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How to Sell a Louisville Home - The Paperwork

By
Real Estate Agent with RE/MAX Alliance - Louisville REALTOR-Luxury Homes

Louisville Homes

How to Sell a Louisville Home - Part 5

When you are ready to sell your Louisville home, there are a handful of documents that need to be signed.  Some of these documents are designed to disclose the roles and responsibilities of the sellers (you) and their real estate agent.  Others detail the property characteristics and make sure that all material information is correct and will be available to buyers. 

The process is not quite as painful as you may believe. I'll complete as many of the forms as possible prior to our meeting.  Of course, I want you to ask as many questions as you need in order to understand each document in detail.

Listing Documents

We will primarily cover 7 forms during the listing appointment.  The basic purpose of each and a few relevant details are shown below. 

1) Consumer Guide to Agency Relationships

As a Kentucky real estate agent, I am required to review this document with you at our first meeting or prior to any discussion relating to confidential information.  I will discuss the different forms of agency relationships (Buyer, Seller, Dual) and cover how my fiduciary responsibilities would apply in each case.  I'll also review the fact that our brokerage does cooperate with other brokerages and the Fair Housing requirements. 

When you sign this document, you are acknowledging that you have received it and under the contents.  This does not obligate you to use my services in any manner.

2) Listing Agreement

Selling a Louisville Home

This is the contract between you and my brokerage to list your home for sale.  Your home address and the terms of the listing (price, commission, length, etc).  Unlike the Consumer Guide, this is a legally-binding contract.  By signing this document you are committing to move forward with RE/MAX Alliance representing you.

3) Greater Louisville MLS Input form

This form has roughly 7,342 fields to be completed.  Fortunately for you, I will complete most of it when I complete your CMA.  However, it is critical that we review the data carefully.  Any mistakes here could cause your property to come up ,or worse not at all, during searches.

4) Seller's Disclosure

In Kentucky, we have a 3 page Seller's Disclosure that must be completed for residential home sales unless a builder is offering a 1-year warranty. 

Selling a Louisville Home

You are responsible for revealing any and all known issues that have arisen since you owned the home.  DO NOT under any circumstances stretch, bend or hide the truth.  Buyers understand that things happen.  As long as you have corrected the problem (or made a concession) those who like your home will be willing to move forward.  It is a huge understatement to say courts tend to side with buyers when it is determined the seller omitted an issue.  So, DISCLOSE, DISCLOSE, DISCLOSE.

5) Lead Base Paint Disclosure

The Federal Government banned lead-base paint in 1978.  This disclosure notifies buyers homes built before that year may contain lead-base paint.  If you have had any testing done to determine the presence of lead, you must disclose the test and test results.

6) Home Warranty

We'll discuss the pros and cons of offering a home warranty to prospective buyers.  On this page, you simply accept or refuse to offer the warranty.

7) Estimated Seller's Net Proceeds

An estimate of the amount of money you will receive when your home sells.  Taxes, closing costs, commission, and your mortgage balance(s) are subtracted from the estimated sales price.  I try to be realistic but conservative in order to avoid confusion at closing. 

 

This the 5th post in a 7-part series.  For more, click the following links...

How to Sell a Louisville Home - Part 1 - Overview

How to Sell a Louisville Home - Part 2 - Why Price Matters

How to Sell a Louisville Home - Part 3 - Comparative Market Analysis

How to Sell a Louisville Home - Part 4 - Preparing your Home

 

'Pen' photo licensed via Creative Commons from tmab2003 on flickr.

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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Comments(6)

Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

What an organized presentation, Erik.  You've got it "goin' on"!

Aug 23, 2009 05:17 AM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Erik - Your series has really been very informative and well organized. Certainly any home buyer/seller in your area is lucky to have found you. I wish you and your family nothing but success. Great job!

Aug 23, 2009 07:16 AM
Jen Bowman
Keller Williams on the Water - Holmes Beach, FL
Realtor - Anna Maria Island & Bradenton FL

Erik, You've provided great info for sellers in Louisville, KY.  All this paperwork can be intimidating for some Sellers, you've made it look easy. Nice job!

Aug 24, 2009 03:04 AM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Wendy - Thanks.  When I list a home, it seems seller always expect a mountain of paperwork.  Hopefully, this will make the process seem a little less intimidating.

John - Thanks for the compliments and well-wishes.

Jen -I appreciate your comments as well.  Obviously, the paperwork provides critical information for all involved.  It is important to be thorough and accurate, but it isn't an overwhelming task.

Aug 24, 2009 06:57 AM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Erik -- This post alone would be enough for an average seller to really think hard about hiring the right agent as there is a TON of things to consider when putting one's home up for sale.  This post was a fun read and very informative.

Aug 24, 2009 04:47 PM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Chris - You and I have different ideas of fun :).  Seriously though, finding an agent who understands and can explain the required documents is critically important.  Small mistakes can cost big $$$.

Aug 24, 2009 04:56 PM