When a buyer decides they like your home, they will make you a written offer. Your real estate agent will advise you as to whether or not the prospective buyer is qualified to purchase your home. After all, who needs to review an offer from a buyer that is unable to buy it?
After determining the buyer's qualifications, you and your agent will review the written contract, taking care to understand what is required of both parties to execute the transaction. The contract should protect the interests of all parties.
After you accept the offer, it may be too late to make any changes. The contract, though not limited to this list, should include the following:
- Legal description of the property
- Offer price
- Down payment
- Financing arrangements
- List of fees and who will pay them
- Deposit amount
- Inspection rights and possible repair allowances
- Method of conveying the title and who will handle the closing
- Appliances and furnishings that will stay with the home
- Settlement date
- Contingencies
Remember that the legalities of this phase are very important. If you have any questions or concerns, be certain to address them with your real estate agent right away.
STEP 6 - NEGOTIATE TO SELL
Most offers to purchase your home will require some negotiating to come to a win-win agreement. You real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate. Your agent will review the written offer with you to make sure you thoroughly understand what the buyers are offering and what they are asking you for in return.
Some negotiable items:
- Price
- Financing
- Closing costs
- Repairs
- Appliances and fixtures
- Landscaping
- Painting
- Occupancy time frame
Once both parties have agreed on the terms of the sale, your agent will prepare a contract. Remember…bargaining is not a winner-take-all deal. It is a business process that involves compromise and mutual respect.
STEP 7 - SELLING SERVICE PROVIDERS
Once you accept an offer to sell your house you will need to make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected or repaired. Depending on the specifics reached during the negotiations, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set forth in the contract will dictate your next step. Depending on the contract, you or the buyer may decide to walk away, open a new round of negotiations or close.
STEP 8 - PRE-CLOSE PREPARATION
A few days before the closing you will want to contact the entity that is closing the transaction and make sure the necessary documents are going to be ready to sign on the appropriate date. It would be a shame to get this close to selling and have the deal fall through because of a missing form. Begin to make arrangements for your upcoming move if you have not done so. Check out our Relocation Center to get started.
STEP 9 - CLOSING
"Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. Your agent will be present during the closing to help explain the process and forms to you and make sure everything goes as planned. By being present during the closing, he or she can mediate any last minute issues that may arise. In some states, an attorney is required and you may wish to have one present.
As the seller, you will need to be prepared to hand over any necessary documentation regarding the property and, depending on the arrangements made during negotiations, you may be required to have done something specific in order to close.
Be sure to read all the documents and ask questions. It is important you understand every document you are signing.
STEP 10 - POST CLOSE
Congratulations on the successful sale of your home!
Now that you have closed, prepare to vacate your home in the time frame agreed upon. You should make a list of all the items you will need to do to turn the property over to the new owners. For example, make sure to cancel electricity, gas, lawn care, cable, etc., or if the new owner is going to retain some of the services, change the name on the account. The home and all items specified by the contract should be prepared appropriately for the new owners.
