There is a date in your contract by which the buyer will need to produce the commitment letter from their lender, which indicates the bank’s commitment to finance the buyer’s loan. This is different from the pre-approval that your buyer most likely produced with their offer. The preapproval indicates the bank’s willingness to lend; the commitment indicates the bank’s commitment to lend.
Your buyer will submit the executed contract and all of their financial documentation to their bank for financing. This may happen right after the signed contract, or your buyers may continue to shop around a bit for the best interest rate. They are not required to submit documents to the bank by any given time so long as they produce the bank’s commitment letter by the date outlined in the contract.
Once the bank has received and reviewed the buyers documents, they will contact a 3rd party to hire an appraiser. The appraiser will evaluate the property based on recent sold comparables and like features. Co-ops will be compared to other co-ops, not condos; houses to houses; twofamilies to two-families. They will be looking for the most similarities between them.
The appraiser will coordinate with me to gain access. You do not need to be there. It is imperative that you treat the appraisal as a showing, so please make sure the space is as neat as possible.
The appraisal can take up to 10 ( 14 days for VA loans) business days to come back into the bank. Sometimes buyers will share what the home appraised for and sometimes they won’t, but it won’t affect anything unless the appraised value is lower than the purchase price on the contract.
Once the appraisal is in, the commitment letter should follow
Simultaneously, if you are in a co-op, the buyer’s broker will be aiding them in compiling all of their supporting documentation for the board. We will vet this package once they are done with it, and then submit it to the managing agent. You may be asked to sign some documents for management as part of the board package, but other than that here is nothing you will need to do. Once the board has read through the board application, they will call the buyers in for an interview.
Once the commitment letter is received, the bank will work on clearing the buyer to close. Usually that involves updating any outdated financial information or providing extra documentation.
Finally, the attorneys will schedule the closing once the lender has said that the buyer is cleared to close. It is important to communicate with your attorney to let them know your preferred dates and times.
Final walkthrough — ahead of closing the buyer will come through the property to ensure it is in the same condition as when they signed the contract. It is important that if anything happens between now and closing that you let me know immediately so we can get it resolved in time
The Compass marketing team
produces beautiful print
collateral to strategically
showcase your property.
Your agent develops and
executes an intelligent,
effective paid marketing
plan in relevant publications.
Eye-catching property signs
are produced and placed
outside your property
Meet with your Compass
agent to discuss your plans
and goals, trends in the current
marketplace, and assess
your property’s qualities and
characteristics. Your Compass
agent will analyze comparable
property sales, assess the
competition, work with you
to determine pricing strategy,
and outline a strategic plan to
achieve the best possible
result for you as a seller
The listing is broadcast on
Compass.com and sent across
our 100+ partner sites for the
duration of the selling process.
Your agent continuously
leverages professional contacts
and the Compass Network Tool
to find ideal buyer brokers.
Open houses are hosted for
both brokers and clients on
an ongoing basis.
From applying a fresh coat of paint to rearranging furniture,
your Compass agent will ensure that the property is visually
ready for showing. Your agent will schedule a professional
photo shoot, commission an illustrative floor plan,
and prepare a listing description. At this time,
you should also sit down with your agent
and complete the Seller Disclosure
documents that will be necessary
for the transaction
Once a contract has been
agreed to and signed by all
parties, an escrow will be
opened and the buyer’s
contingency period will begin.
Timelines for the completion of
buyer and seller responsibilities
will be listed in the purchase
contract and adhered to in the
escrow. Your Compass agent
will keep a close eye on the
timelines and ensure that you
are in compliance with your
responsibilities, while also
holding the buyer’s side to task
to keep the process moving.
Your agent conducts an
assessment of the market
response within the first 30
days of your listing going
live. Feedback from agents
and buyers is aggregated,
and the listing strategy
revised if needed.
Once we receive an offer,
your agent will contact you to
review the terms of the offer
and analyze the pros and cons.
Together you will decide how to
respond to the buyer in one of
several ways: by accepting the
offer, rejecting the offer, or
making a counter offer
Your Compass agent will monitor
and coordinate all the details
necessary to get you to the finish
line. Once the buyer has
performed their inspections,
removed their contingencies, and
the loan (if any) is ready to fund,
your agent will arrange the final
walk-through. At or near this time
the escrow will close, payment will
be made, and the keys will be
handed over to the buyer
You and your Compass
agent will establish the best
method and frequency of
communicating as the process
unfolds. Your agent will provide
you with regular feedback and
will keep you updated with
continuous traffic metrics and
information from the market.
Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser
Value placed upon property for property tax purposes by the Tax Collector.
Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, title insurance
and escrow fees.
The statement which lists the financial settlement between Buyer and Seller, and the costs each must pay.
Certain criteria that have to be met in order to finalize the sale.
A mortgage or Deed of Trust not obtained under a government insured program such as FHA or VA.
Money given to a buyer from a seller through escrow at closing.
A neutral third party that handles the transfer of any money during the sale of a home from initial deposit to final funding and closing
Buyers usually deposit 1-3% of the purchase price to show that the buyer is serious about purchasing the home. It is usually refundable in the event a contingency in the sales contract cannot be met.
A loan on which the interest rate and monthly payment do not change
A policy that covers certain repairs (e.g. plumbing/heating) of a newly purchased home for a period of time, typically one-year.
Report A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a new title insurance policy will be issued.
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.