Selling a house is a long process. It involves a progression of steps and interacting with your real estate agent and your buyer in many different ways. You will have to deal with state laws, insurance agents, and even your bank.
The good news is that the final steps in the selling process are pretty standard. After the long, arduous process of home listing, marketing, and negotiating, you are just a few signatures away from closing the final door on your home. As you get closer and closer to settlement day, here are the final steps you have to take:
1. Home Inspections
As you and your potential buyer negotiate final pricing, your buyer will initiate a home inspection. A home inspector will examine the house structure, plumbing, electrical system, and roof.
Negotiations may drag longer if an unexpected defect or problem turns up during the inspection. The buyer may request a repair, and the transaction is put on hold until both parties are satisfied with the property’s condition.
During the inspection period, you are expected to deliver your property disclosure. All homeowners are obliged by law to provide full disclosure and documentation of all the issues that you encountered while living in the house.
2. Buyer’s Loan
Once you’ve settled on a closing price, your buyer’s mortgage file goes through the underwriting process. You will have to wait until your buyer’s loan is approved—this takes an average of 6 to 8 weeks.
This is also a period where you can review your closing costs. Selling a house is expensive, and closing costs can be as high as 10% of the sale price. This consists of your real estate agent’s commission, your buyer’s agent’s commission, and all taxes and fees.
3. Contract of Sale
Once you and your buyer have agreed on the final price, the first step in legalizing the sale is to sign the Contract of Sale. You and the buyer each sign one copy before they are exchanged. At the time of contract exchange, the buyer will is required to pay a deposit, usually 10% of the final price. Your real estate agent will facilitate this whole process and keep the deposit in trust.
4. Legal Settlement
A house is considered sold only once the deed has changed hands and when the funds have been disbursed. You and your buyer’s lawyers will ensure that all legal obligations are fulfilled. All payments should be made and all documents filed with the local land registration office and your local municipality’s records office. Your title company will pay off the remainder of your mortgage and all transaction costs. The remainder will be provided to you in a check or deposited straight to your account.
The house keys and the title are then officially transferred to the new owner. After a complicated, month-long journey, you’ve made it through. Congratulations, you’ve finally sold your house!
Selling a house is a very complex process that will take months to finalize. You need to be financially and mentally prepared. Your real estate agent and lawyers should assist you every step of the way and always have your best interests at the forefront throughout negotiations. It’s a lot of stress and even more paperwork, but you’ll get through it!
Are you looking for the best real estate agents in Owensboro, KY to help you sell your house? Our agents at The Blake Hayden Group have over 35 years of combined experience in providing first class service to all our clients. View our current listings and contact us today for inquiries!