connie vallone

What Every Seller Needs to Know About Closing

In Buying a Home, Home Values, Houston Energy Corridor, Houston Real Estate Agent, Real Estate Investment, Selling your home on April 17, 2018 at 1:09 pm

Closing time. The end of the road. The last hurrah — and hurrahs are in order.

If you’re here, then you’ve found a buyer, negotiated home repairs, and are ready to move out — and on. But before you can make this sale official (and get paid!), you still have a few items to cross off your list.

Here, we’ve laid out everything you need to know to have a successful settlement.

Closing Is the Final Step

Closing, or “settlement,” is when both parties sign the final ownership and insurance paperwork, and the buyer becomes the legal owner of the home.

Typically, closing day takes place about four to six weeks after you signed a purchase and sale agreement. During this window, the buyer’s purchasing funds are held in escrow until all contingencies, like the home inspection contingency and appraisal contingency, are met.

Your agent will be able to answer questions and offer support through closing. Here’s what to expect from the process, start to finish.

Before You Close, You’ll Have a Final Walk-Through

Most sales contracts give the buyer one last chance to do a walk-through of the home within 24 hours of settlement. This is their chance to check that the property is in good condition, and to make sure the agreed-upon repairs were completed.

In most cases, no problems arise at this stage of the transaction. (If something is amiss, your agent can walk you through it.) The final walk-through mostly gives buyers peace of mind knowing that you, the seller, have adhered to the conditions of the sales contract and home inspection-related repairs.

Follow These Steps to Prepare for the Final Walk-Through

To help ensure that the walk-through goes smoothly, take these six steps ahead of time to prepare:

Step #1: Clean house. Your home should be spotless for the final walk-through. Assuming the buyer is taking ownership on closing day, you should be fully moved out at this point. But moving can be messy. After purging, packing, and moving, you may want to do one more deep cleaning.

Step #2: Leave owner’s manuals and warranties. Make the buyer’s life easier by providing all manuals and warranties you have for home appliances. Print physical copies and put these documents in one place for the new owner. If you have receipts from contractors for repairs, leave them with the manuals.

Step #3: Provide a vendor list. Give the buyer contact information for home contractors or maintenance companies that you’ve used in the past. These vendors are familiar with your home, and the new owner will appreciate having a list of servicers they can trust will take good care of their new home.

Step #4: Check for forgotten items. Do one more check throughout the home to make sure you’re not leaving anything behind. One exception: You may want to leave unused or leftover paint cans in the colors currently in use within the home — but confirm with the buyer first.

Step #5: Turn off water shut-off valves. The last thing you want before closing is a flood. With the buyer’s permission, turn off your house’s main shutoff valve 24 hours before closing.

Step #6: Lock up. Until settlement is complete, you’re legally responsible for the home — meaning you’d be liable if there’s a break-in before closing. So, the day before settlement make sure to close window coverings and lock the entry doors. If a house looks un-lived in, it’s a welcome sign to burglars. It’s a good idea to leave a porch light on, or to set an interior light to turn on and off with a timer.

If the final walk-through reveals an issue with the house, don’t panic. The standard protocol is for the buyer’s agent to immediately alert the listing agent that there’s a problem. Then, both parties work together to solve it. Typically, either the closing gets delayed or there’s additional negotiation, such as monetary deduction of the sales price. In other words: There are options, and your agent can help you through this.

Up Next: The “Closing Disclosure”

Let’s assume the final walk-through is smooth sailing. (Woo-hoo!) What happens next?

You’ll get info about your closing costs from the title company.

Meanwhile, the buyer’s mortgage lender must provide the buyer with a Closing Disclosure, or CD, three business days before settlement. This is a formal statement of the buyer’s final loan terms and closing costs. As the loan borrower, the buyer is entitled to a three-day review period to see if there are any significant discrepancies between their CD and Loan Estimate (LE) — a document buyers receive when they apply for a loan. The LE outlines the approximate fees the buyer would need to pay.

In most cases, there are no major differences between the CD and LE. However, if certain closing costs differ by 10% or more between the estimate and the disclosure, the buyer’s loan has to go back to the mortgage lender so that cost differences can be reviewed. If that happens, closing is usually delayed until the issue is resolved.

Expect to See These People at the Closing

The closing typically takes place at the title company, attorney’s office, or the buyer’s or seller’s agent’s real estate office. (Unless you live in a state that allows for electronic closings — eClosings — with remote notaries. In that case, the involved parties can opt to sign documents digitally.)

The list of legally mandated {{ start_tip 104 }}attendees{{ end_tip }} will depend on your state, but usually you’ll be joined by:

  • Your agent
  • The buyer
  • The buyer’s agent
  • A title company representative
  • The loan officer
  • Any real estate attorneys involved with the transaction

Remember to Budget for Closing Costs

Closing costs can vary widely by location, but you’ll generally pay closing costs of 5% to 10% of the home’s sales price. So, on a $300,000 home, you can expect to pay anywhere from $15,000 to $30,000 in closing costs. In most cases, these costs are deducted from your proceeds at closing.

