Many buyers get overwhelmed by the whirlwind of activity that takes place when you purchase a home. This timeline will clarify the steps and when they happen.
In the overall turmoil of buying a house you can find yourself confused, overwhelmed and lost in the onslaught of activity and information. Being aware of the general sequence of events can ease the anxiety of purchasing a home.
- 1 day to 1 year: The first step is usually the most exciting in the process. You have to find the perfect home, that blends functionality and desire seamlessly. This can take a couple of days, weeks or even months to find the desired property. This is the area where your patience will most pay off.
- 1 day to 3 days: Once the desired property has been discovered you need to submit your initial offer. The seller will review the offer and will respond in one of three possible ways. They can reject the offer, accept the offer or sign the offer back to you. The most frequent response in my experience is a sign back, although this varies with each situation and location.
- 1 day to 7 days: Offer negotiation often proceeds quickly, however sometimes they can drag depending on the circumstances behind each individual deal. Changes to price and conditions often get altered and changed during this period. As changes are made make sure that you understand the impact of the alterations and what they mean for you. At the conclusion of offer negotiations you will have an accepted conditional offer.
- 3 days to 60 days: There are some common conditions that appear in each sales contract. Securing you financing can take between 3 to 5 days. During this period you may have an appraisal of your potential home completed for your financial institution. I often recommend an home inspection condition. This usually can be completed within 2 to 5 days of the offer being accepted. A home inspector will meet you at the home and should explain the condition of the structural, electrical and plumbing systems. For those you looking at rural properties, that are on a well and septic system, then you will want a condition too ensure an inspection of the water pot-ability, well flow-rate and a clause to ensure a functioning septic system. Usually your local health department can test a water sample within a couple of days in order to ensure clean drinking water. Look for someone who specialized in rural wells to pump the well to establish a flow-rate. Finally I usually recommend a seller warranty that the septic system is in good working order. All of this takes place within 3 to 5 days of the offers acceptance. The one condition that can really tie an offer up for a long period of time is a condition of sale of a buyers property. These conditions can last for months as you wait for an offer to come. A simple word of warning here is that you may loose your potential property if you have to sell your property as a condition of the sale. This is stressful for both the buyer and the seller.
- 1 month to 6 months: After the conditions are removed you can breathe a sigh of relief. The initial whirlwind of activity is over and you should have a few weeks before the home closes. During this period you will be making your preparations to move. Finalizing your financing and making sure that your house is in order.
- 2 days to 3 days prior to closing: I often recommend that you walk through your new home a couple of days before the home closes. This will ensure that the home is tidy, and in the same condition that you purchased the home in. If you choose not to do a final walk through of the home then buyer beware. You could find some nasty surprises on moving day.
- Closing day: Expect another whirlwind of activity on closing day. Your lawyer will have lots to explain to you. There will be financing documents, disbursement lists, legal fees, real estate fees, title search documentation, and forms and forms and forms for you to sign. Most of these forms are standard and your lawyer will be able to explain their significance to you in detail. Finally your lawyer will usually have the keys for your new home. If they do not, then they should have instructions for you to pick up your keys.
Well, congratulations on your new purchase. I'm sure over the next few days you'll find many surprises as you unpack the boxes and place your furnishings. You'll quickly come to enjoy and love your new home.
The copyright of the article Home Buyers Timeline in Buying/Selling a Home is owned by Joel Nash. Permission to republish Home Buyers Timeline must be granted by the author in writing.
