So you want to sell your home! You have already got your house for the market, found a realtor, and came up with the right listing price, fixed up the problem areas, marketed your home, and made the right deal, so now it’s time to prepare for the closing sale on your home. This “Selling a House Series” is made with years of experience on the best way to get your ducks in a row so you can sell your home at the price you want. Use the following the tips below to make the process much smoother on you…
Collect Earnest Money from the Buyer
Typically when a buyer makes an offer on your home and you accept the offer, the buyer will write you a check for a deposit. This deposit is known as earnest money. This money basically holds the deal for them. The earnest money is held by a third party until the deal is closed. The money usually goes toward the down payment or could be the entire down payment. On the other hand, if the deal doesn’t go through, because you aren’t able to meet the buyer’s contingencies, the money will get returned to the buyer. If a buyer backs out simply because they have changed their mind, then you get to keep the money has a consolation for any inconveniences.
Supply a Seller’s Disclosure
Immediately after accepting the offer, you will need to provide the buyer with a seller’s disclosure. This is an itemized list of any problems with the home as well as the surrounding area. There are state laws on what information is required for each state. Go to http://www.nolo.com/legal-encyclopedia/state-state-seller-disclosure-requirements for the requirements of each state. This usually includes basic information on the home such as the age of the home, the condition of the roof, any flooding in basement, environmental issues, such as the property is in a floodplain. However, if anything is really wrong with the home, the buyer will find out during the inspection and/or appraisal. It is best to be upfront with the buyer to eliminate problems with the sale that can end up setting you back.
Buyer’s almost always want an inspection on the home, unless you are selling it “as is.” Even then, they may still request an inspection. The inspector’s job is to look for major problems with the roof, structure of the home, plumbing issues, fire hazards (bad wiring or improper working chimney’s). Since the buyer pays for the inspection, the buyer will be the one to receive the report on the inspection. After the results, the buyer may want some repairs made to the home. The buyer may ask you to have some things repaired, which will slow the process down. It can help the process move forward if you offer the buyer a reasonable credit based upon an appraisal to have it fixed themselves.
If a buyer is getting a mortgage, they will have to have hire an appraiser as well. The appraiser will look for similar problems of the inspector. However, in addition the appraiser is looking that the home is priced accurately in comparable homes. If the home comes back and appraises for more than the asking problems, then no problem. However, if the appraisal comes back as less than the sale price, it becomes a problem. Lenders will not lend out money above the appraisal amount. If a buyer chooses to pay the difference out of pocket that would work too. However, if not, the buyer may walk. The only other option that will continue the sale is you may have to lower the price to the appraisal amount. If all works out after the appraisal, the last step is the closing! Our next blog will give you the details on the closing.
Next time we’ll walk you through what to expect during the closing sale of your home!
Selling a House Series Posts
- Selling a House Series #1 - Getting Your House Ready for Market
- Selling a House Series #9 - What You Should and Shouldn't Do As You Move Out
- Selling a House Series #8 - What to Expect At Your Home Closing
- Selling a House Series #7 - What a Seller Should Do To Prepare For The Closing
- Selling a House Series #6 - Making the Right Deal
- Selling a House Series #5 - Creating an Ad and Marketing Your House
- Selling a House Series #4 - Fixing Up The Inside and Outside of Your Home
- Selling a House Series #3 - How to List Your Home For the Right Price
- Selling a House Series #2 - How To Find the Right Realtor To Sell Your Home
Tom Reese has 20+ years experience in helping his clients buy the homes they want at a price they can afford. Tom has helped his clients buy and sell property in every neighborhood in Northern Kentucky and Cincinnati.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
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