House Under Contract? What to Expect Next

You've been trying to sell your house and your house is finally "under contract". That is cause to celebrate, for sure, but it's not over yet.

There are several obstacles that must be conquered before a contract turns into a sale.

GETTING CLEAR TITLE - The title company will do a title search to make sure you pass along a clear title to the buyer. If there are any issues, also called "clouds" on the title, they will advise you of your options. Sometimes there are fixes. Sometimes closing has to be delayed, postponed, or even cancelled. Sometimes the irregularities are genuine and sometime they are in error. They can range from liens against your house because of an unpaid bill to having the wrong property description on your deed.

BUYER'S LOAN - The lender is working with your buyer to finance the sale of your house. You will be waiting for their loan approval. Without it - no deal.

YOUR BUYER - If the buyer can't get a loan for any reason, he defaults on your contract. Buyers can prequalify for a loan and then mismanage their finances. Things such as quitting a part time job or buying a new car can jeopardize their ability to get a loan.

APPRAISAL - The lender will have an appraiser contact you to see your house. He needs to establish the value of your house. If the appraisal doesn't come in as high as the sales price, the deal will most likely fall through.

HOME INSPECTION - A home inspector will inspect the condition of your house. The home inspection always reveals problems. That is a given. The inspector will give a copy of the report to the buyer. It's up to the buyer to decide what repairs to ask for. Make sure you get a copy of the complete report, too. Then you and the buyer have to come to an agreement on how to handle any repair requests the buyer makes.

TERMITE INSPECTION - Most lenders require a termite inspection. If you have ever had a termite treatment on your house, get another termite inspection from the same company. You possibly could even have a warranty with them.

Tell the termite company the inspection is for the sale of your house. This is a specific type of inspection and they will understand what you need. If the buyer needs a termite report for the lender, yours may suffice. If the lender requires the buyer get his own, you have a second opinion built in. This could be important to contest the buyer's termite inspection report, if it says your house needs treatment.

It is imperative to stay calm and know that whatever comes up can be handled. Particularly if your buyer is a new homeowner, they may start getting cold feet after when they encounter any bumps. Either you, if you are selling your home yourself, or their agent may need to explain to them that there are always some bumps. I've never known of a purchase or sale that was textbook example of the "perfect" deal.

Understanding where things can get sticky can go a long way to smooth things over and keep your deal on track to your ultimate goal of selling your house.

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