Closing on a House: Helpful Settlement Advice for Home Sellers

In order to finalize the purchase of a house, it is important to reach the settlement table. Although you are approaching the final stages of selling your home, it is not time to relax just yet. While it may be a relief to no longer worry about constantly showing your home, you still have responsibilities towards the buyer, the buyer’s agent, and the contractual agreements.

As a seller, it is crucial to understand the essential aspects of the settlement process

What contingencies impact sellers before closing on a house

When you’re checking out a home for sale, it’s not just about the curb appeal, my friend. Sellers usually spruce things up before putting their house on the market, like giving those cabinets a fresh coat of paint and swapping out the hardware.

But hey, here’s the deal: if the job isn’t done right, you bet buyers are gonna notice the shoddy workmanship. In fact, some buyers might completely lose interest in the house if the renovations are a hot mess.

So, hang tight and let’s spill the tea on the most common DIY projects that home sellers tackle—and how they can totally botch ’em up.

1. Altering garage space to add square footage

Extra square footage is usually a hit with potential buyers, but there’s a catch: it has to flow naturally and seamlessly with the rest of the house. That awkwardly converted space can be a deal breaker for many.

I recently had a client who encountered this issue. The homeowner had enclosed the carport, put carpet over the cement garage floor, and turned it into a game room. But guess what? The buyer took one look at it and didn’t even bother checking out the rest of the house. Talk about a turn-off, right?

Converting a garage into living space may give you more room inside, but it comes at the cost of losing valuable storage and parking space. And in this case, it even messed up the curb appeal because instead of a garage door, there was just a wall at the end of the driveway. Not exactly the ideal first impression.

2. Doors that don’t open right

We all understand that a stunning front door can instantly boost the curb appeal of a house. However, if that door sticks or requires some fancy handle maneuvering just to enter, all that appeal goes down the drain. And guess what? The same goes for interior doors too. If you’ve invested in upgraded doors for your home but they aren’t properly installed, they’ll quickly lose their “wow” factor.

A door that swings the wrong way or doesn’t give enough clearance to the sink, toilet, or cabinetry is a dead giveaway that a licensed professional wasn’t involved in the process. It’s all about the details, my friend, and a well-hung door can make a significant difference in the overall impression of your home.

3. Haphazardly placed hardware

If your kitchen cabinets are still in top-notch condition but could use a hardware upgrade, pay close attention to how you position those new knobs, pulls, and handles.

Believe it or not, even seemingly minor details like backward or upside-down hardware don’t escape the eagle-eyed gaze of buyers. These little blunders can be a major turnoff for potential buyers who are looking for a move-in ready property. Let’s face it, nobody wants to deal with fixing someone else’s sloppy work when they’re looking for their dream home.

4. Crown molding that looks anything but elegant

Crown molding has the potential to add value and elegance to a room by framing it. However, if the installation is poorly executed, it can have the opposite effect.

In a recent example, a condo underwent renovations before being listed for sale. The family room was upgraded with the addition of crown molding. Unfortunately, the craftsmanship left much to be desired, with noticeable flaws such as visible cuts and nails.

Furthermore, this lack of attention to detail extended beyond the family room to other areas of the house, including the trim work. Potential buyers quickly noticed these subpar finishes, which ultimately deterred them from considering the property. This serves as a reminder that meticulous workmanship and precision are crucial when aiming to create a positive impression on prospective buyers and maximize the chances of a successful sale.

5. Painting over imperfections on the wall

Painting is a go-to DIY project for many homeowners. It’s a cost-effective way to give a room an instant refresh, but there’s a catch—it has to be done right.

Simply rolling a fresh coat of paint over surfaces that haven’t been properly prepared won’t hide imperfections like cracks, gaps, or chipped paint. These flaws will show through the new color, completely defeating the purpose of impressing potential buyers with freshly painted rooms. The key here is to properly prep the walls before painting to ensure a smooth and flawless finish that will make a positive impact on buyers.

6. Botched mortar jobs

Uh-oh! Your open house is just around the corner, and guess what? You’ve just spotted cracks in the mortar between the bricks next to your front door. While you might be tempted to make a quick hardware store run for some mortar filler and tackle the job yourself, here’s the deal—you’ll need more than just a caulk gun to handle those gaps properly.

The real issue arises when old mortar isn’t removed and new mortar is simply applied on top. That shoddy DIY approach can seriously harm the overall aesthetic of your house, making a terrible first impression on potential buyers. It’s crucial to take the necessary steps to address the issue professionally and ensure that your home leaves a positive lasting impression on buyers.

7. New vanity, old faucet

Having an updated bathroom can greatly attract buyers, and one of the key elements that can transform its appearance is a new vanity. It has the power to change the overall aesthetics from old and grimy to fresh and modern—unless you’ve only done half of the job.

