CONCLUSION

       A:   At the initial meeting between the seller and their attorney, the attorney  will want to review the following:

• Deed:  This is the paper that lists the names of the parties who own the house.  It is not necessary to produce the original deed.  If the deed cannot be located, a copy is usually on file with the City and can be easily obtained.
• A copy of the last mortgage statement and coupon book.  This information will be used to obtain a payoff letter from the sellers mortgage company.  The seller's attorney usually notifies the a payoff bank a few weeks before she scheduled closing as this is usually the last item ordered.
• A copy of the survey.  If the seller has a recent survey of the property it can sometimes be used by the buyer of the home.  If the seller does not have one, the purchaser would have to obtain a new one and incur some expense.  This could sometimes delay the closing.
• A copy of a title policy used when the house was purchased would be helpful to an attorney representing a seller, but it is not required.  The benefits to providing a copy of your title policy is the if a title problem comes up involving a prior owner, the title will assist in disposing of the title problem.
• Copies of water meter bills and canceled checks for self made payments of real estate taxes.  At the closing, the title closer will run a continuation search to determine if taxes and water bills were paid.  In the event the City's computer disagrees with you, your canceled check is good evidence that something was paid.
• Any notice or letters received from the City of New York pertaining to the house ( eg.  notice to repair sidewalk, building, etc).  Copies of judgments, parking tickets, Satisfaction of mortgages and anything else that you feel might assist the attorney in representing you more effectively.
• Any other papers pertaining to the house such as repair bills, warranties, etc.

Back to Q1

      A:  Whether or not you need the services of a Real Estate Broker must be determined by you the seller, based upon your knowledge of your market, skill in negotiating, and available time to devote to making the sale happen.
The obvious benefit to selling your house without a broker is the notion that you will net more money in your pocket because you don't have to pay a broker's commission.
The less obvious reality is that the buyer feels they should pay less for a home because the seller is not dealing with a broker.
Once you find a buyer on your own, you need to negotiate your transaction without  a middleman.  This is easier said than done.  As evidenced by the many deals that fall apart at this stage, due to the parties inability to agree upon what stays with the house.  (ex. - washing machine, chandeliers, etc)
Once the seller gets past the negotiating stage with their buyer, it is important that the seller is able to evaluate to some degree of certainty if the purchaser will qualify for a mortgage.
The broker should assist you with proper pricing, handling the appointments, qualifying the buyers and serve in what usually is the invaluable function of the middleman.
With the exception of very limited markets, a majority of sellers eventually resolve themselves to the fact that they need some assistance from the Real Estate Broker.  Under most circumstances, the broker works for the seller and is paid a commission by the seller.  (Exception: Buyers's Broker which will not be discussed here)
It is up to you. the seller, to determine if you have the time, skill and knowledge to sell your own.  Initially, every seller feels they do possess the aforementioned.  As a seller, the best thing you can do for yourself is determine as soon as possible in your transaction if you will need a broker so that the broker can start working as soon as possible to properly market your home and ultimately find a buyer.
The risk a seller takes when they procrastinate is that qualified buyers who are looking with brokers and who might have purchased the house had the broker had a listing, may purchase a comparable home that was marketed professionally instead.
Back to Q2

     A:   The type of listing that the broker will require to service a home depends on the unique circumstances of each individual homeowner.  The most common listing types are as follows:

• Exclusive Listing:   This listing type gives one broker the exclusive right to sell your home for a specified period of time.  If anyone purchases your home, whether through your own efforts or the efforts of the listing broker, the listing broker will receive a commission.  (The location of the home, combined with the asking price will determine how long the broker will want a listing for, usually 3 to 6 months.)
• Multiple Listing:  This type of listing is the most common and is like the exclusive listing mentioned above.  The home owner agrees that if the house is sold by anyone during the listing period, a commission is due to the listing broker.  The difference between a Multiple Listing and an Exclusive Listing is that the listing broker agrees to share the listing with many other brokers in the area, with the understanding that if any other cooperating broker sells the home, the commission will be spit between the brokers.  (This method provides the greatest exposure.)
  Back to Q3

      A:   The contract of sale is the agreement that both the purchaser and seller sign which will state the terms of the sale.  The contract will list both the rights and obligations of each party.  Some of the obvious terms are:

• Buyers and sellers names and address.
• Selling price, down payment, purchaser's mortgage amount.
• How long the buyer has to get a mortgage.
• How long before the closing date.
• What items are included and excluded in the sale.
  
