When selling a home, the process often leads to confusion since there seems to be a whole host of tasks to complete at the same time. At some point, it normally reaches the stage where everything is reliant upon something else; this creates a risk of the deal crumbling in on itself. For example, the mortgage lender will not commit to anything before the house has been appraised. However, the professionals or the seller agent involved are fully capable of seeing a deal through from beginning to end. Today, we will be explaining exactly who you will work with when selling your home.
Market and Offer – Nowadays, around 85% of us contact realtors to put a property on the market and this is normally the starting point. From here, they might contact home seller agent for guidance on preparing the home and staging it for viewers; once this is done, it becomes more attractive to those viewing the property. Soon enough, the property will go through the Multiple Listing Service.
On the other side of the process, buyers will also contact realtors and they will place any bids necessary. If you receive an offer, it should contain the purchase amount, any contingencies including home inspection or appraisal, how the money will be paid (financing, cash, etc), and then how they will obtain the money and whether this hinges on a deal. After an offer, you should sit down with your realtor to discuss the terms included as well as the price offered.
If you are the 15% not choosing a realtor for the process, it is wise to contact a real estate attorney just give the offer a once over. This way, you can check its legality and just check that it will not put you in a poor position in terms of costs. Over the years, there have been many people regretting the decision not to contact an attorney. If you’re a buyer going it alone, your offer should be drafted by an attorney to keep you protected. If you miss out any particular contingencies, you could end up buying a home without an inspection, appraisal, and even without securing finance. If a home inspection fails, you should have the right to reject the purchase rather than being forced to buy it anyway.
Mortgage Lender – With the purchase offer, the mortgage lender should attach a pre-approval letter. Over time, they will run credit checks and debt analysis just to make sure the buyer is in a position to purchase your property. As soon as negotiations begin, the mortgage lender will work with the buyer’s agent, closing company, and the appraiser to prepare the funding and ensure that it’s ready when required.
Appraiser – So the mortgage lender can gain an estimation on the value of the home, a qualified and licensed appraiser should visit the property to check its condition. If the appraiser suggests a higher value than the one agreed, the process can continue and the next step will be taken. If the appraisal value is lower than the one agreed, there is a chance of it being cancelled unless the buyer asks for a second appraisal. Alternately, the buyer and seller agent can discuss adjusting the sale price in an agreement.
Home Inspector – On behalf of the seller agent, the home inspector will also visit the home and advise on any major issues with the condition or mechanical functions of the home. Whilst some states require a license for this, others do not so you might want to check your state’s laws. In Ohio, there are no licensing requirements but Kentucky is quite strict with who can perform home inspections.
If they do an initial inspection and find an area they cannot comment on, further evaluation may be necessary. In truth, this could be a whole number of issues such as the HVAC system, garage doors, foundation, plumbing, roof, etc. After the inspection report, the buyer can ask for certain repairs to be made before purchasing. If they would rather move in sooner, they could ask for a certain percentage to be knocked off the price. If the damage is too severe, the deal could be cancelled altogether.
Title Company – Despite popular belief, the title company will actually get involved in the process quite early. After an offer has been made, they will jump into action by researching the deed history of the property. With this, they will ensure that the seller is in a position to transfer the title to the buyer. For the most part, these will be owned by attorneys or at least have a team of attorneys for a professional opinion. If the title insurance cannot be obtained, the mortgage company will not lend and it is as simple as that.
Furthermore, the title company will also work with the mortgage landers to ensure that the money is ready to be transferred on closing day. If the seller agent has a mortgage in place, they will also look to obtain the pay-off quote so closing day can run as smoothly as possible. Additionally, they will secure the title work, title insurance, and more. Finally, they will make sure that the distribution of funds is correct between all parties involved including realtors, seller, tax authorities, Home Warranty company, mortgage company, and more.
Summary – Above, you can see the many different people that get involved in the buying/selling process. However, you can also see that it doesn’t need to be confusing. Ultimately, they are all working to get the deal done and ensure that the buyer and seller agent get what they want out of the deal. If any brick walls come up along the way, they will try to solve them or cancel the deal. Although everything does rely on everything else, the different parties involved are normally efficient with their communication which should see you sell your home with ease.
If you are ever confused along the way, there is no reason why you cannot contact your attorney or realtor and they will explain certain decisions or delays!