What can I expect at the closing table?

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You are almost there!  Most of the hard part is behind you now.  Once the buyer has completed  inspections and you have worked out and completed all the requested repairs, you are headed into the home stretch.  At this point, you are waiting on confirmation that the buyers financing is complete, the final loan package has been sent to the closing attorney and you have been given a clear to close.  You should receive a copy of the preliminary HUD-1 for review at least a day before closing.  Don’t be surprised, however, if you don’t see one until you are sitting at the closing table.

HUD-1:

This document is what you will sign at closing that will have all the numbers associated with the transaction in one place.  You should get this document just before the closing from your Realtor and you should go over every line carefully to make sure all information is correct and that you understand what each line represents.  Your attorney will go over this in detail at the closing, but it is a good idea to head off any problems in advance so that you don’t have changes at the closing table.  If you have to make changes on the day of closing, it could delay the recording of the deed and your ability to get your funds.

Here is what you want to look for:

  • Make sure your name and the property address is correct.
  • Review the seller side to make sure the Purchase price is correct.  The seller side is the right side of the document.  It is a good idea to start on page 2 where the breakdown of all the seller paid closing costs are listed.  You will see the commission paid to the Real Estate Firm, any attorney fees, recording costs and doc stamp fees.  In NC, the seller must pay $2.00 per $1000 of the purchase price.
  • Review any additional costs such as a survey, contractor costs for repairs not paid, inspections done by the seller or anything else the seller needs to pay out of the proceeds.
  • Back on page one, make sure the purchase price is correct. Review any adjustments made for pro-rated taxes and HOA fees.    Seller fees from page 2 will also show up here to be deducted.  This page will show what the proceeds from the sale will be or if you need to come to the table with any funds.  There will be a few other sheets attached that will give more detail on where the numbers come from.

At closing, you will sign 5-6 copies for all parties.  This form needs to be correct and the lender for the buyer needs to approve it before funds can be released and the deed can be recorded.

DAY OF CLOSE:

All parties to the transaction must be present to sign unless other arrangements have already been made.  If you are unable to be at the closing, you will need to make arrangements to have the documents sent to you in advance so that you can sign and have notarized and get back to the attorney in time for the close.  You can also arrange to have a power of attorney  to allow someone else to sign for you.  In many states, even if the spouse is not on the deed, they will still need to sign to sell the home.  Please check with the closing attorney if you are unsure.  You will need to bring your ID and any funds (if necessary).

The attorney will normally sit down with all parties, get everyone’s ID’s and then review the HUD-1 Settlement Statement with everyone. If everything is correct, all parties will sign several copies and an original will be given to the seller, the buyer, the attorney and the agents.  There will be a few more documents you will need to sign along with the deed and then you are done!  You will not need to stay while the buyer signs their documents.

Please bring along any keys, remote controls and anything else the buyer will need for the home.  You may want to go over a few things with the new buyers before you leave such as alarm codes, important numbers or anything else that would be helpful.  This can be a very emotional time for many sellers and they want to be sure they have covered everything and know that their home is in good hands.

AFTER THE CLOSE:

After the buyers has signed all the loan documents, the attorney will fax or email the lender the final signed package for review.  They will then authorize the deed to be recorded and funds to be disbursed.  Normally, any funds you are expecting can be picked up the same day if the closing is done early enough.  In some cases, the recording of the deed can be delayed along with your funds The attorney will hold the keys until the deed has been recorded. Have patience and all things will get worked out in a timely manner.

That’s it!  You are done and on to your next home.

 

 

Other titles in the seller series:

Article #1: Seller Questions Answered – A preview to Listing your home for Sale
Article #2: What do I need to do to prepare my home for sale?
Article #3: Why do I need an Real Estate agent and how do I select one?
Article #4: I have signed the paperwork, now what? -What to expect during the listing period
Article #5: A buyer wants to see my home -How can I maximize showing opportunities?
Article #6: I have received an offer – now what?
Article #7: My home is under contract – What are the next steps?
Article #8: What can I do to prepare for my move?
Article #9: What can I expect at the closing table?
Article #10:  What happens after my home is SOLD?

