What Happens When I'm Under Contract
Inspection, appraisal, secure financing — Buyer and seller move towards closing.
Inspection, appraisal, secure financing — Buyer and seller move towards closing.
The term "Under Contract" refers to the point at which "Attorney Review" has completed and both the buyer and seller have agreed to the terms of the sale and have signed a binding contract outlining those terms. During this phase, you will continue to work closely with your Realtor, Attorney, and if you're a buyer, your Home Inspector(s) and mortgage lender.
For Buyers:
Once you're Under Contract, you'll have a set period of time to conduct inspections, obtain an appraisal (if you're using a mortgage), and secure financing.
Inspections — As a buyer, you will conduct various inspections on the property to ensure there are no hidden issues or damages. These inspections may include a general home inspection, septic inspection, pool inspection, and more depending on the property and location. These inspections buyers make informed decisions and negotiate any necessary repairs or credits before the sale is finalized.
Appraisal — An appraisal is an evaluation of a property's value performed by a licensed appraiser. When a buyer is using a mortgage to finance their purchase, the lender will require an appraisal to ensure that the property is worth the amount being borrowed. The appraiser will consider factors such as the property's location, size, condition, and comparable sales in the area to determine its fair market value.
Secure Financing — Buyer will need to work closely with their mortgage lender to secure their financing during this time. Your lender will require documentation, such as income verification and credit reports. It is important for the buyer to respond promptly to any requests from the lender to ensure a timely closing.
For Sellers:
As a seller, being Under Contract means that you've accepted the buyer's offer and have agreed to the terms outlined in the contract. At this point, you'll need to make sure that you're in compliance with all of the terms of the contract, including any repairs or updates that you've agreed to make.
The buyer will conduct their inspections and appraisals during this time. Your realtor will ensure the all proposed dates/times for inspections are conducive to your schedule.
Whether you're a buyer or a seller, being Under Contract can be an exciting time. It means that you're one step closer to closing the deal and moving on to the next chapter in your life. If you're considering buying or selling a home in New Jersey, be sure to work with an experienced real estate agent who can guide you through the process and help you navigate the sometimes complex world of real estate transactions.
The length of time a buyer or seller will be under contract varies, but typically it lasts between 30 to 60 days, depending on the terms of the contract. You will be Under Contract once Attorney Review is complete and until you close on the sale.
The buyer has the option to negotiate with the seller for repairs or credits or to back out of the contract.
Technically no, as the property is already Under Contract with a buyer. However, there are some exceptions and contingencies that may allow the seller to consider other offers. It's best to discuss this with your real estate agent.
