be enough to deter offers.
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. • Real estate commission, if you use an agency to sell. • Advertising costs, signs, other fees, if you plan to sell by owner. • Attorney and title company fees • Excise/Gains tax for the sale, if applicable. • Prorated costs for your share of annual expenses, such as property taxes, homeowner 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
Do not believe the earnest money given 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 transaction did not occur for reasons such as financing contingency or inspection defects, or repair issues, the buyers had to sue for a refund. Earnest money can be held by the title company and applied to the purchase price or returned by previously signed documentation.
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 58
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