How long is the Home Buying or Selling Process?

Timeframe for both Home Buying and Sellers depends on how the property will be paid for. I'll explain.

If a person is paying CASH for a property it can take 7 to 14 days, provided everything is in order with the purchase funds and the property is ready to be sold. Many steps involved here and everything happens fast.

If a person is using a Conventional loan or FHA loan then it can take anywhere from 21 days to 35 days. This depends on the buyer presenting all the required documents to their lender and if they respond in a timely manner to documentation or information request. It also depends on the lender doing their part. Each delay of the buyer or lender causes additional days added to the timeline. 

If a person is using a VA loan and they are already approved to use a VA loan then it can take 35 to 50 days. VA has a few requirements but they are not much. Again, as long as the buyer does what they are asked to do it'll go much faster but it will not happen like a cash deal.

Sellers may put a house on the market and are still living in that home. Not all homes on the market are vacant homes. Some sellers must sell first before they can buy another but they'll do these transactions at the same time. It's for this reason that a buyer must keep on top of things and turn in their required documentation when it is requested.

Things that will happen for Buyers:

1. Get preapproved or prequalified.
2. Search for a home only AFTER you are prequalified or preapproved.
3. Start submitting lender required documents immediately.
4. Do not open any new lines of credit or buy a car nor cosign for anyone during the home buying process.
5. Don't shop for furniture or anything until you have your KEYS in hand and the purchase is completed.
6. The lender will ask you for the same documents repeatedly so keep up with what you turn in, you'll more than likely need it again.
7. Visit only homes you want to purchase. Don't just go see a home because it's for sale. 
8. You can find the perfect home on your first day out but sometimes it takes longer. 
9. Listen to your Real Estate Agent. Trust your agent to guide you, but  if you pick a part-time agent or a friend or someone like that then you are on your own.  This is business and should be treated as such.
10. Writing an offer is done once a home is chosen. Don't go and write multiple offers on multiple houses. Each offer will require a Termination Agreement to save the buyer for a short term after contract execution. This cost about $100 - $250, it depends, and is payable to the seller. This is not refundable if you cancel the contract.  However, "IF" your agent chooses the proper box this money is credited back to the buyer on the final signing day.
11. Earnest Money - this is the initial money a buyer puts down and it credited back to the buyer on the final signing day. It can be $1000 or 1% of the house price amount, it depends.
12. Inspection - buyer pays for their inspection. This is totally optional and is about $500 - $700.
13. Appraisal Fee - this is a lender requirement and is somewhere around $675 depending on the property size and location, so prices can be higher or lower.
14. Keep in mind a contract has many paragraphs. Each paragraph means something very important. Make sure your agent knows what each paragraph means. Example: There is a paragraph that deals with "Deletion Insurance" most agents have no idea what this means. You'll be suprised. I find myself explaining this to listing agents all the time when they are reviewing my written offers and they have been in the busines for years. 

Things that will happen for sellers.

1. Seller decides to sell home and chooses an agent or they go it as a For Sale By Owner.
2. If using an agent we'll run a market analysis and compare their property to the market activity and compare this particular property to other properties just like it or very close. We will NOT compare a 1 story 3 bedroom 2 bath house to a 2 story 5 bedroom 3.5 bath house with a pool. I've seen agents do this and it ultimately upsets the seller when they don't get that inflated price the agent led them to believe they will get.
3. Documents are drawn up with all the terms and conditions for listing the property.
4. A Sellers Net Sheet is formulated with cost the seller will incure. There are taxes, fees, closing fees, mortgage payoffs, liens, transfer fees and the like. A good agent will get very close to the actual fees and it just dosen't pop into their heads. It requires some work. I've seen agents make some random guess about numbers and had it turn into a complete mess at the end of the transaction. Or I've seen agents not inform the sellers of these fees at all and Poof! Big problem.
5. Showing schedules are discussed and set. Animals/pet requirements are taken care of. Type of access box is decided upon. Entry permissions are discussed and established and house preparation is also discussed and dealt with.
6. Title is opened with someone that actually does their jobs throughly not some person who the agent is buddy buddy with. Tons of research is done here concerning the property. Or no title is open and a buyer purchases and assumes responsibility of all the liens the seller has on the property or vacant land. This is never a wise choice.
7. House is listed on the market. The visitors start arriving. They should have an agent with them otherwise you are letting complete strangers walk through your entire home. 
8. Sellers will be tempted to negotiate with visitors and this is a terrible mistake that can cause a nightmare later.
9. Feedback is received from agents, hopefully.
10. Offers start coming in.
11. Agent presents the offers along with a lot of supporting documentation to the seller, but keep in mind strange things can happen and offers can fall apart.
12. Seller chooses an offer to accept or waits on better offers based on listening to his/her agent. If it's a bank property then the bank makes the final decisions. I've listed bank properties and one time the bank choose to sell the house to a man using a loan rather than a person paying cash for the home. I asked the banker why he did that he said they want to sell to owners that will live in the home and not investors. The cash payer was paying above list price for the home but the bank chose a regular person to sell to rather than a company. I was shocked because the house appraised for far more than what the person using the loan was paying. It was a foreclosure too. 
13. Once an offer is accepted now the purchase process kicks into high gear. The agents job has now officially started. They just don't sit down and wait for payday. The marathon is now started.

All Together Now: "We have an EXECUTED CONTRACT"

Now: All documents are moved to where they need to be. Money is received from buyer and delivered to the appropriate places. Contract forms are delivered to several places. Inspections, appraisals and the like are ordered and performed.

The Agent now becomes the "CONDUCTOR"

Lenders must be kept inline and on the time schedule to ensure a smooth flow (just recently I was on the phone with a lender at 3:23 AM getting some details worked out. Yes! You read that RIGHT 3:23 AM. Lender called me and since I am a Full Time Real Estate Agent I answered the phone and took care of business with a happy tone and I was eager to assist). Title company does what it is supposed to do and the appraisal is ordered and completed. The only reason an appraisal should be off is if the seller kept somethiing a secret, a miscalculation, or the market shifted. Just because a person offers $10,000 above the list price does not mean it will appraise for that amount over the list price. So the buyer doing this or the buyers agent who advises this is setting the contract up for failure. I've personally witnessed an agent who always had buyers offer $10,000 to $15,000 over list price just to get the house under contract knowing full well the seller will have to drop the price or walk away from the contract and each time the contracts were terminated and the buyers and sellers were upset. Shady business. Normally a buyer doing this is prepared to pay that extra amount out of their pocket. It's not going to be rolled into any loan. Also, if the buyer decides to do this the agent should verify they have that extra $10,000 - $15,000 sitting in the bank on top of the predetermined closing fees that are already calculated. The lender will not over pay for a home for a buyer. Also keep in mind when a person is using a lender the money the lender uses actually belongs to someone or several people. It's not magic bank money that is just sitting there at the bank.

That is enough of this for now. Like I said I'm a Professional Real Estate Agent and this job is very serious to me. However, I do make it as smooth as possible for both buyers and/or sellers.

There is more that happens so if you do have questions please ask me if you are currently working with an agent. I'd love to be your Personal Real Estate Agent. You can call, text or email me. You'll be glad you did.