What does the seller have to do after an offer has been accepted?

Congratulations! You've just accepted an offer on your home, and signed the binder. Now what?
First things first, your agent should let you know what you need to do at this point. Your agent and your attprney take it from here, and call you when they need you, or to give you updates on what is going on behind the scenes on your behalf.

Here's what occurs behind the scenes when I represent a seller whose property has just gone under deposit.  I suppose (and hope) it's the same for the agent that is representing you.

The Listing Agent makes sure that everyone involved in the transaction haas a copy of the fully executed and properly filled out binder paperwork, along with the necessary disclosures. That includes you as the seller,  your attorney, and the buyers agent representative.

If you have been making the appointments for agents to show your home, your agent should advise you the moment you have accepted an offer as to how to proceed  with making further appointments. You should not be fielding any calls from Realtors now.  Let your agent handle that. This is a bone of contention with me -personally, I do not believe in homeowners making their own appointments with other agents to show the property. I consider that as part of my services, and one less burden for the homeowner to bear while their home is on the market. Additionally, I always know how many showings there are at any given time, I can talk up the property to the agents before they show it, and build a rapport with the showing agent, if I don't already know them.  NOT ALL Listing agents will make  appointments, so ask when you hire that agent.

The listing agent reports your property's status to the MLS.  Most Multiple Listing Services have rules as to when the property must be reported as under deposit, or the agent will get fined. Our area MLS requires a status change to CTS within 48 hours of an accepted, fully executed offer.

For the sake of this article. I am assuming that you have already chosen your new home, and know where you are going.  At this time, you should be getting moving estimates, and start packing.  Go ahead, get at least four or five estimates, They can vary greatly.

The buyers agent contacts the listing agent to coordinate the building inspection's date and time.Your agent will call you  as soon as an appointment has been set to confirm it with you. Now, there is something to do! Make sure that the inspector can get to the major components of your house, and they are not blocked by furniture or various stored items. For example, if your  electrical panel, furnace, or attic has access blocked by any items, you should move them prior to the inspectors arrival.

Also, if your home is going to have a radon test, your windows and doors should remain closed for 48 hours prior to the test, and another 48 hours while the test is underway. Entering your home and leaving your home like you normally do is no problem, but the windows will need to remain closed. If you like to leave the front door or back door open, you will have to remember to leave both of those doors closed during this period.

If you have any manuals for any appliances or components that are remaining with the house, leave them out for the inspector.  If you have a record book of any work performed on your home, leave it somewhere where your agent ONLY can see it, and refer to it if necessary.

Last but not least regarding the inspection,  vacate the premises, but be available by phone to your agent if the buyers, buyers agent, or building inspector has any questions.

As a listing agent, I expect that the buyers agent will remain in the house during the entire inspection,  and I tell them so. Believe it or not, it's not always a given. I also stop by during the inspection to introduce myself to the buyers on your behalf, and to  get a "read" on the buyers, and how the inspection is going. I do respect the buyer's and the buyers agent privacy, so it will only be for a few minutes. I will be in touch with the buyers agent later in the day to see if there were any concerns that we should know about, if I haven't already found out about anything during my visit.

Remember, the inspector will still have to pick up the radon test if you are having one, so your agent will call you to set up that appointment.

The listing agent follows up with your attorney to make sure that contracts went out, and then follows up with the buyers agent to make sure that they are signed. Deadlines are outlined in your offer to purchase. You sign the formal contracts AFTER the buyers signs them, and they give the balance of their deposit.

Your agent follows up with the buyers agent to find out about the mortgage application,  and  you can expect a call from your agent to make an appointment with you for  the appraiser for the bank to make a visit to your home.  It's one of the last things that happen prior to the buyer obtaining their loan.

Wait to hear from your agent or your attorney that the mortgage is approved.

