second purchase. This is why it’s common to create a delay of one to two weeks between selling and allowing occupation.
If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.