Selling Your Home: What to Know for Closing

If you're selling your home, one of the main things that you have to pay attention to is closing. It's very important that everything gets done before the actual closing day, and if your Realtor is very busy and/or new to the game, you might want to do a little of the 'legwork' yourself. The best way to do that is through the closing agent.

Some people call them title agents instead of closing agents, but they all do the same thing - they work to make sure that you get your money (if you're owed any) and the buyer gets your house. They order appraisals, inspections, and other things that have to be done before closing. They also keep in touch with the Realtor so that everyone who needs to be at the closing table gets there at the right time on the right day.

If you're the seller, you're probably really stressed out about whether your house will close properly. Even though you've got a contract on it and it's 'sold,' it's not official until closing. Something could always go wrong, and that's what keeps a lot of sellers up at night.

One of the seller's top worries is the appraisal. This is the value that's placed on your house based on the current market and the value of comparable homes that have sold near yours most recently. It needs to come in at or above the sales price of the home listed in the contact with the buyer. If it comes in too low, there are three options: the buyer can come up with more money to buy the house if his lender doesn't provide enough funding, the seller can lower the price of the house, or the entire deal can be canceled.

Often, an appraisal can make or break a sale because the lender that's giving the buyer money to purchase the house is basing how much money he gives that buyer on whether the house is worth what the buyer is paying. As long as the buyer has qualified for a certain amount of money, he or she will get that money to buy the house - but only if the house is 'worth it' based on the appraisal.

Once the appraisal clears, you'll still have worries, like the termite inspection, the septic tank inspection, and the overall home inspection. A thorough home inspection can take 2 to 3 hours, and an inspector will look for any and all problems with the home. An inspector might also point out things that aren't problems now but may become problems later.

Problems during inspection won't stop a deal from going through, but it can cause some negotiating between buyer and seller, and the contract to buy the home is often contingent on a successful home inspection. Most newer homes need only minor repairs, and those aren't significant when it comes to closing the deal.

Keeping in touch with the closing agent can help you to feel reassured and can also keep you on track so that you and the buyer can have a better experience when you all meet up to sign the papers changing over ownership of the home.