Tip 101: Weeding out the curious.

If after you place your ad, you get 100 calls, don’t let that make you comfortable thinking that your house is going to be sold immediately.

The truth is, of those 100 calls, less than half are serious buyers. Or half of them want your home but don’t have the means to buy it.
Of that bunch, there is only 1 truly qualified buyer, and that qualified buyer is the one who can deliver the cash when it’s time to deliver it. The other 99 are just “probably” buyers.

Tip 100: You’re willing to pay more for my house?

When you put an ad for your house, and the price looks reasonable to the pool of buyers that are out there, you’ll get end buyers.

End buyers are buyers who are looking to buy a house to live in.

You’ll also get professional buyers – they include real estate brokers looking for homes to buy, builders specializing in remodeling and reselling homes or developers who want to buy the property because of the land.

Don’t be afraid of the professional buyers, because they know the true value of your house. They’ll push the bidding price higher because they know what they’re doing, and by pushing up the price, they weed off the end buyers who eventually drop out because the price is beyond their budget.

If a professional buyer offers you a price for your house that will make you happy, then by all means, go with the professional buyer.

Tip 99: What, you’ve changed your mind?

Expect last minute surprises. A deal can be called off because:

· The buyer could not get financing and has no money of his own,
· Something went wrong with the title search or an insurance detail was not dealt with,
· Someone suddenly is afraid and wants to back out, or
· Some personal emergencies – like a sudden death in the family or terminal illness – are forcing the parties not to go through with the deal.

Whatever happens, just make sure you’re not walking up the path towards financial ruin.

Tip 98: Crossing the t’s and dotting the i’s…

As soon as all paperwork is final and parties are ready to sign the contract, the settlement (also called closing in some parts of Canada) takes place in either of the following places: the settlement agent’s office, bank, insurance office, or anywhere where you and the buyer and your respective agents agree to meet and sign papers.

This is the day you will probably get the biggest cash windfall in your life, and when someone else takes ownership of your house.

You can start breathing normally again when that check lands on your hands, and you and your personaleffects are physically out of your house!

Tip 97: About that money…

Ask your lawyer about asking for a down
payment from the buyer. Some contracts require it to protect the seller: This down payment will usually make the buyer live up to his commitment to buy the property within a reasonable amount of time.

This down payment is called “earnest money” by some people. It morally obliges the buyer to finalize a mortgage with his bank, to have the property inspected within a reasonable period and to be prepared to
prepared to settle by a certain date.

This down payment is not refunded back to the buyer should the sale not take place. Down payments may range from $1,000 to as much as 10% of the purchase price and is kept in escrow by your settlement agent.

Tip 96: Can we change this a little bit?

Be prepared for requests from the buyer to modify parts of the contract. Don’t verbally agree to anything until your lawyer confirms that the requested changes are in order.

This part of the exercise may take longer than you expected. Lawyers are shrewd creatures and will make every attemptto modify to get the most for their clients. They’re only doing their job, and they’re doing what they’re best at – arguing and haggling.

It is up to your lawyer to defend your interests so hopefully, the lawyer you hired is as sharp and shrewd as your buyer’s lawyer.

When contract discussions are going on, ask your lawyer’s opinion as to the advantages and disadvantages of agreeing or disagreeing with a particular clause. Discuss potential consequences and how changing a clause could jeopardize your rights as a seller.

And if you do agree to change a clause, ensure that all changes are put in writing either within the body of the contract or as an addendum.

Tip 95: This covers just about everything

When settlement details are finalized, a contract is drawn up. The contract must include the following details:

· Amount/location of property
· Timing of the sale
· Transfer of funds
· Items included in, and excluded from, the sale
· Conveyance of title
· Apportionment of fees to be paid
· Insurance matters

And other such things that are typically part of a sale contract for private property. If there are any clauses that you don’t understand, have your lawyer explain them to you. Ask questions until you’re satisfied that everything is crystal clear.

Tip 94: How quickly will he settle this matter for me?

After you have chosen your settlement agent, get the name of the settlement agent of your buyer and provide this to your own agent.

The way it works is the two agents will then work together to contact the banks, arrange for title searches and title insurance, draw up the sale contract and calculate any other fees that have to be paid.

Settlement agents don’t work with the same speed as other agents. If you feel that the process has stalled and it’s not your agent’s fault, then your buyer’s agent may be causing the delays. If delays become major concerns, you may want to seriously consider the next buyer on your list, but inform the first buyer
that you can’t afford to wait any longer.

Tip 93: My home is your home now

Once you’ve found a buyer for your home and all the terms have been negotiated to both parties’ satisfaction, the next step is to transfer ownership of the house. Since you’re on your own, you’ll need to initiate the paper work yourself.

This is where the government can help you. The US Department of Housing and Urban Development has published a book entitled “Settlement Costs”. It is free and contains valuable guidelines on settlement matters (the booklet title may have changed, check with your city government).

From this publication, you’ll be able to decide who to consult with in terms of the different steps of the closing process. You will need a lawyer (or notary), or an escrow company or your bank. Settlement procedures vary from state to state and from country to country.

Tip 92: It doesn’t hurt to be honest.

When negotiations begin, remember that honesty is still the best policy. There is this great temptation to get greedy and you bid against your buyers. Don’t. You may end up still owning your house months later because the bidders couldn’t keep up with the price.

The more important consideration for you is not how much extra thousands of dollars you can get above your original price, but if you’re a decent person, your # 1 concern should be who, among these buyers, will pay me for what I asked for and take good care of my house the way I did?