The Home Selling Process: What to Expect

There are a Lot of Moving Parts to Sell Your DFW Area Home

So you've read through the Home Sellers Preparation Guide, selected a Realtor, determined a fair market price, and staged your home. In fact, your home's curb appeal was so appealing, you've received your first offer – now what?

The following gives you a step-by-step explanation of the Home Selling Process and what you can expect:

Receiving an Offer

Once a buyer decides they would like to buy your house, an offer will be presented. Review the entire offer, noting what is being presented, so you can accept, counter, or reject it outright. Once you accept and execute your offer, any changes will require the other party's consent to become binding. 

Your offer, 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 inclusions
• The method of conveying the title and who will handle the closing
• A list of possible personal property items, appliances, and furnishings that the buyer wants to stay with the home
• Listed Seller Exclusions - items the seller wants to retain.
• The settlement date
• The all-important lender pre-approval letter - This letter can either validate the quality of your offer or substantially undermine it.
• Any relevant contingencies and Addendum(s)

Remember, time is of the essence with real estate, and responding too slowly can cause a buyer to pull their offer. If you have any questions or concerns, they need to be discussed with your agent promptly. Agents will work to verify that the buyers' financial qualifications are legitimate before recommending acceptance of your offer and reviewing the written offer to ensure it is free of mistakes that could invalidate the contract should a dispute arise.

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Negotiating an Offer on Your Home

Most offers to purchase your house will require some negotiation to reach a win-win agreement. It would help if you were well-versed in the legalities of the real estate contract used in your area. In addition to legal issues, you will need to understand contract basics, including what each contract clause means to you and your buyer, what you will net from your home's sale, and which areas of the contract lend themselves to the easiest negotiation.

Some of the things that you may have to negotiate on are:

• The offer price
• Amount of Earnest Money to bind the contract
• Financing considerations and general strength of the offer
• 3rd Party Financing Condition Addendum, type of loan, length of time to obtain lender approval, and how that can affect the sellers.
• Lender-quality considerations that the seller needs to be made aware of, and why they matter.
• Closing costs requests
• Noted repairs added to the original offer and how to respond
• Appliances and fixtures the buyer wants to include in the offer.
• Actual Seller Move-out date
• Seller's temporary leaseback for up to 60 days from the closing date, subject to the parties' agreement.

To really gain some insight into why potential buyers are pursuing the purchase of your house and how they might proceed in the negotiations, it is important to know as much about the buyer as possible, especially their motivation for buying. Once both parties have reached a point where there is an agreement, you must still be reasonably certain that you have a legally binding contract of substance that can close escrow.

It is the agent's duty to provide experienced advice about any offer received, its potential hazards, as well as its strengths and merits. He or she will review the written offer to ensure you thoroughly understand what the buyers are offering and what they are asking for in return. It is your Realtor's® primary responsibility to protect your best interests, give you updates on net proceeds from the sale, and act as your listing agent through each contract milestone to the day of closing.

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After You Sign Your Contract

Once you have accepted an offer to sell your house, you will need to make a list of all the things you must do and a list of all the things the buyer must do to proceed successfully to closing. The property may need to be formally appraised, surveyed, inspected, and repaired. Depending on the specifics reached during the negotiations, you may pay for all, some, or none of these items. If there are problems with the property, the terms outlined 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 agent can save you time and money by assisting with and even coordinating all the necessary steps to finalize the sale. Your agent will be directly involved and keep you informed about the results of each action and what effect, if any, it will have on the sale of the property. He or she will also help you coordinate any actions you must take to keep the sale moving forward. Some sales go smoothly, while others require a lot of work to reach the closing table. Either way, your agent will prove to be a valuable resource for you.

• Allowing inspections and buyer access during the buyer's option period
• Negotiating the Buyer's Option Period Repair Request, offering options, cash instead of repairs, etc.
• Issues found by the buyer's inspector: How to get professional opinions on suspected deficiencies
• Dealing with unknown storm-related damage, namely roof issues, with insurance providers
• How to get receipts and pay ahead if work can't be completed before closing
• Obtaining critical HOA for permits when necessary for repairs, like the roof, fence, and landscaping
• How to prepare for the "appraiser's visit with receipts for recent improvements, and other contracts in support of value, if there were multiple offers.
• Strategies for dealing with a low appraisal and mistakes by appraisers. Since CFPB was created in 2009, Appraisals have been a mess.
• How to keep scheduled closing on time to prevent the last-minute panic

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Pre-Closing Preparation

A few days before the closing, contact the entity closing the transaction and confirm that all necessary forms and documents have been prepared and will be available to sign on the appropriate date. You should also begin making arrangements for your upcoming move if you have not already.

Your agent can save you time and money by ensuring all necessary documentation is prepared for closing. They will also ensure that all parties have completed what they need to do so that the closing can proceed on the planned date and time.

You will need to schedule a shut-off date with all your utility providers.

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Closing

This is where ownership is legally transferred to the buyer. As the seller, you will need to be prepared to give over any necessary documentation regarding the property. Depending on the arrangements made during negotiations, you may be required to have done something specific to close. Be sure to read all the documents. Mistakes are more common than you might think.

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Post-Closing

Congratulations on the successful sale of your home! Hopefully, everything went smoothly, and you will be vacating your house in the time frame you had anticipated. You should make a list of all the items you will need to complete before turning your former property over to the new owners.

• Disconnecting utilities: Gas, Electric, City, Phone, Internet, Alarm.
• Agreed-upon items to be conveyed to the buyers.
• Landscaping contacts
• Pool Service Contacts
• Garbage Pickup day

The professional team at Askins Realty Group in McKinney, TX, will be happy to answer any questions you may have about selling your DFW-area home. Please find out how you can save thousands with our Market Leading Low Cost to 100% Commission FREE Move-up. Please email or call 972.529.2394 (Local Office)

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