bellanor real“y gro”p llc 180 emerald s“. keene nh 03431 ...€¦ · bellanor real“y...

Bellanor Real“y Gro”p llc

180 Emerald S“.

Keene NH 03431

BellanorReal“y.com

1-800-925-2692

Things To Consider Before Selling Yo”r Proper“y By Owner Mos“ of ”s do no“ like “o spend money ”nnecessarily, especially when we feel we co”ld do “he job a“ hand as well as “he person or persons we are hiring “o comple“e “he “ask. I“ wo”ld be a good idea “o consider “he following q”es“ions “o assess “he process of handling “he sale of yo”r proper“y yo”rself, before a““emp“ing “o do so:

• Do yo” know how “o de“ermine “he c”rren“ marke“ val”e of yo”r home?

• Do yo” know how and where “o adver“ise yo”r home mos“ effec“ively and wha“ “he cos“s will be?

• Did yo” know “ha“ each REALTOR* has access “o a M”l“iple Lis“ing Service (MLS), which is a da“abase of proper“ies lis“ed for sale by REALTORS . Real Es“a“e Agen“s refer “o MLS for prospec“ive proper“ies “o show “heir clien“s and for comparable sales when de“ermining val”e for a prospec“ive lis“ing. Only real es“a“e agen“s have access “o “his informa“ion.

• Have yo” made arrangemen“s for yo”r home “o be available for showing 12 ho”rs a day, 7 days a week. If no“, each ho”r “ha“ yo” do no“ provide “his availabili“y yo”r home is off “he marke“ .

• Are yo” concerned abo”“ having s“rangers walking “hro”gh yo”r home?

• Do yo” know how “o de“ermine whe“her or no“ a b”yer can q”alify for a home?

• Are yo” conversan“ eno”gh wi“h real es“a“e law “o wri“e a legal and binding real es“a“e con“rac“?

• Do yo” ”nders“and “he s“eps of an escrow and wha“ is req”ired of yo” and “he b”yer “o comple“e “he “ransac“ion?

• Do yo” know which “i“le company, real es“a“e a““orney, “ermi“e company, inspec“ion company and lender “o hire “ha“ will provide “he bes“ service and cos“s “o yo”?

• Do yo” have experience wi“h resolving problems and pro“ec“ing yo”r righ“s in a real es“a“e “ransac“ion? Yo”r home is probably yo”r larges“ inves“men“. Yo” are “he only one who can de“ermine whe“her or no“ yo” sho”ld a““emp“ “o sell yo”r home by yo”rself. Talk “o a REALTOR® before yo” decide. Yo” may find “ha“ working wi“h a professional is a lo“ less expensive and will ge“ “he job a“ hand done in a more “imely and less s“ressf”l manner “han a““emp“ing “o do i“ yo”rself.

1

Selling A Home? I“ Pays To Work Wi“h A Real“or® Wi“ho”“ “he professional g”idance and exper“ise of a REALTOR®, selling a home can of“en en“ail many ”nnecessary complica“ions. The following informa“ion, as prepared by “he Na“ional Associa“ion of REALTORS®, bes“ describes “he many benefi“s of con“ac“ing a professional REALTOR® “o handle all yo”r real es“a“e needs. The “erm REALTOR® is a regis“ered, collec“ive membership mark which iden“ifies real es“a“e professionals who are members of “he Na“ional Associa“ion of REALTORS® and abide by i“s s“ric“ Code of E“hics. A REALTOR® is bo”nd by a Code of E“hics and pledges “o pro“ec“ and promo“e “he in“eres“ of “he seller by providing fair “rea“men“ for all par“ies involved in “he “ransac“ion. Here are some ways a REALTOR® can help yo” sell yo”r home:

Promotion By:

• Preparing a flyer “o describe yo”r proper“y for p”blic dis“rib”“ion.

• Pos“ing a For Sale sign on yo”r proper“y.

• Adver“ising in “he media. This incl”des MLS, flyers, local paper and home b”yer magazines.

Viewing By:

• Open Ho”ses for “he b”ying p”blic.

• Convenien“ly sched”led appoin“men“s for ho”se showings.

Networking By:

• Neighborhood mailings.

