What is an iBuyer and should I consider selling to one?
An iBuyer is a company that uses data and technology to make quick, cash offers on homes, often with flexible closing dates and minimal showings. You trade some of your potential top-dollar price for speed, convenience, and certainty, so it’s worth comparing the net from an iBuyer offer to what you might get on the […]
What is a financing contingency?
A financing contingency gives buyers time to secure a mortgage and protects them if their loan is denied or terms change significantly. If they can’t obtain financing within the agreed period, they can usually cancel the contract and recover their earnest money as long as they followed the contract terms. Sellers should watch the contingency […]
How does selling on Zillow Offers work?
Zillow Offers was an iBuyer program where Zillow made cash offers, handled repairs, and then resold the home, but the company has since exited that line of business and no longer buys homes directly. Today, Zillow mainly connects sellers with agents and marketing tools rather than acting as a direct buyer.?
What is an appraisal contingency from the seller’s perspective?
An appraisal contingency allows the buyer to renegotiate or cancel if the home appraises for less than the purchase price. From a seller’s perspective, this adds risk that the price may need to be lowered or the buyer may ask you to cover gaps if the appraiser comes in low. Strong buyers sometimes waive or […]
How do I read and understand a purchase contract?
A purchase contract spells out price, deadlines, contingencies, included items, financing terms, and what happens if either side defaults. Read it section by section, paying special attention to dates, repair obligations, contingency periods, and any addenda that modify standard terms. Your agent and, when needed, a real estate attorney can help you interpret key clauses […]
What is earnest money and how does it work?
Earnest money is a deposit buyers make with their offer to show they are serious about purchasing the home. It’s usually held in an escrow account and later applied to the buyer’s down payment or closing costs if the sale closes. If the buyer properly cancels under a contingency, they typically get it back; if […]
When can a seller keep the buyer’s earnest money?
A seller may keep earnest money if the buyer breaches the contract without a valid contingency or misses key deadlines without agreed extensions. If the buyer simply changes their mind outside contingency periods, the contract often allows the seller to claim the deposit as damages, subject to local law and any liquidated damages clause. Disputes […]
What is a 1031 exchange and can sellers use it?
A 1031 exchange lets real estate investors defer capital gains tax by selling one investment property and reinvesting the proceeds into another “like-kind” investment property. To qualify, you must use a Qualified Intermediary, identify the replacement property within 45 days, and close within 180 days, reinvesting all proceeds and matching or increasing your debt and […]
How does selling affect my property tax proration?
At closing, property taxes are usually prorated so you only pay for the portion of the year you owned the home. If taxes are paid in arrears or in advance in your area, the closing statement will adjust with a credit or debit between buyer and seller so each side covers their share. Understanding your […]
Should I pay off my HELOC before selling?
You don’t always need to pay off a HELOC in advance; most sellers simply pay it off at closing along with the main mortgage from sale proceeds. However, knowing your HELOC balance and any early closure fees helps you estimate your net and avoid surprises. If your equity is tight, you may want to reduce […]