For most families, their home is their largest financial asset, and selling real estate may be one of the greatest satisfactions – of your lifetime. Along with a substantial financial commitment, such transactions usually involve risk, technicalities, and legal considerations. Deciding to sell is a big decision that involves a lot of preparation and work. When you're ready to sell, it's important to have an experienced real estate professional handle the details involved in successfully selling your home for top dollar.
A home that "sparkles" on the surface and is “well-polished” will appeal to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is well maintained, they assume that what they can't see has probably also been well maintained. Before putting your home on the market, take as much time as necessary (and as little money as possible) to maximize its interior and exterior appeal.
1. Preparing Your Home For Sale - Interior
- Disconnect Your Emotions - When selling real estate, you need to remove emotion from the equation. You need to think of your house as a marketable commodity. Property. Real Estate. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property. The first step in getting your home ready to sell is to “de-personalize” it.
- Make Your Home Anonymous – The reason why you want to make your home “anonymous” is because you want buyers to view it as their potential home. When a potential homebuyer sees your family photos hanging on the wall, it puts your own brand on the home and momentarily shatters their illusions about living in the house themselves. Put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box. Rent a storage area for a few months and put the box in the storage unit. Part of preparing a home for sale is to remove “clutter,” and that is the next step in preparing your home for sale.
- Unclutter the House – This is the hardest thing for most people to do because they are emotionally attached to everything in the house. Clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it. You want as much open, clear space as possible, so every extra little thing needs to be cleared away. Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter, as long as you can accept their views without getting defensive. Let your Realtor help you too.
- Start with the Kitchen – Remove everything off the counters. Everything. Even the toaster. Find a place where you can store everything in cabinets and drawers. Start packing those pots and pans that are rarely used. Homebuyers will open all your cabinets and drawers. They want to be sure there is enough room for their “stuff.” If you have a “junk” drawer, get rid of the junk. Create open space. Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible. This would be a good time to determine if there are any tell-tale signs of water leaks that may cause a homebuyer to hesitate in buying your home.
- The Rest of the House – Closets, Furniture, and Storage Area Clutter – Closets are great for accumulating clutter, though you may not think of it as clutter. Pack those extra clothes and shoes so that your closets do not look “crammed full.” Some people have too much furniture in certain rooms. You want to give the illusion of space to the homebuyer. Basements, garages, attics, and sheds accumulate not only clutter, but junk. These areas should be as empty as possible so that buyers can imagine what they would do with the space. Have a garage sale.
- Repairs – It’s not necessary to do any remodeling. Use savings to pay for any repairs and improvements. Remember, that part of selling a home is also preparing to buy your new home, so you don’t want to do anything that will affect your credit scores or your ability to qualify for your next mortgage.
- Plumbing and Fixtures – Often prospective home buyers really do not know what to do when looking at a home, so they play with things, e.g. flick light switches, open everything with a handle, turn on all the faucets, and flush all the toilets. Having nice shiny fixtures makes an impression. It this cannot be accomplished by cleaning, buy new ones. Make sure all the hot and cold water knobs are easy to turn and that the faucets don’t leak. Make sure you have good water pressure and there are no stains on the porcelain.
- Ceilings, Walls, and Painting – Check all the ceilings for water stains. Do the cosmetic work necessary to improve the desirability of your home. Find and repair the leak and make sure a proper job is done. Nothing irritates a buyer more than finding out – after the fact – about plumbing or roof leaks. If dirt has accumulated in spots or you have an outdated color scheme, you may have to paint anyway. Painting makes the home look fresh and new on the inside and never fails to impress. Always choose an off-white color because white helps your rooms appear bright and spacious. If your carpet appears old and worn, or it is definitely an outdated style or color, you probably should do nothing more than hire a good carpet cleaner. If you choose to replace it, do so with something inexpensive in a fairly neutral color. Repair or replace broken floor tiles, but do not spend a lot of money on anything. Remember, you are not fixing up the place for yourself. You want to move. Your goal is simply to have few negative impressions upon those who may want to purchase your property.
- Windows and Doors – Make sure all of your windows open and close easily. If not, a spray of WD40 may help. Make sure there are no cracked or broken windowpanes. Do the same thing with doors – make sure they open and close properly, without creaking. Be sure the doorknobs turn easily and are cleaned and polished to look sharp. Create a positive impression.
