One of the very important things for every Seller to understand is when the property has an offer and closes, the title must be clear. Clear means that any charges associated with the house are paid.
If the sale price does not cover all the charges, the Seller(s)
must have a plan in place to bring money to closing. The mortgage, the home equity loan, the taxes, the real estate commission, any taxes, title and/other fees, water and sewer bills ...all things house related must be paid in full for the property to pass with "clear title" from Seller to Buyer.
It is part of the Listing agent's job to show the Seller the net proceeds of the house. A net sheet is important and should be updated if a listing is on the market for a while, if the market changes and a price reduction is necessary enabling the Seller(s) to know at any time what profit they will realize...OR the amount that would not be covered by the sale price.
Markets are improving across the country with list prices increasing over previous years. It's easy to "assume" that everything will be covered by the sale price...and agents who do not ask the "Million Dollar Question"...How much do you owe on the mortgage? may be surprised to learn it is more than they thought...or that there are other liens. The second mortgage that was taken out for...college expenses, the remodeling, the new car....all have to be paid in full.
The Best surprise when it comes to the proceeds from the sale of a home...is none at all. Listing agents...keep your Sellers updated. Sellers...if you have not been given a net sheet at the beginning of your listing and during the listing if you have had any price reductions....tell your Agent to calculate one for you.
If you or anyone you know is selling a home in southeastern Wisconsin, call the Hansons...the only surprise will be the superior level of service we offer for all things real estate.