Once a buyer gets a home in contract that’s when the real work begins.  I’ll bet you never considered, as home buyer you would become a seller, even before you took possession of your new home?

For the buyer and the buyers representative, at least in Texas, the day after the contract is executed the option period begins.  Inspections need to be ordered and repairs, if any arise, negotiated with the seller.  There are usually something that is an issue for the buyer even in new construction.


While this is going on the buyer makes a sale to the lenders underwriter on two fronts.  One, the buyer is credit worthy and  is able to repay the loan.  Two, the property must meet the lenders criteria for the loan.


  The appraisal is ordered by the lenders underwriter.   The appraisal is a licensed professionals opinion of value on the property.  The buyers agent should have comparable properties that are similar and in the same location as the subject property.  It’s even beneficial that  buyers agent speak with the appraiser and offer up good comparables.  If the property doesn’t meet value of the sales contract then there are three options.

1)  Seller reduces sales price to meet value of the appraisal

2)  Buyer brings more money to close to make up for the over value of the sales contract.

3)  Both parties cannot agree to new terms and the walk away


The buyers file including the survey and appraisal go back for final underwriting.  Underwriters checks over the file, checks the appraisal to see if it is correctly completed, verifies employment and income again, re-pulls buyers credit.  The file may come out with conditions to clear.  This can be missing documents or a mistake somewhere in the file.

Once conditions are cleared then the file has another “once over” and if all is good, then file is completed and you have “clear to close”.  Docs are printed, delivered to buyer for review, once approved  the transaction can close in 3 business days.

Real estate transactions are complicated transactions with lots of people involved and lots of moving parts.  I’ve been doing this for 20 years and at least 50% of the time, there is some weird deal that pops up and as a buyer or seller it’s best you have a full time agent representing you.   Bringing the transaction to everyones goal of closing and closing on time.