THE SELLER'S GUIDE TO REAL ESTATE
c: 425.591.2467 nico@windermere.com www.nicolangrealestate.com
SELLING YOUR HOME 129 Nw 144Th St, SeattleWA 98177
TABLE OF CONTENTS
A QUICK HELLO!
THE HOME SELLING PROCESS
MY COMMITMENT TO YOU
We match each beautifully
FAQS
designed property with the right buyer.
GLOSSARY OF TERMS
THANK YOU
A QUICK HELLO!
Aaron & Claire, As you begin to plan for where you and your family want to call home, I wanted to reach out and share some information that I have found to be helpful to seller's during the home sale process. Aaron's experience in building real estate has the two of you better informed and equipped than most, but I hope you will still find value in the following pages.
$175M In Sales 14 Years in the Industry 200+ Homes Sold
Working for you.
I also have a buyer's guide to real estate, which I can send whenever you say the word. Thank you again for thinking of me on your real estate journey, I am here to help whenever you say go. Your friend, Nico
THE HOME SELLING PROCESS
Preparing your home
Marketing & Listing
Offers & Negotiations
Closing Process
PREPARING YOUR HOME
Preparing your home for sale is an essential step in the home sale process. A few of the main action items for the seller are:
1) DECLUTTER
Remove as much stuff as you can from the home. Buyer's like homes that are clutter-free, and absent of personal effects from the current owner. 2) WALK & TALK
Do a walkthrough of the home with Nico. This time will be invaluable, as it is an opportunity for you to share what makes your home special and unique (aka valuable!) while also letting Nico make recommendations to you about small things he recommends be touched up or fixed! 3) FIX IT
Complete the small "honey-do" list given to you by Nico. 4) CLEAN IT
Have home professionally cleaned. Nico can make recommendations for cleaning services, as well as coordinate. 5) EXTERIOR TOUCHUP
Have the yard touched up either yourself or via a landscaper! Nico can help coordinate this as well!
MARKETING & LISTING
Listing your home is where Nico will go into marketing overdrive! Be ready for the following exciting things to occur:
1) STAGING YOUR HOME
Nothing helps a buyer dream about their future like inviting and homey furniture! Nico will identify a professional stager and coordinate all trips they make to the home. You don't have to do a thing! 2) PROFESSIONAL PHOTOGRAPHS
A picture says a thousand words, and we're taking 25! Nico will hire a professional photographer, who will take a variety of interior and exterior pictures highlighting the home. 3) SIGNAGE & FLYERS
Nico has an in-house marketing team to design exciting, informative, and professional content for your home! 4) LISTING ON THE MLS
Nico will list your home on the MLS, where it will be viewable on over 300 sites all over the world! 5) CUSTOM WEBSITE
A dedicated website will be built JUST for your home. It will feature pictures, information on the home and the surrounding area, as well as marketing remarks, etc. This is built by a professional web designer.
OFFERS & NEGOTIATIONS
Once your home gets an offer (or two!) here is how the process goes:
1) OFFER PRESENTATION
Nico will present the offer to you and provide guidance and recommendations on whether to accept or counter. If you decide to counter, Nico will present your options in a clear and simple manner, and help you decide the best course of action. 2) SIGN THE OFFER/COUNTER
Once you decide to accept/counter the offer, Nico will make the desired changes and send them to you for your signature and initials via Docusign. If you prefer to sign a physical copy, that is also available! 3) RESPOND TO THE BUYER
After you have signed, Nico will send the signed contract back to the buyer's agent, and begin negotiating for you! 4) WE HAVE A DEAL
After all parties have agreed to price and terms, you will officially be in "mutual acceptance". This is when the contract is legally binding, and your home is changed from an "active" listing to a "pending" one on the MLS.
CLOSING PROCESS
Once you have entered into a contract with a buyer, a chain of events will begin that will ultimately lead you to the day your property closes, and you get paid! Here is how it goes: 1) TITLE & ESCROW
Nico will send your contract to a title & escrow company so that they can open a file for your home. 2) EARNEST MONEY DEPOSITED
Within 2 business days of mutual acceptance, the buyer will deposit their Earnest Money into title & escrow's account, where it will be held until all contingencies are waived. 3) BUYER APPLIES FOR FINANCING
Within 5 days of mutual acceptance, the buyer will formally begin the financing process. 4) INSPECTION
The buyer will likely have negotiated the right to inspect the home and will do so at this time. 5) HOME APPRAISAL
The lender will conduct an appraisal of value on the home, to ensure the home is worth what the buyer is paying.
