OK, it is time to list. What do you need to do and what will your REALTOR® do? First, you will fill out the listing agreement. You will also need to fill out a Seller’s Disclosure. This is the document on which you must disclose material facts about the condition of the home. Do you have an existing survey of the property? Has anything changed, like the addition of a pool, fence or patio? If nothing has changed, you can use the existing survey, but you'll need to sign and have notarized an affidavit stating that nothing has changed. Have you had a home energy audit? Anyone inside the Austin city limits who is an Ausgin Energy customer needs a home energy audit before you can legally close on a sale. Failing to do so is a misdemeanor. Contact me if you need the name of a good energy auditor. When a buyer decides to buy your home, an offer will be presented. Your REALTOR® will advise you as to whether or not the prospective buyer is qualified to purchase your home. Every valid offer should come with a letter from a lender stating that the prospective buyer is financially able to purchase the house. You and your REALTOR® will then review the written document, being careful to study all terms and conditions of the offer. The offer will usually come in the form af a contract promulgated by the Texas Real Estate Commission. If you don’t understand all the details, ask your REALTOR®. Once you accept the contract, it may be too late to make any changes. The contract, though not limited to this list, should include the following:
· A legal description of the property
· The offering price
· The down payment
· Financing arrangements
· A list of fees and who will pay them
· Amount of the deposit
· Inspection rights and possible repair allowances
· The method of conveying the title and who will handle the closing
· A list of appliances and furnishings which will stay with the house
· The settlement date
· Any relevant contingencies It may also come with other addenda such as a request for information about a homeowner's association, a disclosure about a water district, etc. Remember that the legalities of this phase are very important. If you have any questions or concerns, be certain to address them with your REALTOR® right away. Remember that a REALTOR® can not practice law, meaning that they can not interpret the contract for you. If you feel unsure about the contract, consult with a real estate attorney. Most offers to purchase your house will require some level of negotiation to come to a win-win agreement. Your REALTOR® is well versed in market conditions and understanding property values in your area. In addition, your REALTOR® has a thorough understanding negotiating, including what areas in the contract lend themselves easiest to negotiation. Your REALTOR® will review the written offer with you to make sure that you thoroughly understand what the buyers are offering and what they are asking in return. He will also give you an estimate of what proceeds you will receive. Some of the items that you may have to negotiate are:
· The price
· Financing
· Closing costs and closing date
· Repairs that need to be done
· Appliances and fixtures
· Landscaping
· Painting
· Occupancy time frame One of the most critical times between when the contract is agreed upon is the option period. This is a time period during which the buyers will have the house inspected. The inspection will cover the structural and mechanical condition of the house as well as inspecting for wood destroying insects (WDI), meaning termites or carpenter ants. The inspection is bound to turn things up. Often, the age of the house will be a significant factor in the inspection report. Older houses may not be up to code in many areas. Minor things are found in just about every inspection. You can expect a buyer to ask for repairs of any major problems, such as a bad roof or air conditioning system. Often you can expect to be asked to either make some repairs of to reduce the price of the house. If the house is being financed, the lender must be also satisfied with the inspection report. Any lender required repairs need to happen or the buyer's may not be able to finance the house. Your REALTOR® will then coordinate with all the parties and keep you informed as to the results of the various procedures. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the property the terms set forth in the contract will dictate your next step. Depending on the contract, you or the buyer may decide to walk away, open a new round of negotiations, or close. Your REALTOR® will advise you throughout this process and will help you coordinate any actions you must take to keep the sale moving forward. Now it is time to discuss closing the deal. |