Selling Your Home (continued)
Sale agreement and closing
A sale agreement sets not only a purchase price for the home, but also a series of terms and conditions. For instance:
Your Realtor typically arranges required inspections and helps the owner prepare for closing.
With automation now available, closings can occur within a week in some areas -- at least in theory. In practice, it takes time to arrange financing, conduct inspections, obtain appraisals, locate replacement housing, contact movers, pack and actually move.
While instant closings are not practical, neither are closings too far in the future. The problem with closings much past 60 days is that loan rates are difficult to lock in. If mortgage rates go up, it's possible that the buyer will no longer be able to afford the home and thus the deal may fall through.
The result of these considerations is that most homes close 30 to 45 days after a sale agreement has been signed.
Closing - or "settlement" or "escrow" as it is known in some areas - is essentially a meeting where the closing agent (the party who conducts settlement) takes in money from the buyers, pays out money to the owner and makes sure that the purchaser's title is properly recorded in local records along with any mortgage liens.
The closing agent reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes and title searches).
Closing is also the time when "adjustments" will be made. For instance, suppose you've pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.
It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.
It's important to look at the sale agreement and review your obligations. For instance, if you have agreed to paint a room or replace the dishwasher, such work must be completed before closing. Your Realtor can discuss your agreement and the steps which must be taken to complete the transaction.
The closing agent will handle both the settlement papers and related documents.
Moving
It's ideally best to get rid of excess furniture and other goods by having a sale before you move. This will reduce the volume of goods to be moved and thus lower moving costs. Unwanted furniture which cannot be sold can often be donated to charitable groups, many of which will come to your home to pick up donations. All other unwanted items should be taken to a landfill. You should provide the U.S. Postal Service with a forwarding address, and utility companies should be advised when to end service. Check with utility companies to see if there is deposit money which should be returned.
The time to plan your move begins once you've decided to sell your home. Some of the activities required to sell the home can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.
Your planning will be guided by a number of things:
- Are you moving a long distance? If yes, you'll likely require an interstate mover and the use of a large van. » Interstate Moving Companies
- Moving internationally. Contact the embassy in Washington, D.C., for information. Be aware that items which may be entirely common in the United States can be prohibited in foreign countries. Ask about customs protocols, duties and taxes.
- Moving locally? If yes, will you move yourself? You'll need to consider packing boxes, peanuts, blankets or padding and a van rental. » Local Delaware Movers
There are a number of factors to consider. Money is one issue: You'll want to spend as little as possible, but choosing only on the basis of cost can be a mistake. Movers must have the right equipment, training and experience to do a good job. A mover, no matter how large or small, should be able to provide recent references for home sellers with a similar volume of goods to transport.
Get mover estimates in writing. Be aware that it's possible to get discounts through membership organizations and, sometimes, on the basis of your profession: Clergy, for example, sometimes qualify for a discount.
Always confirm mover credentials. Movers should be licensed and bonded as required in your state, and employees should have workman's comp insurance.
Moving is a big job and checklists can make it more organized and easier. Here are some of the major items to consider:
- Money - If you're moving more than a few miles then you should have enough cash or credit to cover travel, food, transportation and lodging.
- Medicine - Keep medicines and related prescriptions in a place where they will be available during the move
- Boxes - Number boxes so that all items can be counted on arrival. Make a list of boxes by number and indicate their contents
- Children - If moving with children, make sure that each has a favorite toy or toys, blankets, games, music and other goods
- Breakable or valued items - Moving historic, breakable or valued items? Such goods routinely require special handling and packaging
- Address books - Have address books readily available in case you need help
- Stay in touch - If you have a laptop computer with a modem, make it accessible during your trip to pick up business and personal e-mail.