Home Sellers Guide - The Purchase Contract and The Closing

Home Sellers Guide - The Purchase Contract and The Closing - DwellWell

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DwellWell’s Home Sellers Guide

Writing Up the Purchase Contract

At this point, you should already have a real estate attorney. You attorney will provide the necessary services required to complete the sale of your home. Visit our Seller Services page to find a list of attorneys in your area.

Sales Agreement
Once you and the buyer have agreed to the terms of the sale, use the Offer to Purchase form. If you’ve been using one as a working copy, print a new one and fill it out from scratch. If necessary, use a separate sheet of paper to outline terms such as the selling price, the amount of earnest money, the closing date and any contingencies before committing them to the form. Once you have everything written down, take it to your attorney.

After your attorney has reviewed the Offer to Purchase agreement, you and the buyer will sign it and it becomes your sales agreement.

Property Disclosure
As a seller, you’re required by law to disclose any defects that exist in your home prior to selling it. A buyer can sue for damages and even force you to take your home back if you fail to disclose problems with your home. A Property Disclosure Statement will be given to you by your attorney, or if you prefer, you can find it with our Real Estate Forms. Again, after filling it out, have your attorney review it.

The buyer will almost always have the home inspected, and this inspection could identify problems with your home that you're unaware of. For peace of mind, it may be a good idea to have your own inspection done ahead of time so you're not caught by surprise. As you walk buyers through your home, don't be afraid to point out any problems. They'll be discovered soon enough, and they can be used in negotiation. If a problem is identified that would cost $2,500 to repair, you can negotiate a portion of this amount, say $1,250, off the price of your home.

Now that the sales agreement is signed, several things need to take place before the closing. They will take a little time, and some of them will need to occur before certain dates which have been specified in the sales agreement. Here’s a general chronological list:

Buyer applies for a mortgage
Buyer’s bank orders an appraisal of the home
Buyer provides seller with a mortgage approval letter
Buyer orders an inspection of the home
Seller sees to it that any repairs to the home required by the buyer are performed
Seller or the seller’s attorney clears any issues related to the title
Just before the closing, the buyer and seller do a walk-through of the house to make sure everything is as it should be

Next: The Closing

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Check out these FSBO sites in other regions:
Austin Real Estate · Brew City FSBO
Iowa City Real Estate · La Crosse by Owner
Pueblo Real Estate

FSBO Site Design by David Zwiefelhofer.