According to Melanie Everett,  founder of Melanie Everett and Company, a stylish and contemporary vanity loses its impact when buyers notice that you didn’t replace the outdated, calcium-corroded faucet. It simply doesn’t make sense. Moreover, it’s worth noting that you can easily find trendy faucets for under $100.

Consistency is key when making small tweaks to your bathroom. It’s essential to ensure that all the elements work together harmoniously. So, if you’re going for a new vanity, it’s wise to make sure that the faucet matches the desired aesthetic. Don’t overlook these details that can make a significant difference in attracting buyers and creating a cohesive bathroom design.

8. Painting worn-out kitchen cabinets

It’s common knowledge that an outdated kitchen can be a deal breaker for many potential homebuyers. However, if you haven’t had the chance to replace your worn-out cabinets, you might think that a fresh coat of glossy white paint can make them look new for the listing photos, right? Well, not quite.

Trying to fool buyers with the appearance of the cabinets in listing photos won’t work when they visit the property in person. While the light color may initially attract buyers to request a show

It’s important to be upfront about the condition of your kitchen cabinets. While a coat of paint can help freshen them up, if they are in poor shape, it’s best to address the underlying issues or consider a more comprehensive renovation. Being transparent with potential buyers will save both parties from disappointment and ensure a fair assessment of the property’s value.

Experts in Residential Real Estate in Orlando

If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Closing on a House: Settlement Tips for Home Sellers

Right before you seal the deal on your dream house, there’s one last step: the settlement table. You’re almost done with the whole process of selling your home, but hold off on that sigh of relief just yet. Sure, you can finally let go of the stress of showing your home around the clock, but you still need to play nice with the buyer, their agent, and stick to the commitments laid out in the contract.

So, as a seller, here’s the lowdown on what you need to know about the settlement process.

What contingencies impact sellers before closing on a house

When it comes to finalizing the purchase of a house, the buyer carries the responsibility of securing financing and obtaining homeowners insurance. However, there are a few contract contingencies that may also affect you, especially if you’re still living in the house.

Before closing the deal, most transactions involve a home inspection. This means you’ll need to make your home available for inspection and then negotiate with the buyers based on the inspection findings, as specified in the contract terms.

Apart from the home inspection, some contracts (and certain lenders) may require a termite inspection and a radon gas inspection. In such cases, either you, your listing agent, or the buyer’s agent will need to arrange for the inspections to take place.

Another crucial step before closing is the appraisal. If the appraisal comes in higher than the sales price, the buyers can feel satisfied knowing they’ve purchased the home below its market value. Once the contract is signed, you can’t renegotiate the price upwards.

However, if the appraisal comes in lower than the sales price, the buyer’s lender will limit the loan amount to the lower value. The buyer might need to provide additional funds to cover the financing gap or may request renegotiation of the contract. Your agent can guide you on the best course of action, but remember that both you and the buyer are bound by the terms of the contract.

Before heading to settlement, it’s essential to review the contract with your agent and ensure you’re prepared to fulfill any obligations you’ve agreed to regarding conveying items to the buyer and completing any promised repairs or improvements.

Negotiating a settlement date

When it comes to settling on a date for the transaction, buyers and sellers usually negotiate to find a mutually agreeable settlement date. If you’ve sold your home but aren’t quite ready to move into your new place, there’s a chance to negotiate a “rent-back” arrangement with the buyer. This means you can stay in the home after the settlement by paying rent to the buyer.

Typically, lenders place a maximum limit of 60 days for rent-back situations. If you require a longer period, it’s important to discuss it with your buyer and your agent.

Alternatively, some sellers may allow the buyers to move into the property before the settlement takes place. In either scenario, it’s crucial to have a written agreement that outlines the responsibilities in case anything happens to the house or its contents during the transition period.

Settlement services

The process of determining who handles settlement (also known as closing or escrow) services can vary from one market to another. In many areas, it’s the buyer who selects the settlement company, while in other places, the seller takes on this responsibility. During the closing on a house, the buyer provides the funds for purchasing your home, and the settlement agent carefully reviews the sales agreement to determine the payments you’ll receive. The title to the property is then transferred to the buyers, and necessary arrangements are made to record this transfer with the local records office.

During a typical closing, adjustments are made to ensure the final amounts owed by the buyer and yourself, the seller, are accurate. For instance, if you’ve been paying property taxes through an escrow account, you might receive additional credit for prepaid taxes, or if there were any issues with the tax payments, it could result in a reduced amount received at settlement.

Once all the settlement papers are signed, and the keys to the house are exchanged, you are free to move forward and embark on your next home adventure.

Experts in Residential Real Estate in Orlando

If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.