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What happens when you go under contract as a buyer? There is a certain set of steps to follow in the Dallas-Fort Worth area. You submitted an offer on your dream home, you’ve negotiated price and terms, and you executed a contract. What happens next?
The first is what we call earnest money. This accounts for 1% to 3% of the purchase price as a deposit for the contract. It goes to the title company and is held in escrow.
In Texas, we don’t have a standard inspection period in our contracts. Instead, the second step is the option period. It’s a pre-negotiated amount of money for an established amount of time the seller gives you to terminate the contract. Normally, we use that time for any due diligence or inspection. We then conduct the inspection, which is approximately 40-paged report that covers the roofs, the foundation, the appliances, and much more.
The third step includes acting on the report. Maybe we need some repairs. We might negotiate with the seller to make some repairs to the property or adjust the price. The option period allows the buyer to back out if they can’t agree with the seller.
Afterwards, we’ll have the lender appraisal, which is required 99% of the time. Step five involves a comprehensive walkthrough of the property to ensure it’s in the expected condition. Then it’s onto closing, where you show up with your check and sign off on the loan documents and the deed. This is when you’ll get the keys to your new home and celebrate!
If you have any questions about buying or selling, or have any questions, send us an email or give me a call. We look forward to serving you soon!