Selling home, cash needed on hand?

RatLabGuy

RatLabGuy

You look like a monkey and smell like one too
Joined
May 18, 2005
Location
Churchville, MD
From you guys who have sold homes recently or know how thsi works.
When you are selling a home, it's comon to end up paying some/all closing costs.
Now if I'm coming out ahead on the deal and receiving $$ from the bank on the deal (e.g. sell at 125, owe 100), is that profit money "available" to use to pay the costs, or do you literally have to have the money available *in hand* to pay at the transaction?
E.g., I'm getting a check for 25k. I'm also writing one for 5k. Not goin gto/from the same person. If teh check from bank clears into my account first, no problem... but if my check clears first, bouncy bouncy unless I pull 5k from some other place...

Anotehr random question. Somebody suggested going ahead and getting an inspection NOW (my cost) just so I know now (and no tat the last minute) what needs to be fixed/addressed. If I do, can thsi same inspectio nreport just be used for the buyer later? Saves them $75 (small potatoes in reality but has appeal of "oh one less thing for you to worry about") and buys me time.
 
When I sold last year and made a profit, the share that I paid for closing was just taken out of that amount, along with lawyers fees and the commission for the realtor. All I had to do was sign my name (in about 200 different places).
 
johnski said:
When I sold last year and made a profit, the share that I paid for closing was just taken out of that amount, along with lawyers fees and the commission for the realtor. All I had to do was sign my name (in about 200 different places).
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Thats how it works, it's another thing you pay all that $$$ to the closing lawyer to do.
 
RatLabGuy said:
From you guys who have sold homes recently or know how thsi works.
When you are selling a home, it's comon to end up paying some/all closing costs.
Now if I'm coming out ahead on the deal and receiving $$ from the bank on the deal (e.g. sell at 125, owe 100), is that profit money "available" to use to pay the costs, or do you literally have to have the money available *in hand* to pay at the transaction?
E.g., I'm getting a check for 25k. I'm also writing one for 5k. Not goin gto/from the same person. If teh check from bank clears into my account first, no problem... but if my check clears first, bouncy bouncy unless I pull 5k from some other place...
Anotehr random question. Somebody suggested going ahead and getting an inspection NOW (my cost) just so I know now (and no tat the last minute) what needs to be fixed/addressed. If I do, can thsi same inspectio nreport just be used for the buyer later? Saves them $75 (small potatoes in reality but has appeal of "oh one less thing for you to worry about") and buys me time.
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Ok,
Assuming you're selling your house for a profit and you're expecting a net result. The attorney who will facilitate the closing will colllect the new mortgage money on behalf of the buyer, order a pay off for your mortgage, take all closing costs into consideration (no matter how you and the buyer split them up) and then apply them to a balance sheet more commonly known as a closing statement or HUD 1. Once debits and credits have been added/subtracted then hopefully a positive balance appears at the bottom of the statement which represents your net equity from the deal. This and all other dispersments/fee's will only happen once the attorney has recorded the deed at your local courthouse.
Quick example using your figures from above.
$125k selling price
$5k closing costs
$100k pay off
$20k net to you once the deed has been recorded
Make sense so far? :huggy:
As for the question on pre-inspections. My opinion is only pre-inspect if you're prepared to fix any 'necessary repairs' according to the contract AND you fix them fast. Otherwise even if you have the good intentions of putting something right in the near future you are duty bound by GS 47E-2 otherwise known as a residential property disclosure statement to list known defects in your home, which could put off a potential buyer from the get go.
Personnaly I don't recomend one to my clients unless of course something is very obvious that needs fixing. Let the buyer get 'involved' in the contract process, have them discover defects through there inspection and negotiate with you on what gets fixed and what doesn't. This is the most common way a real estate transaction goes down in NC.
My 2 cents and yes I'm a realtor :flipoff2:
 
mbalbritton said:
how do I know your inspector isn't your buddy? I honestly wouldn't care about your inspection if I was the buyer.
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That is true and would be my concern as a buyer as well.
However, inspectors are also licensed/bonded by the state for their work, so it's not like it's be in his interest to lie about anything. That could lead to serious problems for them.
Especially since, from the viewpoint of the person doing the inspection now, there's the chance some other guy will be coming in to the same house later (e.g. for the buyer).