- Odor Control – For those who smoke, you might want to minimize smoking indoors while trying to sell your home. You could also purchase an ozone spray that helps to remove odors without creating a masking odor. Apologies to pet owners, but pets come with odors. You may have become used to them, but they are immediately noticeable to those with more finely tuned olfactory senses. For those with cats, be sure to empty kitty litter boxes daily and use plenty of baking soda. For dog owners, keep the dog outside as much as possible, even those adorable lovable little dogs. You might also try sprinkling carpet freshener on the carpet on a periodic basis.
2. Preparing Your Home For Sale – Exterior
The exterior is the most important. A homebuyer’s first impression is based on his or her view of the house from the real estate agent’s car. They call that first impression “curb appeal.” So, take a walk across the street and take a good look at your house. Look at nearby houses, too, and see how yours compares. Then it may be time to go to work.
- Landscaping – Buy a few bushes and plant them if your landscaping is at least average for the neighborhood. Do not put in trees. They are expensive and you will not get back your investment. Buy mature colorful flowers and plant them. They add a splash of vibrancy and color, creating a favorable first impression. Your lawn should be evenly cut, freshly edged, well watered, and free of brown spots. Take care of these problems before working on the inside of your home. This is because certain areas may need to be re-seeded, and you want to give it a chance to grow. Plus you might want to give fertilizer enough time to be effective. Always rake up loose leaves and grass cuttings.
- House Exterior – The big decision is whether to paint or not to paint. When you look at your house from across the street, does it look tired and faded? If so, a paint job may be in order. It is often a good investment and really spruces up the appearance of the house, adding dollars to offers from potential homebuyers. When choosing a color, it should not be something garish and unusual, but a color that fits well in your neighborhood and with the style of your home, too. If you know your roof leaks, repair it. If you do not repair a leaky roof, you are going to have to disclose it and the buyer will want an entire new roof. If you know your roof leaks and you don’t repair it and don’t disclose it, look forward to hearing from lawyers at some point in the future. Otherwise, wait and see what the home inspector says.
- The Back Yard – If you have a pool or spa, keep it freshly maintained and constantly cleaned. For those who have dogs, be sure to constantly keep the area clear of “debris.” If you have swing sets or anything elaborate for your kids, it probably makes more sense to remove them than to leave them in place. They take up room, and you want your back yard to appear as spacious as possible, especially in new homes where the yards are not as large.
- The Front Door and Entryway – The front door should be especially sharp, since it is the entryway into the house. Polish the door fixture so it gleams. If the door needs refinishing or repainting, make sure to get that done. If you have a cute plaque or shingle with your family name on it, remove it. Even if it is just on the mailbox. Get a new plush door mat, too. Make sure the lock works easily and the key fits properly.
A home that "sparkles" on the surface and is “well-polished” will appeal to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is well maintained, they assume that what they can't see has probably also been well maintained. Before putting your home on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal.
3. Meet with Your Realtor
So you have decided to sell your home and have a fairly good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local listing agents who have been sending you mail for years. Each Realtor comes prepared with a “Competitive Market Analysis” and they recommend a specific sales price. Amazingly, a couple of Realtors have come up with prices that are lower than you expected. Although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more. When you interview the third agent’s figures, they are much more in line with your own anticipated value, or maybe even higher. Suddenly, you are a happy and excited home seller, already counting the money.
If you’re like many people, you would pick Realtor number three. This agent seems willing to listen to your input and work with you. This agent cares about putting the most money in your pocket. This agent is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it! The truth is that you may have just met an agent engaging in a questionable sales practice called “buying a listing.” He “bought” the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price. Why do some agents “buy” listings this way? There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely.
- Is Your Home Priced Realistically? – If you start out with too high a price on your home, you may have just added to your stress level – and selling a home is stressful enough. Listing agents market and promote your home to the other local agents who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home – if it’s priced right. If you and your agent have it overpriced, fewer agents will preview your home. After all, they are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically.
