Congratulations, you made it through the negotiations, have agreed on a selling price, terms and conditions, and the closing date with the buyers and now have a signed, and binding, legal contract. So what happens next?

The next phase is one of due diligence on the part of the buyers. This may vary from state to state, in terms of the issues the buyers investigate and the timing (here in CA, for example, the default time frame is 17 days, but this is negotiable; in MA there is a range of time before the Purchase and Sale, or P and S, is signed). A critical piece here is the home inspection by the buyer (assuming they do one), which may include other inspections as well - structure, chimney, pest, water, lead paint, and so on. As a seller you MAY be required to provide a number of disclosures to the buyers to review during this period, as is true here in CA (e.g., the Transfer Disclosure Statement or TDS that you complete about your home). The buyer may also investigate insurability of the home and natural hazards, and a home appraisal may occur in order for the loan to get approved.

No matter what is required, make sure you do what is necessary within the time limits so you do not hold up the progress on your transaction - failure to adhere to the time frames that are agreed on CAN put the transaction in jeopardy. Your agent will assist you in this process, but some of the documents may be provided by other sources (again, depending on the state requirements). Make sure you inquire about any forms you do not understand before you sign them, and keep copies of everything.

Perhaps the biggest issue that may arise during the due diligence period results from the home inspection (you remember doing that, don't you?). Because this is a significant part of many transactions, and a time where some deals fall apart, let's address this is a separate post. Stay tuned.