The Home Selling Process

While there’s no such thing as a typical home selling process or sale – each has a character and a flow of its own – there are certain aspects you can expect. While local real estate practices may vary, here are the basic activities that occur during the transaction, from receiving an offer to closing escrow.

sale_process

Managing the Details

Once you have negotiated a contract and agreed on a sales price, the next phase of our job begins. Below is a list of some of the details I will be managing through the home selling process.

  • I will constantly check with the title company to assess when they need additional information and whether there will be any problems that could affect obtaining title.
  • I ensure that both you and your Buyer receive copies of all documents pertaining to the transaction. I will have the Buyer sign to acknowledge that he/she has received his/her copies.
  • I will make sure that the Buyer meets and removes all contingencies within the time limit provided or get an extension, if needed, signed by both you and the Buyer.
  • I will keep you abreast of the Buyer’s application for a loan and the progress of the appraisal on your home.
  • I will work with the appraiser to arrange for entry to the property and to answer any questions he/she may have about the home or neighborhood. I will also provide the appraiser with the most recent comparable sales in the area.
  • I will make sure that the Buyer increases their deposit in a timely manner.
  • I will coordinate and attend as many inspections as possible and keep you informed of all findings.
  • Once the inspections are complete, I will negotiate for you if any problems arise.
  • I will cooperate with the Buyer and others involved ensuring that corrective work is completed according to the terms of the contract.
  • I will ensure that all documents are ordered and drawn, including your loan pay-off and insurance for the Buyer.
  • I will do my best to have your closing papers drawn one week before Close of Escrow (COE) so that if any problems arise, I can solve them while remaining within the time frame you expect.
  • If you prefer, I will deliver your escrow check to you personally. I am also happy to coordinate move-in dates.

 

Who Pays For What?

A major question in every escrow is: “Who pays for what?” The answers vary by county ordinances and standard practices. What is listed below are “customary” practices.  All fees charged are governed by terms of the sales contract and other written escrow instructions. Note: on some FHA, VA or other government-backed loans, the buyer will pay some fees that governmental regulations will not allow you to pay.
Seller’s Generally Pay:

  • Real estate commission
  • Document transfer tax ($1.10 per $1,000 of sales price)
  • Notary fees
  • Property tax proration (to date of acquisition)
  • Special delivery/courier fees, if required
  • Document preparation fees
  • Document recording charges
  • Homeowner’s association statement fee and prorata dues
  • Home warranty (according to contract)
  • Work/repairs required (according to contract)
  • Matters of record against the property or seller (loans, tax liens, judgments, etc.) and fees required to clear them (statement fees, reconveyance/trustee fees and prepayment penalties)
  • Bonds and assessments (according to contract)
Buyer’s Generally Pay:

  • Title insurance policy premiums (lender’s and buyer’s)
  • Escrow fees
  • Notary fees
  • Property tax proration (from acquisition date)
  • Special delivery/courier fees, if required
  • Document preparation fees
  • Document recording charges
  • Homeowner’s association transfer fee and prorata dues
  • City costs
  • Home warranty (according to contract)
  • Inspection fees (according to contract)
  • Matters of record against the buyer including tax liens, judgments and fees required to clear them
  • Fire insurance premium for the first year
  • Assumption/change of records fees if the buyer is taking over an existing loan
  • Lender’s new loan charges
  • Interest on new loan from date of funding to 30 days prior to the first payment
  • Other prorations (rents, insurance etc.) if applicable