Home Seller Questions and Answers

It is likely you have your eyes set on the next step in life; you probably have plans of a new-to-you home. It is also likely you have questions about the sale of your current home. Here are a few answers.

1. What is escrow?
   Money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified.

2. How long is the escrow period?
   It may be anywhere from 1 day to infinite days. Typically it is a set time based on the date of closing. It is likely close to 15, 30, 45, 60, or 90 days depending on the financial situation of the buyer and your terms and team's ability to close the deal.

3. When should I market my home?
   You will want to begin the process about 4 months out to stave off stress and inefficiencies later on. Begin by finding an agent and figuring out what you need and want. It has been said that buyers get restless in the Spring after a settled Winter. They spring clean and they pull up stakes.

4. Do I have to pay an agent?
   Likely. Traditionally in many markets agents from both sides of the transaction are paid for by the seller. You may be the one with the equity and the equity in a home is usually how agents are compensated for the marketing, advice, and guidance you and the buyer receive. When your agent lists with you he will charge you a percent or an amount and likely he will provide a fair compensation to someone else who brings the new purchaser. A buyer will often have to deal with closing costs for their own loan. Keep this in mind as you price the home so that you can recoup as much of the equity as possible. Also remember that the buyer may be required to take out a loan to make the deal work. Do not over price the home because the lender will only lend what an appraiser says the home is worth.

5. What is a broker?
   Most agents work for someone called a broker. Government entities and boards establish rules for real estate transactions. There are levels of protection established for clients, agents, and other parties involved. A broker is the boss of an agent. In fact, your listing agreement will likely be with the broker even though you will be working with and hiring the agent. The broker owns your business. If something were to happen to the agent your purchase contract would still be in affect because the broker's company is the entity representing you.

6. What is an Earnest Money Deposit?
   Earnest money is a deposit attached to an offer to purchase real estate. Providing an earnest money deposit shows the seller that your offer is genuine. Not all offers need to have earnest money.

   If the offer is accepted, the earnest money is kept by the seller and subtracted from the purchase price, or is kept in escrow until closing, when it is applied to the buyer's portion of the closing costs. If the offer is rejected, the earnest money is usually returned. If the buyer retracts the offer, the earnest money is usually forfeited.

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.