Selling a residential property can be a daunting task, with many steps that need to be taken correctly to ensure a smooth transaction. Failure to do so can lead to unnecessary delays and complications. If you're looking to sell your property, consider the following steps to help you navigate the process effectively.

Hire a Real Estate Lawyer:  One of the first decisions you'll need to make is whether or not to hire a real estate lawyer. With many legal requirements to follow, an attorney can help prevent issues from arising and address them promptly if they do. They will ensure that all legal matters are handled correctly and in a timely fashion.

Hire a Real Estate Agent:  A real estate agent can help you with listing and showing your home, among other things. You won't have to pay for their services upfront as they will collect a previously agreed-upon percentage of the sale price at the closing.

Have an Inspection Conducted:  Hire a licensed inspector to identify any issues that need to be remedied before listing your home for sale. Even though you live in your home, there may be issues you are not aware of.

Know the Value of Your Home:  Before listing your home for sale, it's important to know its value. A licensed appraiser should be retained to perform this work. They will tell you the amount you can expect to receive for your home, and using an unlicensed appraiser opens the door to additional and unnecessary negotiation.

Review and Accept an Offer:  You could receive multiple offers on your home. A lawyer can help you determine the best offer aligned with your interests. The highest offer may not always be the overall best offer because they may make certain demands or place unwarranted conditions on the real estate transaction.

Attend the Closing:  A closing is an event in which you sign the deed that transfers ownership of your property to another person. An attorney's presence is particularly important during the closing process. Some states even require it.

Documents Needed to Sell a Home:  Selling a home requires you to gather numerous documents to ensure the transaction goes smoothly. Your lawyer will advise you of what you need and where to get the documentation if you do not know yourself.  Documents essential to a residential real estate closing include the following.

• Loan Payoff Amount: If you have one or more mortgages on your property, they will need to be paid off at the closing. This means that you will need a payoff statement from your lender with a good through date.
• HOA Documentation: If you live in a community with an HOA, you will need to provide those documents at closing.  
• Proof of Repairs: Many home sales are contingent upon certain repairs being made to the property. You will need to be able to provide proof that these repairs were completed and the repairman paid unless they are to be paid at closing. 

There will likely be other documents, which you will be made aware of, that you must present as well. 

Remedies When Buyers Breach Real Estate Sales Contracts:  Contracts for the sale of a home often fall through for various reasons. Some of the more common reasons include:

• Inability on the part of the buyer to obtain financing
• The buyer changed their mind
• A home inspection reveals a structural problem that was unknown when the contract was entered into
• The appraisal came back for less than the purchase price

As a seller, your remedies are limited by the actual terms of the sales contract and the reason the sale is not taking place. Typically, you have three options.

1. Earnest Money. When the buyer made their initial offer to purchase the home, they put down “earnest money.” This money refers to a term in the contract that states you get to keep a certain amount in cases where the buyer backs out of the contract. Keeping this earnest money, cancelling the contract, and moving forward with listing the home again might be your best option.

2. Specific Performance. You may be able to sue for specific performance. If you are successful, the buyer would be forced to go through with their purchase pursuant to the terms of the contract.
3. Breach of Contract. Due to a buyer's failure to follow through with the home purchase, you may be able to sue them for breach of contract. Breaches of the contract can materialize in different ways, including:

• Buyer fails to come to the transaction in good faith
• Buyer does not have adequate funds to make a contract deposit and the check bounces
• Buyer does not tender the balance of the purchase price
• Buyer purposely defaults, e.g., the buyer fails to provide a mortgage commitment letter or other bank documents as required 
• Buyer fails to provide honest warranties and representations

The remedy best for you is something you should discuss with an experienced real estate attorney.

Real Estate:

    - Residential Purchases

    - Residential Sales

    - Property Transfers

    - Commercial Purchases

 

__________________

 

Relevant Blog Posts:

    - Real Estate Blog Posts