Sales contract
This is the legal contract to sell the house, called a sales contract or purchase agreement. It identifies the buyer and seller and contains the following initial items: a list of appliances and fixtures included, the purchase price, earnest money deposit, information on the buyer’s financing, and details about the property itself, such as the address, type, and lot size.
Carson says that when buyers and sellers start working together, problems often arise. A common issue he’s seen is: “Something was promised, but it wasn’t put in writing, and after closing, the refrigerator was taken from the property.”
Then, the contract delves into specifics about the closing: the closing date, contingencies such as inspection, appraisal, or the buyer selling their home, and the type of title. It should clearly spell out any taxes, assessments, and utilities owed by either party and who pays the closing costs.
Be sure to include specifics about what happens if the contract is breached. If the buyer walks away from the sale or fails to comply with its terms, you’re in a better position if you can keep their earnest money.
Title reports
A title company researches your title’s history and puts together a report for the buyer. This research includes verifying that you have the legal right to sell the home and identifying any easements or assessments.
Deed
The physical deed document describes the property and its boundaries in detail. It’s used to sign off ownership to the buyer.
Loan documents
You, or the title company, will call your lender to obtain a payoff amount. You’ll need to bring documents related to your current mortgage and outstanding lines of credit to closing.
Recent utility and property tax bills
This isn’t a requirement, but buyers may request that you bring recent utility bills and property tax statements to the closing. That way, they know who to call to have everything switched into their name.
Homeowners association agreements (if applicable)
If you’re selling a condo, townhome, or single-family home in a homeowners association, the buyer will need copies of the rules, covenants, and agreements.
Plans, permits, and other paperwork relating to work done on the house
Did you add a deck or build a garage? Gather the associated plans and permits to prove to the buyer that the work was done legally.
Receipts and warranties
Again, this is not required, but if you’re leaving major appliances, the buyer’s agent could ask you to provide copies of receipts and any applicable warranties.
What is the top mistake FSBO sellers make?
Not putting the price on the listing. Believe it or not, some FSBO sellers think that failing to disclose the list price in private advertisements will increase interest, but the opposite is true. Most buyers feel uncomfortable calling and asking directly and may worry that you’ll overprice the home. Being upfront increases their confidence in you and the transaction.
Weigh the benefits and understand the trade-offs
If you decide to sell without a Realtor, you’ll be wearing many hats — scheduler, marketer, legal expert, and more. It is a full-time job, which is why most real estate agents do it full-time.
If you don’t have the time and energy to handle all of that and prefer to sell with a Realtor, HomeLight can connect you with the best agent to sell your home. Our free Agent Match tool analyzes millions of transactions to find top agents who sell homes faster and for more money than others in your area. It takes just two minutes to find someone to take all that work off your plate and guide you through the complicated process of selling a home.
