When it comes to selling your home, whether you’re moving for a job, a fresh start, or another reason, knowing all the necessary paperwork can help the process move faster. Typically, your real estate agent will walk you through the process and help you gather all the information you need, but things are a little different when you need to sell your house by owner.
If you’re considering selling your house by owner, you’re the one who will be running the show, not a real estate professional. Since you might not have all the knowledge that a realtor would have, we’ve compiled everything about the documents needed to sell your home so you can move on to the next chapter sooner.
Documents Needed When Selling a House by Yourself
While there are a lot of advantages of selling a house by owner, there is quite a lot of paperwork you’ll need to gather to get your home ready to list on the market and eventually sell. Houses for sale by owner don’t have real estate attached to the sale, so being thorough with your paperwork will ensure you don’t miss any important steps when selling your home.
Besides the standard paperwork you’ll need, you should provide some additional documents to give them a better idea of the sale price. These are some tips for selling your house yourself and making your home stand out to potential buyers.
The Original Sales Contract
When you bought your home, you received a sales contract. As you prepare to sell your home, you’ll need the original sales contract. The contract outlines all the terms of purchase, including who purchased it, when it was purchased, the market value at the time of the sale, and the purchase price.
The House’s Title
FSBO sellers need to have the house’s title in their possession so they can not only prove that they own the home but transfer it to them upon completion of the sale. This legal document is a vital part of the home-selling process. You’ll need to contact your title company if you don’t have a copy of the title.
Comparative Market Analysis (CMA)
Most of the time, a realtor will conduct a comparative market analysis for you, but since you’re not using one, you’ll want to do it yourself. You’ll want to compare the home values of other homes in your neighborhood that are of similar size and condition to yours so you can offer a fair market price.
The Appraisal Conducted When You Bought Your Home
Before you bought the home you’re currently trying to sell, there was an appraisal. Appraisals are an assessment of the market value of your home compared to the others in your area and the condition of your house.
Even though you’ll want to hire an appraiser to conduct an assessment before you list your house, you’ll still need to provide the appraisal report from when you bought your home. This shows how the market value of your home has changed since you’ve owned it.
Pre-Inspection Report
You should hire an inspector to conduct a home inspection of your home to allow you to get ahead of any issues that might arise later. This documentation is even more important in older homes because they tend to have more substantial issues than newer builds.
Plus, the inspection report can help you when it comes to what the market value is of the home and what your listing price should be.
Your Homeowners Insurance Records
Things happen when you own a home, like roofing damage and other things that require you to use your homeowner’s insurance. Providing potential buyers with your homeowner’s insurance records will let them know about any damages your house has had and the repairs you’ve made to ensure it’s safe to live in and everything is in order.
The insurance records will show any claims you’ve made to them throughout the time you’ve owned the house and also give an idea of what the new owner’s insurance might cost when they move into their new house.
The Homeowner’s Association (HOA) Records
Not all homes are part of an HOA, but if your house is, then including all records from the HOA is vital to selling your home by owner. Not everyone wants to follow HOAs’ rules, so being transparent about what yours are to the homebuyers can make or break a sale. Some HOA governing documents include:
- Bylaws
- Declaration of covenants, restrictions, and conditions
- Articles of incorporation
- Homeowners dues
- Rules and regulations
- Copies of HOA meetings
Your Mortgage Statement
If you’re getting ready to sell your home before you fully pay off your mortgage, you’ll need to contact your lender to get a statement disclosing your payoff amount. That amount will be the total amount you’ll need to pay to fulfill your mortgage loan, including the interest until you can pay off your loan completely.
If you’ve already paid off your mortgage loan, you don’t need to worry about providing potential buyers with this documentation.
Any Repair and Maintenance Records
Aside from your insurance records, you should include any repair and maintenance records that didn’t require you to go through your insurance. This allows potential buyers to see what you’ve done with your earnest money while owning the home and what they might need to put their money towards once the title is transferred. Things to include are:
- Records of the most recent paint jobs, window washings, and gutter cleanings
- Roof repairs, appliance warranties, and chimney cleanings
- Maps for your gas and electric systems
The Manuals and Warranties for Any Appliances
On the chance you’re selling your home with appliances left inside, you should try to provide the buyers with warranty documentation and the manuals for any of them so they know how to work them when they move in.
Previous Utility Bills
Everyone’s utility bills will vary depending on the size of the family living in the house, but you can provide interested buyers with an idea. You can gather your home’s last few water, gas, electric, and sewer bills so they know what they’re getting into.
Capital Improvement Receipts (If Applicable)
Capital improvements are anything you’ve done that’s a major improvement to your home. This includes remodeling your kitchen and bathrooms or adding an inground swimming pool to your backyard. These will change your capital gains taxes and can alter how much capital gains and property taxes you’ll owe on your home sale.
Any Disclosures
Seller disclosure is an important part of the home selling process, especially when selling your home on your own. It’s the right thing to do, and it allows the home buyers to see any issues that might need fixing after purchase and can help both of you come to an agreement on the home price.
You can usually find examples of a disclosure form online. Examples of some disclosures to include on your disclosure statement are:
- Asbestos
- Lead-based paint
- Water damage
- Neighborhood nuisances
- Environmental problems like oil, gas, and chemicals
- Previous disputes about property lines or other similar issues
Documents You Don’t Need for FSBO
You probably think that there are a lot of documents you need when selling an FSBO home, but there are some documents you don’t need. A few documents you don’t need to worry about when selling your home yourself include:
- Agreements on agent commission
- Any contracts between you and a real estate attorney
Closing Documents When Selling a House by Yourself
When selling a house by yourself, the house closing process is fairly similar to when selling your house with a realtor. For the home sale to go through, you’ll need to have a purchase agreement drafted, ideally with a real estate attorney.
The sale agreement will disclose the home value and price the buyer will pay for the home based on all the information you provide them about the property. Closing costs are another part of selling your home, but they’ll be far less with an FSBO house since you don’t need to worry about your listing agent or paying commission.
You and the homeowner will determine the closing date, depending on how quickly you want the process to move. Be sure to draft a closing statement that includes all the documentation about the home, the sale, and the title.
Remember, you’re likely not going to get top dollar for your house, but a home for sale by owner will sell faster in most cases, but at a lower price. Plus, you’ll be able to keep the money from the sale, typically a real estate commission.
Conclusion
When it’s time to sell your home, selling it by owner is a great option to sell a house fast in NY. An FSBO sale will move faster, and knowing what documents you need to have beforehand can give you peace of mind as you begin the process.
We buy houses New York residents love and can help you get your home visible to prospective buyers and has a network of cash home buyers in Brooklyn that are eager to buy. Call us today to learn more about how we can help you sell your home from the comfort of your home.