Frequently Asked Questions (FAQ's) for Home Sellers

What property details are usually included by Listing Services?

Usually, properties listed will include the following details:

Location
Property description
Photograph(s)
Price
Utilities information
Amenities
Annual property tax
Current financing (when assumable)
Listing company

What can a seller do to make sure his or her home is being properly marketed by the agent?

Before choosing an agent there are several things a seller can ask:

How will you advertise my home?
How well do you utilize the internet in your marketing?
How do you attract other agents to show my home?
How can I get feedback from the agents showing my home?
Do you have former clients that I can call to get testimonials?
Can you give me examples of how you have sold homes quickly for the maximum price?

What is title insurance?

Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

The most often requested policies are the Owner's Title Policy which insures the owner(s) of the property and a Mortgagee's Title Policy which insures the lender from loss if it is determined that its lien is not valid on a property or is inferior to another lien not shown as an exception to coverage on the policy.

Usually the seller is responsible for paying for the owner's title policy and the buyer pays for the lender's title policy (though this is negotiable in the contract). Title insurance premium rates are set by the Texas Department of Insurance and are based on the property´s sale value using a sliding scale. For example, the basic premium for a $50,000 property is $520, and the basic premium for a $100,000 property is $871.

What are the hazards of lead-based paint?

All buyers and sellers are required by law to receive and read a pamphlet outlining the hazards of lead-based paint for homes built before 1978. Your agent will provide this if your home's age qualifies.

What are closing costs?

Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For sellers, they are usually about 9.5-10% of the total sales price of a property. Some of the closing costs you might encounter are: discount points, escrow fee, documentation fee, homeowners' association fees, pest/rot inspection, real estate commission and title insurance premium.

What is the difference between a "pre-qualified" and a "pre-approved" buyer?

If a buyer is "pre-qualified" it has been determined, with a loan officer, what price the buyer can afford based on the down payment, debts and the amount the mortgage company will approve for the mortgage. Being "pre-qualified" is only a determination of probable credit and is usually based only on non-verified information the borrower has given the lender. "Pre-approved" means that the borrower's credit, employment and funds have been verified and approved by the lender.

Should a seller get a home inspection?

Normally, a buyer will want to have his or her own inspector take a look at the property. However, in a competitive market, it can give a seller an edge over the competition if an inspection has already been performed by a licensed inspector and the issues addressed.

Every inspection should include, but not be limited to, an evaluation of the following:

Foundations
Roof
Heating and air conditioning systems
Ventilation
Common areas (for condominiums)
Septic tanks, wells or sewer lines*
Insulation
Plumbing and electrical systems
Ceiling, walls and floors
Doors
Sprinkler system*
Hazardous materials concerns*

* There may be an additional fee for this.

What is a wood-destroying organism inspection report?

A wood-destroying organism inspection report is a written opinion by a qualified state licensed structural pest control inspector based upon what was visible and evident at the time of inspection. The inspection report does not in any way represent or guarantee the structure to be free from wood-destroying organisms or their damage, nor does it represent or guarantee that the total damage or infestation is limited to that disclosed in the report. Wood-destroying organisms include subterranean termites, dampwood termites, carpenter ants, wood boring beetles and wood decay fungus.

What pages are generally included in the Purchase and Sales Agreement?

Agency Disclosure
Financing Addendum/Clause
Earnest Money Receipt
Conditions/Disclosures Addendum
Contingency
Addendum Outlining Special Conditions
Lead-Base Paint Notification
Property Disclosure Form (completed by Sellers)

Brought to you by:

Adelfo Properties Inc.