Any inspectors on here? I'm in Lewisville.
 
Mac5005 said:
get it inspeced now, that way you arent suprised by it, upon selling if you need to fix anything. Wouldnt want to scare off any potential buyer, when you tell him that you need a week to fix ....
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I dont recommend that route.. Let a buyer get their own inspector and they pay for it.. that's typically how it works... it's not your responsibility to inspect your home.

Also most any contract with a realtor is going to allow you a set amount of time to (1) review the buyers inspection report, (2) respond and state what you will/will not fix, (3) that goes back/forth until you both reach an agreement, (4) timeframe to make repairs... This should all be finished prior to closing and the final "walk through".

Also, I sold a home last September... and I dont remember paying any closing costs (besides partial taxes, HOA dues, Insurance, and lawyer... maybe a few other small fees)... IS that what you're talking about or are you agreeing to pay some of the buyers Closing Costs as a perk to buy your house?


EDIT: Another thing you can do and it looks good to potential buyers while not spending a bunch of money is offer a home warranty w/ the purchse... We did that and I think it cost approx. $250.00... which came out at closing so again no money out of pocket.
 
If you think somethings might need some attention then go ahead and pay the $75. Worst case scenario you are out $75 when he/she says your house is perfect. But something needs addressed this will buy you more time to get someone in instead of paying more to have it rushed. Just my opinion.
 
gmcjimmy88 said:
If you think somethings might need some attention then go ahead and pay the $75. Worst case scenario you are out $75 when he/she says your house is perfect. But something needs addressed this will buy you more time to get someone in instead of paying more to have it rushed. Just my opinion.
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If you're getting a home inspection for $75.00 run away... :shaking: I dont think that's what he was saying but that's insanely low and I wouldnt trust that inspector (unless it's family or close friend)... Typically you'll see $300.00 for an average house here in this area... More depending on crawl space, basement, sq. footage, etc.
 
uncc civilengineer said:
I dont recommend that route.. Let a buyer get their own inspector and they pay for it.. that's typically how it works... it's not your responsibility to inspect your home.
.
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What he said..I've been involved in many real estate transactions and I've never heard of the seller paying to get the house inspected. The buyer pays and then decides if he's going to proceed with the deal or ask for concessions. If your buyer can't put up $250-300 for a home inspection before purchase, then I wonder what mortgage company he's dealing with?
 
BIGWOODY said:
What he said..I've been involved in many real estate transactions and I've never heard of the seller paying to get the house inspected. The buyer pays and then decides if he's going to proceed with the deal or ask for concessions. If your buyer can't put up $250-300 for a home inspection before purchase, then I wonder what mortgage company he's dealing with?
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It's not so much an issue of "buyer can't afford it." More like, I'm still months away from when I plan/hope to close. Not even on the market yet. If something comes up close to closing, and I have only a week to fix it, at that point I will be very busy w/ other things (finding new home, stilling working during te hday, etc) and will be forced to pay more for it to be fixed by somebody else, and quickly. OTOH, I'm making a list now of what needs to be addressed. If I know now, I'm more likely to find time to do it myself, or get "the right guy" to take care of it before it becomes an issue later.

However, if NC law requires a disclosure statement, then that coudl definitely be bad - knowing there was a disclosed problem, I'm sure a buyer would want to get that specific thing inspected anyway, so that negates the point. Plus definietlt scary for soem folks.
When I bought this house 6 years ago, it cost $75, I went WITH the inspector and he was very thorough, as was his report. But that was 6 years ago.

So I won't do the inspection now. Thanks. I have the old report from the purchase, will go back through that as a checklist.

Oh and yes, I meant paying some of the seller's closing costs. In my house style/price range, I'm most likel yto be dealin gwith first-time homebuyers who are less likely to have much cash in hand. These days, few folks can get 100% financing (gee wiz), so all the $$ scrounged up by them has to go to down payment... so often the buyer has to ask the seller to help out w/ costs as a concession. I have no problem with this (just beef up the sale price a little) as long as it dosn't mean cash directly out-of-pocket.
Thanks
 
Its great to have the home preinspected. It will let you know what needs to be done, so if they come back with a report saying your foundation is shot, you can call BS or know that it is and have an estimate in hand so you know what is a valid reduction in purchase price for that issue.