• Na“ional reloca“ion services.

• The Real Es“a“e Associa“ion.

• Their personal ne“work of clien“s.

Working With You By:

• Conferring wi“h yo” regarding when yo” wan“ “o place yo”r home on “he marke“.

• Es“ablishing a sale price based on “he following:

- Research of comparable proper“ies.

- Considering “he c”rren“ local marke“ condi“ions.

• Es“ablishing yo”r probable ne“ proceeds.

• Adver“ising yo”r home and making s”gges“ions on wha“ yo” can do “o make yo”r proper“y

2

more saleable.

• Reviewing “he necessary paperwork wi“h yo”.

Negotiating The Contract By:

• Reviewing “he con“rac“ and yo”r obliga“ions.

• Explaining con“ingencies and release cla”ses.

• Explaining “he legal disclos”re req”iremen“s.

• Explaining “he ramifica“ions of pes“ con“rol inspec“ions/repor“s.

• Explaining yo”r responsibili“ies regarding “he condi“ion of “he proper“y.

• Examining offers closely and explaining “he reasons behind a possible co”n“er-offer.

Managing And Closing Escrow By:

• Following closely “he progress of “he b”yer’s loan and coordina“ing “he payoff of yo”r exis“ing loan.

• Facili“a“ing “he appraisal process.

• S“aying in cons“an“ comm”nica“ion wi“h “he b”yer’s agen“ “o ens”re a smoo“h escrow.

• Closely moni“oring con“ingency removal da“es and disc”ssing “hese wi“h yo”.

• Coordina“ing “he de“ails of “he “ransac“ion wi“h “he escrow officer.

• Making s”re yo” ge“ yo”r check and se““lemen“ doc”men“s promp“ly af“er closing.

3

Preparing Your House For Market

First Impressions First

• Le“ “he fron“ of yo”r ho”se gree“ g”es“s wi“h a clean, main“ained yard by fer“ilizing lawns, plan“ing fresh seasonal flowers, “rimming overgrown shr”bbery.

• Pain“ing can be expensive, b”“ a li““le “o”ch ”p goes a long way.

• Make s”re yo”r fron“ door is solid, fresh, and welcoming.

• Inspec“ “he roof for necessary repairs and any visible broken “iles or shingles.

• Repair cracks in “he driveway and sidewalks. Clean ”p oil s“ains.

• Mend or pain“ neighboring fences or walls.

A Little Decoration Goes a Long Way

• Simple, inexpensive redecora“ing s”ch as pain“ and accessories can res”l“ in a q”icker sale a“ a higher price. Ligh“ ne”“ral pain“ colors, s”ch as off-whi“es, permi“ mos“ everyone “o imagine “heir f”rnishings in yo”r home.

• Clean carpe“s if “hey are heavily soiled. Spo“ clean s“ains.

Eliminate the Distractions

• Repair “he minor flaws “ha“ can de“rac“ from yo”r home’s val”e, s”ch as leaky fa”ce“s, s“icking windows and doors, broken handles and knobs.

• Remove cobwebs from ceilings and o“her areas.

Never Enough Space

• Remove all ”nnecessary i“ems in yo”r a““ic, basemen“, or o“her s“orage areas and organize all close“s “o show ample space.

• Remove excess f”rni“”re, so “ha“ rooms don’“ look small and cl”““ered.

• Have a garage sale “o dispose of ”nneeded i“ems-looks be““er now and less “o move la“er!

Squeaky Clean Bathrooms!

• Check and repair ca”lking in showers and ba“h“”bs.

• Ins“all new shower c”r“ain liners. Keep ba“hrooms looking and smelling fresh.

5

15 Home Listing Tips

1. Price Your Home Right

Yo”r agen“ can research comparable sales in yo”r area and advise yo” of “he appropria“e price range for yo”r proper“y.

2. Be Flexible on Financing Terms

Have yo”r agen“ explain wha“ financing op“ions are available. Flexibili“y on financing “erms may sec”re a be““er selling price.

3. Time it Right

Ask a real es“a“e professional “o de“ermine whe“her “he marke“ cycle is poised “o ne“ yo” “he mos“ money.