  There are many other terms to a contract which define the legal obligations of the buyer and seller so that a closing can occur sometime in the future, with each party knowing what they have agreed to now.
  Back to Q4

      A:   Although years ago all parties got together in the same room to sign a contract, it has become very common that contracts are handled through the mail.  Usually after the seller has given information to their attorney, the attorney for the seller will fax or mail the contract to the buyer's  attorney.  The buyer's attorney reviews the contract and calls the seller's attorney to discuss some proposed changes.  If the changes meet with the approval of the seller's attorney then the contracts are mailed back to the seller's attorney.
Once the seller's attorney gets the contracts signed by the buyers, along with the down payment check, the sellers are called in to sign.
The reason mail contracts have become so widely acceptable is due to our fast moving society, where everyone works different hours.  Scheduling a time where both buyers and sellers can appear at the same time is difficult.
Once the seller signs the contract, two fully executed contracts are sent back to the purchaser's attorney and the purchaser's down payment check is deposited into an attorny's escrow account.
Back to Q5

      A:   The closing is the event where the purchaser gives the seller the money in exchange for ownership of the home.  There the seller will sign a new deed to the buyers which is prepared by the seller's attorney, along with some other transfer documents.

The closing usually occurs in the bank attorney's office.  At the closing the seller, seller's attorney, buyer's attorney, bank attorney, real estate broker (if any)( and title closer will have both parties (buyer and seller) sign papers which will lead to the final settlement of all things necessary to close.

It has become necessary in the last 10 years that all parties bring some form of verifiable photo identification to the closing.  (e. g. :  NYS driver's license, passport, etc).   This is to make sure that the person whose name is on the deed is the one who signs the deed to the buyers.
Back to Q6

      A:   Sellers closing expenses are as follows (within NYC limits only):

• Transfer Taxes:   The following costs apply to non multiple dwellings with a selling price of less than $500,000.00.

• NYC Real Property Transfer Tax:  (1% of the selling price) e.g. $100,000.00 selling price = $1,000.00 - NYC Transfer Tax.

• NYS Transfer Tax (Stamps):  $4.00  per $1,000.00 selling price.  (e.g.:  $100,000.00 selling price = $400.00 NYS Transfer Tax)

• Payoff of existing mortgage (if any):  Prior to closing, your attorney will contact your lender and obtain a payoff letter informing you of an amount due at closing.
• Brokerage Fee (if any):  If you sell your home using the services of a real estate broker you will pay the broker a commission based upon your listing agreement.

• (e.g.:  If you and the broker agreed upon the broker earning a 6% commission then the brokerage fee would be $6,000.00 for a house selling with a price of $100,000.00)

• Legal Fee:   The legal fee is based upon the agreement between you and your lawyer.  Generally lawyers will provide you with an idea of what your legal fee will be at the outset, based upon similar transactions to yours.  It is important for sellers to understand that most lawyers will adjust the fee accordingly, if a particular transaction develops problems requiring additional time to be spent on a file.

• Miscellaneous fees (if any):   At the closing miscellaneous charges sometimes occur.

• Pickup fee is the term used to indicate the fee the title representative receives for the handling of your loan payoff (if any).

• Recording fees for the satisfaction of the seller's mortgage.

• Payments for unpaid real estate taxes, water meters and even items such as unpaid parking tickets.

• Payment of judgements, liens, etc.
  Back to Q7

      A:   The usual contract provides that the premises are being sold" as is" but that the seller represents the plumbing, heating and electrical systems shall be in working order, and the roof free of leaks on the day the purchaser gets possession to ghe home.

(NOTE:  If the seller remains in the premises after closing they must maintain the premises.  If the heating system breaks one day after closing, but before the seller leaves the premises, then the seller is responsible to repair the heating system.)
Back to Q8

      A:   There is no set rule as to what appliances must stay with the house being sold.  If there is a listing agreement with a Real Estate Broker, hte information that is included on the listing controls what stays.  It is very important to make sure that the Real Estate Agent and the purchaser are 100% clear on your intentions.