So basically get it inspected...... Every issue, get an estimate, and then go to the nego table with all your ducks in a row.



and 75.00 for an inspection is way too low.. I would stay away... an inspection is 300-500 depeding on foundation, squarefootage, etc.....

My girlfriends father owns National Property Inspection which is a nationwide franchise, actually he owns the local franchise, go to their website, and you will be assured to have a good inspector in your property at a good price.


http://www.npiweb.com/

Winston-Salem, North Carolina
Serving the Winston-Salem Area
Mike Hunger
cell: 336-782-2244
npiwinstonsalem@earthlink.net
 
If you want some pointers on what an inspector is looking for, PM me for my # and I can help you out. I've been in the new home and remodeling side of construction for years up until I quit just recently. I used to deal with private inspectors on a daily basis and I can steer you to where they're going to look and what for. I'll put it this way. I just bought a house and I found more problems/areas of concern than the private inspector that I paid $400 did. Most private inspectors are really a joke. All you have to do is take a class, pass a test and get insurance and you can become an inspector.
 
marvilusone said:
If you want some pointers on what an inspector is looking for, PM me for my # and I can help you out. I've been in the new home and remodeling side of construction for years up until I quit just recently. I used to deal with private inspectors on a daily basis and I can steer you to where they're going to look and what for. I'll put it this way. I just bought a house and I found more problems/areas of concern than the private inspector that I paid $400 did. Most private inspectors are really a joke. All you have to do is take a class, pass a test and get insurance and you can become an inspector.
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not this argument again... sorry but you're wrong... it's just not that "easy"... Yeah it's that easy if youre a PE or GC... otherwise joe blow off the street cannot just walk in and hey now I'm a home inspector...

It's also a "peice of mind" thing for a buyer.. where 95% of the general public can't even change their own oil, right less understand what's happening w/ a home inspection. Based on references they just "trust" the inspector to locate things that can cause substantial expenses down the road (roof, foundation, etc). However if your home inspector makes structural recommendations to you they better be a Structural Engineer....
 
marvilusone said:
If you want some pointers on what an inspector is looking for, PM me for my # and I can help you out. I've been in the new home and remodeling side of construction for years up until I quit just recently. I used to deal with private inspectors on a daily basis and I can steer you to where they're going to look and what for. I'll put it this way. I just bought a house and I found more problems/areas of concern than the private inspector that I paid $400 did. Most private inspectors are really a joke. All you have to do is take a class, pass a test and get insurance and you can become an inspector.
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DING DING DING.
In 3 out of 5 situations I've dealt with lately, the inspectors were morons.
1 My house, brand new construction, only issues builder pointed out, and left a note telling us what he still needed to fix. Inspector found/had one other question.
2 Buddies house in Apex, inspector found a few things, but buddy's wife said, we're buying it, so they did. Most still haven't been fixed in 3.5 years.
3 Buddies house in Cary. Inspector said "everything is fine, but the roofing is older. So plan on replacing it within 5 years" The only thing good on that house was the roofing. The foundation was leaking, the bathroom's subfloor had so much damage it needed replacing, there was mold in the basement. There was HUGE drainage issues in the yard. Several thousand dollars later, (within 6 months of buying, since they found the issues first rain, and when they looked closer, could see all the water stains)
4 Buddies house in Holly springs. Inspector failed to notice the small pond in his crawl space. ~8000$ later, it's mostly fixed. But it still smells funky under there.
5. Mother in law's place. Inspector missed that the dishwasher leaks whenever it's run. Fireplace didn't work properly. HUGE cracks in foundation under the cracked tile. (I even asked, he said, nope, someone just dropped something on those tiles. That's not how the crack from a slab cracking)


So what I'm finding, inspector's are mostly worthless, but you usually are required to pay for one to be able to get a loan. Stupid sham.
 
It all depends on who you deal with, its no different the mechanics, doctors, or anyother professional you may go to.