Closing costs for sellers typically include:

  • The commission for the listing agent and buyer’s agent
  • Transfer taxes or recording fees
  • Loan payoff costs
  • Unpaid homeowner association dues
  • Homeowner association dues included up to the settlement date
  • Prorated property taxes
  • Escrow, title, or attorney fees

Be Sure to Bring These Things to Closing

At the closing you should have:

  • A government-issued photo ID
  • A copy of the ratified sales contract
  • House keys, garage remotes, mailbox keys, gate keys, and any pool keys
  • A cashier’s check, or proof of wire transfer, if your closing costs are not being deducted from the sales price. (Yes, it’s OK to use a cashier’s check — especially if you don’t want to deal with the hassle of a wire transfer, which can take time to clear. With a cashier’s check, you’re guaranteed the money you need for settlement will be there at closing.)

Don’t Forget to Dot These I’s and Cross These T’s

Before you rush off to pick out paint samples for your new place, remember to do these two steps that are often overlooked by sellers:

Transfer utilities. Don’t want to pay for the new owner’s utility bills? Coordinate with the buyer so that utilities — including not only gas and electric but also water and cable — are transferred to the buyer on {{ start_tip 103 }}closing day.{{ end_tip }}

Change your address. You obviously want your mail to be sent to your new home. Setting up a forwarding address will also ensure that you can be reached if there are any post-closing matters. You can file a change of address with the U.S. Postal Service here.

Finally: Celebrate!

At last, your home is officially sold. Congratulations! Give yourself a pat on the back — and then start settling into your new phase of life.

By: HouseLogic

If you are interested in buying or selling real estate, please contact Connie Vallone with First Market Realty at 713 249 4177  or visit www.houstonenergycorridorhomes.com  or www.vallonehomes.com .

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The Everything Guide to Selling Your First Home

In Buying a Home, Home Upgrades, Home Values, Houston Energy Corridor, Houston Real Estate Agent, Real Estate Investment, Selling your home on April 13, 2018 at 3:19 pm

Selling, a famous salesman once said, is essentially a transfer of feelings.

You love and cherish your home. You want the next owner to fall in love with it, too — through photos, through words, and through the experience of walking through your front door. But, perhaps most, you want to get the price you want.

This isn’t a small task. Selling a home requires work. It requires time. The journey isn’t always easy. There will be frustrations. But when you seal the deal and move on to your next chapter  — wow, what a blissful, boss feeling.

Below, we preview and link to each step in your journey.  We’ll discuss how to know what you want (and what your partner wants, if you’re selling together). How to understand the market, and ways to make a plan. And most importantly? How to create relationships with experts and trust them to help you get the job done.

Now, let’s talk about selling your house.

First things first: You need to know what you want (and what your partner wants) in order to sell your home with minimum frustration. Why are you moving? What do you expect from the process? When, exactly, should you put that For Sale sign in the yard? We can help you get your thoughts in order with this home selling worksheet.

Do Your Research

Unless you bought your home last week, the housing market changed since you became a homeowner. Mortgage rates fluctuate, inventory shifts over time — these are just a few of the factors that affect the state of the market, and every market is unique. Educate yourself on what to expect. Start with our study guide on the market.

Interview and Select an Agent

This is the most important relationship you’ll form on your home selling journey. Pick the right agent and you’ll likely get a better sales price for your house. Here’s how to find and select the expert who’s right for you.

Price Your Home

How much is your home worth? That’s the … $300,000 question. Whatever the number, you need to know it. This is how your agent will help you pinpoint the price.

Prep Your Home for Sale

Today, home buyers have unfettered access to property listings online, so you have to make a great first impression — on the internet and IRL. That means you’ll have to declutter all the stuff you’ve accumulated over the years, make any necessary repairs, and get your home in swoon-worthy condition. Here’s how to stage your home.

Market Your Home

Home buyers look at countless listings online. The best-marketed homes have beautiful photos and compelling property descriptions, so they can get likes — which can amount to buyer interest — on social media. Some agents are even using videos, virtual tours, texts, and audio messages. It’s time to consider how to promote your property.

Showcase Your Home

One of the best ways to get buyers in the door is to have an open house. This is your chance to show off your home’s best assets, and help buyers envision themselves living there. Know how your agent will organize, advertise, and host the event to ensure it’s a success.

Receive Offers

Yes, you might get offers plural, depending on your market. Assuming you’ve collaborated with your agent, you’ve likely positioned yourself to receive attractive bids. Your agent will review each offer with you to determine which is best for you. (Read: The offer price isn’t the only factor to consider: Here’s why.)

Negotiate With the Buyer

To get the best deal for you, you’ll likely have to do some negotiating. Your agent will help you craft a strategic counteroffer to the buyer’s offer, factoring in not only money, but contingencies, etc. Let’s talk about how to ask for what you want.

