When Is A Home Considered Sold?
If you’re selling your home, you may be wondering what steps are factored into the home selling process. Selling a home is definitely not like selling anything else. There are contracts to sign, home inspections, contingency home sales, and home buyer loans that need to be approved. All this can leave a home seller wondering, “When is a home considered sold?”
When is a home considered sold?Technically, a home is not officially sold until the home seller no longer has ownership. This means the deed of the house has been legally recorded, money for the home has been disbursed, and the deed is in the home buyer’s hands.
This seems simple enough, but the actual home selling process is far more in-depth and can take quite a bit of time. For instance, there are state laws that could even derail a home sale.
What does this all mean? Home sellers need to know the home selling process fairly well in order to protect themselves and their home. Let’s take a closer look.
Home Sale Purchase Agreement
A potential home buyer has viewed your home, questions have been addressed, and an offer has been made by the home buyer. This triggers the home selling process. Once a buyer makes an offer, you can choose to reject the offer, or accept it. You may also want to counteroffer, but this could lead to a lengthy negotiation.
Once price has been agreed on, your home goes from listed and available to “pending sale.” Your real estate agent might even place s sign up noting that the home is “pending” or “in escrow” for other potential buyers to see.
The offer is accepted and it’s time for you, the home seller, and the home buyer to sign a purchase agreement. A purchase agreement includes:
- Home seller and home buyer ID verification
- The legal description of the home and property
- Financials (purchase price, buyer financials, money down, closing costs)
- Home sale conditions to be met and adhered to
- Timeline for the sale (contingencies, offer expiration, closing date)
Home Inspections Before Sale
Home buyers will schedule a home inspection before the closing date. These inspections are done in order to protect the home buyer’s future investment. It is important to note that if a home inspection uncovers something, the home buyer may reopen negotiations.
For example, if a home inspection turns up a crack found in the foundation, the home buyer may insist it is repaired prior to the sale going through. These types of repairs can be costly, and add a lengthy period of time when the home will be out of your hands.
Home Buyer Loan Approval
When you approve a home buyer’s offer, there is a home appraisal, and the buyer sends all the needed documents in and the mortgage file goes to underwriting. Then the underwriting process can be days or weeks, so home sellers will need to wait.
If the appraiser’s home value is lower than the purchase price, there will be issues, such as price negotiations in order for the home buyer loan to be approved. There may also be a new appraisal.
Keep in mind, after the home buyer loan is approved, the home is still not considered sold. In most cases, it can take a month between loan application to closing. There are some cases when this process can take even longer, in excess of two months.
What Is A Contingency Sale?
Knowing more about a contingency sale is important for home sellers. A contingency sale happens when a home buyer needs to close on their existing home before being able to purchase yours. This contingency must be completed before you are able to close and finally pass ownership of your home to the buyer.
You can get around a contingency sale in some cases. For example, a release of contingencies can be signed, or the home buyer can deposit money to close escrow. However, this is not a guarantee. The home buyer could deposit the full amount of the home in cash, but the home will still not be considered sold.
Alternatives To The Above Home Selling Process
If the above home selling process, and the stress of trying to sell your home on the real estate market is too much of a hassle, there are alternatives. Many home sellers can sell to a direct home buyer or iBuyer instead.
How does that work? Direct buyers or iBuyers buy homes for cash, making very competitive cash offers. This is ideal for home sellers that want, or need, to sell fast. Sellers that don’t want to spend a fortune on repairs to get a home ready to sell. As well as home sellers who get a great offer without commissions, home fees, and closing costs attached.
DealHouse is an expert in this. We buy homes on Long Island in Suffolk County and Nassau County cities, such as Amityville, Babylon, Bayshore, Deer Park, East Islip, Elwood, Farmingdale, Farmingville, Hauppauge, Kings Park, Lake Grove, Lake, Ronkonkoma, Levittown, Massapequa Park, Medford, Nesconset, Oakdale, Patchogue, Smithtown, West Islip, West Babylon, and other cities listed below.
If you’re ready to sell your home on Long Island, get a free home cash offer from DealHouse within 24 hours. No hassle. No stress. No Realtor commissions. No repairs. With us, you can sell your home on your terms. It’s that easy.