Homeownership is a cornerstone of the American dream for many people. However, if you’re buying or selling real estate, the actual process can be intimidating. The information and paperwork involved in closing a real estate sale can seem overwhelming.
So, how’s it work? This guide will take you through the crucial steps of closing a real estate sale.
Enjoy Part 1 of this 3 part series on the 12 crucial steps of closing a real estate sale. Make sure you check out Part 2 next week.
An escrow is a safe holding place for funds or documents exchanged between two parties during a transaction, such as real estate property or legal paperwork. Opening an escrow account ensures a neutral third party is involved in executing the terms of the agreement.
Your title officer will run a report on your property’s title to ensure that there are no liens against it (i.e., debt owed on it from previous owners) that could haunt you. This search also helps your lender determine whether you have clear ownership of your property. There are two types of insurance for the title; lender’s and owner’s title insurance.
While hiring an attorney isn’t always necessary, it’s good to have one on speed dial just in case. Your real estate agent should be able to provide you with a competent real estate attorney referral. Keep the number and only call if you need to.
An attorney can help you protect your rights, resolve any disputes should arbitration or mediation not cure the issue, and verify that all the conditions of sale have been done in accordance with the agreement.
Normally this is done upfront during the negotiation phase. Closing costs are one-time fees that accompany closing a real estate sale. Although counties differ in their customary costs, closing costs are negotiable between buyer and seller. Your real estate agent will be able to guide you on what is customary.
A professional home inspector will carefully review every aspect of the house, including its mechanical systems, structure, and interior and exterior components. The inspector may find problems you’ll want to fix before closing on your home. If your inspector recommends you hire a professional to look at any aspect of the home, you may want to consider doing so.
You might need to schedule a pest inspection if you suspect there could be termites or other pests damaging the property or its components. If there is any damage from pests, you can ask it be repaired or negotiate a credit back depending on your financing.
Most every home that’s more than a few years old has some wood destroying pest damage. It’s very common.
If there is a repair request, low appraisal or other condition that warrants renegotiation, the buyer and seller can renegotiate a reduction in the price, a credit back to the buyer, or another remedy to move toward closing the sale.
We hope you’ve enjoyed part 1 in our 2-part series. Stay tuned for part 2 next week.
If you’re looking for a title company in the Knoxville or Dickson area, we can help. Title Group of Tennessee can handle every aspect of your real estate transaction. We provide a wide range of services to assist you in closing your deal and making sure everything goes smoothly.
Our team knows Knoxville and the surrounding counties very well, so we’ll get the job done as directed. To find out more about our services or how we can help you, call us today at 865-392-5801 or click here!
Thanks for visiting!