Call the utility companies to disconnect service on the date of your closing. If you have automatic oil delivery, check your tank now, and if you have enough to last you, call the company and stop the automatic fill. Your attorney handles the water company, so that's onle less phone call for you to make.  Don't forget to get change of address forms from the Post Office. Call any creditors and let them know about your pending move, (or advise them in the space usually allotted when you send in your remittance) Give at least a three week lead time

Attending the closing is a personal choice. About 65-70 percent of my seller clients attend the closing with the buyers present. Its not mandatory, and in some instances you won't want to, or cannot go.

Sure, there can be setbacks, glitches, and maybe even delays, but you have professionals working on your team to handle that. As long as you are in capable hands, relax. The process is a lot easier for you than it is for the buyer who has MUCH more to do, and is a lot smoother  than you might think!

The Importance of Pre-Listing Building Inspections

Seller's Pre-Listing Inspections - a very relevant  article contributed by Nick Gromicko, FOUNDER. www.nachi.org International Association of Certified Home Inspectors.

Eventually, your buyers are going to conduct an inspection. You may as well know what they are going to find by getting there first.  Having an inspection performed ahead of time helps in many other ways:

    It allows you to see your home through the eyes of a critical third party.
    It helps you to price your home realistically.
    It permits you to make repairs ahead of time so that ...
    Defects won't become negotiating stumbling blocks later.
    There is no delay in obtaining the Use and Occupancy Permit.
    You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
    It may encourage the buyer to waive the inspection contingency.
    It may alert you to items of immediate concern, such as radon gas or active termite infestation.
    It may relieve prospects' concerns and suspicions.
    It reduces your liability by adding professional supporting documentation to your disclosure statement.

    It alerts you to immediate safety issues before agents and visitors tour your home.

Never hire an inspector who is not a member of InterNACHI, which provides the most trusted and rigorous training for inspectors in the industry.
 
Copies of the inspection report, along with receipts for any repairs, should be made available to potential buyers.

Nick Gromicko, FOUNDER. www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  www.NACHI.TV

All about Carbon Monoxide Poisoning & Detectors

I am very pleased to introduce one of the leading authorities in the country on Building Inspections as a guest contributor to the CT Home Blog at www.theCTrealtyBlog.com.

Nick Gromicko, President of www.cominspect.com, is also the Founder of the International Association of Certified Home Inspectors, the world's most elite, non-profit home inspection association. Author of 15 books, his knowledge is unsurpassed in his field, and I am honored that he would share his expertise with my readers. He is also a Director at www.certifiedmasterinspector.org  You won't find a better authority.

CARBON MONOXIDE POISONING AND DETECTORS - by Nick Gromicko and Rob London  

 Carbon monoxide (CO) is a colorless, odorless, poisonous gas that forms from incomplete combustion of fuels, such as natural or liquefied petroleum gas, oil, wood or coal.  

Facts and Figures

• 480 U.S. residents died between 2001 and 2003 from non-fire-related carbon-monoxide poisoning.
• Most CO exposures occur during the winter months, especially in December (including 56 deaths, and 2,157 non-fatal exposures), and in January (including 69 deaths and 2,511 non-fatal exposures). The peak time of day for CO exposure is between 6 and 10 p.m.
• Many experts believe that CO poisoning statistics understate the problem. Because the symptoms of CO poisoning mimic a range of common health ailments, it is likely that a large number of mild to mid-level exposures are never identified, diagnosed, or accounted for in any way in carbon monoxide statistics.
• Out of all reported non-fire carbon-monoxide incidents, 89% or almost nine out of 10 of them take place in a home.

Physiology of Carbon Monoxide Poisoning

When CO is inhaled, it displaces the oxygen that would ordinarily bind with hemoglobin, a process the effectively suffocates the body. CO can poison slowly over a period of several hours, even in low concentrations. Sensitive organs, such as the brain, heart and lungs, suffer the most from a lack of oxygen.