CLOSING PROCESS
6) CONTINGENCIES WAIVED
When the buyer has gotten their contingencies satisfied to their satisfaction, they will waive them and instruct title & escrow to release earnest money to you! 7) SIGNING
Both parties will sign their closing papers 8) CLOSING DAY
This is the day the property will legally change ownership from you to the new buyer 9) FUNDS RELEASED
Within 4 days of closing, you get paid!
MY COMMITMENT TO YOU
As your broker, my goal is to provide quality service at every single level. I believe that if we are going to do something, we are going to do it right and we are going to do it well. If it's associated with your home, it will be done with a discerning eye, and an exacting attention to detail. Below are just some of the things you can expect from me, as part of this journey: Custom website built JUST for your home by a professional web designer. This website will be included in all print and digital marketing for your home. It will feature a custom web address, that you can share with your friends and family as well! Proceed distribution schedule. This estimate will show you your total closing costs (including excise and capital gains taxes) and most importantly- how much money you'll have in hand. High-end home staging by certified interior designers. I personally vet all my stagers’ inventory prior to recommending them, to ensure that all furniture installed is damage-free, and matches the style and character of your home. Professional photographs of the interior and exterior of your home. I will arrive at your home prior to the photoshoot, to ensure that small details that won’t show well in pictures are mitigated and addressed. Prior to the photographer leaving, I will review their pictures to ensure that we got the right shots, and no shots have any issues. Photos may include drone shots if this is helpful for your residence!
MY COMMITMENT TO YOU Professionally designed Eco-Board attached to the Windermere Yard sign. The board will feature pictures, home details, and marketing description of the home. The board is made from a weather resistant fiber composite that is larger than a flyer, to increase visibility. In addition, it will have a URL link to your website, so buyers can scan with their phones and share immediately with loved ones! Windermere yard sign installed on site. For corner lots, 2 signs will be installed (one on each street) to ensure maximum visibility. Personalized "Honey-Do" list with my recommendations on any and all work needed to get the home ready for sale. Home will be listed on the NW Multiple Listing Service (MLS) Custom brochures delivered to the home, printed on Hammermill 60 lb text weight paper. These will be refreshed regularly, to ensure they are always in full supply! Open houses will be held on weekends, at seller’s preference and discretion. I will handle all calls from buyer’s and brokers. When you receive an offer, I will present this to you immediately, and provide my recommendations on how to respond. Post Mutual "checklist". This timeline will show roles & responsibilities and milestones of all parties to help you keep track as we proceed to closing!
MY COMMITMENT TO YOU
Once you are in mutual acceptance, I will handle all paperwork and administrative tasks. In addition, I will be in constant contact with any updates as we move towards closing. Finally- I will always be there. Whenever you have an idea, question, or just want to chat- I am around! Via text, call, email, or in person. Just let me know.
FREQUENTLY ASKED QUESTIONS
How long does it usually take to sell a home?
There are several factors that go into how long it takes to sell a home, but generally you can estimate it will take 2-3 months from the time you begin the process to the time you hand over the keys, and receive your proceeds from the sale. Do I need an agent?
It is not required by law to use the services of a real estate broker, however, the success of your sale will likely go smoother and more successfully when you have the guidance of either a real estate broker (agent) or a lawyer with experience in real estate transactions. What type of contract is used?
The State of Washington Real Estate Board has created a standardized set of approved forms, that are widely utilized and accepted across the state. They are called “NWMLS” (Northwest Multiple Listing Service) forms and are drafted and updated regularly by attorneys and real estate professionals. The official form that a home sale contract will go on is called a “Purchase & Sale Agreement” (PSA).
FREQUENTLY ASKED QUESTIONS
Who writes the offer?
The offer will be written by the buyer’s real estate broker. The buyer’s broker will then present the written offer to your broker (that’s me!) and I will then share it with you for your input, discussion, and desired response. How do I accept or counter an offer?
If you choose to counter or accept an offer from a buyer, I will make any desired changes, and then either send you for your signatures electronically or meet with you in person so that you may sign the physical document. I will then present this contract back to the buyer’s agent. What is Earnest Money and how does it impact me?
