The Paperwork for selling a house
Buying and selling a home requires stacks and stacks of Paperwork you can’t just seal the deal and walk away with the handshake when you sell your house you’ll need all of these documents for a smooth transaction there are so many documents involved in selling your house at the end of the sale you’re trudging through up to 180 sheets of paperwork top real estate agent.
The Van Mill Group has sold over 78 percent more properties in North Metro than the average agent he recommends sellers know exactly what they’re getting into my clients appreciate that I try to prepare them for every step of what’s going to happen.
I talk to them about the fact that once they sell their home that is truly just baby step number one and there are many steps to go through to get successfully to the closing table so grab your favorite pen and big fancy folder here are all the Paperwork involved in selling your home first find the original sales contract from when you bought the house this outlines who you purchased the property from how much you bought it for and any disclosures that were made before the sale.
You’ll also want to have the appraisal report from when you purchased the home granted you’ll need a brand new appraisal in order for the buyer’s lender to approve the deal but that comes, later on, have your original appraisal on hand along with any Paperwork updates such as if you refinanced your home next if you’re selling before you pay off your current mortgage you’ll need to request a statement that shows your payoff amount the payoff amount is a total amount you’ll have to pay to satisfy the terms of your mortgage loan.
This includes any interest you owe up until the day you plan to pay your loan in full these numbers are necessary to calculate your home sale proceeds you’ll also need to provide the buyer with proof of your homeowner’s insurance information and the lists of all the claims on your home since you bought it this will show the buyer any damages and repairs made to the house since you’ve owned it plus it will give the buyer an idea of how much homeowners insurance will cost for the house.
For the homeowner’s association, you’ll need the following documents Articles of Incorporation bylaws rules and regulations homeowners dues account statement copies of the minutes from the association’s meetings the declaration of covenants, and the conditions and restrictions these are all of the key pieces of information the buyer will need to see before they buy your home and make sure you save all of your receipts for home maintenance and repairs since you’ve owned the home such as roof repairs gutter cleanings and new paint records of big projects that added value to your home like kitchen and bath remodel to have to they mitigate the capital tax you owe on your home sale.
You’ll also need the manuals and warranties for appliances that come with the home such as washer/dryer refrigerator and dishwasher and buyers will also want to see the past utility bills so make sure you have at least a year worth of bills to show before you list your home for sale after you’ve organized all of the Paperwork to get your home listed.
You’re ready to launch your home sale into action the first document you want to have handy is the Home Valuation your agent will prepare this for you when you’re ready to list your home and it’s imperative to have accurate information in order to list your home for the best price the listing agreement is important to have to refer back to it’s the contract between you and your real estate agent and the terms in this agreement serves as the foundation of your entire transaction.
Your marketing plan lays out how your agent will sell your home it includes showings open houses,social media marketing and all of the promotion involved in selling your home the seller’s net sheet is the last thing you’ll need to get your home on the market this shows how much you’ll pocket from your home sale after factoring in taxes agent commission mortgage and escrow fees now the stack is getting higher here are the documents you’ll need to have ready while your home is on the market.
The preliminary title report is a legal summary that tells you if there’s anything outstanding on your property such as taxes or recorded conditions in other words it’s a precautionary report mandatory disclosures are important to inform buyers of any hazards on the property such as lead-based paint asbestos toxic chemicals water damage or anything you’re aware of that could be hazardous if you got a pre-inspection on your home you’re legally obligated to disclose the report to buyers as well so add that onto your big pile of papers.
In Minnesota you’ll need to complete a Sellers disclosure statement in your own handwriting it describes the condition of the house and is intended to help buyers decide whether or not they want to move forward with the transaction another document that’s needed in the state of Minnesota is the Hazards report Such as lead base paint disclosure or an As-IS form.
This shows how prone your property is to hazards like floods fires earthquakes airports radon gaps and more you don’t want to surprise buyers at the house right on the Cali fault lines with those documents out of the way there are three documents that come into play once a buyer puts an offer on your home.
The purchase agreement and counteroffer forms are the first steps to a buyers closing on it lays out an agreement between the buyer and seller that’s subject to change once the transaction moves forward next is the final purchase and sale agreement the buyer and sellers real estate agents and or attorneys draft up a contract that states the selling price of the home the terms of the purchase the earnest money deposit amount the closing date and any contingencies.
A contingency is a clause in your real estate contract that needs to be met before the deal closes in order to remove a contingency you’ll need a contingency removal form once you get through the documents for a buyer’s offer you’ll move on to the contract and closing documents first up is the home inspection report most buyers.
Put a home inspection contingency in the contract which means they’ll arrange for an inspector to come evaluate the house for safety and functional issues the buyer receives this report but you can request a copy from them same goes for the home appraisal which is usually a requirement for buyer’s financing their home with the mortgage the report will contain local comparable properties with photos and details of each property.
Including the home being appraised the appraised value how the appraiser determined the value and what factors the appraiser took into consideration and lastly here are the final documents, you’ll need to close your home sale your most recent tax statement to calculate any outstanding property taxes you owe on your house the 1099s tax form which is necessary if you don’t qualify for the capital gains tax exclusion.
If you’re a single person and you can make \$250,000 on your home sale or for a married people \$500,000 or more before you’ll need to fill out a 1099 s tax form for any profit that went over those amounts the closing statement shows how much money you’ll receive after the sale closes it accounts for closing costs taxes and other transaction fees the closing agent or title company will generate this Paperwork.
The deed for the house is the physical legal document that officially transfers ownership of the property from the seller to the buyer it includes the names of both parties involved in a detailed description of the property few the documents needed to sell a house are extensive and complicated to make it easier on yourself and get more money in your pocket work with an experienced real estate agent that way all you have to do is sign on the line find the best real estate agent in your area to help you with the documents needed to sell your house.