Wednesday, February 27, 2019 / by Jo Skipper
You have made the commitment and you are moving on from your home. The place is listed with your agent of choice Whether you are upsizing, downsizing, or relocating, you want to make sure you are prepared with everything you will need to make this a smooth transaction. Your agent will most likely be working alongside your lender to ensure all of these documents are at the ready but it is always nice to have everything ahead of time.
Imagine getting an offer for a quick close on the first day and the only thing holding you back is the fact that you cannot find an important document. Let’s work together and try to avoid that.
Before you list your house it is desirable to work with your agent to discover how much you will net from the sale in different scenarios. A preliminary report will be prepared from the title company to show the outstanding debts and other items. Some of the items that could appear on your title will need to be addressed before you are able to go any further. This is the perfect time to catch any oddities present on the title that will delay closing down the road. These things can be associated with a divorce, death, child support or alimony etc. You will need to know how much you owe on your mortgage, any second mortgages, liens, or other debts that are attached to your house are also best discussed at this time to help in the process. This will begin to form a ballpark of the money you will be receiving when the home sells.
Once an offer has arrived and the price has been negotiated and settled that is the latest time you have to complete a seller’s disclosure form. This is where you need to inform the prospective buyers of specific issues you have experienced with the home, whether the seller has addressed these issues or not, the buyer should be informed. Review your homeowner’s insurance for claims or other damages. This is the perfect time to check in with your agent. While they cannot tell you what to write on this form they can assist you to navigate the language of this document.
After the inspection has been completely negotiated and all contingencies have been met including the appraisal, it is time to compile a more substantial seller’s net sheet or sellers estimated settlement. With assistance from the title or closing company and current mortgage holder, the seller can obtain a more clear picture of the exact figure they will have at the end of this sale. The closer will work with the tax figures, unpaid or prepaid utilities, HOA fees, etc and credit or debit the seller appropriately. One of the most important expenses that are often overlooked is how is the seller going to move? This expense can grow if you are moving across the country. Many people hire this unfriendly task to be completed for them while others ask their friends and family to bring their largest vehicle and assist in the process. When someone is hired the job expense can grow and is often forgotten in the madness of the sale.
Selling your home can happen in a flash. With all of the packing and appointments for various steps in the contract, it is easy to get behind and overwhelmed. Try to stay calm and begin the process fully prepared with everything you will need. Work with your agent who will help guide you through this process to avoid any hold-ups on the seller’s side.