Earnest Money is a deposit that the buyer provides to title and escrow to demonstrate that they are serious about purchasing your property. Once all contingencies have been waived (see below), this money is released to the seller as a non-refundable deposit, such that if the buyer does not perform (close the property), you, the seller, get to keep the earnest money.
FREQUENTLY ASKED QUESTIONS
What is a contingency?
A contingency is a clause in a real estate purchase and sale agreement specifying an action or requirement that must be met, in order for the buyer’s earnest money deposit to become non-refundable (as in, the seller gets to keep it no matter what). Both the buyer and seller must agree to the terms of each contingency during contract negotiations. Buyer’s generally want more contingencies in the Purchase & Sale Agreement, and sellers want less. Do I need to stage the home?
It is strongly encouraged that a home is staged when it is listed since it is largely agreed that a staged home can sell for up to 10% more than a non-staged one. I have several professional staging companies I recommend- and will coordinate every part of getting the home staged on your behalf. Who pays for staging and how much does it cost?
The seller pays for staging unless otherwise agreed. This is usually billed by the staging company directly to the seller, with 50% due upfront and 50% due after removal of furniture upon the home selling. The total cost depends on how many rooms of the home are staged, as well as how long the staging stays in the home. 30 days is typically the shortest staging term, and this can be extended as needed. Depending on the size of the home it should be anticipated to cost between $3,000-$10,000.
FREQUENTLY ASKED QUESTIONS
Should the home be professionally photographed?
Yes. A picture says a thousand words, and this is especially true in real estate. In a world where most buyers will see your home for the first time in some sort of digital format (computer, phone, tablet) it is essential that the home be shown with high-resolution professional photographs. Nico will coordinate and pay for all photography. What is “escrow” and why does it matter to me?
An escrow agent impartially carries out the written terms of the PSA mutually agreed upon by buyer and seller. Escrow is a neutral third party, that is there to govern and enforce the terms of the contract. This includes receiving funds and documents necessary to comply with the contract, completing or obtaining required forms, and handling final delivery of all items to the proper parties upon successful completion of the sale. When do I get my proceeds from the sale of my home?
You can expect to be paid within 4 business days of the closing date of your home. This money will come from title & escrow, in the form of a check or wire transfer directly into your bank account.
FREQUENTLY ASKED QUESTIONS
Will I be taxed on the sale of my home?
Yes. There are two types of tax that a seller will have to pay. 1. Excise Tax
In Washington, there is a real estate excise tax (or REET) on the sale of real property, which refers to land and immovable assets attached to the land, like homes or buildings. The tax rate in Washington is calculated on a graduated scale, depending on the final purchase price of your property: GRADUATED REET STRUCTURE
SALE PRICE THRESHOLDS
TAX RATE
$500,000 or less
1.10%
$500,000.01 - $1,500,000
1.28%
$1,500,000.01 - $3,000,000
2.75%
$3,000,000.01 or more
3%
FREQUENTLY ASKED QUESTIONS 2. Capital Gains
When you sell real estate, you will pay a tax on the difference between what you originally purchased the home for, and what you sold it for (aka your profit). If you have lived in the property as your primary residence for 2 of the 5 years preceding the sale of the home, you will likely qualify for one of two different exemptions that will reduce your tax bill: Single persons can exclude up to $250,000 of the gain and married persons filing a joint return can exclude up to $500,000 of the gain This means that if you are a single person and have a $250K “gain” or profit, you will pay no capital gains tax provided that you used the home as a primary residence in 2 of the last 5 years. The capital gains rate is either 15% or 20% as of 2021, dependent on your marital status and your income level. Below is a chart showing the capital gains rates as of 2021*: 2021 LONG-TERM CAPITAL GAINS RATES FILING STATUS
0%TAX RATE
15% TAX RATE
20% TAX RATE
Single
<40,000
$40,000 to $441,450
>$441,450
Married Filing Jointly
<80,000
$80,000 to $496,600
>$496,600
Married Filing Separately
<40,000
$40,000 to $248,300
>$248,300
Head of Household
<53,600
$53,600 to $469,050
>$469,050
*Nico Lang is not licensed in any legal, financial or taxation capacity. All information should be verified with a financial, legal, or accounting professional.
