UNDERESTIMATING CLOSING COSTS
Many sellers only consider the money they are selling their home for. They don’t appropriately calculate all the costs associated with the sale and overlook the following items:
• Real estate commission • Advertising costs
• Attorney or closing agent fees • Excise/gains tax (if applicable) • Prorated costs for things such as property taxes, home owner association fees, and utilities • Any other fees sometimes paid by the seller (appraisals, inspections, buyer’s closing costs, etc.)
SPENDING EARNEST MONEY GIVEN TO YOU
Don’t believe for a second that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. Too many stories tell about sellers who spent the deposit money prior to closing. When the transactions didn’t 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 is a neutral party who can keep the deposit safe until closing day, and make sure your contract dictates what should happen to the funds if the transaction falls through.
FORGETTING TO CANCEL/SWITCH UTILITIES AND INSURANCE
Many sellers overlook notifying utilities that they’re moving or applying for utility service at their new home. Call your utility and insurance companies as soon as a contract is signed. Find out how
98
Powered by FlippingBook