VBO blog
7
Steps for Selling or Buying a House
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By
Attorney Mark J. Mahoney , Cassiani Law Offices *
Cassiani Law Offices, Appleton & Black Creek 920-984-4529; Green
Bay 920-592-1381
1. Determine a PRICE and how to pay for it
How much should a Seller ask? What will a Buyer pay? What are comparable properties selling for? If you don't know, consider spending a couple hundred dollars for an appraisal. If you get an extra $1,000, for example, because you get a good price, the appraisal more than pays for itself. And Buyers will make it easier on everyone if they meet with a lender early on and get Pre-qualified for a loan.
2. FIND a Buyer or Seller
Valley by Owner has a variety of selling options providing significant savings in marketing costs compared to the commission of a traditional real estate broker.
3. Hire a real estate LAWYER
Using only a fraction of what you save selling by owner, you can hire an attorney to handle your sale or purchase, see that all steps and details are attended to, and resolve any legal issues that come up.
4. Complete an OFFER TO PURCHASE
The Offer to Purchase is the legal contract for the sale of the house. Key things to agree on are earnest money paid to the Seller, sales price, any special items included in the sale, a date by which the sale must be completed (closing), who moves when, whether an inspection is necessary, and if there are any requirements that must be met (such as selling a house or getting a loan). The Offer is a standardized form. However, you should have a lawyer help write or review the Offer before you sign it. There is fine print, and you could miss important things that your lawyer can point out.
5. Make the required PROPERTY DISCLOSURES
The law requires every Seller to give the Buyer a Property Condition Report. For older homes, a Lead Paint disclosure form is required. Take care in completing these forms to avoid legal liability.
6. Doing the DETAILS of the Offer to Purchase
Traditionally, a realtor took care of the details. These include finding a title company to search the public records to ensure that the Buyer gets good title to the property purchased. Other details include arranging for closing, inspection, sale or financing contingencies, payoffs of mortgages, recording of a new mortgage, etc. Your attorney will coordinate these activities, although the closing itself may be held at the office of the attorney, Title Company or bank, depending on the circumstances.
7. Final Step: CLOSING
A closing boils down to this: The Buyer gives money to the Seller, and the Seller gives the Buyer the deed to the property. However, this does not happen until the lawyer approves the numbers, the legal documents, and any other requirements. These include the deed, real estate transfer tax return, and closing statements that show the costs the Buyer and Seller will pay. Make sure you get an early estimate of closing costs. Title insurance can cost hundreds of dollars depending on the price of the house, (as is the transfer tax which is .003 of the sales price). Other costs include the attorney's fee, lender's fees, and a closing fee. Also, at closing the final details of the move will be confirmed: dates, keys, transfer of utilities, etc.
*All rights reserved. Attorney Mark J. Mahoney , Cassiani Law Offices,
Appleton & Black Creek 920-984-4529; Green Bay 920-592-1381.