IF YOU FIND A BUYER FOR YOUR HOUSE, WHAT HAPPENS NEXT?
Found the buyer? Great! Let’s get you on your way to your next chapter
After weeks of preparation, you are ready to sell your house. Fortunately, you succeeded in catching a buyer’s attention after patching, painting, and staging your house.
But what should you do next?
Finding a buyer and listing your home for sale are only the first steps in the process. Having secured a home buyer, you can now work through the list of tasks that need to be completed.
Now that you have found a buyer, what should you do next?
What is the first thing you need to know: Do you need an agent to sell your house?
There is a good chance that you are reading this now because you want to sell your home by yourself, whether you have advertised it or have friends, neighbors, or tenants who are interested in buying. FSBO transactions are a great way for sellers to save money since they don’t require real estate agents to take commissions. Is it legal?
Even though each state, and even each county, sets its own regulations, they all allow homeowners to sell their homes without hiring an agent. In other words, you do not need to use a real estate agent to facilitate the transaction.
Attorneys for real estate
Selling your home can be done either by hiring a real estate agent or not, but hiring a real estate lawyer may be an option. Most states require the handling of some closing documents by a real estate attorney.
When selling a home in Alabama, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, or West Virginia, you should hire a real estate attorney. Regardless of whether you live in one of these states, you may still benefit from hiring an attorney for your closing documents. In most cases, their services will be charged on an hourly basis.
DISCLOSURE FORMS FOR SELLERS
It outlines the condition of your home – and any known issues relating to it – on behalf of your new buyer.
You may find past upgrades, renovations, and improvements in your seller’s disclosure. Listed items should include any known pest issues, appliances, or systems within the home, and any liens that may be attached to the property. Any important information or legal requirements should be included on this form.
Managing earnest money
When selling your home, the earnest money is not required, but it can boost both parties’ confidence.
Keep any funds you receive in an appropriate account. For those selling by owner, it may be possible for the title company to hold these funds. For your records, make sure you keep a copy of that check.
THE INSPECTION AND APPRAISAL PROCESS
As soon as you accept the buyer’s offer, you’ll want to schedule an inspection and/or appraisal.
For lenders to determine the fair market value of a house, appraisals are often required. The value of a home is determined by a variety of factors, such as its location, age, comparable sales in the area, improvements made to the home, and its overall condition.
An appraisal is particularly important if your buyer will be financing the purchase through a mortgage. Due to lender restrictions, many lenders will approve less than a home’s fair value for a loan.
A home inspection may also be required by some mortgage lenders, and even if it’s not required, a home inspection is still important for buyers.
Your home will be evaluated by a licensed inspector, checking everything from the roof to the floors. The following items are included: electrical systems, plumbing, windows, doors, and heating/cooling systems. These reports typically do not reflect additions to the property, such as septic systems, pools, sprinkler systems, or individual appliances.
THE TITLE COMPANY
The title company you have chosen to hold escrow funds for your buyer may have already been chosen when you accepted earnest money from them. However, you will need to choose a title company soon if you do not already have one. In addition to assisting you with the paperwork, they’ll also prepare the title and oversee the closing process.
It will be the title company’s responsibility to schedule the closing date, so you will need to coordinate with them as well as the buyer.
CLOSING THE DEAL
The title to your home has been researched and deemed clear. The buyer has been provided with the results of the inspection and appraisal (if applicable). It has been repaired if necessary.
Signing the closing papers is now the next step!
Your selling journey comes to an end on closing day. You will hand over the keys to your home buyer and accept the proceeds from the sale on this day. All that’s left is to decide what to do next.
MAKING THE MOST OF THE PROCEEDS
One of the most important aspects of selling your house is deciding what to do with the money. Choosing this option can have a profound impact on everything from your tax burden to the interest you earn on your next home loan.
If you don’t intend to spend the funds right away, you may want to keep them in a money market account or certificate of deposit (CD). In addition, you’ll want to make sure you research the current tax laws regarding home sales and tax exclusions because they can change at any time. It may be a good idea to consult a financial advisor if you’re unsure what to do with your proceeds.
AFTERWARD, KEEP A RECORD OF EVERYTHING
It is important to keep records even after the house has been sold and the keys have been handed over. Documents such as appraisals, inspections, seller disclosures, closing documents, and even documents related to the original purchase are included.
These all have the potential to be useful in the future. For example, if you plan to claim related expenses on your taxes, you will need receipts and other proof. The records will prove crucial if you are ever audited.
The process of selling your home can be exciting and stressful at the same time. You can, however, prepare for the second half of the process by understanding what happens after you find a home buyer, ensuring you and your buyer are happy with the end result.
