Seller F.A.Q's

Frequently Asked Questions About Selling

 

Q. What does it costs to sell my house...How much will I net?

A. Contact Us for for a Estimated Seller's Closing Expense Schedule.

Q. What typically goes into a listing agreement?  

A. The listing agreement is typically between you and the real estate company you employ. Think of it as your legal instructions to the people who will market your home and represent you in the sale. Such an agreement must include beginning and ending dates for the term of the listing; the conditions to which you, the listing agent and the real estate company agree; and a price (usually a percentage of the eventual sale price) you'll pay for services rendered in the sale of your home.

Q. How important is the condition of my property to its sale?

A. It's probably very important, depending on your priorities. Are you hoping to extract the maximum sale price for your home? If so, condition and appearance are crucial. If, however, you've let deferred maintenance catch up with you, your priorities may be different: you may wish to sell your home in "as is" condition, allowing the buyer to repair/replace items as s/he sees fit. In this case, your ultimate sale price will be less than what the same buyer would be willing to pay for a home that's in mint-condition.  

Q. Should we leave home during showings (tours) or open houses?

A. Generally speaking, yes. If it causes you no undue hardship, it's easier for a real estate agent to show your home without you being present. The agent is better able to demonstrate your home's features and benefits, painting a realistic picture for the buyers to envision themselves living there. Your absence will also allow your prospective buyers to focus on the house and its attributes – rather than on being polite to you.

Q. What is an Agency Disclosure?

A. An Agency Disclosure is required by state law. It is a document that tells you whom the agent(s) represents. A state's Agency Disclosure document is simply a notification of your state's real estate agency laws; it does not obligate you to work with any particular agent or broker.

Q. What is the MLS and how does it benefit me?

A. A Multiple Listing Service or MLS is a database that makes it easier to reach a large number of buyers and increase your property's exposure. It's a system in which participating brokers at the real estate board agree to share commission on the sale of houses listed by any one of them. For example, if your house is listed with one broker and another finds the buyer who purchases it, they split the commission. Your benefit is twofold – (1) because more agents will be interested in selling your house and (2) because your home is exposed to more buyers since Realtors have access to the MLS.

Q. Is Hottinger Real Estate, Inc. a member of the Multiple Listing Service (MLS)? 

A. Yes. In every market we serve, Hottinger Real Estate, Inc. associates are members of the local MLS, as well as being members of the national, state and local Associations/Boards of Realtors®.  

Q. Do Hottinger Real Estate, Inc. agents cooperate with other companies' real estate agents?

A. Our agents work according to specific laws, regulations and customs in their respective market areas. In all the markets that Hottinger Real Estate, Inc. serves, brokers and agents from different companies work cooperatively, showing and selling each other's listed properties.

Q. Should I buy or sell first?

A. It depends. Do you need the equity you've built up in your present house in order to complete the purchase of your new home? If so, you will either need to sell first, get a bridge loan or ask for a house sale contingency. If not, it may simply be a matter of personal preference. In any event, we highly recommend partnering with a qualified real estate agent who can discuss this question in light of your particular set of circumstances. Keep in mind, too, that the Hottinger Real Estate, Inc. listing agent who's selling your present home can easily become your buyer's agent for your next home.  

Q. How can I prepare my house for sale?

The selling process can start months before a property is actually put on the market. It's a good idea to begin by looking at your home through the eyes of a potential buyer. This will help you decide what needs to be cleaned, painted, repaired or tossed out. Your Hottinger Real Estate, Inc. agent can help you make these decisions then, when you're ready, list your home at a fair price. Your agent will also help you stage your home to maximize its appeal to buyers. It's extremely important to view your home as a potential buyer would. Professional staging shows your home in its best light, therefore increasing its marketability. 

Q. How can I find out what my home is worth?

A. Your Hottinger Real Estate, Inc. agent has a thorough knowledge of the current real estate market and will prepare a comparative market analysis (or CMA) for your home to help you set a competitive price. Click here to find out how much your home is worth.

Q. What must I disclose about the condition of my property?

A. The best policy is truth when it comes to disclosing the condition of your property; but you absolutely must communicate all known material defects of the property. Normally, these are noted on a Seller Disclosure Form (SDF). Your agent will work with you to complete this. If an item is not covered on the SDF, you must still make disclosures about known material defects. Even if a matter has been repaired, you should still disclose the previous defect and provide a report of the repairs completed. By disclosing all problems up front, you can avoid any surprises that may provoke a lawsuit.