FREQUENTLY ASKED QUESTIONS
How much do the broker’s make, and who pays them? The seller pays a commission to both their broker (the listing broker) and the buyer’s broker. The commission is generally 3% of the purchase price to each side, for a total of 6% and is paid out of the proceeds from the sale at closing. Some agents offer to work for less, however, like most things in life- you get what you pay for! Should I make repairs to my home prior to selling? Though certain touch up may be helpful to make the home look its best, generally speaking, it is not worth the time and money to do any major renovations prior to selling. Buyer’s like to make a home “theirs”- so there is no guarantee that whatever renovation/remodel work you do will appeal to the general public. As part of listing your home, Nico will do a walkthrough of the home with you and provide you a list of items he recommends you address.
GLOSSARY OF TERMS Appraisal: A professional analysis used to estimate the value of the property. This includes examples of sales of similar properties. Appreciation: An increase in the market value of a home due to changing market conditions and/or home improvements. Assessed Value: Typically, the value placed on property for the purpose of taxation. Before-tax Income: Income before taxes are deducted. Also known as “gross income.” Bridge Loan: A short-term loan secured by the borrower’s current home (which is usually for sale) that allows the proceeds to be used for building or closing on a new house before the current home is sold. Also known as a “swing loan.” Broker: An individual or firm that acts as an agent between providers and users of products or services, such as a mortgage broker or real estate broker. See also “Mortgage Broker.” Buydown: An arrangement whereby the property developer or another third party provides a credit to the buyer to reduce the borrower’s monthly payments. Cash-out Refinance: A refinance transaction in which the borrower receives additional funds over and above the amount needed to repay the existing mortgage, closing costs, points, and any subordinate liens. Change Orders: A change in the original construction plans ordered by the buyer or general contractor.
GLOSSARY OF TERMS Clear Title: Ownership that is free of liens, defects, or other legal encumbrances. Closing: The process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. Closing Costs: The upfront fees charged in connection with a mortgage loan transaction. Money paid by a buyer (and/or seller or other third party, if applicable). Closing Date: The date on which the sale of a property is to be finalized and a loan transaction completed. Often, a real estate sales professional coordinates the setting of this date with the buyer, the seller, the closing agent, and the lender. Co-borrower: Any borrower other than the first borrower whose name appears on the application and mortgage note, even when that person owns the property jointly with the first borrower and shares liability for the note. Collateral: An asset that is pledged as security for a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan agreement. In the case of a mortgage, the collateral would be the house and real property. Commission: The fee charged for services performed, usually based on a percentage of the price of the items sold (such as the fee a real estate agent earns on the sale of a house).
GLOSSARY OF TERMS Concession: Something given up or agreed to in negotiating the sale of a house. For example, the sellers may agree to help pay for closing costs. Contingency: A condition that must be met before a contract is legally binding. For example, home purchasers often include a home inspection contingency; the sales contract is not binding unless and until the purchaser has the home inspected. Conventional Mortgage: A mortgage loan that is not insured or guaranteed by the federal government or one of its agencies, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA). Counteroffer: An offer made in response to a previous offer. For example, after the buyer presents their first offer, the seller may make a counteroffer with a slightly higher sale price. Credit: The ability of a person to borrow money or buy goods by paying over time. Credit is extended based on a lender’s opinion of the person’s financial situation and reliability, among other factors. Debt-to-Income Ratio: The percentage of gross monthly income that goes toward paying for your monthly housing expense, alimony, child support, car payments and other installment debts, and payments on revolving or open-ended accounts, such as credit cards. Deed: The legal document transferring ownership or title to a property.
GLOSSARY OF TERMS Deed of Trust: A legal document in which the borrower transfers the title to a third party (trustee) to hold as security for the lender. When the loan is paid in full, the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt. Discount Point: A fee paid by the borrower at closing to reduce the interest rate. A point equals one percent of the loan amount. Down Payment: A portion of the price of a home, usually between 3-20%, not borrowed and paid up-front in cash. Some loans are offered with zero downpayment. Earnest Money Deposit: The deposit to show that you’re committed to buying the home. The deposit usually will not be refunded to you after the seller accepts your offer, unless one of the sales contract contingencies is not fulfilled. Equity: The value in your home above the total amount of the liens against your home. If you owe $100,000 on your house but it is worth $130,000, you have $30,000 of equity. Escrow: An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
GLOSSARY OF TERMS Exclusive Agency Listing: A listing agreement under which a real estate broker (known as the listing broker) acts as an exclusive agent to sell the property for the property owner but may be paid a reduced or no commission when the property is sold if, for example, the property owner rather than the listing broker finds the buyer. Fair Market Value: The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell. First Mortgage: A mortgage that is the primary lien against a property. First-Time Home Buyer: A person with no ownership interest in a principal residence during the three-year period preceding the purchase of the security property. Fixed-Rate Mortgage: A mortgage with an interest rate that does not change during the entire term of the loan. Foreclosure: A legal action that ends all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage. General Contractor: A person who oversees a home improvement or construction project and handles various aspects such as scheduling workers and ordering supplies.