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Home Style Title card

Sonya Leonard –Keller Williams Realty – Mooresville NC.  The Home Style Team provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for instant alerts to help find your dream home.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588.

Why do I need to hire a Real Estate Agent?

Why hire a real estate agent?  Why don’t I just sell it myself and save the commission?  These are great questions and ones asked by just about every homeowner  considering selling their home.  You see For Sale By Owner signs all over your community and think that may be the easy way to do it.  Just grab a sign, put your phone number on it and hope for the best.  Some people have great luck with this method but statistics show that 85% will eventually list with a real estate agent.  Why?  Because selling homes is what an Agent does.  j0238367

Where would you go if you had a tooth ache? The Dentist.  Where would you go if you needed tax advice? An Accountant.  Where would you turn if your furnace broke?  An HVAC expert.  You would turn to an expert in the field for services you require.  When selling your home, you need a professional to help you through.

So….what does an agent do for all that money?  First of all, let’s clarify that in most cases, “all that money” in broken up into many different areas and only a portion of that actually goes to your agent.  Usually you would pay part to the buyers agent that brings the buyer, part would go your agents company they work for, then there is the marketing, gas, supplies, advertising and taxes that have to come out before your agent actually gets paid. 

What does the agent actually do for me?  Great question and one that requires a very long answer but I will summarize for you some of the most important aspects that your agent will handle for you.

Help you stage your home to look it’s best
Prepare all the paperwork to comply with NC law
Prospect for buyers through advertising and other agents
Put all the information on the multiple listing service so that it goes out to all agents and top real estate sites for buyers to see
Coordinate showings and gather feedback from agents
Provide pricing recommendations and market updates
Help negotiate the best price and terms for your home
Guide you through inspections, recommend professional services for needed repairs and make sure you meet deadlines
Set up closing and get all necessary paperwork to the attorney
Help you find another home and coordinate your close so that it is seamless

 

This list goes on and on and cannot begin to cover things a professional will do for you.  So how do you know who to select?  Do your homework.  Ask friends and family who they used.  Interview agents and ask critical questions and look for testimonials.  Research agents and see how long they have been in business, what is their volume, are they full time?  Do they know the area well? What is their online presence?  What is their marketing plan for your home? How will they communicate with you and how often? Find someone you can trust to work hard for you and that you like.  This will be a long process and you don’t want to get stuck with someone you don’t mesh with.  Don’t go in this blind, it is too important. 

 

I will be back tomorrow with the next installment in the series:  What can I expect during the listing period?

Other titles in the seller series:

Article #1: Seller Questions Answered – A preview to Listing your home for Sale
Article #2: What do I need to do to prepare my home for sale?
Article #3: Why do I need an Real Estate agent and how do I select one?
Article #4: I have signed the paperwork, now what? -What to expect during the listing period
Article #5: A buyer wants to see my home -How can I maximize showing opportunities?
Article #6: I have received an offer – now what?
Article #7: My home is under contract – What are the next steps?
Article #8: What can I do to prepare for my move?
Article #9: What can I expect at the closing table?
Article #10:  What happens after my home is SOLD?

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Home Style Title card

 

Sonya Leonard –Keller Williams Realty – Mooresville NC.  The Home Style Team provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for instant alerts to help find your dream home.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588.

Statesville NC Seller Tips

The National Association of Realtors has created a wonderful resource for home owners at http://www.houselogic.com/.  You will find information on just about anything you are looking for concerning your home from, Maintenance tips, Selling tips, Hurricane preparedness, Foreclosure resources, landscaping and much much more…   This truly is your “One Stop” site for all your home needs.  If you would like to know how much your home is currently worth, visit my website and sign up for a FREE Market Analysis.  I would be happy to meet with you and discuss what it would take to sell your home in today’s tough market. 

Here are a few seller tips for Houselogic: 

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

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Statesville NC Real Estate Guide –Sonya Leonard, Exit Home Team Realty Agent Sonya Leonard of Exit Home Team Realty is your local real estate expert in Statesville North Carolina.  The Statesville Real Estate Guide provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for you’re my exclusive FREE Weekly Distressed Sales List.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588. Exit Home Team Realty