Negotiate Home Inspection Repairs

Ah, the home inspection. It’s as much a source of anxiety for buyers as it is for sellers. Nonetheless, most purchase agreements are contingent on a home inspection (plus an appraisal, which will be managed by the buyer’s lender). This gives the buyer the ability to inspect the home from top to bottom and request repairs — some even could be required per building codes. The upshot: You have some room to negotiate, including about certain repairs. Once again, your agent will be there to help you effectively communicate with the buyer.

Close the Sale

Settlement, or closing, is the last step in the home selling process. This is where you sign the final paperwork, make this whole thing official, and collect your check. Before that can happen though, you’ll have to prepare your home for the buyer’s final walk-through and troubleshoot any last-minute issues. We’ve got you covered with this closing checklist.

By: HouseLogic

If you are interested in buying or selling real estate in the Energy Corridor, please contact Connie Vallone with First Market Realty at 713 249 4177  or visit www.houstonenergycorridorhomes.com  or www.vallonehomes.com .

Why You Probably Won’t Avoid Seller’s Remorse (But That’s Ok!)

In Buying a Home, Home Upgrades, Home Values, Houston Energy Corridor, Houston Real Estate Agent, Real Estate Investment, Selling your home on March 20, 2018 at 8:10 pm

Selling your house can be scary: It’s been your home, where you’ve lived and made memories. Chances are good it’s your most important asset and your biggest investment so far. Wrestling with the emotional heft of putting your home on the market is a difficult byproduct of real estate — but once a closing date has been set, the hard work is done. Right?

Actually, it’s not uncommon for sellers to feel pangs of regret when a buyer gets serious. If you’re feeling remorse for your soon-to-be-former home, don’t panic: You’re far from alone.

“When you’re selling a house, you’re not selling an object,” says Bill Primavera, a REALTOR® in Westchester County, N.Y., and “The Home Guru” blogger. “A house provides shelter and is probably the biggest thing we ever acquire, so it has a bigger impact on our life.”

The Origins of Seller’s Remorse

Moving is one of life’s biggest stressors. According to Daryl Cioffi, a Rhode Island counselor and co-owner of Polaris Counseling & Consulting, it’s one of the biggest instigators for depression.

“There’s a lot of latent stuff that happens when change occurs,” Cioffi says. Are you feeling insecure? Are you wondering if you made the right decision? Those feelings are normal reactions to change — but when they get tangled up with the sale of your biggest investment, they can be downright terrifying.

Here are some things you can do to help you manage the emotional roller coaster that comes with selling your home:

Do the Emotional Work Beforehand

Doing the emotional work before it’s time to sell is the best way to avoid regret.

“Look at the flaws of what makes it not the perfect home for you,” Cioffi says. Is it just too small for your family? Does your Great Dane need a bigger backyard? Ask yourself, “How can I close this chapter?”

That doesn’t mean you have to develop negative feelings toward your current home. You’re just trying to remind yourself of why you decided to move on.

“Begin the detachment process by saying: ‘This works for me now, but it won’t work for me forever,'” Cioffi says.

Once you’ve processed your reasons for selling the home, give yourself space to grieve the house you’ve loved and the memories you’ve made inside its walls. It’s OK to be sad you’ll never step inside your child’s first bedroom again; conversely, that’s not a reason to stay in a home forever. You can even have fun with your grief. Why not acknowledge your feelings by throwing a goodbye party for your house?

Focus On the Future

Working through your feelings early will make the selling process smoother, but even if you spent time grieving before putting your home on the market, it’s still normal to feel some pangs of sadness during closing. While it’s easy to tell yourself you’re overreacting, getting past remorse isn’t a simple process.

How can you do it? Say goodbye to your old home and prepare yourself for what’s next. If you’re still feeling remorse after the sale has gone through, don’t overthink it: Even if you did make the wrong decision — and chances are good you didn’t — it doesn’t matter. The deed is, quite literally, done.

The next step is distraction. If you’ve already moved into your new home, throw yourself into fixing it up. Redo the shelving in the kitchen. Start a garden. Primavera recommends taking your mind off of homes completely by picking up a new hobby or exploring your new neighborhood to find fun activities, like yoga or pottery classes.

“Keep your mind focused on what’s ahead,” says Cioffi. “The fact is, it’s done. Now what? Look forward and focus on how you can make this new place something to be excited about.”

If you’re still having problems adjusting to your new life, your old home might just be a stand-in for bigger problems: Perhaps a depression worsened by moving, or it has triggered anxiety about your life in general. A long-term struggle to resolve your grief indicates you should speak with a professional counselor about your situation.

Cioffi says a good therapist will help you answer the questions, “What’s going on that you can’t let go?” and “What’s keeping you from moving forward?”

No matter how deep your seller’s remorse may be, uncovering the reasons behind it and focusing on the future are the best ways to let go of the stress of leaving a former home behind. Give yourself time to get used to the change and focus on creating new memories. After all, the happy life you had in the home you sold was the reason you loved it so much. Someday, with a new set of memories made, you’ll love your new home just as deeply.

By: Jamie Wiebe

If you are interested in buying or selling real estate, please contact Connie Vallone with First Market Realty at 713 249 4177  or visit www.houstonenergycorridorhomes.com  or www.vallonehomes.com .