- Dropping Your Price – Too Late - If you start out with a high sales price, and then drop it later – your house is “old news.” You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell. Even if you do successfully sell at an above-market price to an uninformed buyer, you buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house won’t appraise. Your deal falls apart. Of course, you can always attempt to re-negotiate the price, but only if the buyer is willing to listen. Your house could go “back on the market.”
Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.
- Realtors Talk to Each Other – If you start out with a sales price that is too high, there is a high likelihood you interviewed other agents. They didn't get the listing, of course. They got "aced out" by someone telling you what you wanted to hear. If your listing agent routinely engages in "buying" listings, he has probably aced out scores of other agents in the same way. Being human, Realtors talk to each other. If they don’t like your listing agent, not as many of them will be showing your home. In short, you may have ended up with an agent who was good at selling you, but not good at selling your house. And you’re going to pay them a commission for it.
It is human nature for you to want the highest price for your home. However, when you choose the agent who promises what you want to hear, it often leads to stress and frustration. Most of the time, it will take you longer to sell your home. Possibly, you will end up selling at a lower price instead.
Or maybe as a result of reading this article, you will choose one of the "good" Realtors in the first place. They are out there, you know.
- The Real Estate Commission - If a ready, willing, and able buyer presents an offer that meets your listing price and terms, the agent has effectively earned the commission at that time. If a buyer presents an offer and you reach agreement on price and terms through counter-offers, the agent has also earned his or her commission. Sellers occasionally get cold feet, just like buyers do. If this is going to happen to you - make sure you consider it before you agree to terms with a buyer. Once you reach terms with a buyer, you have incurred two contractual obligations. One is to the buyer and the other is to your agent. If you should decide to cancel just because you've changed your mind about moving -- the agent has earned their commission according to the terms of most contracts. They will probably want to be paid.
- Multiple Listing Service - Your listing contract should specify whether or not the house will be listed with the local MLS (multiple listing service). It is definitely in your interest to have the house listed. This is because your sales force is automatically multiplied by however many agents are members of the local MLS. If your house is not listed, then you only have one agent working for you instead of many.
This is where selling "by owner" generally fails.
Owners see that an agent puts a sign in the yard, prepares brochures, holds open houses, advertises in the paper and on the internet, and they think this is how houses are sold. It is easy to understand why owners believe that, but it just isn't so. Listing agents do those things for three main reasons. First, because the owners expect them to. Second, because it shows other sellers how much they do to market a home, and it gets more listings. Third, because it brings in clients who want to buy "some" house - though it probably will not be yours. Practically no one buys the house in the ad or a home they visit during an open house. Think about your own experiences when you bought the house you are now selling. How did you find it? Probably through your agent, who found it in the Multiple Listing Service. The MLS is a huge network and practically every local agent is a member -- and those agents have clients looking to buy a home. That network is what sells your house.
- Lockbox- A lockbox is a basically a padlock with a cavity inside where a key to your home can be placed. Only someone with a key (electronic or mechanical) or the combination can get into the lockbox and access the key to your home. Having a lockbox available at your house makes it easy for other agents to get access to your house. Without the lockbox, agents representing buyers would have to set appointments to meet you or your agent at the house so they could gain access and view the home. This would be inconvenient. Since almost every other house does have a lockbox available, if you do not allow one most agents will simply not show your property. You will miss out on lots of potential buyers. The listing contract specifies whether you allow a lockbox or not. It is locked into place, usually on the front door and cannot be removed. Only other agents can access the key that is located within the lockbox.
4. The Listing Agent - Preliminary Marketing of Your Home
- The "Real" Role of a Listing Agent - When you bought your home, you probably used the services of a real estate agent. You found that agent through a referral from a friend or family member, or through some sort of advertising or marketing. The agent helped you in many ways and eventually you found the house of your dreams, made an offer, closed the deal, and moved in. For whatever reason, now it is time to sell your home and you need a real estate agent again. Many homeowners expect their listing agent to do the same things that a selling agent does – find someone to buy their home. After all, they do the things you would expect if they were searching for buyers. A sign goes up in the front yard. Ads are placed in the local newspaper and real estate magazines. Your house is proudly displayed on the Internet. But this is only "surface" marketing. More important activity occurs behind the scenes. After the "for sale" sign goes up and flyers are printed, your agent’s main job is to market your home to other agents, not to homebuyers.
