[title type=”modern-h2″ align=”center” color=”#fc8600″]Things You Must Know Before Selling[/title]
Will they Buy Your Home with CASH or a LOAN?
When someone purchases your home, they will either pay cash or will be getting a loan. Most homes are done via a loan, so it is important to know if your home will even qualify for a loan. Lenders will have specific things they are looking for to see if your home will qualify for your buyers loan. A few of these items might be:
- Type of Water Source – Hauled, Shared Well, etc
- Manufactured vs Stick Built
- Will it pass FHA or VA Requirements
- Clear Title
- Overall condition of the home & needed repairs
- If in doubt, have an acreage specialist tour your home for potential problem areas
COSTS You Can Expect as a Seller
When you sell any home, you will have costs that will be due at the time of closing. Your closing costs will usually run between 8%-9% of your sales price. However, since you are on acreage, there will be a few other costs you might be responsible for vs homes located in town
- Septic Inspection – Usually around $500 and can be paid at closing in most cases. Good for 6 months, and they will pump the septic at the same time.
- Tie Downs – If you have a manufacture home, a foundation certification might be required by the buyer. The buyer pays for the foundation cert but if there aren’t tie downs or there are other items called out due to awnings, patios or decks, these costs and fixes are the responsibility of the seller. This can cost between $800 on up depending on what is found. Can also usually be paid at closing if done correctly
- Seller Concessions – The Buyer might as for seller concessions. Basically, this is a credit that you give the buyer to help with their closing costs. It can range between 1%-3% of the purchase price
- Termite & Repairs – If it is discovered that your home has termites (lot of manufactured homes do) then you can count on a $300 – $400 treatment needing done. Plus any other repairs that might come up during the inspection period that you agree to fix.
- Your agent should be able to give you a good idea and better understanding of each of these items
You Will Need to Give “Clear” Title to the Buyer
When you sell your home, you give what is called “clear” title to the home. The Title / Escrow company will do their homework on the past ownership of the home & land.
Unfortunately, sometimes land has been sold to neighbors, passed down to family or “quit” claimed to folks which if not done correctly, can put a “cloud” on the title and full ownership.
In order to sell your home, any poorly done transfers of ownership will need to get cleared up before you can sell. This normally effects folks that have owned their land for a long time or purchased or inherited through non-traditional means.
- Your agent should be able to look at past titles and look for any potential issues