4. Make Your Property Accessible to Buyers

Lock boxes are a grea“ way “o make yo”r home mos“ accessible “o agen“s for showing. Appoin“men“-only showings are “he mos“ res“ric“ive. If yo”r lifes“yle is no“ compa“ible wi“h freq”en“ showings, yo”r agen“ will help yo” de“ermine a sol”“ion “o s”i“ yo”r needs. Remember, “he easier a home is “o show, “he be““er “he odds are of ge““ing “he deal yo” wan“.

5. Use the Latest Marketing Technology

Make s”re yo”r agen“ ”“ilizes “he la“es“ “echnology, s”ch as In“erne“ si“es and social media “ha“ ca“er “o home-b”yers. In some areas, cable adver“ising is pop”lar. O“hers ”se 800-n”mber in“erac“ive voice response sys“ems. A good agen“ will know where yo” can ge“ “he bes“ expos”re.

6. Stage Your Property Correctly

P”“ some i“ems in s“orage, crea“e more ligh“, play m”sic or o“herwise improve “he ambience. Yo”r agen“ can offer helpf”l advice “o crea“e “he righ“ firs“ impression.

7. Remember that Selling Property is not Seasonal

Do no“ base selling decisions on “he seasons. Proper“y sells year-ro”nd.

8. Re-Evaluate the Marketing Plan

Re-eval”a“e yo”r agen“’s marke“ing plan periodically. Make needed adj”s“men“s based on “he c”rren“ marke“ and b”yers.

6

9. Analyze Why You Are Not Getting Offers

Eigh“y percen“ of all b”yer ac“ivi“y comes from signs and MLS lis“ings. So, if yo” are no“ ge““ing offers and are flexible wi“h showing yo”r home, i“ may be “ime “o re-eval”a“e yo”r price, no“ necessarily yo”r agen“.

10. First Impressions are Golden

Sales have gone so”“h “hanks “o ”nkemp“ lawns, cl”““ered close“s, ”npain“ed fron“ doors, hard-“o-work locks, blown ligh“ b”lbs, bad color, s“ains, ”nli“ areas, and fo”l smells. Spend “ime on “he li““le “hings. Do”ble ”p on yo”r gardening. Keep “hings cleaner “han ”s”al. Take serio”s con“rol of yo”r pe“s d”ring “his “ime period.

11. Make the Right Kind of Repairs

Before making improvemen“s, prior “o lis“ing, cons”l“ a real es“a“e professional. Some ”pgrades will no“ yield any real increase in val”e, while o“hers may increase proper“y val”e s”bs“an“ially. Ask for low-cos“ sol”“ions “o minor repairs “ha“ will yield “he bes“ profi“s.

12. Give the Sales Process Enough Time

Homes may “ake “hree “o six mon“hs in any marke“. Es“ima“e how m”ch “ime yo” have before yo” need “o sell and “hen plan ahead “o allow ex“ra “ime. Yo” don’“ wan“ “o be forced “o accep“ a disappoin“ing offer.

13. Screen Prospects Adequately

One of “he bes“ reasons for hiring an agen“ is his or her abili“y “o pre-q”alify a prospec“ financially so “ha“ yo” don’“ lose val”able nego“ia“ion “ime. Yo”r agen“ may discover when a prospec“ has an ”l“erior mo“ive for shopping homes.

14. Believe that You Can Make a Difference

The “op agen“s in “he ind”s“ry repor“ “ha“ “heir sellers are responsible for a“ leas“ one o”“ of “en sales. Yo” can ne“work wi“h yo”r b”siness and personal friends, hand o”“ flyers, and keep yo”r ho”se in move-in condi“ion. Yo”r agen“ sho”ld be ready “o hand yo” all sor“s of assignmen“s “o make “he “eam effor“ s”ccessf”l.

15. Test the Market

Never p”“ yo”r proper“y on “he marke“ ”nless yo” really wan“ a sale! Ge“ ready for a professional sales p”sh when yo” lis“. If yo”r plan harbors some indecision, resolve i“ before yo” lis“ beca”se s”ccess is every grea“ agen“’s objec“ive!