High concentrations of carbon monoxide can kill in less than five minutes. At low concentrations, it will require a longer period of time to affect the body. Exceeding the EPA concentration of 9 parts per million (ppm) for more than eight hours may have adverse health affects. The limit of CO exposure for healthy workers, as prescribed by the U.S. Occupational Health and Safety Administration, is 50 ppm.   Potential Sources of Carbon Monoxide
Any fuel-burning appliances which are malfunctioning or improperly installed can be a source of CO, such as:

• furnaces;
• stoves and ovens;
• water heaters;
• dryers; 
• room and space heaters; 
• fireplaces and wood stoves;
• charcoal grills;
• automobiles;
• clogged chimneys or flues;
• space heaters;
• power tools that run on fuel;
• gas and charcoal grills;
• certain types of swimming pool heaters; and 
• boat engines.

CO Detector Placement

CO detectors can monitor exposure levels, but do not place them:

• directly above or beside fuel-burning appliances, as appliances may emit a small amount of carbon monoxide upon start-up;
• within 15 feet of heating and cooking appliances, or in or near very humid areas, such as bathrooms;
• within 5 feet of kitchen stoves and ovens, or near areas locations where household chemicals and bleach are stored (store such chemicals away from bathrooms and kitchens, whenever possible);
• in garages, kitchens, furnace rooms, or in any extremely dusty, dirty, humid, or greasy areas;
• in direct sunlight, or in areas subjected to temperature extremes. These include unconditioned crawlspaces, unfinished attics, un-insulated or poorly insulated ceilings, and porches;
• in turbulent air near ceiling fans, heat vents, air conditioners, fresh-air returns, or open windows. Blowing air may prevent carbon monoxide from reaching the CO sensors.

Do place CO detectors:

• within 10 feet of each bedroom door and near all sleeping areas, where it can wake sleepers. The Consumer Product Safety Commission (CPSC) and Underwriters Laboratories (UL) recommend that every home have at least one carbon monoxide detector for each floor of the home, and within hearing range of each sleeping area;
• on every floor of your home, including the basement (source:  International Association of Fire Chiefs/IAFC);
• near or over any attached garage. Carbon monoxide detectors are affected by excessive humidity and by close proximity to gas stoves (source:  City of New York);
• near, but not directly above, combustion appliances, such as furnaces, water heaters, and fireplaces, and in the garage (source:  UL); and
• on the ceiling in the same room as permanently installed fuel-burning appliances, and centrally located on every habitable level, and in every HVAC zone of the building (source:  National Fire Protection Association 720). This rule applies to commercial buildings.

In North America, some national, state and local municipalities require installation of CO detectors in new and existing homes, as well as commercial businesses, among them:  Illinois, Massachusetts, Minnesota, New Jersey, Vermont and New York City, and the Canadian province of Ontario. Installers are encouraged to check with their local municipality to determine what specific requirements have been enacted in their jurisdiction.

How can I prevent CO poisoning?

• Purchase and install carbon monoxide detectors with labels showing that they meet the requirements of the new UL standard 2034 or Comprehensive Safety Analysis 6.19 safety standards.
• Make sure appliances are installed and operated according to the manufacturer's instructions and local building codes. Have the heating system professionally inspected by an InterNACHI inspector and serviced annually to ensure proper operation. The inspector should also check chimneys and flues for blockages, corrosion, partial and complete disconnections, and loose connections.
• Never service fuel-burning appliances without the proper knowledge, skill and tools. Always refer to the owner's manual when performing minor adjustments and when servicing fuel-burning equipment.
• Never operate a portable generator or any other gasoline engine-powered tool either in or near an enclosed space, such as a garage, house or other building. Even with open doors and windows, these spaces can trap CO and allow it to quickly build to lethal levels.
• Never use portable fuel-burning camping equipment inside a home, garage, vehicle or tent unless it is specifically designed for use in an enclosed space and provides instructions for safe use in an enclosed area.
• Never burn charcoal inside a home, garage, vehicle or tent.
• Never leave a car running in an attached garage, even with the garage door open.
• Never use gas appliances, such as ranges, ovens or clothes dryers to heat your home.
• Never operate un-vented fuel-burning appliances in any room where people are sleeping.
• During home renovations, ensure that appliance vents and chimneys are not blocked by tarps or debris. Make sure appliances are in proper working order when renovations are complete.
• Do not place generators in the garage or close to the home. People lose power in their homes and get so excited about using their gas-powered generator that they don't pay attention to where it is placed. The owner's manual should explain how far the generator should be from the home.
• Clean the chimney. Open the hatch at the bottom of the chimney to remove the ashes.  Hire a chimney sweep annually.
• Check vents. Regularly inspect your home's external vents to ensure they are not obscured by debris, dirt or snow.

