My Purchase Offer Was Accepted – Now What?

MY OFFER WAS ACCEPTED – NOW WHAT?
These are the things I have found you need to keep in mind after your offer has been accepted.

ESCROW WILL OPEN
What does this mean? Escrow is an independent third party that ensures the contract to purchase a home that has been mutually agreed upon by both buyer and seller is followed. As the buyer, these are some basic things you need to keep in mind that need to happen in a timely matter:

YOUR DEPOSIT WILL BE WIRED TO ESCROW
Your deposit needs to be wired into escrow. This is typically 3% of the purchase price, and it needs to get to escrow typically within three business days. I ALWAYS urge my buyers NOT to delay on this as it sends a signal quickly to the seller how serious you are in making sure the deal close.

LOAN APPROVAL AND APPRAISAL
You need to alert your lender ASAP that you have opened escrow so she/he can get the process going for your loan approval and order the appraisal. You would have agreed on a stipulated time period in the offer with the seller – but again, I urge my buyers not to delay or procrastinate – because there are always things that come up!!

INSPECTIONS
You need to order your inspections – again, there is a time period that would have been agreed to during negotiations. It is best not to delay. I always suggest at least 4 inspections right away – a general inspections, a fireplace/chimney inspection, termite inspection and sewer/septic inspection. The general inspector will typically not inspect the chimney, sewer or for termites, and these are typically your big ticket items. Once the general is complete, the inspector might suggest that a specialist comes out to further inspect things such as roofs, pools, or foundation for example.

REQUEST OF REPAIRS
After inspections are done – you will have the option of negotiating repairs and/or credits for work that needs to be done.

ORDER HOMEOWNER’S INSURANCE
You need to make sure you have ordered insurance for your home. This is one thing that very often falls through the cracks and will get remembered at the last minute. It takes some time for an insurance policy to be bound, so don’t wait! You will typically need fire and homeowners insurance. Sometimes, this is one policy, but there are times where you need a separate fire insurance policy – especially if your home is in a location such as the foothills that is considered higher in risk for fire.

TRANSFER UTILITIES
You need to make sure you order utilities on the property transferred. The seller of the property needs to order them turned off, usually first, and then you need to order them turned on in your name. I typically suggest this happen the day after close for a seamless transition.

If you have any questions on this topic or anything else real estate related, or if want any additional information please don’t hesitate to call, text or email me at 310.738.8098 or tim.durkovic@elliman.com.