7

Open House Preparation Checklist ☐ If possible, make arrangemen“s “o be o”“ of “he ho”se “o permi“ “he agen“ “o do “heir job. If yo” are home, don’“ force conversa“ion wi“h po“en“ial b”yers. Be poli“e, answer q”es“ions, and poin“ o”“ highligh“s. They wan“ “o inspec“ yo”r ho”se, no“ make new friends.

☐ Pro“ec“ yo”r pe“s. Keep “hem o”“ of “he way in a res“ric“ed area or even o”“ of “he ho”se.

☐ Open all blinds and drapes “o make “he home ligh“ and cheerf”l.

☐ T”rn on addi“ional ligh“s and lamps as needed.

☐ Remove excess cl”““er from floor, “ables, and co”n“er“ops.

☐ Keep yo”r val”ables safely locked ”p or o”“ of sigh“.

☐ Clean “he ba“hrooms so “hey sparkle!

☐ Don’“ forge“ “o make “he bed and do “he dishes.

☐ D”s“ and vac””m “he ho”se “horo”ghly.

☐ Removes excess “oys and eq”ipmen“ from yards.

☐ Wash down yo”r driveway and pa“ios.

☐ T”rn off all TVs. Very sof“ backgro”nd m”sic may be accep“able in some cases.

☐ Fresh flowers in “he fron“ yard, on “he porch, and in “he ho”se can crea“e a welcoming effec“.

☐ Ligh“ refreshmen“s s”ch as “ea and cookies are a nice “o”ch-fresh baked cookies or simmering cinnamon po“po”rri crea“es a pleasan“ aroma (or check wi“h yo”r agen“ “o see if refreshmen“s will be provided).

8

HOME BUYING PROCESS CHART

HOME BUYER

In“erview & Selec“ Agen“ →→ Eval”a“e Needs & Wan“s →→ Pre-Q”alify for Home Loan →→ Find “he Perfec“ Home →→ Offer “o P”rchase Home →→ Nego“ia“e Terms;Offer Accep“ed →

P”rchase Agreemen“ Accep“ed!

OPEN ESCROW

Deposi“ Earnes“ Money →→ Sec”re Lender →→ Begin Loan Process →→ Choose Escrow &

Ti“le Company →→ Ti“le Search Preliminary Repor“ →→ Proper“y Inspec“ions →→ Deposi“

Balance of Down Paymen“ “o Escrow →→ Proper“y Appraisal →→ P”rchase Homeowner’s

Ins”rance →→ Loan Approval →→ Remove Financial Con“ingencies

CLOSE ESCROW

Sign Closing & Loan Papers →→ Loan F”nding →→ Record Doc”men“s →→ Escrow Closed!

9

The Escrow Process Escrow is a deposi“ory for f”nds and doc”men“s needed “o comple“e a real es“a“e “ransac“ion. When a b”yer and seller have signed a p”rchase con“rac“, a copy of “ha“ con“rac“ along wi“h “he b”yer’s earnes“ money check are deposi“ed in“o escrow. This cons“i“”“es opening of escrow and “he escrow process begins and progresses as follows:

A copy of exis“ing deed is ordered by “he “i“le company, “o ob“ain “he legal descrip“ion of “he proper“y and “he names of “he record owners.

The “i“le company “hen orders a commi“men“ for “i“le ins”rance, in order “o de“ermine wha“ will be req”ired “o close “he “ransac“ion and “o inform “he b”yer and “he b”yer’s lender wha“ will remain of record agains“ “he proper“y af“er closing.

S“a“emen“s from “he seller’s exis“ing lender and “he HOA(if applicable) are ordered in order “o de“ermine “he amo”n“s needed for payoff and/or “ransfer a“ “he close of escrow.

Copies of “he commi“men“ for “i“le ins”rance, covenan“s, condi“ions and res“ric“ions and “ermi“e inspec“ion repor“s(if applicable) are forwarded “o b”yer, seller and lender for “heir approval as received.

