So after all of your work in marketing and showing your home to potential buyers, you have now found an interested party, and have discussed a price. From there you will have then negotiated successfully on an agreed price through your respective lawyers.
As we mentioned previously, you may have decided earlier to have arranged for a professional valuation to be conducted on your property, to validate your asking price and assure potential buyers that there are no major flaws in your property. Even if you have acquired a valuation, a buyer may still wish to commission their own valuation through a professional valuer / surveyor.
If you chose not to acquire a valuation, and their valuer finds any problems, the buyer may want repairs conducted before the sale on of the property can be concluded. Most people don’t want to move into a property that needs repairs. Understandable. On the closing date the buyer may want to inspect the house and ensure all agreed repairs have been successfully made. You lawyer can advise you all these matters, as they will have experienced this process many times before.
Getting a Mortgage
Once a potential buyer has acquired the official valuation, they are then free to look for mortgage financing through an appropriate company. The mortgage company may well conduct their own survey, but often if you have used a well-known valuation group, the mortgage company will happily accept your valuation. Your lawyer will be able to advise you on load-approved companies.
Final Analysis
To make sure there are no problems with your property, regarding loans taken out against it, or legal issues, the buyer’s lawyer will perform what is called a ‘Title Search’ - a final analysis of the property, to make sure there are no last-minute hitches or hidden legal issues. Thses include potential hiccups with right-of-way-issues with pathways or neighbours etc.
Any issues will be dealt with through your lawyer and they will advise you. Throughout the whole process your lawyer will keep you up to date with any changes in the contract, and always have your best interest at heart. Although you are selling ‘For Sale By Owner’, you will have a lawyer to help through the process in which they will be experienced, so you will be able to let them guide you if you have not experienced a home sale before.
Any changes in the contract you wish to make will be made in writing to the buying parties lawyer, through your lawyer, once you have discussed your requests.
Closing Date
After the buyer has conducted their valuation and is happy with the results, they can then apply for a mortgage. Once approved (and any repairs have been made, if necessary) and all conditions of the contract have been met, then the contract between the buying and selling parties becomes a binding legal document. Once the contract has been signed by both parties, then usually the closing date will fall a month or so after this. Your lawyer will advise you and keep you informed.
There are a few things you should consider now that you’ve agreed a price and the contracts have been signed. You should initially talk to your current mortgage company,and let them know that you will be paying of the remainder of your mortgage if appropriate. They will then advise you on how to proceed. You should also organise all your bills, and figure out what needs to be ammended and changed. Do you have a forwarding address now? Who should you be informed of you move? Banks and utility companies - gas, electric and so on. Think about who sends you mail and bills regularly and contact them. You will need to let people various companies know when you are moving out of the property, and what dates to close your accounts.
Your lawyer will take care of all the details regarding the closure of the deal. Collecting outstanding payments, transferring deeds and so on. You are legally obligated to keep the property in the same condition that it was in when the buyers originally saw it. On the day of closing, the may wish to inspect the property and confirm the condition. If any issues arise on the inspection, all monies are held in escrow by one of the lawyers until the isues have been resolved.
If there are no last minute issues, and process goes smoothly, you can then happily hand over the keys to the new owner of the property! A check for the final outstanding balance should be received within a few days of the closing date. You lawyer will keep you informed of the dates.
Well done! You have now sold your house privately and saved yourself thousands!
Congratulations and Good Luck from the Sell-My-House-Quick Team.