Hooray! You’ve found a buyer for your home. You’re done, right?
Not quite. All you have to do now is get yourself—and your house—ready to close, and we’re here to help. Let’s dive in!
Earnest Money
When a buyer makes an offer on your house and you accept, they will provide an earnest money deposit. This deposit serves to demonstrate their commitment to purchase the home. Typically, the amount of the deposit is 1% to 2% of the offer amount and should match the agreed-upon amount in the contract. A neutral third party, such as the title company or closing agent, holds the deposit until the deal is finalized. If the deal is successful, the earnest money becomes part of the buyer’s payment. However, if the deal falls through due to the buyer’s contingencies not being met, the money is usually returned to the buyer. Yet, if the buyers back out without a valid reason, you, as the seller, may be entitled to keep the earnest money as compensation.
The Seller Disclosure
“When you accept an offer, it’s crucial to provide the buyer with your seller’s disclosure. This is a detailed list of any issues with the house or the surrounding area. Typically, your real estate agent will provide you with this document at the time of hiring them.
Understanding the significance of this document and ensuring its accuracy is essential. Florida state law mandates
that you disclose all known repairs or defects at the time of sale. These could include structural problems,
repaired broken windows, the age of the roof, fixed plumbing leaks, or any repairs to the ceiling caused by an air
conditioning unit in the attic just to name a few. Additionally, environmental issues such as previous flood damage
inside the home or a sinkhole in the yard should be disclosed. You might also choose to disclose more than the
minimum required, and that could be a prudent decision. It’s always recommended for sellers to provide as much
information as possible.
This may seem contrary to selling your home, as you wouldn’t want to scare the buyer away. However, withholding information could lead to a failed deal or even a future lawsuit. Ultimately, the buyer is likely to uncover the information sooner or later, so it’s best to be upfront and transparent.”
The Home Inspection
Whether or not you have sold your home “as is,” the buyer will likely request a home inspection. During the inspection, the inspector’s primary responsibility is to identify any issues with the property, ranging from major concerns such as roof damage and structural issues to minor details like loose doorknobs and missing caulk. The inspection also encompasses major appliances, the HVAC unit, and pool equipment.
Since the buyer is responsible for hiring the inspector, they will receive the inspection report. If any issues are discovered, they will notify you, and it may become a point of negotiation before the closing.
After reviewing the seller’s disclosure and inspection report, the buyer may request specific repairs. It’s important to note that these repairs should address legitimate issues, rather than personal preferences such as outdated appliances or paint colors. Your Renext agent will be instrumental in helping you negotiate these repairs, as well as, determining whether to undertake the repairs yourself or provide the buyer with a credit.
To mitigate the possibility of unexpected repair costs, it may be beneficial for you as the home seller to consider obtaining a “seller’s home inspection” beforehand. This step allows you to gain a clear understanding of your home’s current condition, potentially saving both time and money at closing
The Home Appraisal
If your buyers are using a mortgage to purchase your home, they will need to hire a home appraiser. An appraiser determines the value of your home, ensuring a solid investment for the lender.
The appraiser will thoroughly evaluate your home and research the sale prices of comparable houses in your neighborhood. If the appraiser’s valuation meets or exceeds the home’s sale price, everything is in good shape. However, if the appraisal comes in lower than the asking price, it’s a challenge that can be resolved.
In such cases, lenders typically won’t offer a loan amount that exceeds the appraisal value. The buyers then have two options: they can either make up the difference in cash or negotiate a lower sales price with you. If the latter occurs, make a confident decision whether to accept the lower price or cancel the contract.
If the buyer is using an FHA loan, the appraisal is valid for six months for any subsequent FHA loan applicants. However, if they are using a conventional loan, a new appraisal can be obtained with a likely similar valuation based on comparable homes.
With these factors in mind, confidently consider whether it’s best to negotiate a new sales price with your current buyer to expedite the sale or take the chance of finding a new buyer and facing a new appraisal
Questions?
