6 Terms to Know when Selling your Home

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If you’re getting ready to sell your house in Grand Haven, there are several terms that you need to be familiar with. The top 6 terms to know are as follows: Comps, Staging, Contingent, Earnest Money, Escrow, and Home Warranty.

Comps

Comps are comparable sales of similar homes in the neighborhood.

These can help you determine a price range for your home, as well as what it will take to improve your property’s value by adding upgrades or making repairs.

Staging

Staging is the process of preparing your home to show potential Grand Haven buyers. Staging is done by the seller or with the help of a professional stager. The goal of staging is to make your house look enticing, appealing and inviting so that it sells faster and for more money.

  • Clean up clutter. Get rid of excess furniture, old toys and other items that are scattered around the room. Make sure all surfaces are clear so they catch light well when viewed from different angles (e.g., an empty table top). Remove any personal items such as sports memorabilia or family photos that could distract from selling points (i.e., size, layout). Take down anything hanging on walls like curtains or paintings unless they’re part of a professionally designed theme such as “French country” or “beach cottage” decorating styles which can add depth to staging efforts.*

Contingent

A buyer can back out of a purchase agreement if certain conditions are not met. For example, if the buyer doesn’t get approved for a mortgage loan, then the purchase agreement could be terminated. In this case, you would have to go through the process again with another potential buyer who does have financing in place. Contingencies are typically good for buyers because they give them some protection from overpaying for a house that doesn’t meet their needs or budget. However, sometimes contingencies can actually work against you as a seller and make it more difficult to sell your home quickly without making any changes to its price or condition so that it meets with everyone’s approval!

Earnest Money

Earnest money is the upfront deposit you pay when making an offer on a Grand Haven property. It’s typically 1% of the purchase price, but can be as little as $1,000 or as much as $10,000 or more depending on the state and other factors. Some states require sellers to keep earnest money in escrow until closing day, while others allow sellers to keep it in their own possession.

Escrow

Before you get too excited about a house and make an offer, the escrow process will ensure that you have all the funds necessary to pay for it. Escrow is a neutral third party who holds the funds until your transaction is complete.

This ensures that both parties are protected from any unexpected issues that could arise during this process. For instance, if your buyer doesn’t have enough money to buy your home in Grand Haven, then escrow will hold those funds until they do or until you accept another offer.

Home Warranty

A home warranty is a contract between the home buyer and the home seller. The warranty covers repairs to major systems in the home, such as heating, air conditioning and plumbing. The contract lasts for one year after closing on the sale of your property, so if anything breaks within that timeframe you’re covered by the insurance company that underwrote your home warranty policy.

The cost of this coverage is paid by you (the seller) when you sell your house and is included with any profits from selling above market value. In return for paying this fee upfront instead of having it deducted from their down payment or closing costs later on down the road, buyers receive credits toward things like property taxes or insurance premiums over time as well as cash back at closing time.

In Conclusion…

When selling your home in Grand Haven, you need to be aware of these terms. Comps are comparable sales that help buyers understand the value of your home. Staging is the process of preparing a house for sale by making it more appealing to potential Grand Haven buyers. Contingent offers give sellers more time to sell their homes and allow buyers more time before they have to make an offer on another property. Earnest money is a deposit given in exchange for a promise that both parties will follow through on their obligations under any contract or agreement entered into at some later date (in this case, when closing). Escrow accounts are used to hold funds, documents and other valuables during transactions such as buying and selling real estate in order to ensure that everything goes smoothly without any issues arising later down the line. A Home Warranty is a contract between the home buyer and the home seller. The warranty covers repairs to major systems in the home and lasts for one year after closing on the sale of your property. We understand that real estate terms and phrases can be confusing and difficult to understand, which is why we are always here to help! If you have any questions about real estate terms or real estate in general, we’d love to chat! Call or text us at 616-550-7686. We look forward to serving you!

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