Free Home Sale Worksheet

It is typical for the buyer's offer to be "contingent" on one or more factors. A common contingency is the buyer's financing -- the buyer is willing to complete the transaction if the buyer is able to obtain a lender's commitment to provide financing. Other contingencies may include whether the buyer is able to sell his or her current residence (or break a lease) by a specific date. The buyer may make the offer contingent upon other factors including satisfactory professional inspections for pests or radon, or inspections of heating and cooling systems. If the contingencies cannot be met, generally, the buyer will be able to void the offer and obtain a refund of the earnest money.

After an offer (or counter offer) has been signed by both parties, it is customary for the buyer to pay "earnest money" which is deposited with a real estate agent or other third party agreeable to the buyer and seller. There is always a lapse of time from the date that the offer is signed by both parties until the closing date. The purpose of earnest money is to show the seller that the buyer is committed to closing the transaction. The amount of the earnest money varies with local practice, but may be 3 percent to 10 percent of the purchase price. If the buyer refuses to complete the transaction, the buyer may be obligated to forfeit the earnest money to the seller. This can be viewed as compensating the seller for the fact that the residence was "off the market" and unavailable for sale from the date of the offer until the date that the buyer refused to complete the transaction.

A real estate agent's review of the potential buyer's financial condition and credit history can be very important. If a seller accepts a buyer's offer to purchase the residence, it will often take 30 to 60 days to "close" the transaction. During that period of time, the title to the residence will be reviewed, and in many cases, the buyer will be applying for a loan. If the buyer is unable to obtain financing, the transaction may not close, and the seller will be faced with finding another buyer. In the meantime, valuable time has been lost which might have been avoided if the real estate agent had conducted some investigation into the buyer's financial condition in an effort to screen out a buyer with obvious financial problems.

The condition and appearance of the residence can have a dramatic effect on the sale price of the residence. Obviously, a residence that is clean and free from unpleasant odors makes a better impression on a potential buyer. It is reasonable to assume that better impressions lead to better offers. In addition, new carpeting, a fresh coat of paint, and minor repairs may increase the sales price much more than their respective costs. This checklist provides a reminder of the repairs and cleaning chores that can be very beneficial, and also allows you to prioritize your tasks (for example, high, medium, low) to help you efficiently prepare your house for sale.

The Home Sale Worksheet is a worksheet designed to assist a seller with the sale of a personal residence. The worksheet includes a section that allows the seller to compare information regarding real estate agents. It also includes a checklist to use in preparing the home for sale.

The worksheet also offers a closing costs schedule to track the various costs of the buyer and seller that will be included as part of the sale of the residence, including commissions, title fees, property taxes, insurance, and recording costs. If the seller will pay a percentage of the buyer's closing costs, information about the buyer's closing costs may be entered. A progress chart allows the seller to monitor the progress of the real estate agent and the buyer's loan application process.

This worksheet is not intended as a substitute for a real estate agent or lawyer. However, it provides important information and assistance in choosing an agent and monitoring the progress of the sale.

It is important to understand what level of effort the agent will provide in actively marketing the residence. If the agent is a member of a "multiple listing" service, the seller should expect that information regarding the seller's residence will be published in a listing of all of the available residences in the area. This listing is made available to other real estate agents and potential buyers. The agent's plans to advertise locally and conduct open houses can also be very important in attracting potential buyers.

A progress chart allows the buyer and seller to monitor the progress of the real estate agent and the buyer's lender (if any). After the buyer has located a suitable residence, the usual first step is to make an offer to buy to the owner of the residence (the seller). There may be one or more counter offers until either the parties stop negotiating or both agree to the terms of the offer or one of the counter offers.

The allocation of property taxes between the buyer and seller can be very confusing. Generally, the parties try to allocate the taxes so that the seller is responsible for the taxes attributable to the property to the date of the closing, and the buyer is responsible for the taxes after that date. However, required dates for payment of the taxes to the appropriate governmental body will probably not coincide with the closing date. Further, in some jurisdictions, the dates for the payment of taxes do not coincide with the periods for which the taxes are attributable. For example, a tax payment due in September may be attributable to some earlier period of time. Because of the differences that can occur from one locality to another, it is advisable to review your area's customary practice for allocating taxes with a knowledgeable real estate agent or lender.

This section allows the seller to gather information regarding several real estate agents and their firms. It is important to understand how the agent's commission will be calculated. Usually the commission is a fixed percentage of the actual sales price (which may be different than the advertised or listed price). If the seller retains an agent to sell the residence, the agent will request that the seller sign an agreement (sometimes referred to as a "listing agreement") that sets forth the seller's and agent's responsibilities. The seller should make sure that he or she clearly understands how long the listing agreement will be in effect and whether the seller can sell the residence privately to a friend or family member without becoming obligated to pay the real estate commission. The seller should also determine if the listing will be exclusive, meaning that the seller cannot list the property with any additional agents while the listing agreement is in effect. A lawyer should be consulted if the seller has any questions.

1. The Home Sale Worksheet is not a legal document and does not require any signatures, witnesses, or notarization.

2. This worksheet is designed to help the potential seller locate a real estate agent and/or to prepare the home for sale by the owner prior to "listing" the home for sale.