Do not believe that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. There are too many stories about sellers who spent the deposit money prior to closing. When the transactions did not occur, for reasons such as financing contingency or failure of inspection or repair issues, the buyers had to fight or sue for a refund. Another advantage to using a real estate agent is that the agent will have the deposit placed in escrow for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn’t close.
Forgetting to Cancel/Switch Utilities and Insurance
Many sellers overlook notifying utilities that they are moving or applying for utility service at their new home. Call the utilities and your insurance company as soon as a contract is signed. Find out how many days’ lead time they need to switch or cancel, then get back with them when you have a firm closing date. Best to have everything switched or canceled the day after closing.
Letting Emotions Take Over
Keep calm throughout the selling process, especially during and after a house inspection. Be practical and presume that issues will arise. It’s not uncommon to have to pay for some repairs. Don’t let the buyer’s request to complete a minor repair kill the deal. On the other hand, don’t commit to fixing anything in advance (e.g., “Sure, we can put on a new roof ”), unless you are sure you can manage it emotionally and financially. Determine the kind of repairs you can practically take care of, then commit to that decision. Some repairs can become unmanageable and could cost you big money.
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