Understanding The Steps To Closing As A Home Seller
There are many costs and responsibilities that come along with selling a home. One of the most important parts of the process that sellers must be aware of is the closing process.
Come with us as we explore the seven steps to closing your home sale so that you can have a better understanding once you get there.
Signing The Purchase Offer
When you sign the purchase offer, you initiate the closing process. the signing of the purchase offer will dictate the timeline for appraisals and inspections. It will also dictate the major appliances that will remain at the property, how the home will be paid for, and additional rules surrounding the sale.
Open An Escrow Account
Once you have signed the purchase offer, you will have to hire an attorney and open an escrow account. As a gesture of good faith, the buyer will then deposit their money into the escrow account. The escrow account is where the money will remain until both parties have completed negotiations.
There are a few states out there that require attorneys to represent the lender. Even if your state doesn’t require it, you may want an attorney to represent your best interests.
Title Search and Insurance
During the title search, your property will be checked for liens, loans, or claims. The buyer and lender will get title insurance, which will protect them from any problems that may arise regarding the title. These problems may arise during the initial checks, though they might also appear much later down the road.
If you have heirs to your property that are hidden, disagreements regarding property boundaries, or outstanding taxes due, it could pose problems for the buyer later on.
While you may be thinking, “that all seems very unlikely for my situation,” you may be surprised as to how often these types of problems come up. In fact, almost one-quarter of the title searches performed end up revealing problems.
Many lenders require home inspections, regardless of if the buyer is using financing or not. These inspections are meant to find potential problems, including plumbing issues, electrical issues, foundation damage, and more.
If any issues were revealed during the inspection process, you might have to go into the renegotiation process. During the process, the buyer might ask for you to repair the problems or lower the sale price.
If you’re looking to avoid these problems altogether, you may consider selling your home with National Cash Offer. We buy homes in “as-is” condition, meaning you’ll never have to deal with costly repairs.
Getting An Appraisal
One of the last steps is to get a professional appraiser to provide your home with a fair market value. Typically, appraisers give a price that is at or above-market. According to Fannie Mae, only 5% of home appraisals come in at less than the value of the contract.
Finalizing the Sale
Once the closing day comes around, you will have to finalize the sale by signing some paperwork. However, you don’t necessarily need to physically be there during the closing process. What you will need to do, however, is remove all of your belongings from the house, clean up the property, and hand over your keys.
We hope that you feel more comfortable with the closing process with these steps laid in front of you. To avoid the hassle of a traditional closing process, consider selling with National Cash Offer.