Selling your home can be a very exciting step forward, especially when you are anticipating a big change in your life. Whether you are moving into a new home or settling into a new city, you may not feel the reality of the situation until you seal the deal on your old home. Though, it’s not something that could be done overnight. Besides the struggle that comes with packing all your belongings, you need to keep in mind that any real estate transaction requires an infuriating number of documents and paperwork. Understanding how overwhelming and confusing this can be, we are here to tell you the type of paperwork you need when selling your house.
From listing your home to closing the sale, it’s surprising to learn that you need certain paperwork for each phase of the process. Before you list your home, you need to make sure that you have an original sales contract. You must have bought the home you’re trying to sell at some point in your life and it only makes sense to have a record of this transaction. This record, or the agreement between you and the previous owner, is called the original sales contract, which must state the parties involved in the transaction, what was bought/sold, when the purchase was made, and why the transaction occurred. This is necessary to clearly outline the previous and current owner of the home, thus your eligibility to sell it, as well as the conditions beneath which the right of ownership was transferred to you. It also includes the previous selling price and any pronounced disclosures. You should then use this contract to obtain a professional appraisal assessment. This document evaluates the fair market value of your house to determine how much money a mortgage lender will have to lend to a potential buyer.
If you still haven’t paid off the full amount of your current mortgage, you will need to reach out to your lender. Ask them for a statement that includes your pay-off amount plus the amount of interest that you owe them. Keep in mind that the mortgage statement differs from the current balance, which you can find on your latest account statement. You also need to get ahold of your homeowner’s insurance records. It’s necessary that you’re honest with your prospective buyers about any damages and respective repairs made to your home because this will give them insight into the amount of homeowner’s insurance they’re entitled to. This being said, you need to provide them with capital improvement receipts, home maintenance and repair records, past utility bills, and warranties and manuals. If you’re part of a Homeowner’s Association, you will need to obtain documents stating the bylaws, articles of incorporation, rules, and regulations, the Declaration of Conditions, Restrictions, and Covenants, the statement of homeowner’s due amount, as well as the last two years’ worth of the Association’s meetings copies of the minutes.
Selling Your Home
It’s not easy to determine your home’s worth in the fluctuating real estate market. Aside from the conditions mentioned above, there are still other requirements you must consider in determining its price. To find out your home’s worth, you can review the residential surveys from Axiom Geomatics to help you obtain the documents you need, especially if you are selling in a location like Calgary and the area. A comparative market analysis report, for example, typically gathers all the information regarding the listed, ongoing, and recent sales in your location, allowing you to come up with a smart pricing strategy.
If you hire an agent, on the other hand, you will need to obtain a listing agreement that grants them exclusive selling rights within a specified timeframe. You will also need to request a proposed marketing plan that provides details on how your agent is planning on marketing your home. A seller’s net sheet, which is another needed document, is a worksheet provided by your agent that illustrates the amount of profit you can expect to receive from your home’s sale.
Once your home is up for sale, you will need to get a preliminary title report, which is somewhat precautionary; as it provides legal and financial information that notifies buyers regarding any outstanding conditions in your property. A mandatory disclosure document is also important to warn your buyer about any hazardous conditions, such as water damage, use of asbestos or lead-based paint, neighborhood nuisances or disputes, or malfunctioning appliances. You have to hire a home inspector so they can write up a pre-inspection report. If you live in California, you may need to obtain a transfer disclosure statement and a natural hazard report.
The thought of new beginnings and blank slates may be thrilling, however, it can still be scary. Along with it is the part where you will be selling your house, which leaves no room for doubt, as it’s a confirmation that you’re ready to embrace all the forthcoming changes and opportunities. Handing off your house to someone else is, unfortunately, easier said than done, yet, with all the necessary paperwork prepared, you will be able to sell it to the right person.