Transaction Milestones

Initial Earnest Money Deposit

Typically within 2 days after contract is executed
The buyer will pay their initial earnest money deposit, typically $1,000.

Inspection

Typically within 5 days after contract is executed
The buyer will hire a home inspector to inspect the property for functionality and safety issues. The buyer may also conduct additional add-on inspections, such as radon, air quality, or sewer scope.

It is standard for the seller to leave during this time, but your agent will let you know when you can return home.

The buyer will use this inspection to inform their attorney modification letter.

Attorney Review

Typically within 5 days after contract is executed
The buyer’s attorney will submit an initial attorney modification letter to your attorney. The letter will include any changes to the contract and any requests that came out of the inspection. This is just the deadline to send the initial letter; attorney negotiations can continue as long as needed. 

Balance of Earnest Money

Typically within 2 days after attorney review ends
After both attorneys have signed off on the attorney modification letter, the buyer will pay their second earnest money deposit, typically within 2 days.

Appraisal

Prior to closing
If the buyer is financing their purchase, their lender will typically require an appraisal for the loan. The appraiser will assess the value of your home. If the home’s value comes in lower than the purchase price, the buyer will need to work with their lender to move forward with the loan, as they can only lend the amount the house is worth. There are options if the appraised value comes in lower: the price may be renegotiated, the buyer may restructure funds, or the buyer may choose to walk away from the transaction pursuant to the financing contingency.

Condo Doc Review

Prior to closing
If your home is part of an HOA, the buyers will review the condominium documents, like the meeting minutes and declarations. They will be looking for anything that may restrict their property usage (like rental restrictions) and any red flags about the condo association (like an undisclosed upcoming special assessment). You can read more on condo docs here.

Clear-to-close

Prior to closing
Clear-to-close is the official go-ahead from the buyer’s lender that they have finalized the mortgage. Once we have the CTC, your attorney will schedule the closing! 

Final Walkthrough

Within 24 hours of closing
The final walkthrough is the buyer’s last chance to see the property before closing. They will ensure the property is still in the same condition and check that you have made any fixes negotiated during attorney review.

Closing

Closing day!
Most sellers opt to pre-sign documents ahead of closing so that they don’t need to attend in person. At closing, the buyer will sign their half of the documents, and at the end (usually 1-2 hours), your home will become theirs! Congratulations!

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