Contract to Close

ON THE HOME STRETCH!

Once any changes to the Offer to Purchase and Contract are signed, initialed and dated by all parties, you are officially under contract. Congratulations!

MCKRE LISTING SPECIALISTS CHAT UNDER CONTRACT TO CLOSING

DATES TO REMEMBER

(Important)

Effective

Date

Signed, sealed, delivered. All documents, addenda and contract modifications are signed and initialed.

Due Diligence Date

This date marks the end of the Due Diligence period. All buyer requests must be negotiated and agreed upon by this date – the earnest money becomes no

longer refundable.

Target Closing Date

The big day! This is the date your property is projected to close.*

*Please note: the North Carolina contract allows for up to a 7-day delay in the agreed upon settlement date should unexpected circumstances arise for either buyer or seller.

YOUR DUE DILIGENCE PERIOD

During this time, our team will coordinate with the buyers' agent to schedule Due Diligence items including various inspections, survey and appraisal. This stage of the contract may require multiple visits to the property. We will do our best to minimize the disturbance to you and your family during this tough, but necessary, part of the process. We have found that the more cooperative our sellers can be, the more smoothly the process goes.

Once the buyers receive all reports back from the various inspectors and vendors, they will submit Due Diligence requests for our review and response. During these final negotiations with your buyers, we will help you evaluate their requests and determine whether the items referenced need to be physically addressed or if a monetary credit might be offered. We can help to arrange and facilitate any repair work needed.

A written agreement with the buyers must be reached and signed prior to 5:00 pm on the final date of Due Diligence. Any repairs should be completed prior to closing, allowing time for the buyers or their representatives to make sure all is up to their standards. Please save all invoices for work completed to provide to the buyers.

The Due Diligence requests will present another round of negotiations between buyer and seller during which time our team will be available to guide you.

Please refrain from making any repairs until we have all the inspection results and requests from the buyer. We recommend that you wait until negotiations are completed and the Due Diligence date has come and gone before you begin to move out. As you know, the buyers can walk away for any reason during the Due Diligence period.

After 5:00 pm on your Due Diligence date, the earnest money is no longer refundable and we can all move forward with a greater sense of confidence.

NOW WHAT?

Q: Do I have to take care of everything the buyers ask for on their Due Diligence request?

A: In a word, NO. You do not have to agree to each and every request made as part of the buyers’ Due Diligence requests. It’s important to remember, however, that oftentimes repairs requested by a buyer would be requested by any buyer and will be a reality either now or later. If you and the buyer cannot agree on Due Diligence, the house may end up back on the market. REMEMBER: the work does not have to be completed prior to the end of the Due Diligence period, only the terms agreed upon. Often times a monetary credit in lieu of repairs is acceptable to the buyers. Due Diligence can be tricky, which is why we work so hard up front to prepare your property for market!

Q: I’m nervous about the appraisal. What can you tell me?

A: Lending institutions require appraisals to be performed when a buyer is getting a loan for their purchase. Buyers who are paying cash very often choose to get an appraisal as well. Appraisers must contact us for access to your home for their site visit, allowing us to keep you apprised of the timeline and to provide that appraiser with specific information that might be helpful to them. An appraisal is a necessary step in many transactions, and be aware, our timeline is often at the mercy of the appraiser chosen by the lender to complete the report. Appraiser availability can be a factor in meeting the due diligence date, at times a due diligence extension might be required.

Q: What if my property doesn’t appraise?

A: We provide the appraiser with the best information to bolster your property’s value during the appraisal process. If the comparable sales available do not support the purchase price, sometimes the appraiser can’t make the numbers work. If this happens, there are several possible outcomes. The buyer can agree to come out of pocket to make up the difference that their loan won’t cover, which is often a difficult outcome to reach since buyers aren’t comfortable paying more than an appraisal report says the property is worth. Another possible outcome is the seller reducing the purchase price to meet the appraised value, particularly when they are concerned that the appraisal could come in even lower if appraised again for a different buyer. Finally, the buyer and seller can agree to negotiate, coming together to find a purchase price between the previously-agreed upon purchase price and the appraised value.

Q: How will I receive my proceeds?

A: Given the recent increase in wire fraud, we recommend one of the following options:

You may pick up the proceeds check after the closing has been recorded at the courthouse, often the same afternoon.
We will pick up your check and deposit it into a local bank account on your behalf.
The attorney can overnight the check to a mailing address of your choice.