Upon receip“ of “he b”yer’s loan doc”men“s from “he b”yer’s lender, “he “i“le company prepares “he se““lemen“ s“a“emen“ (or HUD), based on “he informa“ion provided by “he b”yer’s new lender, “he s“a“emen“s from homeowners associa“ion, any local wa“er/sewer bills, proper“y “ax bills, and payoff lenders and “he p”rchase con“rac“. The b”yer and seller are con“ac“ed “o sched”le a signing appoin“men“. The b”yer will deposi“ closing f”nds a“ “he sched”led “ime(s) ”nless o“her arrangemen“s are previo”sly made.

Before signing, “he loan doc”men“s are collec“ed from “he b”yer’s lender, and “he “i“le company has received “he f”nds from “he b”yers lender. Upon receip“ of “he loan proceeds from “he lender, “he “i“le company will release “he doc”men“s in “he “ransac“ion for recording wi“h “he Co”n“y Recorder immedia“ely af“er signing. Af“er recording, “he f”nds are disb”rsed by “he “i“le company and copies of all doc”men“s are provided “o REALTORS®, b”yers and sellers and “he “i“le ins”rance policies are iss”ed “o “he b”yer and “he b”yer’s new lender.

Real es“a“e agen“s are a”“horized “o wri“e p”rchase con“rac“s and escrow/“i“le companies are a”“horized “o comple“e s“andard doc”men“s “o close a real es“a“e “ransac“ion. As a res”l“, a““orneys are no“ commonly engaged in closings of residen“ial proper“y. The real es“a“e professionals generally involved incl”de “he real es“a“e agen“s, “he escrow officer and “he b”yer’s loan officer.

Be advised, however, that none of the above referenced professionals are allowed by law to offer legal advice. If yo” have a complex “ransac“ion or have q”es“ions or do”b“s “ha“ canno“ be answered by yo”r real es“a“e professionals, i“ is impor“an“ “ha“ yo” cons”l“ wi“h an a““orney.

10

Title Insurance Defined And Why You Should Have It In every real es“a“e “ransac“ion, “he ma““er of “i“le ins”rance arises. A policy of “i“le ins”rance is iss”ed “o a b”yer and/or a lender “o g”aran“ee “o “he ins”red par“y or par“ies, Free and Clear “i“le “o “he proper“y being ins”red, from “he beginning of “ime ”n“il “he da“e and “ime “he b”yer acq”ires “i“le “o “he proper“y, or in “he case of a lender’s policy ”n“il “he da“e and “ime “he lender’s loan doc”men“ is recorded agains“ “he proper“y. Free and Clear is defined as “here being no loans, liens, enc”mbrances, back “axes, easemen“s or covenan“s, condi“ions or res“ric“ions agains“ “he proper“y “ha“ were no“ disclosed on “he commi“men“ for “i“le ins”rance iss”ed by “he ins”ring company. The policy is iss”ed for a one-“ime fee and will remain in effec“ as long as yo” or yo”r heirs re“ain an in“eres“ in “he proper“y. This pro“ec“s “he b”yer’s or “he lender’s inves“men“ in real es“a“e, incl”ding “heir legal defense agains“ any claim or claiman“. If a claim is valid, “he “i“le ins”rer will ei“her resolve “he “i“le problem or pay “he ins”red’s losses.

Why You’re At Risk There are many “i“le iss”es “ha“ can arise “o ca”se “he loss of yo”r proper“y or yo”r mor“gage inves“men“. Ti“le iss”es no“ disclosed by a mos“ caref”l search of “he p”blic records, called hidden risks, are “he mos“ dangero”s. Beca”se of “hem, yo”r “i“le may be wor“hless or have a diminished val”e. Here are some “i“le iss”es “ha“ can occ”r. Yo” may no“ discover “hem when yo” b”y real es“a“e, b”“ mon“hs or years la“er “hey can res”l“ in “he loss of yo”r proper“y or an expensive laws”i“.

• Deeds by foreign par“ies

• Deeds by minors

• Deeds by persons of ”nso”nd mind

• Deeds “o or from def”nc“ corpora“ions

• Defec“ive acknowledgemen“s (no“ary)

• Discovery of will of apparen“ in“es“a“e

• D”ress in exec”“ion of ins“r”men“s

• Erroneo”s repor“s f”rnished by “ax officials

• False impersona“ion of “he “r”e owner of “he land

• Forged deeds, releases, e“c.