GLOSSARY OF TERMS Gift Letter: A letter that a family member writes verifying that s/he has given you a certain amount of money as a gift and that you don’t have to repay it. You can use this money towards a portion of your down payment with some mortgages. Gross Monthly Income: The income you earn in a month before taxes and other deductions. It also may include rental income, self-employed income, income from alimony, child support, public assistance payments, and retirement benefits. Hazard Insurance: Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other covered hazards or natural disasters. Home Equity Line of Credit (HELOC): A type of revolving loan, that enables a homeowner to obtain multiple advances of the loan proceeds at his or her own discretion, up to a specified amount. Home Inspection: A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation, and pest infestation. Home Inspection: A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation, and pest infestation.
GLOSSARY OF TERMS Homeowner’s Insurance: A policy that protects you and the lender from fire or flood, which damages the structure of the house; a liability, such as an injury to a visitor to your home; or damage to your personal property, such as your furniture, clothes, or appliances. Homeowner’s Warranty (HOW): Insurance offered by a seller that covers certain home repairs and fixtures for a specified period. Homeowners’ Association: An organization of homeowners residing within a particular area whose principal purpose is to ensure the provision and maintenance of community facilities and services for the common benefit of the residents. Housing Expense Ratio: The percentage of your gross monthly income that goes toward paying for your housing expenses. HUD Settlement Statement: A final listing of the closing costs of the mortgage transaction. It provides the sales price and down payment, as well as the total settlement costs required from the buyer and seller. Investment Property: A property purchased to generate rental income, tax benefits, or profitable resale rather than to serve as the borrower’s primary residence. Jumbo Loan: A loan that exceeds the mortgage amount eligible for purchase by Fannie Mae or Freddie Mac. Also called “non-conforming loan.”
GLOSSARY OF TERMS Late Charge: A penalty imposed by the lender when a borrower fails to make a scheduled payment on time. Liabilities: A person’s debts and other financial obligations. Lien: A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you don’t make the mortgage payments. Liquid Asset: A cash asset or an asset that is easily converted into cash. Loan Origination: The process by which a loan is made, which may include taking a loan application, processing, and underwriting the application, and closing the loan. Loan Origination Fees: Fees paid to your mortgage lender or broker for processing the mortgage application. This fee is usually in the form of points. One point equals one percent of the mortgage amount. Loan-To-Value (LTV) Ratio: The relationship between the loan amount and the value of the property (the lower of appraised value or sales price), expressed as a percentage of the property’s value. For example, a $100,000 home with an $80,000 mortgage has an LTV of 80 percent. Lock-In Rate: A written agreement guaranteeing a specific mortgage interest rate for a certain amount of time. Market Value: The current value of your home based on what a purchaser would pay. An appraisal is sometimes used to determine market value.
GLOSSARY OF TERMS Mortgage: A loan using your home as collateral. In some states the term mortgage is also used to describe the document you sign (to grant the lender a lien on your home). It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price of the home minus your down payment. Mortgage Broker: An individual or firm that brings borrowers and lenders together for the purpose of loan origination. A mortgage broker typically takes loan applications and may process loans. A mortgage broker also may close the loan. Mortgage Insurance (MI): Insurance that protects lenders against losses caused by a borrower’s default on a mortgage loan. MI typically is required if the borrower’s down payment is less than 20 percent of the purchase price. Mortgage Insurance Premium (MIP): The amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company. Mortgage Lender: The lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property, and the loan application process through closing. Mortgage Rate: The interest rate you pay to borrow the money to buy your house.
