Things you should know (Seller FAQ's)

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An EMD is a sign of good faith to the seller to let them know that you’re serious and committed to purchasing their home.  The EMD will typically be collected by your buyer’s agent’s office and will be held until closing.  At that time it will be applied toward your funds due at closing. 

A title company is responsible for verifying that the title to the home is free & clear of any liens when a home is sold.  They handle all of the payoffs and liens against the property.  They also issue what’s called title insurance.  Last, they verify that all documents are prepared and signed correctly at closing and disburse all of the funds that are collected during the closing process. 

This type of offer is called a contingent offer.  It means that your offer is contingent on something else happening.  Typical contingencies are inspection contingencies and mortgage contingencies.  However, there can be any sort of contingency that you can think of.  In the scenario where a buyer needs to sell their house it needs to be clearly stated in the purchase contract that this needs to happen.  Often in a hot market a contingent offer isn’t always the strongest offer.  However, nothing should be considered impossible.  It’s best to consult with your real estate agent to find out the best way to frame an offer that is contingent on the sale of your home. 

In some cases as a seller you will need to remain in the home after you have signed all of your documents and you no longer own the home.  This is known as Occupancy.  Within the purchase agreement there will be a set time period that you will be allowed to occupy the home after closing.  There will also be an agreed upon price for that time period. 

It's always best to consult an accountant with regards to the tax implications of selling your home.  However, in most cases as long as you’ve occupied your home as your primary residence for at least 2 of the last 5 years and the profit is less than $250,000 then you don’t have to pay taxes on the profit of the sale.  If you’re married and filing your taxes jointly then the profit can be up to $500,000 before you have to pay any taxes. 

The Multiple Listing Service or MLS is a website that real estate agents can enter a home listing into so that other real estate agents can view it.  Real estate agents must be members of an MLS in order to have access to it.  Most real estate agents are members of an MLS through the Board of Realtors that they belong to.  The MLS is one of the most powerful tools for selling your property.  Not only do real estate agents have access to your home listing but often they also have searches set up for their clients so that their clients have access to homes that fit their criteria.  The MLS also syndicates the information to many popular websites that people use to find houses.  

We understand that our list of FAQ's isn't comprehensive.  If you have a question about a specific part of the homebuying process, please submit it to us and we'll make sure to get you an answer.  We may even add it to our list.