Congratulations on an accepted offer on your property, we have created this interactive checklist to help guide you through the closing process while also providing you valuable resources to help you have a smooth closing. Some of the steps below don't particularly have to follow the order we have them in, so don't stress out if you find yourself doing some steps in parallel.
Accessing the Checklist:
Locate the Offers Section:
Open the app and navigate to the "Offers" section in the bottom dock.Select the Offers Made:
Ensure you are in the “Offer Made” tab, then select the property by clicking “View” button.
Step-by-Step Guide to Navigate the Interactive Closing Checklist:
Confirm Proof of Funds
The proof of funds should have already been sent as part of the offer. In the event there are any changes in lenders or financing, make sure to keep the seller or the attorney(s) involved to ensure any issues get resolved.
Documentation:
Ensure your proof of funds or lender’s pre-approval letter is up-to-date and accurate.Seller Confirmation:
The seller will confirm your proof of funds. If additional information is needed, they may contact you through the app’s messaging system or via text/email. Once confirmed, you will receive a notification that the seller confimed.
Step 1: Purchase Agreement
Wait for Seller:
The seller will send the purchase agreement for you to review either through our in-app messaging service or via email. Also if the seller is using an attorney you may receive the contract from their attorney. If you have already opted into using an attorney you may also contact the seller and advise your attorney name, phone number, and email.Attorney Review (optional):
If you have an attorney, or want to use an attorney, you can review the agreement with them. If not, you can use an attorney through our affiliate partner Contract Council to help find you a real estate attorney in your area. This is highly recommended.Sign the Contract: Both you and the seller must sign the agreement to make it legally binding. Make sure to review the contract thoroughly or have your attorney review it to ensure all your requirements are met.
Make Changes if Needed (optional):
If any changes are necessary, use the in-app messaging feature or your attorney to communicate with the seller for any changes needed to get the contract updated for signatures.
Action: Tap the checkbox to notify the seller that you have signed and sent the contract back to the seller or seller attorney.
Step 2: Earnest Money Deposit
Escrow Payment:
Deposit the earnest money into the escrow account using ACH or wire transfer per instructions of attorney or title companyAvoid Direct Payment:
Never send money directly to the seller or an unknown third party.NOTE: Sellbyowner will never ask you to initiate a wire transfer via email. Please contact the title company or attorney representative should you receive any requests to do so.
Prompt Payment:
Ensure this deposit is made promptly per contract agreement to avoid delays.
Action: Tap the checkbox to notify the seller that you have deposited earnest money.
Step 3: Start Loan Application (if applicable)
If using financing, provide the lender with the executed purchase agreement to start the loan process. The lender may ask you to provide additional documentation.
Action: Tap the checkbox to notify the buyer that you have started the loan process
Step 4: Property Inspection
A property inspection is crucial when purchasing a home because it helps identify any hidden issues that may not be visible during a regular walkthrough. It ensures you’re fully aware of the property's condition, including potential repairs or safety concerns, before making a financial commitment.
Default Status:
The status will by default be "Pending" until the inspection is complete. If your using an attorney you can select "Legal Review", this will notify the seller that any future status property inspection updates will be provided by the attorney.Schedule Inspection:
Schedule an inspection as soon as possible, you can use our preferred partner at Metronome to find a local inspector, this can all be done through our app to save time looking for an inspector that services your area.Status Options:
As the buyer, once inspection has been completed you can change the status from pending to the following statuses, if you selected "legal review" you dont need to take any steps :
Legal Review: Attorneys are reviewing terms with both parties, any updates will only be provided through the attorney review process. This can be selected right away if you have an attorney representing you.
Completed: Inspection is completed satisfactorily.
Not Applicable: No inspection required, or buyer has opted not to do an inspection per agreement.
New Terms: Buyer is requesting new terms based on inspection results.
Note: Once you select new terms, The seller will need to respond with accepted or rejected. Ensure you or your attorney has sent over new terms for the seller to review.
Its best practice to reach out to the seller or seller attorney and start by highlighting concerns from the inspection report, like structural damage or safety hazards. Propose reasonable solutions, such as asking for repairs or a credit towards closing costs. Be prepared to compromise and maintain a respectful tone to foster a positive dialogue. Ultimately, the goal is to reach a fair agreement that addresses your concerns while keeping the deal intact. The seller or seller attorney may ask for a copy which you should provide to help prove your case for a positive outcome.
