Frequently Asked Questions about Real Estate

Conventional, FHA, or any other borrower may sell their property immediately after the purchase if they choose and can afford to do so. The expenses commonly associated with a sale, however, often present quite a costly barrier to a home sale immediately after it is purchased.

The closing attorney that handles the settlement in most Georgia Counties will pay off the mortgage balances from the sales proceeds.

These are reasonable expectations of the seller's net proceeds at settlement.

CONTRACT SALES PRICE minus (-)

- Mortgage Payoffs (including interest accrued since the last payment)

- Any other liens or encumbrances on the title

- Seller contributions to buyer's closing costs

- Real estate commissions

- Post-closing fees for wiring payoffs to the mortgage company

- Unpaid assessments

- Prorated, unpaid property taxes

- HOA Closing Letter and/or Transfer Fees, Home Warranty if agreed upon in the contract

+ Prorated, paid HOA Dues

+ Prorated, property taxes

= SELLER'S NET PROCEEDS

The new iBuyers that advertise all over the local media about skipping showings, making offers after a brief interview and lofty promises to move you locally would have you believe that selling to them is the only real fast way to sell a house. Those of us traditional real estate agents who have endured the tests of time, however, can attest that the marketing mix learned in business school applies to real estate as well. A well-priced property (the product, it is no longer a home upon market entry in my opinion) kept in good condition for showings and promoted along with nearby amenities will sell fast to the right buyer. While "well-priced" means competitive rather than extremely low, owners will likely still get a higher return on their investment through a traditional real estate agent rather than an iBuyer who's model requires that they flip the property for a nice profit at the price that owners should have received. That is why I often write "Take All of Your Money with You When You Leave."

Contact the lien holders (usually the mortgage lenders) where applicable for the expected mortgage balance amounts to be paid off in 30 days and 60 days. Then contact a few local real estate agents and inquire about what your home may be worth, ask for a meeting and an estimated net-to-seller worksheet. Then decide if moving forward makes sense, both in terms of the numbers and personalities among the agents. Upon choosing the right agent, get answers to your questions, learn and then sign the paperwork, agree on the next steps that address communication, property condition, price, promotions, dates, timelines, etc. and pursue a mutual respect for one another that leads to a smooth and timely settlement.

Disclose any property defects that you are aware of to potential buyers and price the property accordingly. Offer more credibility by having repair estimates justifying the discounted amount on the repairing company's letterhead and consider promoting a willingness to consider a 203(k) repair loan.

Many variables go into the concept of how to buy a house before selling your current house. In my experience, however, the client searched for and found their new home before ever placing their current home on the market. Upon entering into a binding agreement for the purchase of the new home that included proper timelines and protective stipulations, they then put the existing home on the market with the same closing attorney for both transactions who prepared back-to-back settlements. Again, this extremely top-line description may be entirely different from other brokers but worked out well with minimum stress for all involved parties.