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. (This is one of the important reasons to using a real estate agent. The agent is a neutral party who will deposit the money at the attorney 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. 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 that you 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. (The purchase contract used by real estate agents includes a paragraph about repairs to avoid arguments between seller and buyer.) After knowing about these pitfals you may want to talk with a Realtor. In that case, avoid:
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