- The "For Sale" Sign - It seems fairly obvious that when you put your house up for sale that your agent will put a "for sale" sign in the front yard. The sign will identify the agent’s company, the agent, and have a phone number so prospective buyers can call and get information. Signs are great at generating phone calls, even if very few actually purchase the home they call about.
- Flyers and a Brochure - Your agent should prepare a flyer that displays a photo and provides details about your house. There should also be a phone number so buyers can contact your agent to get additional information. The flyers should be displayed in a prominent location in your home.
- Advertising - Every home seller likes to be assured that their listing agent or the real estate company will run ads featuring their home. Newspaper ads could be large display ads with lots of listings or small classified ads featuring just your property. Ads may also appear in local real estate magazines and your listing will also show up on the Internet. Of course the agents and companies will run ads featuring your house, but not for the reasons you expect.
You see, the main job of advertising is not to sell your house directly. Advertising creates phone calls and some of those callers become clients of the agents answering the calls. This builds up a pool of homebuyers looking for property in general, all represented by selling agents (buyer's agents). Multiply this by all the agents and companies who also advertise homes, and there is a large pool of homebuyers in the market at any given time – all of whom are represented by selling agents.
The agents representing those homebuyers know about your home because it is listed in the Multiple Listing Service, has been on office and broker preview, and because your agent may have also sent flyers to all the local real estate offices. The agents match up their clients with available homes, one of which may be yours. Then they show the homes to their clients, who eventually make an offer on one. That is how your house gets sold. Ads create a pool of clients, one of which buys your home. Ads do not usually sell your house directly.\
5. Showing the House
Your home should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience. Most will just skip your home to show the house of someone else who is more cooperative. Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.
- Try Not to be Home - Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out-of- the-way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.
- Lighting - When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights – even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
- Fragrances - Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner (or the oven) for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.
- Pet Control - If you have pets, make sure your listing agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
- The Kitchen Trash - Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.
- Keep the House Tidy- Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.
6. Why Use a REALTOR® When Selling a Home?
- A real estate agent can help you understand everything you need to know about the home selling process.
- Not all real estate licensees are the same; only those who are members of the National Association of Realtors® (NAR) are properly called Realtors®. They proudly display the Realtor "®" trademark on their business cards and other marketing and sales literature.
- Realtors® are committed to treat all parties to a transaction honestly, subscribe to a strict Code of Ethics, and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reported that 84% of home buyers would use the same Realtor® again.
- Real estate transactions are one of the biggest financial dealings of most people’s lifetime. Considering the small upside cost and the large downside risk, it would be wise to work with a professional Realtor® when you are selling a home.
- Your Realtor® can give you up-to-date information when selling your home on what is happening in the marketplace as well as the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
- Often, your Realtor® can recommend repairs or cosmetic work that will significantly enhance the salability of your property.
- Your Realtor® markets your property to other real estate agents and the public. Acting as a marketing coordinator, your Realtor® distributing information about your property to other real estate agents through a Multiple Listing Service (MLS) or other cooperative marketing networks, open houses for agents, etc. The Realtor® Code of Ethics requires Realtors® to utilize these cooperative relationships when they benefit their clients.
- Your Realtor® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. NAR studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family, and personal contacts. When a property is marketed with the help of your Realtor®, you do not have to allow strangers into your home. Your Realtor® will generally prescreen and accompany qualified prospects through your property.
- Your Realtor® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing – and a lot of possible pitfalls. Your Realtor® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
- Your Realtor® can help close the sale of your home. Issues may arise between the initial sales agreement and closing (also called settlement or escrow), for example, unexpected repairs might be required to obtain financing or a title problem is discovered. The required paperwork alone is overwhelming for most sellers. Your Realtor® is the best person to objectively help you resolve these issues and move the transaction to closing.
7. How Long Has Your House Been on the Market?
Professional appraisers sum up their entire body of knowledge in three words: "Buyers make value." Your home is worth as much as a buyer will pay for it. If your home has been on the market for months, it’s a clear message that the property may not be worth what you're asking for it. This is particularly true if there haven't been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you're working with a time limit.
If you're not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that's been for sale for a long time.
If you really do need to sell, with your REALTOR® discuss a schedule for gradually dropping your price until you find a level that attracts buyers. There's no point in saying, " We simply can't sell our house." Anything will sell if the price is right.
