Listing Your Home

Finding a buyer is just the beginning, I will assist you with all of the subsequent details that must be managed to ensure a successful real estate transaction. The table below illustrates the major areas of listing and selling a home.

Negotiated Contract: Agent's representing buyers will submit an offer to purchase on listed properties for sale. This is the first step in selling a home after it is listed. The offer may or may not be acceptable to the seller and negotiations will take place between the respective agents and their clients in order to get a contract that is acceptable to both buyer and seller.

Ratified Sales Contract: Ratified contracts are those where all signatures and initials are secured and a contract acceptance date is in place. Ratified sales contracts may still have contingencies and may or may not actually go to settlement.

Earnest Money Deposit: Unless specified in the listing agreement and MLS listing there is no standard amount for an earnest money deposit. Generally speaking, the more the deposit the more interest it would seem that the buyer has in the property. The buyer's earnest money deposit has to be deposited in a broker's escrow account within 24 hours after contract acceptance. Once in the escrow account a release signed by both buyer and seller would be required to release the deposit.

Buyer Financing: The sales contract will stipulate how long after it is accepted when the buyer has to apply in writing for financing as well as when the financing approval is required.

Survey: A survey of the property being purchased is required by the Title Insurance Company. In most cases the property will not be staked at each corner.

Settlement Attorney: The title company will have a settlement attorney who oversees the process. The settlement attorney may not attend the closing but a settlement officer who reports to the attorney will be in attendance.

Contingency Completions: Most sales contracts have some sort of contingencies, e.g. home inspection, financing, etc. Contingency dates need to be met since most contracts are Time is of the Essence. If a contingency date is missed then that contingency may be automatically accepted or the contract may become voidable.

Appraisals: You submitted an offer, you applied for financing, now its the bank's turn to see whether their potential investment is worthwhile. The bank will require that the property be appraised to determine its value and to protect their loan. Appraisers will use comparable sales in the area and will make additions and deletions to the price depending on what features are in the house. The buyer does not have to tell the seller the appraisal price.

Various Inspections: The contract of sale and addendums will specify what types of inspections were agreed upon. In most cases the inspections will be ordered and paid for by the buyer. These may include but are not limited to: home inspection, environmental inspection, mold, radon, termite, septic, water, etc.

Title Work:

Condo/HOA Documentation: Buyers of properties that are subject to the rules and regulations of a condo or home owners association have a specified time to review the condo or HOA documents after they are received. During this review period a buyer may terminate the contract without giving a reason.

Insurance: Prior to settlement a buyer must be able to show the Title Company and lender that the home which is being purchased has an insurance policy. Additionally, the lender will require the buyer to purchase lender title insurance as well. Buyers title insurance is optional but is generally recommended.

Settlement Date Arrangement:

Notification to Sellers Lenders: This is the process whereby the loan holders are notified that a payout of the loan will be made when the property settles. The title company will get the payoff amounts and will withhold this amount from the seller to pay the bank.

Occupancy Agreements: There are many times that the sale and purchase of real estate don't always coincide from a scheduling standpoint. Your agent can help draft either a post settlement or pre settlement occupancy agreement.

Home Warranty: Home warranties can be purchased for approximately $370 which cover major systems and appliances for a period of a year. There is usually a deductible of $50 - $100 per call and you must use the warranty company's contractors.

Document Recordation:

Settlement Net Proceeds: This is why we're all here...payday. The sale price minus expenses, recording fees and taxes, commissions and loan payoffs will be the sellers net proceeds. This figure should have been previously discussed with your listing agent.