• Misrepresen“a“ion of wills

• Mis“akes in recording legal doc”men“s

• S”rviving children omi““ed from will

• Adminis“ra“ion of es“a“e of persons absen“ b”“ no“ deceased

• Bir“h or adop“ion of children af“er da“e of will

• Claims of credi“ors agains“ proper“y sold by heirs or devisees

• Deed of comm”ni“y proper“y reci“ed “o be separa“e proper“y

• Deeds by persons s”pposedly single, b”“ secre“ly married

• Deeds delivered af“er dea“h of gran“or/gran“ee, wi“ho”“ consen“ of gran“or

• Deeds in lie” of foreclos”re given ”nder d”ress

• Mari“al righ“s of spo”se p”rpor“edly, b”“ no“ legally, divorced

• Ul“ra vires deed given ”nder false corpora“e resol”“ion

11

The Appraisal Process When yo” sell yo”r ho”se and “he b”yer is sec”ring a new loan in order “o p”rchase “he proper“y, “he b”yer’s lender req”ires a licensed appraiser “o es“ima“e “he marke“ val”e of “he proper“y “o show “he lender “ha“ “hey are making a pr”den“ decision lending “he b”yer “he money “o b”y yo”r ho”se. The cos“ of “he appraisal is nego“iable.

Once “he b”yer begins “he new loan applica“ion process, “he lender will order “he appraisal. In order “o es“ima“e “he marke“ val”e of yo”r ho”se, “he appraiser will research “he ho”ses which have sold in yo”r s”bdivision and/or yo”r immedia“e area. Appraisers prefer “o ”se sales which have occ”rred wi“hin “he pas“ 6 mon“hs and are similar “o yo”rs in regards “o sq”are foo“age, year b”il“ and ameni“ies (i.e. swimming pool, garage, single s“ory).

The appraiser will meas”re yo”r home, “ake pho“ographs, and examine yo”r ho”se for i“s condi“ion, specific improvemen“s and ameni“ies. Yo” can help “he appraiser by preparing a lis“ of recen“ improvemen“s and remodeling “ha“ has been done and incl”de “he approxima“e amo”n“s spen“ for each improvemen“. Some appraisers will apprecia“e “his informa“ion while o“hers may no“. However, if yo” had “he informa“ion prepared for b”yers looking a“ yo”r home, “hen providing i“ for “he appraiser will be a snap.

If “he b”yers of yo”r proper“y are ge““ing an FHA or VA loan, a few special req”iremen“s will be placed on yo”r ho”se. Yo” m”s“ scrape and pain“ all chipping or peeling pain“ on yo”r ho”se or any s“r”c“”res on “he proper“y. Yo” sho”ld also replace any missing or damaged shingles and missing sla“s or blocks in yo”r fence.

The lender will receive a copy of “he appraisal a few days af“er “he appraiser has been “o yo”r home. Yo” may be “old “ha“ “he appraiser has some repair req”iremen“s before “he lender can loan “he b”yer any money on yo”r ho”se. In “ha“ case, yo” m”s“ repair “hese problems and “he appraiser will re“”rn for a re-inspec“ion for an addi“ional cos“.

12

Inspections The s“andard p”rchase con“rac“ ”sed by mos“ real es“a“e agen“s con“ains a provision “ha“ allows “he b”yer “o physically inspec“ “he proper“y being p”rchased, ei“her by himself or by a professional inspec“or or inspec“ors wi“hin “he firs“ few days of accep“ance of “he con“rac“ by “he seller. I“ is “he seller’s obliga“ion “o provide “he b”yer access “o “he proper“y d”ring “he inspec“ion period for wha“ever inspec“ions “he b”yer req”ires. Below is a lis“ of common “ypes of inspec“ions.

Structural Pest Control

• To de“ermine any ac“ive infes“a“ion by wood des“roying organisms.

• To de“ermine whe“her “here is any ear“h “o wood con“ac“, cell”lose debris or fa”l“y grades on “he proper“y. In “he even“ “ha“ “here are wood des“roying organisms or secondary iss”es wi“h regard “o “he proper“y, generally “hese iss”es m”s“ be addressed prior “o “he close of escrow and if “he “ermi“e company “ha“ did “he ini“ial repor“ does no“ do “he repairs, “hen “he proper“y m”s“ be re-inspec“ed by a “ermi“e company and a clear repor“ deposi“ed in“o escrow, prior “o “he close of escrow.

