- Real Estate Commission
- Pa transfer tax – 1% of sale price
- New deed
- Prorations for your share of the cost of utility bills and property taxes
- Notary fees
- Make good first impressions. The grounds should be properly maintained summer or winter. Have the lawn mowed and raked, shrubs trimmed, driveway and sidewalks swept or shoveled clean, and all debris removed from the property. The front door gives a vital first impression. Have it scrubbed clean or painted if necessary.
- Arrange shades or drapes to give a maximum amount of light in dark rooms. Replace burned out light bulbs and repair faulty switches. Light colors add cheerfulness to dark rooms.
- Display your storage and utility space by removing all unnecessary accumulations in attic, stairways, basement and garage. This will make the areas appear much larger than they usually are. Keep all steps free of hazards.
- Correct the small things such as loose doorknobs, leaky faucets, cracked windows etc. Wash dishes, put away clothes, straighten up around the house.
- Remove any fixtures that you are taking with you before the property is shown.
- If you have pets it’s recommended that they be kept out of the house if possible. Some people are uneasy around animals and they may distract from the prospects attention.
- Buyers may have questions of our agents during the showing. You know much more about your property than our agents do. However the Buyers will be more relaxed and apt to ask these questions if the owners are not present. We need to discover what the Buyers objections to the property are in order to overcome them and sell your home. The salesperson knows the buyer’s requirements and can best emphasize the features of your home. Our agents can contact you after the showing to obtain the answer to any question that they do not know.
- Keep electronic devices including televisions turned off during the showing to eliminate any possible distraction to the prospects.
- Kitchens and bathrooms help sell homes. Make these rooms sparkle.
- Don’t discuss terms with the Buyers. Let your Realtor discuss the price, terms of the sale, possession, and other factors with the customer.
- Never try to sell furniture to a customer before the transaction is completed.
- Never apologize for any adverse condition of your home. It only emphasizes the defects.
(Keep your copy of the signed agreement in a safe place in order that you may refer to it with questions)
- Prepare to accommodate inspectors and appraisers within the next few weeks. Buyers may accompany the inspectors and appraiser. Our agents are not present for the inspections or appraisal.
- If the property is located in a PUD, order the resale certificate. This must be paid for at the time it is ordered. Costs vary according to each PUD
- The homebuyers will present a response to the home inspection.
- Complete your reply WITHIN the time indicated in the contract.
- Do not make any changes to the structure. The Buyer will do another inspection close to the day of closing. He should not be surprised with any changes at that time.
- You should receive notification of mortgage commitment from the Buyer.
- Hire an Attorney to prepare a new deed. The cost varies according to the Attorney. This can be paid at settlement
- Notify utility companies to have the utilities transferred out of your name as of the date of settlement. Do not have the utilities turned of because there are fees involved.
- Obtain a moving permit if needed.
- Empty and clean the house. The Agreement of Sale states that the property will be given to the Buyer in broom clean condition. The Buyers will do a walk through inspection as noted in #5 above to make sure the property is in the same condition as it was when they signed the Agreement.
- Cancel your house insurance as of the date of closing.
- Bring keys and photo ID to closing
- Down payment
- Pa transfer tax – 1% of purchase price
- Loan origination fees
- Points, or loan discount fees, you pay to receive a lower rate.
- Appraisal fee
- Credit report
- Private mortgage insurance premium
- Insurance or property tax escrow if being paid as part of the mortgage
- Recording the deed
- Title insurance policy premium
- Inspection fees
- Notary fees
- Prorations for your portion of the costs of utility bills and property taxes.
(Keep your copy of the signed agreement in a safe place in order that you may refer to it with questions)
- Apply for the mortgage WITHIN 10 days.
- Schedule the requested inspections WITHIN the time allotted in the contract. The inspections must be completed and any requests for corrections must be given to the Seller within the # of days specified in the contract for inspections.
- Buyers must pay for the inspection before or at the time it is being done. We recommend that the Buyers attend the inspections. We do not attend.
- The Mortgage Co will schedule an appraisal. Keep your Agent informed about the day and time.
- After you have received mortgage commitment and all issues from the home inspection have been settled, choose a Title Co. or an Attorney to do the title work. Your Agent can offer suggestions if needed.
