Marianne Durham, REALTOR®

Finance Tools

Welcome to my Financial Tools Center. For answers to some of the most frequently asked financial questions, click below for helpful tools and calculators. Or contact me to discuss your needs in more detail.

What home can I afford?
How much can I borrow?
How much will my mortgage payments be?
What will my closing costs be for a new home purchase?

Which loan is better?
Which is better: 15 or 30 year term?
Which is better: fixed or adjustable?
How much will my adjustable rate payments be?

Am I better off renting?
Am I better off refinancing?
What will my refinancing costs be?
How much can I save in taxes?

When you receive an offer on your house, it is imperative that you review it carefully. The offer tells you the price the buyer is willing to pay and under what terms.  We will review the offer with you. You may also wish to consult with an attorney before you sign it, and it becomes a contract of sale. 

A good offer is close to the list price, sometimes exactly your asking price. That just means you priced your home correctly. 

If the offer is less than you wanted, look at the contract as a whole. Perhaps the buyer is assuming some of the closing expenses. Consider possession and financing terms, as well. You can also consider splitting the difference. 

Remember that time on the market to find another buyer is an additional expense.

Once you’ve read the offer, you have several choices.

• Accept the terms with no changes and sign the offer.
• Make a counteroffer to the buyer by making some changes. In some cases, a series of counteroffers will take place before the final agreement is signed.
• Reject the offer entirely.

Once you've signed an offer, you may accept a backup offer if that buyer clearly understands the house is under contract. The backup offer becomes effective only if the first offer falls through and the transaction fails.

• Consult with us to determine a price. We can estimate your proceeds - the sale price minus fees, taxes and insurance.
• Don't be concerned if the offer you receive is exactly your asking price. It doesn't mean you under-priced your home, but rather that you priced it accurately.
• If the price is less than you wanted, look at the contract as a whole. Perhaps the buyer is assuming some of the closing expenses. Consider possession and financing terms, as well.
• Consider splitting the difference if you and the buyer are within a few thousand dollars of each other. Remember that time on the market is an additional expense

An earnest money deposit will be held by a third party until an agreement is reached or there is a closing between you and the buyer. At that time, the money is usually credited to the buyer and applied to the down payment. Until you accept his or her offer, the buyer may withdraw the offer and get the earnest money back. On the other hand, if the buyer fails to follow through with the contract once it's accepted, you may be entitled to the earnest money. We can answer any questions you may have regarding earnest money.

As part of the real estate contract process, you must prove to the buyer that you have a clear title on the house - that you own the property, and there are no legal claims against it. Through a title search, proof is provided.

• The insurance company may search the title through the owner's policy of title insurance. Either the buyer's insurance company or your own may conduct this.
• The abstract of title is a condensed history of a title to a property and a certification by the abstractor that the history is complete and accurate.
• The certificate of title is reviewed by an attorney who searches the title and issues an opinion that the title is clear.
• In some parts of the country, the Torrens system is used as a means of registering property. At closing, the duplicate Torrens certificate of title is turned over to the buyer.

Be prepared to transfer ownership of the property with a deed. A deed is a legal document that transfers the title (or ownership rights) of the property to the new owner. Most buyers will require a general warranty deed, in which you guarantee that no one will bring a claim against the title.

Review the contract for special conditions requested by the buyer. A common condition is one in which the purchase of your home is contingent on the buyer selling his or her current home. The conditions may also be more specific, such as asking you to provide a survey of the property.

Although it may be dry reading, it is important to carefully read the contract and go over details with us. Read the fine print in your contract to understand the provisions (or ground rules) of who pays for what in the context of the sale. For instance, the contract should explain who is responsible if there is damage to the house after the contract is signed. The responsible party will want to insure the property through the transition. You or the buyer may add special provisions to the standard ones.

Does the refrigerator stay or go? How about the drapes in the formal living room? Double-check that everything you intend to sell with the house is listed accurately in the contract. This may include items such as fixtures, window treatments and appliances.

CLOSING

Closing or settlement is the ceremonial transfer of property from you to the buyer.

We can explain what’s customary for closings in your area, whether all parties are together at the closing table, or if you’ll have a separate settlement from the buyer.

1. Meet at the appointed time and place. An attorney or title company representative will serve as the closing agent.  
2. The closing agent will proceed according to the lender’s instructions. All unresolved walk-through deficiencies will be resolved at this time.
3. The closing agent will explain the deed of trust or mortgage and the settlement sheets.
4. Review and sign the deed and settlement sheets.
5. Pay appropriate closing costs with a cashier's check.
6. If your taxes or insurance have been placed into escrow, you may receive any money accumulated in the account for bills not yet due.
7. You may also be reimbursed for any money paid in advance and not used, such as for property taxes. (You may receive these funds the day of closing or after the settlement, depending upon where you live).
8. Get a copy of the settlement sheets for your records.
9. Hand over the keys to the new owner.

Be prepared for a lot of paperwork. You'll be signing your name on a lot of documents during this process!  

Review the following points to help you prepare for your closing:

• Expect the buyer's lender to send an appraiser and a surveyor to check your home.
• Gather all warranties and instruction books for your home's appliances or major systems to give to the buyer.
• Once you have a closing date, notify the utility, telephone, water, trash and other services to advise them of your final billing date. Utility companies should make final meter readings on the day of closing.
• Have repairs and other specifications completed according to the contract so that final inspections may take place. Your buyer will want to make a final inspection (or walk-through) to see that the home is still in good condition.

Ask your settlement agent for a copy of the closing costs before closing. This document is known as the closing statement or settlement sheet. It contains most of the charges you may be asked to pay.