Seller Responses:
Accepted: Once the seller or seller attorney has reviewed the new terms being requested and you have both agreed on any repairs or concessions. The seller will mark as "accepted" and you will be notified via app that this step has been completed.
Rejected: Once the seller or seller attorney has reviewed the new terms being requested and no agreement could be reached, the seller will mark as rejected.
In this instance your checklist will update and give you option to contact seller or withdraw. Its possible the seller also withdrew in the app, placing is listing back as active in the marketplace.
Note: although you can withdraw your offer in the app, this is not legally binding, Buyer, Seller or attorneys involved asking for withdrawal would need to send over a cancelation of the contract in order to notify the title company or any party holding earnest money to release based on terms in the contract.
Canceling the contract:
Select "New Terms": Its highly recommended to try to negotiate any items that were concerning in the inspection report, you can ask for credit or repairs to be made by licensed professionals in which the seller would need to provide receipts of work done and any warranties provided. If the seller rejects you will have option to withdraw, but you or your attorney will need to send a mutual cancelation to the contract.
Withdraw: If you don't wish to negotiate or ask for any concessions, you can select "Review Offer" on the top left of the checklist and select withdraw at the end of the review offer page.Note: although you can withdraw your offer in the app, this is not legally binding, Buyer, Seller or attorneys involved asking for withdrawal would need to send over a cancelation of the contract in order to notify the title company or any party holding earnest money to release based on terms in the contract.
Action: Tap the checkbox for this step to verify the step has been completed.
Step 5: Get Property Insurance Quotes
Insurance Requirement:
Most lenders require property insurance. You can bundle home insurance with your auto provider or search for other options online.
Step 6: Appraisal Ordered (if applicable)
An appraisal is an assessment of a home's value conducted by a professional appraiser selected by the lender. When buying a home with a lender, the appraisal ensures the property's worth matches the loan amount. If the property appraises for less than the offer price, the buyer may need to negotiate a lower price or provide a larger down payment.
Confirm Lender has ordered appraisal:
Talk to your loan office at the mortgage company to ensure an appraisal has been ordered, once it has you can mark this step complete.
Action: Tap the checkbox for this step to verify the step has been completed.
Step 7: Review Appraisal (if applicable)
Once the lender has completed the appraisal you will be advised either it appraised at purchase price in some cases higher or the property appraises for less than the offer price.
Status Options:
As the buyer, once appraisal has been completed you can change the status from pending to the following statuses, if your using an attorney you can select "legal review".
Legal Review: Attorneys are reviewing terms with both parties, any updates will only be provided through the attorney review process. This can be selected right away if you have an attorney representing you. You can also mark this step as completed by clicking the checkbox for the step.
Completed: Appraisal is satisfactory.
Not Applicable: No appraisal required, typically selected when not using a lender.
New Terms: Buyer is requesting new terms based on appraisal results.
Note: Once you select new terms, The seller will need to respond with accepted or rejected. Ensure you or your attorney has sent over new terms for the seller to review.
Its best practice to reach out to the seller or seller attorney and start advising results of appraisal report and the price it appraised at. Propose reasonable solutions, such as asking for reduction in purchase price or a credit towards closing costs. Be prepared to compromise and maintain a respectful tone to foster a positive dialogue. Ultimately, the goal is to reach a fair agreement that addresses your concerns while keeping the deal intact. The seller or seller attorney may ask for a copy which you should provide to help prove your case for a positive outcome.
Seller Responses:
Accepted: Once the seller or seller attorney has reviewed the new terms being requested and you have both agreed on any price reduction or credits. The seller will mark as "accepted" and you will be notified via app that this step has been completed.
Rejected: Once the seller or seller attorney has reviewed the new terms being requested and no agreement could be reached, the seller will mark as rejected.
In this instance your checklist will update and give you option to contact seller or withdraw. Its possible the seller also withdrew in the app, placing is listing back as active in the marketplace.
Note: although you can withdraw your offer in the app, this is not legally binding, Buyer, Seller or attorneys involved asking for withdrawal would need to send over a cancelation of the contract in order to notify the title company or any party holding earnest money to release based on terms in the contract.
Canceling the contract:
Select "New Terms": Its highly recommended to try to negotiate the purchase price based on the appraisal report, you can ask for credit or price reduction of the purchase price to be made. If the seller rejects you will have option to withdraw, but you or your attorney will need to send a mutual cancelation to the contract.