- Secure home insurance. You will need at least a binder from the Insurance Co. prior to settlement. The insurance period is usually for one year.
- Obtain a moving permit if required.
- Prepare to have the utilities put into your name by the date of closing.
- Do a pre settlement walkthrough to inspect the property and insure that it is in the same condition as it was when you entered into the Agreement of Sale.
- Bring proof of insurance, drivers license or other ID, and certified check for closing costs if needed, to closing.
In the “Non-exclusive Buyer Agency Form” there is a section at the end of the form for an “Oral Buyer Agency Agreement”. If that section is checked and signed it verifies that the Buyers have received the required disclosures without the form being completed, and it is permissible to show properties to Buyers.
There are two types of Buyer Agency contracts. They are “Non-exclusive Buyer Agency” and “Exclusive Buyer Agency”
In “Non-exclusive Buyer Agency” you agree to work with the agent only on the properties he shows you, and to make the offer on the property you choose to purchase through him. There is no Brokers fee that may be charged to you unless you sign an additional agreement that specifies the terms of the compensation to the Broker, except for the situation described in the last paragraph of this section.
In “Exclusive Buyer Agency “ the contract applies to any property that the Buyer purchases and specifies the amount of compensation the Broker is to receive in the event of a sale.
In either situation, any offers that you make on properties that you viewed with an Agent that you have a Buyer Agency Contract with, should be made through that Agent. The Buyer Agency contract is a two-way proposition. In addition to the agents having a fiduciary responsibility to the Buyers, the Buyers agree to be loyal to their agent. This helps to prevent situations where agents show Buyers properties over several weeks only to have another agent such as “Uncle Louie” or “their brothers best friend” present an offer to the Sellers on one of the properties they viewed with their agent.
In the event that you would use a different Agent to present an offer on properties that you viewed with your Buyer Agent, and it is accepted, you may be liable for paying the commission for the “Buyer Agent”.
In most cases there is no charge to the Buyer for representation because the compensation to the selling agent still comes from the agreed commission split in the listing contract and is paid by the Seller. However if you agree to different terms in the Buyer Agency contract that you sign, you may be responsible for paying part (or all) of your Agents Commission.
A Buyer Broker Agreement is a written contract between a Buyer and a Broker that gives the Buyer representation in a real estate transaction. After consumers have read, understand, and sign the consumer notice they will be asked if they want to enter into a business relationship with the agent. By signing the Buyer Broker Agreement, consumers hire the agent to work for them and look out for their best interests in a transaction. The licensee now has a fiduciary responsibility to the Buyers. Pennsylvania law requires that a business relationship between Buyers and Broker be in writing and signed by the Buyers.
Previously many Buyers were not aware of how agency laws worked. They thought that the agent showing them property was their agent and they disclosed information to the agent that was not in their best interest. However that agent was working with the Buyers, not for them. Any information, which Buyers gave to the Agent, had to be given to the Sellers because the fiduciary responsibility of the Agent was to the Seller. As the public became more aware of this arrangement, complaints were made to Real Estate Commissions and lawsuits were filed.
As a result, in November of 1999 the Pennsylvania Real Estate Commission passed legislation requiring Real Estate Agents to present to Buyers/Tenants and Sellers/Landlords a Consumer Notice at their initial interview. The Commission requires the form to be signed, and kept on file for inspection by the Commission, to insure that each consumer has received the information about representation in a Real Estate Transaction before any confidential information is disclosed
Many of the laws in place in our country atthe present time are derived from “Old English Law” Under the legal system at that time when an agent signed a contract with an employer he owed the employer a fiduciary responsibility (where his loyalty lies) and was obligated to protect his interests at all times. This “agency law” applied to Real Estate. Licensees who listed property for sale had a signed listing contract with the owners owed the owners a fiduciary responsibility. In addition to the listing agent, all the agents in the listing office and all other agents who showed the property to prospective Buyers were agents for the Sellers and had a fiduciary responsibility to them.
The consumer notice explains the different duties and responsibilities that an agent has to consumers, and that consumers may enter into an agency relationship with a Licensee. It gives the Buyer notice that until a business relationship is selected by signing a written agreement, the licensee isnot representing him and any confidential personal or financial information should not be disclosed to the agent. Because of Agency law the licensee represents the Seller. The consumer notice is not a contract and does not bind the consumer in any way.