  In summary, carbon monoxide is a dangerous poison that can be created by various household appliances. CO detectors must be placed strategically throughout the home or business in order to alert occupants of high levels of the gas.  

Nick Gromicko, FOUNDER. www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  www.NACHI.TV

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Common misconceptions about renegotiating after a building inspection.

When you purchase a home, your offer should be contingent upon favorable review of a building inspection that you (as the buyer) pay for. A building inspection by a qualified inspector (www.ashi.com) should be completed within 5 days of a negotiated binder agreement or as agreed by seller and buyer at the time of agreement, and made part of that agreement.

The building inspection's purpose is to find out whether the home has any major defects, or needs any major repairs that would be undiscoverable to an untrained person. A building inspection is not always cause to renegotiate the purchase price if the report is not as favorable as you would like it to be.

Normal wear and tear, improvements that are important to you but are unnecessary to another buyer, cosmetic changes that you would like to make,  and anything that is obvious to you or your Realtor when you see the home is not cause for renegotiation.

A rule of thumb- If you and/or your Realtor can notice defects at the time you view the home, you make the offer with that knowledge.

1. If the item  has to do with safety, it should be addressed.
2. If the item has to do with anything that could fall under the heading "Protect Your Investment" it should also be addressed.

Some examples of both and do's and dont's for renegotiating:

A roof that needs replacement because of age - DON'T (your Realtor should have seen this)
A roof that needs replacement because of defective shingles DO
A furnace that is older but still working DON'T
A furnace that is not working properly DO
An electrical panel that is not upgraded DON'T
Double tapped breakersor safety issues  in the electrical panel DO
Asbestos related materials present and confirmed DO
Leaking pipes DO
Hardwood floors that need refinishing DON'T

Renegotiating can mean anythng from having the seller perform the repairs prior to closing, to crediting the buyer for the repair work,  including certain items with the sale that were not included previously, or any combination of the above.

With me as your Realtor, I will always point out defects in the home when we first view it- it is senseless and a waste of your money and time for me NOT to tell you the bad along with the good. I am not a building inspector, but I can say this- I have attended every building inspection for every home that I've sold, (and that number is in the hundreds)  and learning about what to look for becomes much easier with repetition. You can benefit from that knowledge. When its' time for your inspection, make sure you attend, stick to your inspector like glue , and ask lots of questions. And if you forget, I will most certainly remind you!

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Should you buy a home warranty for your new home?

A one year home warranty is standard issue from a builder on new construction in Connecticut, but what if your home was built in 1980 or 1950 or 1900? Some buyers are not even aware that home warranty policies exist and are available for virtually any home, regardless of age.

What do home warrantees cover? It depends on the policy. but you can usually expect the warrantee to cover repair or replacement to appliances and the heating system, plus minor electrical repairs- all with deductibles. There are usually add-ons for swimming pools, well pumps, and septic system cleaning.

Can the seller pay for the warrantee? Some sellers offer a home warrantee with their property, otherwise you can purchase one, or your agent may negotiate one paid for the seller on your behalf.
 
How do you contact a reputable company ? The companies that I have worked with in the past are American Home Shield and Choice Home Warranty. There are others, and its best to check out their rating through the Better Business Bureau, reand get referrals through other clients, if available. Prices on coverage  and exclusions to the warranty  are important to know before you decide on a company. You can expect a policy pricing  to start at around $350 depending on your home's size, age, condition and coverage. The peace of mind may very well be worth it, and it's worth looking into, if for that reason alone.

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