There are a number of questions and fears that can be associated with selling your home. How much should I sell it for? Does my house look right? Is my home in good condition? Have I staged it properly? Am I in a tougher housing market? Is the neighborhood an issue? Location, location, location? Is the timing right? Will I be able to find a good realtor to market my home and do what’s right to get it sold? WILL MY HOME SELL?
Then, you make the decision to sell your home… on your own. Multiply those questions and concerns by 100 and you begin to feel wary and may decide to go a different route.
We are the experts on selling your home on your own. This is the third in a series of blog posts where we are going through some basic information that may address your concerns and help to ease your worries and fears when it comes to taking that big step and choosing to sell your home on your own.
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So, you got an offer. What next?
First, before you even look at an offer, make sure that you have a loan approval letter from a reputable and reliable bank or lender, an acceptable money deposit check, and/or in the case of a cash offer, the proof of funds. Without any or all of these components, you are simply wasting your time. Be sure to read the offer carefully paying special attention to any clauses or contingencies. Identify any conditions hat may be unacceptable to you and keep close track of them on a notepad. In addition, look for unreasonable demands or time frames that don’t work for you.
Second, determine the total amount of money that you will be receiving from the offer and be sure to discuss it with your realtor, agent, and/or attorney. The offer on the table may require that you front some of the buyer’s closing costs. In a tough real estate market such as the one we are facing currently, paying some of the buyer’s closing costs is very reasonable and also very likely. It is very important that you are familiar with allowable closing cost limits for the different types of loans. Conventional loans are 3% of the closing costs while FHA loans are 6% of the closing costs. FHA loans tend to have more requirements and can often take longer to close.
While taking all of these things into consideration, don’t ignore the time you have to respond on the offer, all of your efforts will be void if the time limit expires.
Now, if you don’t agree with the terms presented to you, you are able to make a counteroffer. Make any necessary changes on the offer sheet and initial them to validate your counteroffer. Be smart and make wise decisions when making any changes to an offer. You don’t want to lose a buyer over something small and petty. Once your submit a counteroffer, the original offer is voided. So if they don’t accept that, then you have just lost a buyer.
Now that you have a contract, it is time to find an attorney. All contracts should also disclose any and all attorneys from both parties. So, if you don’t have an attorney, ask for referrals from people you trust. Choosing a good settlement agent or attorney is key to having a good and smooth closing.
Here’s what you should expect during the process of finalizing a contract and heading to closing:
- Request for title work or an examination of the home’s ownership history (results provided by settlement agent)
- Visits from professional inspectors checking for structural and functional integrity, wood infestation, and other issues on the buyer’s behalf
- A survey and an appraisal will also be conducted to assure the buyer and the lender of the value of the home
- Termite inspection, usually paid for by the seller
Be sure that once everything is taken care of and you have closed on the home, you vacate the home and leave it in the condition that you and the buyer have agreed to and do a walk-through with the buyer and the buyer’s agent the day of or the day before closing.
The process of buying and selling a home can be very tough and very challenging at times. But make sure you keep your eye on the prize and know that in the end it will all be worth it.
