Documents Needed to Sell Your Home

by Real estate financingMission+
7 minutes read

Documents Needed to Sell Your Home

Buying a home is likely the biggest single purchase of your life, so it makes sense to lean on the knowledge of real estate professionals to guide you through the process. However, that expertise doesn’t come cheap, and when it comes time to sell your home, choosing to sell without an agent can save you money that could be better used in your new home or for closing costs. Those savings could be as much as 3 percent in commission.

Selling your home without an agent is usually done with one goal– to maximize the profits made from the sale of the house. If you are considering taking on the sale of your home without the services of a real estate agent, you may stand to see thousands, if not tens of thousands of dollars in increased profit.

If you decide to go it alone, you’ll need to know exactly what documents to prepare.

Find What You Need Online

There are lots of resources on the internet to make selling your home relatively straightforward; check out our blog for more FSBO tips. One of the first things you’ll need to do is set a realistic asking price that can help you to attract the right buyers and sell quickly. The Federal Housing Finance Agency offers an online calculator that you can use to see how much your home should be worth if it has appreciated in value since you bought it, in line with comparable homes in your area.

Contracts

Print a few blank copies of offer and counteroffer forms, in case multiple offers come in, or an offer needs to be changed. Offers are discussed verbally before these are filled out, and in the case of only one offer, these forms may not be necessary at all. Offer forms do come in handy, however, in many cases such as when you cannot first discuss offers or when many similar offers come in.

Once you advertise your home and receive an offer, you need to lock down the agreement. The contract lays out the obligations and expectations for both parties, and once it is signed it becomes a legally binding document. It needs to include all details of the sale, such as the terms, the timing of the exchange and the price.

Residential Property Disclosure Form

The buyer will likely hire a home inspector to conduct a tour of the property and note any structural or cosmetic issues that will need attention. This point in the sale can be risky and often leads to negotiations on the selling price, especially if the inspection reveals any potential problems in the home. Most states require home sellers to provide a Residential Property Disclosure form to potential buyers that lists the condition and any defects in the property. The form must be filled out completely and honestly, but it is limited to your own experience living in the home. This means you are not expected to disclose something a neighbor told you about the home before you lived there, for example.

The Lead-Based Paint Warning Statement

If your home was built before 1978, you are required to provide information to buyers about the possibility of lead-based paint disclosure form being used in the home. Federal law requires you to provide the buyers with the EPA-approved information pamphlet titled “Protect Your Family From Lead In Your Home,” available from the EPA website.

 

Third-party Financing Addendum

If there are financial conditions or mortgages involved, you may need to provide a third-party financing addendum. This document may protect you, the seller, from significant loss by allowing for the termination of the sales contract should the buyers fail to meet their financial obligations, or should their mortgage application be refused.

 

To Increase Buyer Motivation

Although some documents are not mandatory in the sale of a home, they can make or break your buyer’s motivation. Home Buyers demand to know details. They are not only concerned with the significant immediate financial investment that they are making but also with the long-term costs associated with homeownership.

Be sure to make up an accurate list of chattels for the home. The inventory of chattels should include anything separate from the actual house but still fit in the sale, such as electric light fixtures, blinds or drapes, any owned equipment, and appliances, or accessories that will be left with the home such as swimming pool skimmers or vacuums.

If any appliances or equipment in the home is rented, it is essential to provide information regarding the cost and terms of the rental agreement, as well as any information regarding any performed services in past years.

If you have any invoices regarding renovations or repairs made to the home, these are often very helpful in the selling process. It is one thing to tell a prospective buyer that work has been done to the home, it is another to assure them with invoices not only that the work has been done, but when, and by whom in case of defects are noticed in the future.

Be sure to also have on hand some copies of any hydro or electricity bills that you may find, property tax information, and your home inspection certificate if applicable, as well as your bank information.

After the Sale

Once your sales contract has been completed and signed and the buyer’s loan is approved, you will need to ensure that a title search is completed before the change of title documents can be processed. It is the buyer’s right to specify the title company or lawyer to be used, but it is smart to have one at the ready, should the buyer request it.

The paperwork needed to sell a house without an agent can be an overwhelming process. However, at beycome, we aim to help you through the process as smoothly as possible.

We can even show you how to sell your house without realtor fees. For information on selling a home without an agent or how to sell a home with beycome™️, give us a call today at 844-239-2663 📞

beycome™️ is a flat-fee MLS listing service that is disrupting residential real estate by helping people to buy or sell a home without needing a real estate agent. The technology behind the beycome™️ platform brings buyers and sellers together, providing the tools and resources to empower people to be their best DIY agents.

The platform offers buyers up to 3% cash back on their purchase and allows sellers to list their properties for a flat-fee, saving them up to 6% in commissions.

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