Withdraw: If you don't wish to negotiate you can select "Review Offer" on the top left of the checklist and select withdraw at the end of the review offer page.Note: although you can withdraw your offer in the app, this is not legally binding, Buyer, Seller or attorneys involved asking for withdrawal would need to send over a cancelation of the contract in order to notify the title company or any party holding earnest money to release based on terms in the contract.
Action: Tap the checkbox for this step to verify the step has been completed.
Step 8: Attorney Review
Purpose: A period after signing the contract where attorneys review the contract and ensure all due diligence is completed. This step is applicable when your using an attorney. It also addresses items such as inspection report negotiations, appraisal outcomes, and other contingencies outlined by attorneys.
If applicable, the status should be updated as follows:
Completed: Legal review is done. Your attorney has advised all contingencies has been satisfied.
Contract Cancelled: Attorney cancels the contract for not agreeing on any of the terms.
Note: if this option is selected there will be a withdraw offer, although this will just place the property back into active state for the seller its not legally binding until the attorneys send a mutual cancelation document for both parties to sign. This will also release any earnest money that might be in escrow.
Not Applicable: Select this if no attorney is involved.
Action: Tap the checkbox for this step to verify the step has been completed.
Step 9: Seller Repair Status
Repair Deadline:
You can view the seller’s entered date for when repairs will be completed if agreed upon during initial contract, inspections or attorney review.Action: Tap the checkbox for this step to verify the step has been completed once seller has confirmed date of repairs.
Step 10: Clear to Close
"Clear to close" means that a buyer's mortgage loan has been fully approved and all conditions have been met. This indicates that the lender has reviewed all necessary documents, and the buyer can proceed to finalize the transaction. At this stage, the closing date can be scheduled, and the buyer is one step closer to owning the home. It's an important milestone in the home-buying process.
Lender Approval:
Once your lender gives the "Clear to Close," you’ll receive a notification.Status Options:
Pending(Default): Waiting for lender update.
Not Applicable: No lender involved.
Clear to Close: Lender has advised the mortgage is clear to close and ready for closing to be scheduled.
Step 11: Set the Closing Date
Final Confirmation:
Coordinate with the seller, title company, or attorneys to confirm the closing date and time.Seller Update:
The seller will update the final date as provided by the title company or attorneys.Action: Tap the checkbox for this step to verify the step has been completed once seller has updated the agreed upon closing date. Note: in the event this date changes, usually title companies provide an update that the date needs to be changed. The seller cannot update the date in the application once its set and confirmed. Its best practice to reach out to the title company to confirm closing date as you get closer to closing.
Step 12: Final Walkthrough
A buyer final walkthrough is a last inspection of the home before closing. It usually happens a day or two before the closing date within the last week of the set closing date. During this walkthrough, the buyer checks that the home is in the agreed-upon condition, ensures repairs have been made(if applicable), and verifies that all items included in the sale are still present. This step helps ensure everything is as expected before completing the purchase.
Schedule Walkthrough:
The buyer should schedule a final walkthrough in the last week before closing to ensure everything is as expected.Use the App:
Schedule the walkthrough using the app to set a convenient time and select "Confirm" this will notify seller of the final walkthrough to ensure you have access to the property. Note: if this date needs to change reach out directly to seller to coordinate a new time.
Step 13: Prepare for Closing
Paperwork:
Ensure all financing and closing paperwork is in order.Review Closing Disclosure:
Double-check the closing disclosure, which outlines all costs and fees. Your title company or attorney will provide this document.Arrange Moving:
Ensure any moving services or arrangements are completed before the closing date. Feel free to use our affiliate partner to get an estimate, usually its best practice to set this up once you get clear to close or after the major milestones of inspection and appraisal is completed.Closing Day:
Bring necessary identification and any required documents to the closing meeting. Verify with title company on what you will need to bring with you to closing. You may need to wire funds DIRECTLY to the title company per their instructions. Always CALL the title company to verify the wire instructions and amount. Its also best to do the wire the day before closing to minimize any delays or issues.
Final Step: Completion of Closing
Sign and Finalize:
Once everything is signed at the closing, the property will officially be yours. Ensure to collect all keys, openers, and applicable warranty documents from the seller.Final Step: Once all steps are completed, tap the "Closing Completed" button to finalize the transaction. The fee will be due, enter your credit card details. If you have any questions or issues with the payment please contact [email protected]
Thank you for choosing SellByOwner, and enjoy your new home!