• Any other fees sometimes paid by the seller (appraisals, inspections, transfer tax, buyer’s closing costs, etc.).
Handling Earnest Money in California
In California, earnest money is not given directly to the seller. Instead, once an offer is accepted, the buyer’s earnest money deposit is typically held by a neutral third-party escrow or title company. This ensures that the funds are securely managed and only disbursed according to the terms of the purchase agreement. It’s important to understand that these funds are not the seller’s to spend until the transaction closes and the sale is officially recorded. If the deal falls through due to contingencies such as financing, inspection issues, or other contract terms, the buyer may be entitled to a refund. The escrow company follows the instructions outlined in the purchase agreement to handle these situations fairly and legally, helping to protect both parties in the transaction.
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 upon close of escrow, however, 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 to have to pay for some repairs. Don’t let the buyer’s request to complete a minor repair kill the deal.
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