How Long Does It Take To Sell Your Home

There are plenty of items you need to check off your list when you decide to sell your home. Preparation, marketing, hiring an agent, etc...One of the many things a seller might overlook with regard to importance is timing.

Not having your real estate transaction timed out properly can have a huge effect on your home. It can cause issues with the potential buyer of your home as well as the price you may get for it.

Delays can be quite common within a real estate transaction so it is imperative that you plan for the worst and make sure to be ready for the best.

 A Quick Guide

The California Purchase Agreement has four major timelines involved with the contract itself. Understanding how each one and how it can delay a closing is something your real estate agent should walk you through and double-check it is in line with your own plans to either move out of the house and/or be also ready to close.

Inspections

The number of days for the buyer to investigate the home. General home inspection, title report, local disclosures, and seller disclosures are a few of the items that the buyer and their agent will want to do their proper due diligence on before fully committing to buying the property. 

The CA residential purchase agreement defaults to 17 days, however, the buyer has the right to change it any number of days they prefer. Often, we see buyers lower the number of days for this in order to make their offer more appealing to the seller.

Appraisal

The number of days allowed for the bank to order and receive the appraisal. Defaulted to 17 days on the CA purchase agreement. If a buyer is obtaining financing to purchase the home, the bank will need a 3rd party appraisal company to investigate the home and give their professional opinion on whether the home is worth the contract price that the buyer and seller agreed to.

In some instances, for example, when a buyer is putting down 50% or more of the price of the home, the bank will consider waving the appraisal. However, in most cases, the appraisal will have to be part of the contract. A low appraisal can spell trouble for the buyer and seller. 

Loan

The number of days it takes for the lender to get a full approval from their underwriter. The CA residential purchase agreement defaults this to 21 days but, of course, can be manipulated if a lender has given the ok to move quicker.

It allows for the chosen lender to review all of the necessary paperwork to deem the buyer a competent borrower. Credit scores, income, and interest rates can fluxuate.

Close of Escrow (COE)

The number of days it takes for the transaction to be complete. This means that all the paperwork has been signed and turned in, the loan has been funded to escrow, and the deed transfer has been recorded with the county.

There is no default for this timeline, however, we typically see 30 days with most contracts. This allows the buyer to satisfy all of their lending and investigation needs with a little of a week to spare for the remaining paperwork.

Other Notable Timelines

Seller Disclosures

Earnest Money Deposit

Home Sale Contingency

Expiration of Offer

Delivery of Possession

If you or someone you know is looking to buy, sell, or invest here in San Diego feel free to reach out to us we would love to be your real estate resource!