Also other then just taking a test, inspectors have to complete 100 inspections with a licenced inspector before they can even take the test.

Also if you find issues that the inspector didnt, you have the right to sue.

And finally. any reputible inspector will also incliude a home warranty with the inspection.
 
NCJeepin said:
It all depends on who you deal with, its no different the mechanics, doctors, or anyother professional you may go to.
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Yeah, no shit.. Why would you expect any different from a home inspector?

The guy that inspected my house when I was buying was incredibly thorough... example - the sink in the kitchen didn't leak when used normally.. or with the disposal.. or filled up even. But when filled to the top, then the drain plug pulled AND the disposal turned on, he found a hairline crack in one of the drain pipes. There were many little things like that he found...

Mine was $250, 6 years ago.
 
Make the Realtor pay for the home inspection as part of the deal to list the home and put the burden of getting a reputable home inspector on the Realtor. Also add addendum to the listing agreement (have your attorney draft) that they are responsible for any screw up by the home inspector. You need to get all you can for the 6 to 7 % fee.
 
YellowjeepCj said:
Make the Realtor pay for the home inspection as part of the deal to list the home and put the burden of getting a reputable home inspector on the Realtor. Also add addendum to the listing agreement (have your attorney draft) that they are responsible for any screw up by the home inspector. You need to get all you can for the 6 to 7 % fee.
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You're living in fantasy land.......
 
YellowjeepCj said:
Make the Realtor pay for the home inspection as part of the deal to list the home and put the burden of getting a reputable home inspector on the Realtor. Also add addendum to the listing agreement (have your attorney draft) that they are responsible for any screw up by the home inspector. You need to get all you can for the 6 to 7 % fee.
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And any real estate agent you get to take that one most likely wont be a Realtor, nor worth their commission.

As said, do not get an inspection, it is a matter of responsibility vs. knowledge at that point.

You could have a major issue now unknown to you, if the buyer's inspector doesnt find it, that is between the buyer and his inspector, once you have an inspection you are now responsible....
 
uncc civilengineer said:
not this argument again... sorry but you're wrong... it's just not that "easy"... Yeah it's that easy if youre a PE or GC... otherwise joe blow off the street cannot just walk in and hey now I'm a home inspector...
It's also a "peice of mind" thing for a buyer.. where 95% of the general public can't even change their own oil, right less understand what's happening w/ a home inspection. Based on references they just "trust" the inspector to locate things that can cause substantial expenses down the road (roof, foundation, etc). However if your home inspector makes structural recommendations to you they better be a Structural Engineer....
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I wasn't saying that any joe blow off the street could just walk in and become a home inspector I had assumed (my first mistake) that everyone would know that I was refreeing to individuals experienced in the field of residential construction. I have worked for two of the nations ten largest home builders both as seinor production superentendants. I wasn't offering to do a home inspection, I was just simply offering some pointers to help someone out and possibly save them some money. Just a scenario but if there were ten issues with his house and I was able to tell him what to look for and he got eight of the ten items fixed he may have alot easier time selling his home when the inspector comes through and only finds two issues rather than ten. That's all I was offering. Nothing else. In my first post I said that most private inspectors are a joke because I have personally known at least 20 people that didn't know anything but one specialized trade and they have now become licensed inspectors. For example you would be trusting an electrician to inspect your foundation, structural framing, roofing, plumbing, HVAC, siding, flooring and so on. That's like taking a car that you're interested in buying to a car wash attendant and asking him if everything is mechanically ok.
 
All i know.... Is that it is better to have it inspected before hand, that way ( THIS IS THE ONLY EXPERIENCE I HAVE WITH THIS ISSUE) the inspector should find a problem....like for instance a mold problem in the crawlspace, then you can have that dealt with accordingly before selling the house. Alot of times this will make the house more desireable by saying " this house doesnt not have a mold or moisture problem because it has already been fixed"

My only experience is from having to come in and take car of the mold and moisture problem in a hurry during the "closing" of the house. Been through this several times, and It always goes better if you take care of the problem ahead of time, instead of trying to juggle everything at once.

This is just my .02, and there are many other issues at hand here. Just wanted to elaborate as to why I said what I said earlier
 
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