GLOSSARY OF TERMS Multiple Listing Service (MLS): An online portal through which member real estate brokerage firms regularly and systematically exchange information on listings of real estate properties and share commissions with members who locate purchasers. The MLS for an area is usually operated by the local, private real estate association as a joint venture among its members designed to foster real estate brokerage services. Net Monthly Income: Your take-home pay after taxes. It is the amount of money that you receive in your paycheck. Net Worth: The value of a company or individual’s assets, including cash, less total liabilities. Non-Liquid Asset: An asset that cannot easily be converted into cash. Note: A written promise to pay a specified amount under the agreed upon conditions. Offer: A formal bid from the home buyer to the home seller to purchase a home. Open House: When the seller’s real estate agent opens the seller’s house to the public. You don’t need a real estate agent to attend an open house. Original Principal Balance: The total amount of principal owed on a mortgage before any payments are made.
GLOSSARY OF TERMS Origination Fee: A fee paid to a lender or broker to cover the administrative costs of processing a loan application. The origination fee typically is stated in the form of points. One point is one percent of the mortgage amount. Owner-Occupied Property: A property that serves as the borrower’s primary residence. PITI: An acronym for the four primary components of a monthly mortgage payment: principle, interest, taxes, and insurance (PITI). Point: One percent of the amount of the mortgage loan. For example, if a loan Power of Attorney: A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time. Pre-Approval: A process by which a lender provides a prospective borrower with an indication of how much money he or she will be eligible to borrow when applying for a mortgage loan. This process typically includes a review of the applicant’s credit history and may involve the review and verification of in- come and assets to close. Pre-Approval Letter: A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.
GLOSSARY OF TERMS Pre-Qualification: A preliminary assessment by a lender of the amount it will lend to a potential home buyer. The process of determining how much money a prospective home buyer may be eligible to borrow before he or she applies for a loan. Pre-Qualification Letter: A letter from a mortgage lender that states that you’re pre-qualified to buy a home but does not commit the lender to a particular mortgage amount. Principal: The amount of money borrowed or the amount of the loan that has not yet been repaid to the lender. This does not include the interest you will pay to borrow that money. The principal balance (sometimes called the outstanding or unpaid principal balance) is the amount owed on the loan minus the amount you’ve repaid. Private Mortgage Insurance: Insurance for conventional mortgage loans that protects the lender from loss in the event of default by the borrower. See Mortgage Insurance. Purchase and Sale Agreement: A document that details the price and conditions for a transaction. In connection with the sale of a residential property, the agreement typically would include information about the property to be sold, sale price, down payment, earnest money deposit, financing, closing date, occupancy date, length of time the offer is valid, and any special contingencies. Rate Cap: The limit on the amount an interest rate on an adjustable-rate mortgage (ARM) can increase or decrease during an adjustment period.
GLOSSARY OF TERMS Rate Lock: An agreement in which an interest rate is “locked in” or guaranteed for a specified period prior to closing. See also “Lock-in Rate.” Recording: The filing of a lien or other legal documents in the appropriate public record. Refinance: Getting a new mortgage with all or some portion of the proceeds used to pay off the prior mortgage. Sale-Leaseback: A transaction in which the buyer leases the property back to the seller for a specified period. Settlement Statement: A document that lists all closing costs on a consumer mortgage transaction. Single-Family Properties: One- to four-unit properties including detached homes, townhouses, condominiums, and cooperatives, and manufactured homes attached to a permanent foundation and classified as real property under applicable state law. Taxes and Insurance: Funds collected as part of the borrower’s monthly payment and held in escrow for the payment of the borrowers, or funds paid by the borrower for, state and local property taxes and insurance premiums. Title: The right to, and the ownership of, property. A title or deed is sometimes used as proof of ownership of land. Title Insurance: Insurance that protects lenders and homeowners against legal problems with the title.
GLOSSARY OF TERMS Title Search: A check of the public records to ensure that the seller is the le- gal owner of the property and to identify any liens or claims against the property. Underwriting: The process used to determine loan approval. It involves evaluating the property and the borrower’s credit and ability to pay the mortgage. Walk-Through: A common clause in a sales contract that allows the buyer to examine the property being purchased at a specified time before the closing. Warranties: Written guarantees of the quality of a product and the promise to repair or replace defective parts free of charge, for a specified amount of time.
THANK YOU
Thank you for taking the time to learn about the home sale process. I hope it helps you as you begin to write the next part of your story. I am here to guide and provide you with a quality of service that matches the quality of your home. Thank you for the time. It would be my pleasure to serve you on your real estate journey. If you'd like to learn more about how to get started- please reach out today!
Scan below to connect:
www.nicolangrealestate.com
c: 425.591.2467 nico@windermere.com www.nicolangrealestate.com