This post was originally published March 21, 2022. It has been updated for accuracy, comprehensive, and undergone a legal review.
Selling a home is one of the most significant financial decisions you'll make. From contracts and mortgages to loans and realtors, each detail matters. In fact, overlooking a small aspect can lead to costly mistakes. To help you through the home selling process, we've outlined fundamental steps.
Selling your house takes a lot of work, so consider these tips before you get started:
Of course, one of the best ways to get your house sold is to set a price that buyers can afford. To do this, make sure you are familiar with the housing market in your area. How much do other homes on the market cost that are a similar size, age, and location as yours? Speak with a real estate agent to get their knowledge on this.
When you are deciding on an asking price for your home, remember to ask your LegalShield law firm for advice as well. It’s important that your pricing decisions comply with your local real estate laws. Your law firm can give consultation when you have questions about this and other legal issues surrounding the listing of your home.
When selling your home, you will most likely be required to provide disclosures about the house. Disclosures inform potential buyers about certain problems with the house. These could include known pest problems, water damage, roof issues, problems with the foundation, environmental hazards in the area, and any big issues with the surrounding neighborhood. You also may need to disclose whether there has been a murder, serious crime, suicide, and even reported supernatural events in the house in question.
Fortunately, you are usually only required to disclose problems that you know of personally. You most likely will not need to dig up history on the house before you lived in it. However, the laws in your specific state may require certain types of information that other states do not require. You could even end up in court if you do not disclose issues that you knew about! It’s best to ask a lawyer for advice about what you need to disclose, how, and when it's necessary.
When showing your home to potential buyers, make sure you have personal information and private documents tucked away where strangers can’t see them. You also want to keep track of any property damage visitors may cause as they tour your home, even if it is just a scuff on the wallpaper. Your LegalShield law firm may be able to help protect your rights if you run into a dispute with another party.
Potential buyers will submit an offer, which you will either accept or counteroffer. They may counter that, and negotiations will continue until an agreement is reached. Please keep these things in mind:
With legal support, you can better understand and manage offers, counteroffers, and other details of the closing process while ensuring that you protect your rights.
The buyer may choose a licensed inspector to conduct a thorough examination of your home. If the inspection uncovers too many problems, like a bad foundation or severe termite damage, the buyer can back out of the sale, or they may ask you to do your part toward fixing these issues. Your responsibilities could include making the necessary repairs, putting aside money in escrow for those repairs, or lowering the home’s final price to cover repair costs. Legal advice can make your decision easier in these situations, as a lawyer can inform you what your rights and responsibilities are.
Once you have both signed the purchase agreement, you and the buyer will enter escrow. This is a period wherein an escrow or title agency will be chosen, and the escrow or title agent will prepare all the necessary paperwork while the buyer’s lender begins processing the loan.If issues arise during escrow, you will need to respond quickly. Otherwise, the house could fall out of escrow and the sale could be voided! This is why it’s essential that you provide complete, legally compliant disclosures so that these issues can be avoided. Legal advice can greatly benefit you in this area, so that you don’t overlook any legal details.
Before closing, you and your possessions need to be out of the house. You will most likely leave fixtures and appliances behind, unless your contract stipulated otherwise. Make sure the house is clean, swept and scrubbed. The buyer is allowed one final walkthrough to ensure that everything is as it should be. You could run into legal issues if you overlook any of these specifics—for example, if you take the refrigerator with you even though this was not stated in the contract, the buyer may be able to take legal action against you. Have your LegalShield law firm assist with contract review to ensure that you understand your rights and responsibilities.
Both you and the buyer review and sign all paperwork at closing, including title and funds transfer. The new owners receive the house keys, alarm codes, garage openers, and everything else they will need to move in. Come prepared to pay all closing costs, such as agent commission, transfer taxes, title insurance fees, pro-rated property taxes (unless the buyer moved in on the first of the month), plus any outstanding home equity loans you may still have on your former home.
Since the home selling process is a complex, you may need legal support from an experienced law firm. If you have questions about selling your home, LegalShield can help you from listing to closing.
Written and maintained by the LegalShield content team, covering legal and identity protection topics for individuals, families, and small businesses.
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