The volumes of paper you will require when selling your home will be large, meaning you will have organized them in time for easy access when they will be needed. A buyer is entitled to any document they ask from you. Therefore, you should always be ready to produce any required document, either digitally or physically. By law, agents are required to keep the sale–related documents for a certain period; as the seller, you also need to have these documents in your file; you will thank yourself later. Sometimes the deal might go sour and you find yourself in court. If such happens you will be able to prove your case without leaving anything to be disputed.
What A Seller Needs Before Listing The House For Sale
Before you finally decide to put up your house for sale, your agent must furnish you with several house listing documents, or you can look for them yourself. The documents listed in this article are the minimum required amount to;
- Determining if you will proceed to sell the house
- Knowing the cost of your property
- Knowing how much you will make after selling the house
Below are some of the documents you must have in your possession before listing your house;
Comparative Market Analysis
A comparative analysis is a document generated by your agent indicating the houses around your neighborhood that are similar to yours, and the price they would go for. The market analysis also shows the houses that have been sold, those pending sale, and the currently listed ones. Finding an average of all the numbers gives you a rough idea of how much your house can cost in the real estate market if it is put up for sale in the immediate market.
Preliminary Title Report
The document is usually known as prelim, and it indicates the owners of the house and whether there are taxes owed. It also indicates whether there is any lien on the house or any condition recorded on the chattel. Therefore, you need to get this document ahead of time to know your property’s status and condition before listing it. It also gives you the confidence to negotiate prices with the buyer, especially if the house does not have any pending issues. If there are any issues, you will know how to solve them before inviting buyers.
Sellers Net Sheet
The sellers’ net sheet documents give a summary of all the expenses and money to be received during the sale process. The sellers’ net sheet calculations are estimates of what you anticipate to receive from the sale. However, the information should still be accurate to guide you on whether to sell the house or not.
The agent must furnish the seller with this document to keep them in the loop of when activities such as open house, advertising, and broker tours will be held. The document must give a step by step guide on the marketing strategies that will be used to get a potential buyer.
You and your agent will enter into a contract; therefore, it is best to write this down. The document should contain the price of the house, the percentage commission to be paid, and how the property will be displayed. Every aspect of the house sale should be listed in this agreement.
In most states, the seller is legally required to disclose any problems with the house to the buyer. The document that contains such matters must be signed by you and the agent. Also it must carefully elaborate on any issue that may be of interest to the buyer. Therefore when you are planning to list your house for sale, you should have these documents. It may also give you a negotiating edge against the buyer. Furthermore, you also need to have an inspection report. This should indicate that the house has been inspected for damages and molds when the house was put on sale.
The buyer may have their inspection report, but it is also best to carry out the inspection for yourself and file the report given. Having an inspection done on the house also gives you the confidence to come up with a reasonable price for the house. This is especially true when you are not too sure about the condition of the house.
It is likely that if you are working with a good agent, you will be able to gather all the documents in time. Different states may have different regulations on the listing documents that a seller might have. Therefore you need to go through your state laws to ensure you do not omit anything. Gathering and going through all these documents may seem overwhelming. However, it is the only way you will have a smooth listing process. Also, ensure you file all the documents you will be given for easy reference.