How to Prepare for a Smooth Home Closing
Whether you are in the process of selling your home or you are thinking about selling, it is important to know that sellers have an important role in the process. It’s far more than just picking the right listing price and marketing the property to the widest audience. There are certain steps in the process that have to be navigated to ensure you reach the closing table.
Not Disclosing Issues
When you list your home for sale, you will be required to fill out a home disclosure statement. It’s the seller’s opportunity to disclose any known issues with the home. This includes things like the age of the roof and water heater, any major repairs or additions, and more serious concerns like asbestos and lead paint.
Most buyers will perform a home inspection prior to purchasing your home, and if it turns out that there are big issues that you likely knew about, this can certainly derail the process. The disclosure process in Connecticut applies if you are selling the home “as-is” or not. However, if a seller decides to not complete the written disclosure form, they are subject to a $500.00 “penalty” payable to the buyer at the closing. Always be upfront with any known issues. Be sure to complete this disclosure form to the best of your ability.
Missed Deadlines
Whether buying or selling, missing deadlines can easily derail the home sale. There are deadlines to respond to offers and deadlines for when home inspections and appraisals must be completed. There are deadlines that keep the process on track, such as contingency deadlines, earnest money deadlines and even deadlines for various signatures. Stay organized and stay in contact with your agent to make sure the process continues on smoothly. Various deadlines apply to both the sellers and the buyers. Parties represented by an agent or lawyer need to inquire in order to learn what their respective duties are.
Inability to Make Decisions
As a seller, it is common to want to wait and see if a better offer gets presented. Be mindful of your timeline and do not let indecisiveness cost you your best offer. To avoid this, make sure that you have asked your agent to show you comparable homes that have recently sold. This will help you understand what the current value of your home is and can help you feel confident in accepting an offer that falls within that range. Do not wait until you get your first offer to start investigating what your home is really worth! An analysis of recent sales is one indicator of value. However, most professionals will tell you that a home’s value is what a willing buyer will offer to pay a willing seller.
Low Appraisals
If the buyers of your home are seeking financing, the mortgage lender will require an appraisal of your home to ensure it is worth the amount that the bank is lending to the buyers. While the appraiser’s report is out of your control, you do have the ability to perform an appraisal prior to listing your home for sale, which can give you some comfort knowing that your listing price is in line with that appraisal report. A low appraisal means the buyer will have to produce the difference, a new offer must be negotiated, or the offer may fall apart.
Getting to the closing table of a home sale is not always easy. Rely on the advice of a trusted professional, including the lawyer who will handle the closing.
Do you have questions?
You can count on Ericson, Scalise & Mangan, PC to provide you with sound guidance and experience in Real Estate transactions, Estate Planning, Probate, and Elder Law. For assistance with your legal needs, please contact us today at (860) 229-0369, or email us at info@esmlaw.com.
