selling your home

Closing Checklist … Items You’ll Need at Your Closing

Closing Checklist … Items You’ll Need at Your Closing

Okay, so now you’ve bought/sold a house and the closing is happening soon.

If it’s your first time or your first time in a long while here’s a quick primer.

If you bring the following, you should have everything you need.

  • New Deed drawn up by your attorney. (sellers)
  • Smoke Detector & Carbon Monoxide certificate of compliance (sellers)
  • Title V certificate of compliance (if serviced by private sewer) (sellers)
  • Final water/sewer bill, stamped paid in full (if municipal service not serviced by well) (sellers)
  • Keys and garage door openers ( leave duplicates in a drawer in the house) (sellers)
  • Copies of any paid bills or affidavits required for work done after home inspection issues were negotiated. (sellers)
  • Instruction booklets, receipts, builder drawings and anything else you have that the buyer could find very useful after moving in to your home (leave them in a drawer in the house). (sellers)
  • Copy of receipt or statement for fuel oil in the oil tank and/or propane in the propane tank (if applicable) (sellers)
  • Driver’s license or another form of personal identification. (sellers & buyers)
  • Your personal checkbook for miscellaneous items and/or adjustments. (sellers & buyers)
  • Certified check or cashier’s check drawn in Buyer’s name or whatever the conveying attorney specifies for the difference between the sale price of the property and the amount of the mortgage less any deposit already made. The final amount will be spelled-out in detail on the form known as the HUD1. (buyers)
  • At the closing, the bank may require 2-3 months tax payment (to be held in Escrow by the Bank); PMI when applicable will be collected for the first year. The exact amount can be obtained from the mortgaging bank prior to the closing; it will be spelled-out in detail on the  HUD1. (buyers)
  • Additional fees can be paid with cash or personal checks. The exact amount can be obtained from the bank’s attorney prior to or at the closing. (buyers)
  • Personal property of the sellers can be paid with cash or personal checks. (buyers)
  • Remaining fuel oil in the oil tank (if applicable) can be paid with cash or personal checks. (buyers)
  • Paid insurance policy or binder for the new property (whichever the conveying attorney specifies) in an amount equal to the amount of the mortgage. Ask your insurance agent for advice on this matter. (buyers)
6 Common Selling Mistakes That Could Lose You Money

6 Common Selling Mistakes That Could Lose You Money

Overpricing and waiting too long for reductions.  You’ve contacted a realtor to list your home and they give you prices of comparable homes’ selling prices. You’re not in a rush, so why not list your house at the high end, or even more? I’ve heard this many times before … and your rationale is almost always one of these three:  it only takes one buyer who is willing to pay more;  your house really is nicer than those “comps” probably were; or if someone really wants your house, they’ll be willing to pay a little more to get it. And of course, you can always lower the price at some point.

Well, there are many reasons why your realtor is not doing you any favor by pricing your house high for the market. Buyers are doing lots of looking and comparison-shopping these days, and quickly gain the ability to gauge a house’s market value. Remember, they are not looking at your home in a vacuum. Pricing your house too high only helps your competition sell. The longer your house is on the market, even if you do start reducing the price, buyers view it as “stale” and wonder why no one else wanted it. Even the best marketing strategies won’t sell a house that is priced unrealistically high.

Trying to pick the ideal time to market your home . Here are some need to know points about market timing:

The best month to make an offer on a house is January.

The best day of the month to make an offer on a house is the first Tuesday.

The best time of the year to sell a house is the Spring.

The best day of the week to list your house for sale is Thursday.

Forgetting that everything is negotiable.  The words, “I have an offer for you” from your realtor are music to your ears – that is, until you hear the number following the dollar sign, and (gasp!) the conditions that accompany it. Before you panic, remember that buyers assume that their offer is a first step in a back and forth dance between buyer and seller. Try not to personalize the issues – the buyers have never even met you, and this is, ultimately a business deal. It is important to work with your realtor who is used to the real estate negotiation process and with some patience and perhaps a little compromise a deal can be reached.

 Underestimating the importance of “Showing Condition” You’ve undoubtedly heard the phrase, “curb appeal.” The same type of instant and overall impression occurs inside your home as well. You want your home to show as positively as possible, and that means the rooms should be as light, bright, and large as possible. One way to do that is to cut down on clutter or extra furniture that makes a room seems smaller than it is. The more uncluttered a room is, the more spacious it feels to a house hunter. Unfortunately, housekeeping counts too. The cleaner a home is it both makes a positive impression and creates an impression that the house has been well maintained. Many housecleaning companies offer a one time top-to-bottom cleaning for people putting their houses on the market. Sellers have said to me, “But they’re not buying the house furnished – they’ll be redoing it anyway,” or “They’re not hiring me as a housekeeper, so what do they care?” Although those are logical arguments, buyers tend to not be able to get past things that make an immediate negative impression. Also, many people do not have the “vision” to be able to see a room or house differently than it appears in front of them.

Staying Home During Showings.  Your instinct may be to be present during showings for any number of reasons: to assess the buyers’ reactions, to supervise, or to point out tiny details the showing agent may not know to mention. I can tell you in no uncertain terms from experience, both my own and that of my clients, that this is one of the worst things you can do. As a buyer, it is quite uncomfortable and leads to two common results: a quicker than normal walk through without paying attention to details and an unwillingness to ask questions or make comments that are part of their decision making process.

Not Listening to Feedback. Whenever you house is shown, the realtor will get feedback from the buyers (or their realtor) about what they liked about your house, and what shortcomings they may have perceived. There are some things you can do nothing about – for example, the fact that your backyard slopes steeply, the amount of traffic on your road, or that your house is next to a business building. Some things, however, you can change, and if a specific item comes up several times it is a good idea to address it. Buyers often assume that an area of your house that shows neglect or disrepair reflects on the same lack of attention to unseen areas. Your goal is to sell your house, not to win an argument defending why your side yard fence is unpainted and rotting.

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Seller Credits Explained … Can You Pay for Buyer’s  Closing Costs?

Seller Credits Explained … Can You Pay for Buyer’s Closing Costs?

In general, most underwriting guidelines allow for the seller to pay a buyer’s closing costs. However, no matter what you negotiate, the amount of the credit at the closing table cannot exceed the buyer’s actual costs.

The following guidelines currently apply:

Conventional financing:

  • 90.01% + 3% credit
  • 90% or less 6% credit

FHA financing

  • 6% credit

VA financing

  • 4% credit

 

A seller should not give money back to the buyer at closing for repairs, decorating allowance, new carpet, etc. A closing cost credit is the only way for the seller to give money to the buyer without affecting the purchase price.

If a concession falls outside of these parameters, then the underwriter will subtract the dollar figure from the purchase price and run the loan to value ratio. If the ratio now exceeds the threshold for the loan program, the buyer may need PMI or not qualify for the loan program.

If you have a relocation customer whose company is paying their closing costs, then the amount of the seller concession will be limited. The buyer can not be reimbursed twice.

Closing costs are all of the buyer’s one-time fees associated with obtaining their mortgage. It does include escrows and pre-paids.

Allowable Costs:

Points Tax Service Fee

Appraisal Underwriting & Processing Fees

Credit Report Municipal Lien

Attorney’s Fee Plot Plan

Title search Recording & Courier Fees

Flood Certification First year’s insurance binder

Title Insurance Tax, Insurance & PMI escrows

For More Detailed Information feel free to call or email Tom Coburn, William Raveis Mortgage Broker, mobile: 508-380-7975  email: tom.coburn@raveis.com

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