Information for House Sellers - Page 4
The Offer Process
As a seller here are a few things to remember:
The offer is written on a Residential Sales Contract. This contract contains:
Don't get discouraged if the first offer is not what you wanted. Normally there is an offer and a string
of counteroffers to work out any details. You and your REALTOR® will discuss the offer and
contingencies that could slow down the sale process. The offer may have contingencies that say
something like "I will buy your house if and when I sell my house", "I will buy your house if and when I
am approved for a mortgage loan", or even "I will buy your house if and when you fix the following
problem(s)".
Eventually you may get an offer you like and accept it. There is still a lot of work to be done. Besides
packing for your move the parties will need to schedule the closing.
Prepare for the Closing
The buyer will want to schedule at least one more inspection before the closing. This is the final
walk-through for them to see that the house is still in the same or better condition, that you
completed any required repairs, and you are not taking anything from the house that is suppose to
stay.
The closing will be scheduled on or before the closing date specified in the Residential Sales
Contract (the buyer's offer). It will be held at the buyer's lending company, a title company or a
lawyers office.
The Closing Process
The closing is the point where the ownership of the property is transferred from the seller to the
buyer in exchange for the sale price. Two main things happen at the closing. All promises made by
both parties in the Residential Sales Contract (the buyer's offer to you) must be fulfilled. The buyer's
mortgage loan is finalized and the money is transferred.
The closing should take around 1 hour to review and complete the paperwork. The closing agent will
review the settlement statement that details what the buyer and you owe, who you owe, and what you
are owed by the buyer. The items could include transfer taxes, real estate taxes, prorated heating
fuel, and even prorated rent if part of the property was leased to another and the rent was paid in
advance.
After you walk out of the closing take some time to congratulate the new owner. This is a major sale
for you and a major purchase for them. The process can be stressful in even the best situations.
Celebrate your success and the buyer's new home.
As a seller here are a few things to remember:
- Your REALTOR® works for you. Let him/her collect and respond to offers. You make the
decision and your REALTOR® communicates it to the buyer's agent. You should not be
speaking directly with potential buyers or their agents. This is your Realtor's job. - Give all offers consideration and do not get upset if they are much lower than you want or ask
for something in the house you said you would not leave. You can decline any offer or make a
counteroffer to the buyer. - Give all buyers the same courtesy. It is a civil rights violation in Illinois to discriminate based
on race, color, religion, national origin, ancestry, age, sex, marital status, physical or mental
disability, military service or conditions of discharge, familial status, or sexual orientation
and/or preference. The only color you should be concerned with is how green is their money. - You do not have to accept the highest offer. If the highest offer has contingencies such as the
buyers selling their current house and the next highest offer has no contingencies, you may
not want to wait and accept the 2nd offer. The highest bidder does not always win.
The offer is written on a Residential Sales Contract. This contract contains:
- the street address, the legal description, and the tax identification number of the property,
- the date and time limit that you must accept the offer or the buyer must withdraw the offer,
- the amount of money the buyer is offering for the property and the amount of the earnest
money. The earnest money is given to show the buyer's commitment to buying the house
and is applied toward the purchase price. It is deposited in the escrow account at the Listing
Agent's company once the offer has been accepted. - an optional Financing Amendment that gives a date by when the buyer will apply for a
mortgage loan. The Amendment can contain financing contingencies that say the buyer
must get a loan for a certain amount of money at an interest rate of not more than a certain
percent for at least a minimum number of years, otherwise, the deal is off. This contingency
basically says "The buyers will buy your house if and when the buyers are approved for a
mortgage loan that they like". - the date on or before that the buyer wants to close,
- the date the buyer wants to take possession and be able to move in (usually at closing),
- any items the buyer wants included in the sale of the house such as a washer and dryer.
Make sure there is nothing listed here that you plan to take, otherwise, if you accept the offer
then they get it. - whether the buyer plans to have a professional perform a house inspection and make this
offer contingent on not finding any major problems. Normally a buyer will want to schedule a
professional home inspector to check the house for any problems. This is optional but if the
inspection reveals any major defects in the structure, roof, plumbing, or the heating, cooling,
or electrical systems then the buyer can ask for those things to be fixed. Or the buyer could
ask you to reduce the price of your house by the cost to do the repairs after they buy it. The
buyer pays for the home inspection and sometimes accompanies the home inspector to
learn more about the house. - it acknowledges that the buyer has seen the seller's disclosure form of any known problems
and if the house was built before 1978 that the buyer has seen the lead paint disclosure
form. - the name of the seller,
- and the buyer's name(s), current address, and signature(s).
Don't get discouraged if the first offer is not what you wanted. Normally there is an offer and a string
of counteroffers to work out any details. You and your REALTOR® will discuss the offer and
contingencies that could slow down the sale process. The offer may have contingencies that say
something like "I will buy your house if and when I sell my house", "I will buy your house if and when I
am approved for a mortgage loan", or even "I will buy your house if and when you fix the following
problem(s)".
Eventually you may get an offer you like and accept it. There is still a lot of work to be done. Besides
packing for your move the parties will need to schedule the closing.
Prepare for the Closing
The buyer will want to schedule at least one more inspection before the closing. This is the final
walk-through for them to see that the house is still in the same or better condition, that you
completed any required repairs, and you are not taking anything from the house that is suppose to
stay.
The closing will be scheduled on or before the closing date specified in the Residential Sales
Contract (the buyer's offer). It will be held at the buyer's lending company, a title company or a
lawyers office.
The Closing Process
The closing is the point where the ownership of the property is transferred from the seller to the
buyer in exchange for the sale price. Two main things happen at the closing. All promises made by
both parties in the Residential Sales Contract (the buyer's offer to you) must be fulfilled. The buyer's
mortgage loan is finalized and the money is transferred.
The closing should take around 1 hour to review and complete the paperwork. The closing agent will
review the settlement statement that details what the buyer and you owe, who you owe, and what you
are owed by the buyer. The items could include transfer taxes, real estate taxes, prorated heating
fuel, and even prorated rent if part of the property was leased to another and the rent was paid in
advance.
After you walk out of the closing take some time to congratulate the new owner. This is a major sale
for you and a major purchase for them. The process can be stressful in even the best situations.
Celebrate your success and the buyer's new home.
Your Illinois Home: Buying and Selling a Home in Illinois
Free Seller's Pamphlets: Lots of information about sellling a house
HUD: U.S.Dept of Housing and Urban Development -selling a house
IRS: IRS information on home sale.
Mold and Mildew: PDF file on Mold and Mildew
Free Seller's Pamphlets: Lots of information about sellling a house
HUD: U.S.Dept of Housing and Urban Development -selling a house
IRS: IRS information on home sale.
Mold and Mildew: PDF file on Mold and Mildew
LINKS FOR SELLERS
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Sponsored by Dave McMillin, Jim Maloof/Realtor®, East Peoria, IL
www.greaterpeoriahomes.com
SELLERS GUIDE
Selling a House in Central Illinois: