In general, what should I expect to happen at closing?
Once you’ve signed a buyer’s purchase contract to sell your house, the preparation for settlement begins. Settlement, or closing escrow, is the process of transferring the title (ownership) of the home from seller to buyer.
Often, the real estate agents involved in the sale help take care of these arrangements. But the buyer and seller are ultimately responsible for attending to these details. Here are the basics:
- Seller’s Responsibilities
- Joint Responsibilities
- Once all the papers are signed and money paid, the keys are handed over to the buyer and the sale is complete.
Our professional approach can help you go to closing with confidence. Call or e-mail us for the kind of help and support we can provide.
Should I make the payment on my old mortgage a few days before closing on a new loan?
If you are selling your home or refinancing your mortgage and the closing date for the new mortgage is near the due date of the old mortgage, you will still need to make that final payment.
Do I need to reinvest my proceeds to avoid taxes?
When you sell your old home you do not need to reinvest all, or any, of the cash received into a new home in order to avoid taxes. Since 1997, Uncle Sam doesn’t care how you reinvest the proceeds (savings, vacation, car purchase, bill consolidation, etc). Any gains up to $500,000 for married couples and up to $250,000 for singles are tax free, as long as:
Are there any tax consequences to closing?
Home sellers need to remember any reimbursement received at settlement for previously deducted property taxes is considered income and is taxable. The IRS can now track property tax reimbursements thanks to a law which requires all title companies, escrow agents and brokers involved in a home sale settlement to provide the IRS with the seller’s Social Security number and the amount of property tax reimbursement.
What happens if the appraisal is too low?
When a too-low appraisal jeopardizes a contract on your home, you can:
Call or e-mail us. We can help your sale go more smoothly.