FREE — The common steps for selling property.
We HELP YOU take control of marketing your property!
While all property is unique and you may want to seek the advice of an attorney, most property falls to the basic following process.
UNDERSTANDING THE PROCESS OF SELLING YOUR PROPERTY
So YOU have successfully marketed your property using us as part of your marketing strategy. Someone is interested in buying your property. GREAT! But what to do now?
EIGHT STEPS
THREE FORMS
Step 1 and form 1
Most States require the seller to provide the buyer a “property disclosure form” (Get this form free at our “contracts and forms” page.) Hopefully you have already provided this form and other marketing materials to the potential buyer. If you have not, print it out, fill it out and supply a copy to the buyers when you get together to write or review the “offer to purchase contract”.
Step2 and Form 2.
Most States and the federal government require the seller to provide the buyer a “lead based paint” disclosure brochure. (Get this form free at our “contracts and forms” page.) Hopefully you have already provided this brochure and other marketing materials to the potential buyer. If you have not, print it out and supply a copy of it to the buyers when you get together to write or review the “offer to purchase contract.”
Prior to writing the “offer to purchase contract”, we suggest the seller complete the “property disclosure form” and supply the “lead paint disclosure brochure”. Providing these to the buyers in advance of an “offer to purchase contract” will help protect sellers from buyers “backing out” and protect buyers from unseen “surprises.”
Step 3,
We suggest that before the you sign an “offer to purchase contract” you require the buyer go to their bank and get a “pre-qualification letter” (this is not required, merely suggested.) This does not commit the buyer to anything. However, it does allow the you to feel more confident that the buyer can qualify for a loan to buy the property.
Step 4 and form 3.
“Offer to purchase contracts” and most other real estate contracts must be in writing to be enforceable. (Click here to get a free sample contract at our “contracts and forms” page.) You can print our sample “offer to purchase contract” and fill in the blanks, write your own contract or have your attorney write one for you. If you believe our state approved sample is sufficient for your needs, print it, fill in the blanks and use it. As with any property transaction, while it is not required, we strongly suggest you seek the advice of an attorney to at least review the “offer to purchase contract”. Most attorneys will do this for a small fee. (Click here for a list of local attorneys. )
Step 5
An earnest money deposit is a deposit made to a property seller to secure an offer to buy the property. It is similar to a down payment. Usually the buyer's check is made out to and kept at the title company (so choose a title company before you write the “offer to purchase contract”. Click here for some local title companies in your area.) This money is usually applied to the purchase price. Often earnest money deposits range from 3 to 5 percent of the purchase price, however, you can agree to none or more earnest money. It is up to the agreement of the buyer and seller. The earnest money is often forfeited if the buyer decides to withdraw the “offer to purchase” for an unjustified reason.
Watch out here. Justifiable reasons often include the inability of the buyer to qualify for a loan, however if the seller has insisted on the above “prequalification letter” this will not be an issue. Another common justifiable reason to withdrawal an offer is an “undisclosed material defect.” That means any “major issue” that the seller has not disclosed on the “property disclosure form” could be a justifiable reason to withdrawal an offer. So sellers should complete the “property disclosure form” completely and honestly. If a buyer has deposited earnest money with the title company then wants to back out and you believe you are entitled to keep the earnest money, now is the time to seek the advice of an attorney. ( Click here for a list of local attorneys. )
Step 6
After your buyer and you have completed and signed the “offer to purchase contract”, have had it reviewed by your attorney (review by an attorney is not required, merely suggested. Click here for some local attorneys in your area.) Then you will need to go to your chosen title company with; (Click here for some local title companies in your area.)
a) The “offer to purchase contract”,
b) A copy of “the property disclosure form”,
c) A copy of the “lead based paint” form,
d) The buyer's “pre-qualification letter”, and
e) Any earnest money deposit.
When you take the forms to the title company you will set up a “closing date” The closing date is the approximate date that the seller and buyer sign all the ownership papers, ownership will change and the seller gets their proceeds.
Step 7
Most buyers will want to hire and pay for a home inspector. (This is not required but we recommend it.) This comes after the “offer to purchase contract” has been completed and turned into the title company. Most “offer to purchase contracts” allow the buyers to back out if “material defects” have been found that were not disclosed on the “property disclosure” form provided to the buyer earlier. (Click here for a list of some home inspectors in your area.) Often, after the home inspection the buyer will want some minor repairs made by the seller. We suggest sellers and buyers openly negotiate with each other as to what you will and won't do. Just a tip to buyers and sellers. You have both put a lot of time and effort in your agreement, if the inspection calls out a small issue, don't let your pride be a deal breaker.
Step 8
Go to the closing, sign the papers and collect your money! THIS IS WHERE YOUR HARD WORK PAYS OFF. ALL OF YOUR THE EFFORT AND EXPENSE HAS JUST SAVED YOU THOUSANDS OF DOLLARS! Last call or email us and we will promptly come and remove our sign. We hope you transaction was easy and we hope we can serve you again in the future.
If you chose to use our state approved forms we recommend, while it is not required, you seek the advice of an attorney to review all your completed forms. Click here for a list of local attorneys, that for a small fee will review the “offer purchase contract”. Links to forms
a) A “property disclosure” form. (Get this form free at our “contracts and forms” page.)
b) A “lead based paint” disclosure form. (Get this form free at our “contracts and forms” page.)
c) An offer to purchase contract. (Get this form free at our “contracts and forms” page.)
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