The closing process is just as important for the seller as it is for the buyer. As a seller, there are some challenges you need to deal with and some pitfalls you will want to avoid. After the seller and the buyer have fulfilled the requirements stipulated in the sales contract, the closing process becomes the transfer of money and documents to transfer the ownership and possession of the home to the buyer.
Don’t Put Off the Repairs
After you accept an offer, the buyer will send a home inspector to inspect the house. There may be a list of things that need to be fixed that you the seller may or may not be responsible for fixing. If you as a seller agree to do some of the repairs on the house, it is best to do them as soon as possible. Don’t wait until the last minute. Of course the last thing you want to do is spend money on a house you are about to sell, but if you agreed with the buyer to make the repairs, it’s best to expedite the repairs to avoid delays in the closing process.
Closing Costs
As a seller you may have to pay some closing costs. However, the amount you are required to pay is dependent on different factors. If the value of your home is not too low, here are some costs you may be required to pay:
- Transfer taxes
- Loan payoff
- Property liens
- Title insurance
- Agent’s commission
Having a competent real estate agent will help you understand what fees you need to pay without getting burned.
Hiring an Attorney
If you don’t have a real estate agent, hiring a lawyer to draft the contract of sale is essential. If you have a real estate agent, they should have a good understanding of what you need to do to make the sale valid and legal.
Selling a house involves a series of complex transactions and having a competent real estate agent can help keep you out of trouble.
Potential Issues During Closing
If the attorney doesn’t receive the loan package in time, the closing might get delayed. Follow up with the lender and try to get the paperwork to the attorney’s office a day before closing.
If you want to get your money quickly, make sure all the repairs are done and hand over all the keys to the house promptly. This includes garage openers, access cards and other important items. Otherwise the process might be delayed.
To avoid financial problems, review the buyer’s preapproval papers before accepting or countering an offer. If the closing is a long time in the future, ask for more earnest money. In case the buyer gets cold feet, you won’t be left with nothing to show for your time.
Make sure you have no title issues. As soon as you put your house on the market, make sure you search for the title. Don’t wait until you are in a contract someone. If they are any issues, you can discover them early and you will have plenty of time to resolve them.
