Important Documents You Need to Sell a Home
Before you sell a home, you must prove that you have the right to sell it. If the home still has a mortgage on it, you also need to be able to pay off the mortgage with the proceeds from the sale. You may even need to communicate some important information about the home to the buyer or their attorney. For these reasons, it’s important to gather a variety of documents before you list the home for sale.
If you don’t already have access to these documents, you may need to request copies from lenders, title companies, law firms and other organizations, so give yourself as much time as possible to get everything together. Below you’ll find a list of must-have documents, as well as a list of documents you may need, to sell your parents’ home.
Must-Have Documents
You absolutely must have these documents before putting the house on the market.
-
Original sales contract
The original contract confirms that your parent owns the home. It also includes details about the sales transaction, such as the date of the sale and whether the sale included any personal property left in the home by the previous owner.
-
Home appraisal
An appraisal is a professional’s opinion of how much a home is worth. It’s important to get an appraisal before listing the home, so you can set an appropriate price. A home appraisal can also help you show buyers that the listing price isn’t out of the ordinary for your local real estate market.
Documents You May Need
You may also need the following documents to transfer ownership, pay off an existing loan or answer potential buyers’ questions about the home.
-
Recent mortgage statement
If the home still has a mortgage, you’ll need the most recent mortgage statement to determine the payoff amount. This is the amount of money you’ll need to pay to satisfy the original terms of the loan and wipe out the debt completely.
-
Past utility bills
Energy costs are an important consideration for potential buyers. If you have past electric, gas and water bills on hand, you can easily answer questions about average utility costs.
-
Homeowners’ association (HOA) records
Potential buyers need to be aware of the HOA rules in your community. Having these documents on hand can also help you answer questions about HOA fees and special assessments.
-
Maintenance records
Potential buyers may ask questions about when the HVAC system was last serviced or whether your parent ever paid for any pest control services. It’s easier to answer these questions if you have maintenance records available.
-
Records related to capital improvements
Capital improvements are repairs or alterations that increase the value of a property, such as adding a new roof or putting on an addition. Having receipts for this type of improvement can help you sell the home for a higher price.
-
Home warranties
A buyer may be more willing to invest in a home if it comes with warranties to cover the cost of unexpected repairs.
-
Homeowners insurance documents
If your parent plans to move out before selling the home, you need to consult their homeowners insurance documents to find out if the insurer will continue providing coverage once the home is vacant. Even if the policy remains in effect, an insurance company may not pay claims related to vandalism and theft if the home is unoccupied for a long period of time.