Get your paperwork for selling a house without a realtor right!

Sold Home For Sale Real Estate Sign and Beautiful New House.

Selling your house without a realtor can save you a lot in terms of commissions. Typically, you pay around 6% of the sale price as the agent’s fee. This amount is split between your agent and the buyer’s agent. So if you sell your home without a realtor, you can avoid paying the 3% to your agent. 

However, handling the paperwork for selling a house without a realtor on your own could be a daunting task. You would have to know the ins and outs of how to handle the sale contract. This article lists out the important documents needed for a legally sound home sale. 

Once this information gets filtered through, you will be in a better position to decide if you need a realtor or not.

Original sales contract: You may have bought the house you currently want to sell and there is a record of it. This original contract is the agreement between the previous owner of your current home. All the terms and conditions of the previous purchase are listed in this.

It helps the buyer to understand who owned the house historically and the terms under which it has been transferred to the new owner. It also outlines the selling price of the house and details any disclosures about the home.

But this document is not a legal requirement in many states. However, as some buyers may ask for it, it’s advisable to keep it handy.

Mortgage statement: You might be selling off your home before paying off the mortgage amount in full. In such cases, you will have to get a statement that reflects your payoff amount. This is the sum you will need to pay to meet your loan terms and includes any interest owed until the day the entire loan is repaid. 

As per the Consumer Financial Protection Bureau, your lender is obligated to give this statement to you. So, don’t hesitate in asking about the same. 

This information will help you to calculate the estimated sale proceeds. 

Homeowner’s insurance papers: This record will give the buyer an estimate of how their homeowners’ insurance will cost. What needs to be disclosed in these records varies with the state. While transparency is always appreciated, many states do not require sellers to voluntarily provide any negative details related to the property.

Regardless of the state laws, you should get a copy of your homeowners insurance.

Homeowners Association (HOA) documents: Searching the covenants of the HOA falls under the buyer’s line of duties. This is part of their title work. Sellers can provide these documents to make the process easier. The buyer may need the following HOA documents:

  • Rules and regulations
  • Articles of incorporation
  • Copy of the minutes from the HOA’s meetings of the last two years
  • Homeowners dues amount record

Home maintenance & repair papers: These records are the proof of all the work you have put in to maintain your home. These are not legally required but will help the buyer understand what needs urgent care when they move in. 

The records must contain: utility maps of your gas & electric systems; records of the latest window cleanings, gutter cleanings & paintings, and; maintenance receipts

Mandatory disclosures: These disclosures, as the name suggests, are obligatory under the law and help your buyer know of any hazards affecting the property. 

If you’re working with an agent, they are aware of all that needs to be disclosed and give you the needed forms. But when you are selling your home without a realtor, some state-specific legal study awaits you. There are several disclosures needed by state laws. Some of them are water damage, asbestos, lead-based paint, environmental hazards, past disputes, neighborhood nuisances. For example, when you’re selling a house using a Flat Fee MLS Tennessee company or a realtor, you’re required to disclose any material defects on the land or building.

Purchase offer: The purchase offer officially cites that a buyer wants to buy your house. Negotiations on this offer can be taken in writing as counteroffers. 

Purchase and sale agreement: When the purchase offer is signed it becomes a purchase contract. But this may be subject to changes when the transaction goes into further stages. This agreement elaborates the details of the purchase like the price & specification of the home.

It will also list the terms of the purchase, closing date and contingencies. 

Contingency removal form: The contingency clause needs to be met before the contract gets binding. California is the only state where you need to fill out this form to eliminate the contingency restraints and go ahead with the sale. In other states, contingencies automatically get lifted after the expiry of a certain time period. 

Property tax statement: This is imperative to compute any outstanding property taxes on your property. This will help the buyer estimate the cost of their new home.

Deed: This is the legal document that marks the official transfer of ownership of the house from the seller to the buyer. 

These are just some of the documents that you would need when selling your home without a realtor. The list is lengthier and the paperwork extensive. Selling your home on your own is not a piece of cake but it is worth it when at the end of it you have more dough in your account.