8. If You’re Buying Another Home
You may wonder what will happen when you're selling one home and buying another – how will all the details work out? This is a common situation and Realtors®, lawyers, and title and escrow companies have plenty of experience in arranging contracts and loans so that the two transactions dovetail smoothly. If you find that you need to buy the next house before you've received the proceeds from the present one, lending institutions can sometimes make you a short-term " bridge" loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.
9. Market Conditions – Is it a Buyer’s Market or a Seller’s Market?
A CMA often includes a Days on the Market (DOM) value for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months. Your Realtor® can tell you whether your area is currently in a buyer's market or a seller's market. In a seller's market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer's market, if you really need to sell promptly, offer an attractive bargain price.
10. Estimating Net Proceeds
Once you’ve been given an estimate of market value by your Realtor®, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start looking for another home to buy. To estimate your net proceeds, from the estimated sales amount, subtract the applicable costs in the three sections outlined below: seller’s costs, buyer’s/seller’s costs and closing costs.
- Seller’s Costs: Subtract the following costs as applicable.
- payoff figure on your present loan(s)
- broker's commission
- prepayment penalty on your mortgage
- attorney's fees
- unpaid property taxes
- Buyer’s/Seller’s Costs: Additionally, your Realtor® can tell you whether local customs or rules dictate whether the buyer or seller pays for the items listed below. Subtract the following costs, as applicable.
- title insurance premium
- transfer taxes
- survey fees
- inspections and repairs for pest inspections, etc.
- recording fees
- Homeowner Association transfer fees and document preparation
- home protection plan
- natural hazard disclosure report
- Closing Costs: Your Realtor® will assist you in estimating what your final closing costs will be.
11. You Just Got an Offer! Now What?
Sit down with your Realtor® and review the offer.
- What are the terms and conditions being proposed?
- Are all the appropriate forms, Addenda, Notices, and Disclosures included?
- Is the Lead-Based Paint Disclosure and Maryland’s Disclosure or Disclaimer Statement included?
- Is the home purchase contingent on a home inspection, pest inspection, water test, well test, and/or other inspection or testing?
- Who is the Selling Agent representing?
- Has the buyer been pre-approved for a loan to purchase your home?
Now is the time to strategize. Can you determine if the buyer is able or willing to pay more for your home? Can you anticipate a better offer from some other buyer? Do the offer’s terms meet your needs, and are they acceptable?
If you find the offer acceptable, sign it. If you find the offer close to the terms and price that you need, then have your agent modify the buyer’s offer and make the buyer a counter offer. If you see no merit in the offer, reject it, and look for the next buyer’s offer.
12. Time for Inspections!
Okay, you accepted the buyer’s offer and you are now under contract. Timeline the inspections that were included in the contract. Look for a home, radium, radon, pest, water, septic, mold, and other possible inspections. Mark the due dates of the different inspections on a calendar.
Once the inspection results are given to your agent (presumably in writing), be prepared to respond if required. Follow the terms and conditions stated in the contract, and seek legal advice if you have any contractual questions.
The final walk-through is the final inspection before settlement. At that time, the buyer walks through the home, testing appliances and viewing any repairs that were performed during the contract period in accordance with the contract and ensures that the home is in substantially the same condition as it was when the contract was first ratified.
13. Settlement and the Transfer!
The contract was ratified, the inspections passed, the buyer’s financing is in place, and it’s time for settlement. The Buyer’s Agent, Buyer, Seller, and the Seller’s Realtor attend settlement. This is the final step. All fees are calculated, accounts adjusted, and credit/debits documented on the Housing and Urban Development Settlement Sheet, also known as the “HUD-1.” All invoices from vendors, the lender, and the title company are signed and officially executed. If you have any questions about the transaction, this is the time to speak up. Once the documents are signed, it is generally too late to affect any major changes in the transaction.
When all the papers are signed, the home Seller will be provided with a copy of everything for their records. These should be kept in a safe place. At the conclusion of settlement, the Seller gives the home Buyer the keys to their new home.
Your ordeal is finally over and you are now homeless. Hopefully, it has not been an arduous ordeal and you will be ready to do it again in a few years.