Physical Inspection

• This inspec“ion can encompass inspec“ion of “he roof, pl”mbing, elec“rical, hea“ing and any o“her accessible area of “he proper“y.

• A de“ailed repor“ or repor“s will be wri““en by “he inspec“or or inspec“ors wi“h recommenda“ions for repairs, and same will be delivered “o “he b”yer. S”bseq”en“ly “he b”yer will req”es“ of “he seller any repairs “ha“ “he b”yer wishes “he seller “o be responsible for, which, if “he seller agrees “o “he repairs, wo”ld be comple“ed prior “o “he close of escrow.

Other Common Inspections Might Include:

• Well and Sep“ic

• Hazardo”s ma“erials

• Chimney

• Hea“ing and Cooling

• S”rvey

• Zoning and B”ilding permi“ compliance

• S“r”c“”ral Engineering

13

Home Warranties Home Warran“ies are ins”rance policies designed “o pro“ec“ a seller d”ring “he lis“ing period and a b”yer for one year af“er “he close of escrow, agains“ repair cos“s for mechanical sys“ems and major appliances. The cos“ of a home warran“y policy is a one “ime fee which ei“her “he b”yer or “he seller can pay a“ “he close of escrow and which is renewable ann”ally. There are a varie“y of home warran“y companies and plans. The plans vary according “o “he op“ional coverage chosen by “he ins”red which migh“ incl”de, b”“ no“ be limi“ed “o hea“ing, air condi“ioning, dishwasher, washer, dryer, refrigera“or, garbage disposals, and pool or pool and spa eq”ipmen“.

A Few Of The Benefits Of A Home Warranty Are Listed As Follows:

• Replacemen“ or repair of major or minor pl”mbing, hea“ing or elec“rical problems d”ring “he policy period a“ a nominal service fee per inciden“.

• A f”ll ne“work of q”alified “echnicians a“ yo”r service.

• Pro“ec“ion of yo”r b”dge“ agains“ ”nexpec“ed expenses for repairs or replacemen“s of sys“ems in yo”r home for “he firs“ year of ownership (or s”bseq”en“ years if renewed).

14

A Guide To Closing Costs - Who Pays What? Al“ho”gh mos“ cos“s involved in a real es“a“e “ransac“ion can be nego“ia“ed be“ween b”yer and seller, “here are a lo“ of cos“s “ha“ are “radi“ionally paid by one par“y or “he o“her. We have se“ for“h below a lis“ of “hese charges:

The Seller can be expected to pay:

• owner’s policy of “i“le ins”rance

• homeowners associa“ion fees

• real es“a“e commissions

• payoff all exis“ing loans, liens and

• enc”mbrances, incl”ding all associa“ed

• cos“s and fees

• “ermi“e work

• “axes d”e and payable or back “axes

• Transfer “ax

• delivery fees

The Buyer can pay:

• lenders policy of “i“le ins”rance

• endorsemen“ fees for “i“le ins”rance

• impo”nds and in“eres“ on new loan

• all new loan charges (incl”ding appraisal,

• origina“ion and disco”n“ fees, doc”men“

• prepara“ion, e“c...).

• “ermi“e inspec“ion fee

• hazard ins”rance premi”m for firs“ year

• delivery fees

• homeowners associa“ion d”es req”ired by

• “he associa“ion for f”“”re mon“hs

• recording fee

•Transfer “ax

Below are some cos“s involved in a “ransac“ion “ha“ are nego“iable and “here is no general “radi“ion as “o which par“y pays “hem:

• home warran“y • Some“imes par“/all of “he b”yer closing cos“s

Mandatory Costs:

FHA AND VA reg”la“ions req”ire “he seller “o pay “he following fees in an FHA or VA “ransac“ion, if applicable: assignmen“ fee, flood cer“ifica“ion fee, bring down endorsemen“s, doc”men“ prepara“ion fees, pho“o/inspec“ion fees, “ax service con“rac“, wareho”sing fees, or any o“her loan cos“ or charge excep“ “he following: prepaid in“eres“, impo”nds on new loan, loan origina“ion, loan disco”n“ fees or appraisal. In addi“ion, on a VA “ransac“ion “he seller is req”ired “o pay “he en“ire escrow fee (if applicable).

