Selling your house may turn out to be an adventure you could do without if you do not know the local market. And, if you fail to follow your state and local regulations, it can lead to expensive legal issues. Before selling your home, here are a few things you need to know.
Using a Real Estate Agent
A real estate agent has knowledge of your neighborhood and so can accurately determine the current value of comparable homes to effectively market your house. You can find a licensed real estate agent at Realestateabc.com.
There are three kinds of real estate listings:
- Open listing: Owners retain the right to sell the home and pay no commissions.
- Exclusive agency listing: Owners execute a listing agreement with a broker and pay a commission only if the broker is the procuring cause of the sale.
- Exclusive right to sell listing: The seller pays a commission to the listing broker regardless of who brings in the buyer.
Contents of Listing
Property listings generally contain these items at a minimum:
- Price and commission
- Items included or not included in the sale
- Duties and obligations of seller and agent
Your agent determines the selling price by comparing prices of similar homes that have been listed in your immediate area.
Mandatory Seller's Disclosures
The seller must disclose known defects in the home's structure, as well as the following:
- Title issues
- Systems—electrical, sewage, heating
- Roof, drainage, rodents
- Hazardous conditions
Your failure to make the required disclosures can expose you to a lawsuit. South Dakota home sellers generally use the Seller's Property Condition Disclosure Statement. Generally, if an inspection turns up material defects, the buyer can insist that you pay to remedy the defect or lower the purchase price.
I Got an Offer!
A potential buyer makes an offer to pay a certain price based on certain terms and conditions. It becomes a legally binding contract when the seller accepts the offer and notifies the buyer of its acceptance. A counteroffer is one that rejects the original offer and presents a new offer with different terms. Once an offer is agreed upon, it goes into escrow where the buyer deposits certain funds into an escrow account along with instructions.
Review the Purchasing Agreement
A purchase agreement is a a legally binding contract containing the sales terms, including:
- Identity of all involved parties
- Clear title guarantee
- Price terms and financing terms
- Dates for both the inspection and the actual closing
Events at Closing
At the close of escrow, the following events occur:
- The buyer signs a promissory note
- Costs and fees are paid
- All documents are signed and transferred
- The deed is recorded
Sellers need not be present at the closing so long as all costs are paid and documents are signed. You will typically have to turn over the keys to the buyer the same day as the closing or when you get occupancy.
Be Confident by Consulting Real Estate Lawyer
Real estate laws in South Dakota can be difficult to understand. Each state's real estate laws and local regulations are different, so consult with a local real estate attorney before you sell your home.