A Seller's Guide to Real Estate with Laura Canada Lewis

By: Laura Canada Lewis

It is time to sell your home. Where do you start? One of the most helpful places to begin is knowing who is or can be involved in the transaction. At first glance, you might think it will just be the real estate agent and you, but it is much more than that.

The Key Players

• Realtor® — A special type of licensed Real Estate Agent who is a member of the National Association of REALTORS®.
• Listing Agent — Works to represent the seller by placing the home on the MLS and actively works to complete the sale for the benefit of the seller.
• Buyer's Agent — Works solely with the buyer to locate the perfect home and negotiate the price.
• Intermediary — An intermediary relationship may happen when someone from the Listing Agent's office actually locates a buyer for your home. Special rules apply to protect both the Seller and the Buyer.
• Escrow Officer — Works for the title company and coordinates documents, assists with closing, and manages disbursements.
• Appraiser — Hired by the Lender or the Buyer to personally inspect your home and calculate a monetary value for the Lender.

A Guide to the Inspection Process and Disclosures

The inspection is a necessary process of selling a home. The Seller has an obligation to disclose the true condition of the home on a Seller's Disclosure form; if the statements provided by the Seller regarding the condition of the home are not truthful, and problems arise after the sale, then the Buyer may have the right to bring a lawsuit and recoup the monetary value of the deception.

A home inspection is performed by a licensed professional and should encompass the major components of the home: roof, plumbing, electrical, heating/cooling, appliances, water heater, exterior and any other visible features. A full report should be provided, including pictures and any recommendations for maintenance or repair. The buyer usually pays for the inspection, but this is negotiable.

A Structural Pest Control Inspection is a specialized type of inspection involving an examination for wood-destroying bugs such as termites. Most pest control reports will classify conditions as Section I (repairs) or Section II (preventative). Section I repairs are usually paid for by the seller.

Escrow Process

Escrow is where a third party, usually a title company, temporarily holds either money, property or both until a specified condition has been met or a specified time has elapsed. This process is to protect both the Buyer and Seller in a real estate transaction.

Home Warranty

The home warranty is an insurance policy that kicks in after closing should there be any mechanical, electrical or plumbing issues. Home Warranty Plans usually range from $250–500, offer varying coverages and are typically paid in advance at closing. The policy is usually good for one year and does not auto-renew.

Title Insurance

Title insurance is a type of policy that protects both the Lender and the home owner from issues/defects/clouds that may hinder ownership of the property. There are two types of policies: an owner policy and a lender policy. The Seller usually pays for the owner's policy as it is the seller's way of confirming that title is free and clear.

Homestead Exemption: Do I Need One?

A homestead exemption removes a portion of your home's value from the taxable base, making your taxes lower each year. To be eligible: (1) you must own your home on January 1 of the relevant tax year; and (2) it must be your principal residence. You can only have ONE homestead at any time.

• School Taxes — All residential homeowners can receive a $15,000 homestead exemption from the home's value for school taxes.
• County Taxes — If a county collects a special tax for farm-to-market roads or flood control, the homeowner will qualify for a $3,000 exemption.
• Age 65+ and disabled exemptions — If you are aged 65 or older and/or disabled, you may qualify for an additional $10,000 exemption for school taxes.
• Optional Percentage exemptions — Any taxing unit may offer an exemption up to 20% but not less than $5,000.

Closing Details

Your closing will be scheduled through the title company on a certain date and time. The title company will be responsible for coordinating the real estate brokers to pay their commissions from the proceeds of the sale and will prepare and/or coordinate all the documents necessary to facilitate the transfer of the real property. Once all the documents are signed, the title company will fund the transaction by wire, and the Buyer is given keys to the home as the new property owners.