YOU MAY INCUR IN SELLING YOUR PROPERTY
The loan that is secured by the property. There can be one or
several. This loan or loans can be satisfied either by being
paid off at closing or by the purchaser assuming the liability
for this loan.
Additional interest assessed by the lender for early payoff
of the mortgage. This penalty can be very expensive. Check with
your current lender as to whether there is a pre-payment penalty
involved with your current mortgage, how much, and if it can
Title Insurance Policy-
The seller insures the title he is conveying to the purchaser.
The premium adjusts with the purchase price. If your current
policy is less than two years old, it can be surrendered to
the Title Insurance Company for a 50% savings on the cost of
a new policy.
The amount a seller receives for a mortgage (usually a second
mortgage) that they sell to a third party. This enables the
seller to receive most of their money and be relieved of the
possibility of the purchaser not paying. The amount received
varies based on the terms and conditions of the loan.
cost relevant to the releasing the title from public record
In all real estate transactions, both buyers and sellers are
entitled to legal counsel. When a Real Estate Broker is involved
with the sale, the cost of document preparation, the deed, and
the cost of closing are covered by the brokerage fee. The respective
parties pay any attorney coverage beyond these responsibilities.
An attorney will charge according their involvement. The more
complex the involvement, the greater the cost.
This usually involves the lenders escrow for taxes. The seller
is liable for their taxes from January 1st until the date of
closing. Lenders historically escrow taxes from April till April.
The seller usually has a shortage of funds in escrow to cover
their taxes. Adjustments are then made at the time of closing
for their shortages.
Most mortgages are paid in arrears. This means that if you close
in July you pay interest owed for the month of June. For this
reason, the seller usually owes interest on their loan at the
time of closing.
Water is a perpetual lien against a property. The escrow at
closing assures the property payment of the lien. Any remaining
balance of the escrow is refunded to the seller.
Any fixture, refrigerator, stove, drapes, etc. that is included
in the sale of a property must be free and clear of any money
owed against it, unless the buyer agrees to assume these liabilities.
The fee a licensed real estate broker earns for finding a ready,
willing and able buyer. This also includes representing the
best interest of the seller, marketing the property, and the
closing of the sale involving the transfer of real estate.
Various insurance companies offer Warranty Services to insure
repair or replacement of appliances and various vital home systems.
The advantage of this extra coverage is that the seller doesn't
pay anything for this coverage until the house sells, unless
they have a claim. Should there be a claim, the maximum charge
is $35 for each service call. Should the house not sell, the
seller pays nothing except the $35 service charge they may have
previously paid. For small additional charges, the buyer may
elect to cover most other items such as hot tubs, spas, and
swimming pools. The benefits of this warranty could far exceed
the cost of the policy. For additional information, I can furnish
brochures and copies of the warranty contract for your inspection.
Discount points, or "points", represent additional
yield to a lender. One point is equal to 1% of the loan amount.
Virtually every loan involves the payment of "points"
Lenders do not care who is to pay the points "Points"
are a negotiable item between the buyer and the seller. The
majority of purchasers know this and will not hesitate to make,
as a condition to the purchaser, the requirement that the seller
pay part or all of these points. A seller who refuses to consider
that payment of part or all of these points as part of the marketing
plan, puts themselves at a decisive disadvantage to competing
properties. In today's market, prospective buyers are looking
for the greatest value of their dollar. To be less than competitive
in any aspect of the marketing process would result in a prolonged
marketing period with ultimately less "NET" proceeds
to the seller.