In our last blog post, we introduced 5 of the top terms home sellers need to know. That post was a good primer, but there are some additional terms home sellers should be aware of. Real estate is a complex industry so understanding these additional factors will better prepare you for when it comes time to sell your home.
Addendum & Amendment
Selling real estate means selling the largest investment most people will ever make. On the other side is the buyer that is likely committing to the largest investment they will ever make.
Given the scope of a real estate transaction, things don’t always go as planned. For example, the home inspection may reveal that the roof has a leak or the buyer may request to keep the washer and dryer as a condition of purchasing the home at the last minute.
These factors can impact the original agreement between the buyer and the seller. This is where addendums and amendments come into play.
If an existing term in the agreement needs to be changed, then an addendum is used to update and change the applicable terms in the original agreement.
If the agreement requires additional terms to be added, then an amendment is created to add those terms.
There are times when a buyer wants to make purchasing a home contingent on another factor. A common one is that the buyer is able to sell their current home prior to purchasing the next home.
Agreements can be drafted to contain these contingencies. If the contingency is not met, then the buyer has the right to back out of purchasing the home.
A seller is required by law to disclose known issues with their home to buyers. This is generally a standard document your real estate agent will take you through as a home seller. It includes identifying items such as broken appliances, the age of the roof, and property maintenance.
A neutral third party is often required to ensure the proper flow of money through the real estate transaction. An escrow company receives funds to purchase a property from the buyer or the buyer’s lender, and then transfers the funds due to the seller at closing.
Grantee & Grantor
Grantee and grantor are legal terms referring to the buyer and the seller in a real estate transaction, respectively. The seller (or grantor) transfers ownership of the property to the buyer (or grantee).
Repair & Improvement Costs (Also Called R&I Costs)
A seller has most often lived in, or had a renter live in, the property they are selling. This leads to wear and tear on the home.
Repair and improvement costs refer to the financial amount a buyer will have to pay to make repairs and improvements to the home due to this wear and tear, as well as any upgrades they may have to make to bring the home up to modern standards. This helps a buyer understand how much they can expect to spend when purchasing a home, and is something that the home seller may have to deal with during the negotiation process.
Thinking About Selling a Property in the Tyler Area?
The team at The Pamela Walters Group is here to help. Our agents are experts in making sure the sale of your home is as smooth as possible. More than that, we work tirelessly to get you the best price.
Contact us today to learn more about how we can help you.