Appliances fit into one of these three categories:

1. Appliances that definitely stay is easy.
2. Appliances that are definitely not staying is also easy, if it is pointed out to all parties before an offer is made.
3. Appliances that you are unsure about because you do not know what you are going to get in your next house, can become a problem.  If you do not say it is definitely staying, the purchaser will put a value on the items in question when they make an offer which could lead to re-negotiating the purchase price.

(Note:  Many transactions fall apart due to unclear information regarding what is staying.  While there is no rule as to what has to stay, there should be a rule that the seller should be as clear as possible at the onset and be sure all parties are fully aware of the seller's position).
Back to Q9

The price you pay for looking for your next house prior to selling the first home is the risk that you may fall inlove with a house in your price range, but not able to enter into a contract with the seller because you have not sold your house yet.
Your should look for your next house with efforts that correlate with the sale of your present home.

• If your house is not yet listed for sale, or newly listed, you should be trying to determine what you can afford if your house sells for figures near your asking price and also for a little less than the asking price.  (Note: Contacting a local Real Estate Broker can provide great assistance in obtaining quick information about area prices).
• Once you have determined an area you can afford to move to, you should try to see every house that is for sale in that area, close to your price range.  You should keep a list of all the houses that you see, making a list of the things you liked and disliked about each one.   (Note:  If after a few weeks you have not received serious offers from purchaser's of your own house, you should find out from your local broker what can be done to increase the activity.  Most of the time the activity can be increased by reducing the asking price.)
• Once an acceptable offer has been made on the house you are selling, you will realize how valuable your earlier efforts at gathering information were.  When an acceptable offer is made on your house, the purchaser of your house will be very concerned about when they can move into your house.    Although no time limits can be etched in stone at this point in your transaction, a reasonable date must be established.  Knowing as much as possible about the market you are buying in will be of tremendous assistance in establishing a closing date in the future.   You the seller (soon to be purchaser) can now review all the information about what you saw already and ask your broker to give you information about houses you did like.   (Note:   This type of hands on information can give you a great insight into what price range you fit into as a purchaser and how long it may take).
  Back to Q10
  

        A:   How long the seller can remain after the closing depends on what the contract says.  Some contracts insist that the seller vacate the house and give the purchasers the keys at closing.
Most contracts provide that the seller can remain in the premises for a few days after closing, provided the seller's attorney agrees to hold some of the seller's proceeds in escrow until the seller leaves.
The benefit to the seller is the ability to coordinate their relocation plans directly from their home instead of from a hotel or relative's house.  The detriment to the seller is that the seller is fully responsible for the condition of the property until the purchaser's get possession.
The seller can not remain in the premises for free.  The cost to remain in the house is usually the per diem charges directly associated with the purchaser's ownership of the home, such as interest, real estate taxes, water charges, etc,
(e.g :  If the bank is charging the purchaser $40.00 per day for the interest on his mortgage and the real estate taxes are $5.00 per day and the water charge is $3.00 per day, then the cost for the seller to remain will be $47.00 per day up to the agreed upon number of days).
Note:  If the seller has an existing mortgage costing $10 per day, he is responsible for taxes;  $5.00 per day and water $2.00 per day, therefore, the pre-closing cost to the seller is $17.00 The post closing cost is only $30.00 more per day.  If the post closing possession is lengthy, the seller can invest the sale proceeds which can reduce daily costs even further.
Back to Q12

It is important to realize that at this stage of your sale, you as a home buyer must seek out sellers that will allow you to purchase their house with the understanding that if your house does not sell, you want to be release from the obligation to purchase.  (This is called a contingency contract).  If you cannot find a seller who is willing to enter into a contingency contract with you. then you will run the risk of losing your down payment if you sale does not go through.

(Note:  There are some alternatives around this situation, such as an equity loan which allows you to borrow against the equity  in your present home until it is sold.  This option should be discussed with your attorney and/or accountant before you enter into a contract to determine your financial ability).
Back to Q13
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