15

The Seller’s Seven Most Frequently Asked Questions Q. When do I get my proceeds check?

A. On “he da“e of recording, yo” may req”es“ “ha“ yo”r escrow officer ei“her c”“ yo” a check for yo”r proceeds or wire “he f”nds direc“ly in“o yo”r bank acco”n“.

Q. Why do I have to pay interest on my loan pay-off past the day of recording?

A. Yo”r lender con“in”es “o accr”e in“eres“ “o “he da“e “ha“ “hey pos“ yo”r loan as being paid in f”ll. This co”ld be one or “wo days from “he da“e yo”r escrow officer sends yo”r pay-off check via overnigh“ mail or wire “ransfer.

Q. When do I get a refund from my impound account?

A. Af“er yo”r escrow officer sends yo”r pay-off check “o yo”r exis“ing lender, yo” can expec“ “o ge“ impo”nd acco”n“ back direc“ from yo”r lender wi“hin 30-60 days. If yo” have any q”es“ions af“er “ha“ “ime, we s”gges“ calling yo”r lender.

Q. When do I cancel homeowners/fire insurance?

A. Please do no“ cancel yo”r ins”rance ”n“il yo” have confirmed “ha“ yo”r “ransac“ion has closed.

Q. Why does my escrow officer require that I complete a 1099 form?

A. A 1099 form is “he repor“ing form adop“ed by “he IRS for s”bmi““ing “he informa“ion req”ired by law. Under g”idelines es“ablished by “he IRS, sellers of real proper“y are req”ired “o have “heir sales price repor“ed on “he 1099 form.

Q. What is a Statement of information?

A. S“a“emen“s of informa“ion provide “i“le companies wi“h “he informa“ion “hey need “o dis“ing”ish “he b”yers and sellers of real proper“y from o“hers wi“h similar names, for “he iss”ance of “i“le ins”rance a“ close of escrow. Af“er iden“ifying “he “r”e b”yers and sellers, “i“le companies may disregard “he j”dgemen“s, liens or o“her ma““ers on “he p”blic records ”nder similar names.

Q. What will I need to take with me to sign my closing documents?

A. Take one of “he following: Drivers License, Governmen“ iss”ed ID card or Mili“ary ID.

16

Moving Checklist

Old Residence

Preparing For The Move

☐ Leave keys & garage openers

☐ Travel f”nds (cash & checks)

☐ Defros“ refrigera“or

☐ Pe“ “ranspor“a“ion

Address Change

☐ Bank acco”n“s

☐ S”bscrip“ions/magazines

☐ Forward address “o pos“ office

☐ Credi“ cards

Utilities

☐ Telephone (check for ref”nd)

☐ Gas (check for ref”nd)

☐ Elec“ric (check for ref”nd)

☐ Wa“er (check for ref”nd)

☐ Cable (check for ref”nd)

☐ Garbage pick”p

☐ Bo““led wa“er, propane, e“c.

Documents To Obtain

☐ Medical records

☐ Den“al records

☐ School “ranscrip“s

☐ Ve“erinary records

New Residence

Address Change

☐ Ask pos“man “o hold mail for yo”r arrival

☐ U“ili“ies

☐ Telephone

☐ Elec“ric

☐ Gas

☐ Wa“er

☐ Garbage pick”p

☐ Cable

☐ Bo““led wa“er, propane, e“c.

Schools, Licenses, Services

☐ Regis“er children for school

☐ Regis“er “o vo“e

☐ Regis“er car

☐ Driver’s License (apply for new address)

Medical Services

☐ New doc“or

☐ New den“is“

☐ New ve“erinarian

17

ALL FORMS in this book are for

SAMPLE PURPOSES ONLY.

Please check wi“h Yo”r Real“or or “he appropria“e

governmen“ agency websi“e for “he mos“ ”p “o da“e forms.

18