1. Due Diligence Period

The buyer typically has a due diligence period—often 7-10 days in central Kentucky—during which they can conduct inspections, appraisals, and other checks. If issues arise, the buyer has the option to renegotiate or even exit the contract without penalty.

• Home Inspections: During due diligence, buyers usually schedule inspections for the property. If significant issues are found, they may request repairs, credits, or a reduction in price. Home inspections can include the entire property (inside and out), wood destroying insects (termites, etc.), radon, mold, and others. These are paid for by the buyer, but the seller must provide access to the home for inspections.

2. Appraisal and Financing

The buyer's lender will arrange an appraisal to ensure the home’s value aligns with the loan amount, followed by an underwriting review to confirm the buyer's qualifications and financial readiness. While pre-qualification can indicate buyer interest, it doesn’t guarantee loan approval, as underwriters review extensive documentation that may reveal potential issues.

Your Realtor should carefully evaluate all offers, considering factors beyond just the price. The highest offer might not be the most reliable, so choosing a buyer likely to pass underwriting is key to a successful sale.

3. Title Search and Insurance

A title company will conduct a title search to confirm ownership and address any liens on the property. This ensures a clean transfer of ownership.

4. Closing Preparation

In the final weeks, you and the buyer complete any remaining steps, like signing disclosures. A closing date is set, and the title company prepares documents for the final sale.

5. Final Walkthrough

The final walkthrough is a crucial step in the home buying process, typically conducted a day or two before closing. During this walkthrough, buyers inspect the property to ensure it’s in the agreed-upon condition, check that any repairs have been completed, and confirm that no new issues have arisen since the last visit. This is also an opportunity to ensure that any agreed-upon inclusions, like appliances or fixtures, are still in the home. If any problems are identified, buyers can address them with their Realtor before finalizing the purchase.

6. Closing Day

At closing, you sign the necessary paperwork, funds are transferred, and the buyer receives the keys. Once the title transfer is recorded, the property officially changes hands.

Each of these steps involves coordination with your Realtor and potentially the buyer’s Realtor, both of whom will help ensure everything proceeds smoothly.