Once of the issues I deal with from time to time are sellers who are upset when they receive their HUD statement prior to closing and they find that they are not receiving an amount they expected. When questioned about receiving and signing off on an estimated net proceeds document at the time the offer was presented, some claim they never received such an accounting.
A seller should have the opportunity to receive and review an estimated net proceeds document on at least 2 different occasions during a normal listing contract period.
The first time being when the home is listed for sale. An agent should provide in writing to the seller the costs associated with selling the home and the estimated net after those costs are paid.
The second occasion is each time an offer to purchase is presented to the seller. A seller should never accept an offer until they have a written accounting of the estimated net profit they will realize at closing.
Costs that should be covered when estimating the net proceeds include:
Real estate commission, Transaction fee, Doc stamps, Closing fee, Search fee, Estimated payoff of all mortgages, Recording fees, Home Warranty policy, Buyer closing cost paid by seller, Proration of real estate tax, Misc. prorations.
Acknowledging the net proceeds at the time you receive an offer will leave few surprises when you are at the closing table.
Related Florida real estate views:
Should you include your personal property with your home sale?
Real estate brokers can't be trusted
What does a home warranty cover?
- Greg Staker - Watson Realty Corp. - 407-304-0255
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