After buying your home many years ago, all of the kids are now out of the house, and you want to downsize. Or perhaps you are moving elsewhere to retire. Whatever your reasons may be, you will now find yourself on the other side of the escrow process. Here are some of the top things you should know to make sure that the sale goes smoothly.
Consider Getting a Property Inspection
As the seller, you want to avoid negotiations once you are under contract. By getting an inspection before listing the property, you can handle anything that needs to be fixed. Moreover, you can make this report available to the buyers so you can make the transaction as transparent as possible. That way both parties, the seller, and the buyer, aren’t wasting their time and the transaction can move forward.
Choosing to Note Give Credits
According to Zillow, a seller may choose to have the work that was found in the inspection completed before closing or that payment goes directly to the contractor for the required work. By doing this, the seller is protecting themselves since buyers may ask for credits to do this work but in reality, want to use this money to offset closing costs. Moreover, it also prevents the seller from giving too much money if the work ends up not being as expensive as the original estimate.
Prorations and Closing Adjustments
When you the property is in escrow, the seller should continue to pay all financial obligations related to the property according to Wise Bread. These costs will be prorated once the escrow closes, and is typically based on a 30-day month. The terms for proration are usually spelled out in the purchase contract. For example, if your property was to close on the eleventh of the month, the seller would be responsible for the first eleven days but would receive a refund for the remaining nineteen days in the final payment.
Two Addendums to Watch Out For
Naturally, you will want to review the contract to determine if there is anything that is unsatisfactory. When you do this, you should also pay close attention to any addendums made by the buyer. These have the ability to replace the rules of the contract in case of conflict. The two addendums you should watch out for include a request to remedy unpermitted work and concession.
The foremost is one that the seller should not agree to because there are certain renovations that can be completed without the need for a permit. May sure you are aware of your homeowner’s association bylaws and what renovations do not need a permit.
Clauses that allow the buyer to submit a repair or credit request in writing should be rejected. Although the buyer has the right to inspect the property in various ways, at the end of the day, it should be in the seller’s power to decide what ways are satisfactory to comply with any of the buyer’s requests according to Wise Bread.
Selling a property is one of the biggest financial transactions of a person’s life, second to actually buying a home. The best thing you can do is to increase your knowledge base whatever side of the transaction you find yourself on, talk to family or close friends that have gone through the process before, and make sure to stay in contact with your escrow officer and agent.
