What Does The Closing Process Involve When I Sell?

 

This article is for sellers to help them prepare to sell their home. Aside from curb appeal, and nice home features, and cosmetic items which create an emotional response and lure to prospective buyers, probably the key aspect of selling a home is the condition of the property. Does the roof leak? Are there items which require repair?

As this video explains, a signed sales contract doesn’t mean your house is sold … YET!

There are still financial, contractual and legal steps for both sides.

The buyer has to get financing to meet the contract terms – which includes credit checks.

And most importantly for the seller, the property is inspected and appraised.

There may be inspection items, painting, repairs and replacements which the buyer will request, and this can take time to negotiate.

Your attorney and Realtor can walk you through your legal obligations, and assist you with the process of negotiating these items.

It’s most important to remember that the law prohibits fraudulent concealment of known defects to property. The disclosure requirements will vary, and some sellers insist on selling property in “As Is” condition, thus minimizing repairs. Still. honesty is always the best policy when selling your home.

Seaview Title … Closings Made Easy!

What Is An Appraisal?

 

In order to extend credit, lenders need to know what your home is worth.

The mortgage company you select will order an appraisal to determine the value of your proposed purchase.

Every house is unique; appraisers are trained and licensed for expertise in putting a value on properties. Appraisers don’t work for the buyer or the seller;  their primary mission is actually to protect the lender who’s risking money against the home’s value.

Appraisers have to weigh factors about the property and location – including size, condition and comparable properties – to appraise its current value.

They know how to focus on conditions that affect value; dishes in the sink don’t; damage and neglect do.

Appraisals lower than the proposed purchase price can affect transaction details. The seller might have to lower the price or the buyer might have to increase down payment or fund additional escrow.

Appraisal seems a lot like inspection, but they’re not the same.

You can think of it this way:

Appraisers report on value to the lender.

Inspectors report on condition of the house and major components to the buyer.

So, you can expect both appraisal & inspection in your transaction, and it’s good to keep the functions of each in mind. Remember, you are entitled to a copy of your appraisal, as well.

At Seaview Title, we help to educate our customers to take the worry out of one of the most important transactions they will face. We are here, from beginning to end, offering smooth sailing, all the way home!