The paperwork for selling a house by owner can be quite cumbersome to gather. Preparing and listing your FSBO house can be tough too especially if you don’t have the necessary paperwork for selling a house without a realtor.
This is particularly true when it comes to some of the legally binding documents in Utah. After all, you’re probably caught up with the excitement of actually closing a sale; and it’s easy to forget about the minutiae of paperwork.
But unfortunately, that minutiae isn’t quite so minor. In fact, it’s positively vital. It’s there to protect all parties involved—both yourself, the buyer, the bank and even auxiliary services like inspectors.
To help you prepare the paperwork for selling a house without a realtor, here is a list of 12 must-have documents.
List of Paperwork Need To Sell by Owner
Containing at a bare minimum the following:
- The property address.
- Amount of the earnest money deposit.
- Purchase price.
- Items included.
- Special assessments.
- Home warranty plan (if applicable.)
Note that much of the above will likely have to be adjusted or attach several addenda before you and your buyer come to a final agreement. But believe it or not that’s neither the most detailed document you’ll need during the sale process, nor even the most nerve wracking part of the sale.
2. Statement of Appraisal Paperwork
This documents will be prepared by a licensed appraiser from the bank of your buyer assuming a traditional loan is being used. Keep in mind that the statement of valuation contained in the original assessment may not necessarily reflect your home’s current fair market value in the appraisal.
3. Current Mortgage Statement
If you’re like most Utah residents, you’re probably nowhere near paying off your mortgage in full. Your payoff amount is the total you’ll have to pay to satisfy the initial loan, including any interest owed. Note that the payoff amount isn’t the same as your current balance. But it will give both any potential buyers a rough estimate they can anticipate.
4. Homeowners Insurance Statement
Having home owners insurance will help you declare any damages or liabilities resulting from an accident; but at the very least, this paperwork contains the terms of your insurance coverage, limits and deductibles as a common courtesy for any potential buyer.
5. A List of Repairs and Maintenance Performed
While this paperwork will likely be informal, it’s always a good idea to include receipts for any and every repair you can think of, including:
- Major repairs.
- Roof and window replacement.
- Gutter and chimney cleaning..
- House painting.
- HVAC replacements,
- And even utility payments, particularly if you recently installed energy efficient devices.
6. Home Manuals and Warranties Paperwork
- Washer & Dryers.
- Air Conditioners.
- Garbage Compactors and Disposal Systems.
Paperwork Needed During the Sell of Your Home
7. Preliminary Title Report
A preliminary title report helps both you and a buyer understand what conditions and restrictions are recorded, how much property tax is due and if there’s any outstanding liens on your house. They are there as much for your protection as they are for a buyer.
Title report paperwork and prep is not necessarily cheap. It’s not unheard of for Utah residents to pay in excess of $200 for a preliminary title report—particularly if they choose to do a complete title search with a major firm with national representation. But you’ll likely find it an investment well spent.
A mandatory disclosure doesn’t just refer to the condition of your house. By law, you’re required to report to potential buyers the presence of:
- Lead paint.
- Environmental hazards, including water and fire damage as well as oil spills and the presence of toxic chemicals, including the storage and manufacturing of methamphetamine.
- Rodent and pest infestations.
9. Title Insurance Forms
Legally, title insurance isn’t required by law in the state of Utah. But it’s customary to include it regardless. It helps protect buyers from any loss resulting from misleading information about the condition of land or property in a title including easements, boundaries and descriptions and anything that the property is securing. Typically, you can obtain title insurance through the same firm that issues your preliminary report for the ease of convenience.
10. Property Tax Statements
Federal law requires you to reveal the exact amount of property tax to a potential buyer to calculate any outstanding property taxes you currently owe and to ensure they have a reasonable estimate of what they can expect at closing.
It’s virtually unheard of for a lender to finance the sale of a house without comparing both the current and historical valuation resulting from neighborhood sales as well as any repairs or renovations you may have made to your home. Here’s the stickler; federal law dictates that the choice of an appraiser is subject to approval by the mortgage lender, with any costs to be paid for by the seller themselves, with prices sometimes reaching close to $400.
Your property title deed is the binding legal document that officially conveys ownership of a house from the seller to the buyer. It includes both the description of the property, amount a house is being sold for and the terms and conditions agreed upon by both the buyer and the seller.
What If I Need To Sell My House Quickly?
We’re not going to lie. Going through appraisers, lenders and property title companies can be a time consuming process. So much so that you may wind up waiting over 90 days to sell your property.
At Gary Buys Houses, we simplify the process for you. We’ll buy your house as is, with no need for expensive repairs or working with multiple providers. What’s more, we can give you a fair estimate in as little as 3 to 5 business days.
Finding the right buyer was nerve wracking enough. Keeping track of paperwork shouldn’t have to be.