The Home Selling Process

The Home Selling Process

There is so much information for first time home buyers, what about the sellers?!?! Here is a guide to the home selling process!

Receive & Evaluate Offers

Once a seller receives an offer I will meet with them to explain each item on the contract and how that affects their net proceeds at closing.

We will make a decision to counter, accept, or decline the offer

Once all parties have come to terms the contract will be executed and the buyers have 3 days to get earnest money and options fees to the title company and seller, respectively.

One thing I like to make my sellers aware of is the fact that a buyer may ask for seller concessions which is when the seller pays a portion of the buyers closing costs from the sellers proceeds. There are many ways to counter this to where it works out best for both parties.

Earnest Money

Earnest money is negotiated in the contract. As a listing agent I always try to make sure the earnest money is close to 1% of the negotiated sales price. Earnest money is a show of good faith on the buyers part and ensures they have skin in the game.

Option/Inspection Period

Texas is a "Buyer Beware" state meaning the buyer has the option to have a home inspected by a licensed inspector. Typically 7-10 days is negotiated for the buyer to have this inspection done and during this 7-10 day period the buyer has the unrestricted right to walk away from the contract without losing their earnest money. It is common for a buyer to renegotiate for certain repairs to be done, or a decrease in sales price based on what is found in their inspection. The buyer compensates the seller for taking their property off the market and giving them the option period. A common price is $5-$10/day.

Negotiated Repairs

If the buyers negotiate repairs and you (the seller) agree to complete the repairs, they must be completed by a licensed professional or reputable company in that field.

The seller must provide receipts and repair invoices from licensed professionals to the buyer prior to closing.

Title Commitment

The title commitment is a commitment to the buyer that the title company will provide title policy insurance on the contracted property. In the commitment any exceptions to coverage will be listed.

This also shows an abstract of title which will reveal any liens or back taxes, and even judgements against a seller that need to be made whole from proceeds at closing.

The Appraisal

The appraisal is the lenders way of making sure the property you are selling is actually worth what they are lending to the borrower. The appraiser finds 3 sold comps within the past six months that validate the homes worth.

Depending on the type of loan an appraiser can make required repair requests to the property that must be done prior to closing.

The appraisal is typically the last big hurdle before closing. Once this is complete, it is smooth sailing to you closing!

Closing

On your closing day, you will show up to the title company to sign closing documents. You will have a few days prior to closing to review the closing statement to see exactly what your closing costs are.

After you and the buyers have both signed the lender will fund the transaction and the transaction will be complete. Keys will not exchange hands until the transaction has been funded and the buyers official own the property.

CONGRATULATIONS!!!!

If you are considering selling your home and aren't sure where to start, I'd be happy to meet with a no strings attached consultation to see how I can best meet your needs! Feel free to call or text us today:

(903) 487-4077

Post a Comment