Q. When is the best time to put my home on the market?

A. Believe it or not, peak selling seasons change from year-to-year and market to market. Often, though, weather has a lot to do with it. Early spring and early fall are prime listing seasons nearly every year because houses typically show better in those months than they do in the heat of summer or the cold of winter. Keep in mind there are more houses on the market during the prime seasons, so you will have more competition. Don't base your decision to sell on the season; each selling situation is unique. CONTACT Hottinger Real Estate, Inc. before deciding on the timing of the sale of your home.


Definitions:

Amortization Schedule

 

Schedule showing principal and interest payments throughout the life of the loan.

 

Appraisal Fee

 

Fee for lender-required appraisal to establish property value.

 

Administrative Fee

 

Fee charged to process the loan for approval.

 

Assumption Fee

 

Fee assessed by lender to the buyer to assume seller's exisiting loan.

 

Attorney's Fee

 

Charges by independent attorney for preparation of legal documents and acts or representation.

 

Attorney's Fee (Release)

 

Charge for preparation of the release of lien document when seller is paying off his existing loan.

 

Commission

 

Fee generally paid by seller to real estate agents for sale of property.

 

Credit Report

 

Fee assessed by lender for required credit information from credit bureau.

 

Discount Points

 

Points lender charges to increase the investor's yeild. May be paid by either buyer and/or seller as negotiated per contract. Points fluctuate with mortgage.

 

Escrow Balance

 

Buyer's purchase of seller's existing reserve account, i.e. taxes and insurance.

 

Flood Certificate

 

Required by lender to obtain information designating status of subject property regarding floodplains.

 

Home Warranty Fee

 

One year home systems and appliance warranty.

 

Homeowner's Association Fee

 

Maintenance fee assessed property owners within a condo or townhouse complex, a planned unit developement or a single family residence subdivision.

 

Insurance

 

Premium paid year in advance for buyers hazard or homeowner's policy.

 

Lender Inspection Fee

 

As required by lender to determine condition of the property.

 

Lender Required Reserve

 

Money required by lender, collected at closing, going into escrow account. Insurance premiums, taxes, etc... are paid from escrow account for borrower.

 

Messenger Fee

 

Covers delivery charges incurred.

 

Mobile Home Processing Fee

 

Charge by title company to process paper work with TDHCA.

 

Mortgagee's Title Policy

 

Required by lender to insure that lender has a valid lien; does not protect buyer. It is also usually required for second mortgages and seller financed transactions.

 

Origination Fee

 

Fee buyer pays to lender to originate a new loan. Normally one percent of loan amount.

 

Owner's Title Policy

 

Insures buyer against loss due to any defect of the title not expected to or excluded from the policy.

 

Pay Off

 

Amount needed to pay off existing mortgage lien on the property being sold.

 

Processing Fee

 

Charge to process loan for application submittal to underwriting.

 

Recording Fee

 

Charge by county clerk to record documents in the public records. Charges based on per page recorded.

 

Repairs

 

Any repairs required by lender and/or warranted by inspections and to be paid at closing.

 

Settlement or Closing Fee

 

Charge by title company to service transaction and to escrow money and documents.

 

Survey

 

Land survey required by lender: lot size, easements, encroachments, locations of improvements, etc.. May be a negotiated requirement on a cash contract.

 

Tax Certificates

 

Issued by taxing authorities to show amount of current year's taxes and the last date that taxes were paid.

 

Tax Proration

 

Seller pays buyer from January 1 through the day of closing.

 

Tax Service Fee

 

Fee required by lender for collection and disbursement of tax escrow by a servicing company.

 

Termite Inspection Fee

 

Required by lender showing property free of active termites. May be negotiated requirement on cash contract.

 

Transaction Fee

 

Fee charged by third party to assist in coordinating the transaction.

 

Underwriting Fee

 

Fee lender charges for underwriting the loans on behalf of the investor.

 

VA Funding Fee

 

An administrative fee charged by the Veterans Administration.

 

Wire/Funding Fee

 

Lender's charge for sending "good funds" to title company.

 


CLICK HERE for Additional Home Selling Articles & Advice

 

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Byron Cashion
Hottinger Real Estate, Inc.
Ph: 972-524-5683Fax:972-563-5852
203 N. ROCKWALL AVE.
TERRELL, TX 75160 US
Licensed Real Estate Broker 0518016
www.hretx.com
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