Seller Responsibilities When Buying a Home

There are some home seller responsibilities that are fixed and occur in almost every sale. Others vary depending on the market. For instance, in a buyer’s market, the sellers may take on more costs because they are trying to make their home sale the most attractive to the buyer. Whereas in a market that favors the seller, the seller may have to pay for very few things.

 

What Seller’s Are Responsible for When Buying a Home

Here’s a list of what generally falls into the sellers’ responsibilities in non-foreclosure home sales.

Agent’s Commission

If an agent was used in the sale of the home, it is almost always incumbent on the seller to pay the commission to the listing and purchasing agents.

Home Inspection Issues

While the buyer generally pays for the home inspection, who pays for any issues that are brought up in it is debatable. This can become a point of contention on the sale but often there is a give and take between what the seller will pay for and what the buyer will take on.

Sometimes the seller will give a monetary credit to go towards replacement rather than actually replacing the item before the home sale. For instance, if an A/C appears to be well worn, a seller may offer the buyer some money towards replacing it so that the buyers can select the exact model they desire. The seller may also subtract money off the home’s price to cover issues found during the inspection.

Home Warranty Service Plan

This is not a part of every real estate transaction but when it is, the seller is likely the one to pick up the cost, for the first year at least. A home warranty service plan covers the mechanicals of the home so the buyers have peace of mind that they won’t be paying to repair anything for at least a year.

Closing Costs

These are negotiable. In hot real estate markets, it’s less likely to happen but in those that need a little warming, closing costs often find their way into the negotiation process. The seller can cover all of them, or a part of them, or give the buyers a credit towards them.

Home Stager

If one is used, the seller will pay for it.

Outstanding Fees Associated with the Property

There are a number of final costs that are associated with the home such as property taxes, utility bills, homeowner’s insurance, and condominium dues, if applicable. All of these should be paid by the seller up to the date of the sale being final. Most of these are prorated at closing to be paid going forward by the buyer.

Generally, any of the costs you agree to pay as the seller are deducted from the proceeds of your home sale so you needn’t have the cash readily available. The only time this is not the case is if the amount the seller owes on the property is larger than the sale and fees the seller is slated to pay.

If you’re in the market for a home, work with a title company that ensures its customers have all the information they need to make strong, educated decisions. At Bay National Title Company, we know an informed customer is the best kind. Contact us today.