How long does it take to go to contract? (bank owned, short sales) - Long Island - New York (NY) - City-Data Forum

Nechums · 07-02-2009, 08:06 AM

How long does it take once an offer is made to go to contract? I'm asking because we accidently stumbled on the perfect house. I'm so scared we're going to lose it, but we're no where near selling our co-op which we need to do for the cash for the house. How long does it take to go to contract?

totallyfrazzled · 07-02-2009, 08:26 AM

Do you mean to contract or to closing?

The time from accepted offer to the signing of the contract by both parties really depends on two things: (1) The results of the inspection, which will usually bring up a few odds and ends that the buyer and seller end up haggling over or at least discussing, and (2) How long it takes for the two lawyers to agree on what they like and don't like and will compromise on, regarding various things in the language of the contract.

If the inspection brings to light no "issues" and if the contract terms are acceptable to you and your lawyer (as happened twice with me in home purchases) the contract could be executed within a week after the inspection is completed, assuming the seller's lawyer sends it right out (which he or she most likely will). The inspection is usually scheduled within a few days after your offer is accepted by the seller, depending of course on the availability schedule of inspector and seller.

If more haggling needs to be done over details, then probably no more than 2 weeks after the inspection is done. Give or take a day or so for time in transit via snail mail, or lawyers not being immediately available to talk to each other by phone regarding issues.

My nephew's contract had a bunch of haggling-issues over terms but was still signed about 10 days after the inspection was done.

twingles · 07-02-2009, 08:34 AM

We bought our house 12 years ago so the memories are slightly fuzzy, but our offer was accepted the end of April, we had the inspection, there were a few issues, and the contract was signed I believe on May 8. Some of the stuff we wanted done was in the contract, like having a termite problem and small asbestos problem resolved.

To answer the question I think you are asking, most sellers are going to want the contract signed as soon as possible, and most will keep showing the house (if there is interest) until the contract is signed. I mean, if you make an offer on this house, but don't want to sign a contract, you're asking the seller to put themselves in a terrible position if you want to delay signing the contract. My parents sold their house 5 years ago, and neither they nor the buyers wanted to close for another 4-5 months, but they still signed the contract right away.

TomMoser · 07-02-2009, 08:35 AM

One to Two weeks to Contract. About 2 months from contract to closing.

thebobs · 07-02-2009, 08:36 AM

You could work it into the contract that the deal is subject to your selling the co-op and then put it into high gear in selling it.

Chrisk327 · 07-02-2009, 08:43 AM

you could try that, but if I were the seller, especially in this market, I wouldn't accept an offer on my house contingent on a sale of another property, unless there was a solid contract on the other property.

thebobs · 07-02-2009, 08:46 AM

Quote:

Originally Posted by TomMoser

One to Two weeks to Contract. About 2 months from contract to closing.

Are you basing that on a seller who still owns the house? Or are you including short sales and foreclosures as well?

TomMoser · 07-02-2009, 08:51 AM

On a regular homeowner. Short sales can take a very long time. Foreclosurers (already bank owned) can move along pretty quickly.

scottzilla · 07-02-2009, 08:56 AM

I waited 3 months for a contract and an additional 3 months to close. This was back in '02 when everyone was overbidding on homes. The sellers dragged their feet, the RE agents dragged their feeet-it was the most stressful thing i'd ever been through. I watched the contract date get crossed off 3 times.
I have an accepted offer on a short sale right now, it took 8 weeks to hit my lawyers office.

twingles · 07-02-2009, 09:41 AM

Quote:

Originally Posted by Chrisk327

you could try that, but if I were the seller, especially in this market, I wouldn't accept an offer on my house contingent on a sale of another property, unless there was a solid contract on the other property.

Me neither. No way would I wait for someone to sell a co-op so they could buy my house.