It can be tempting to sell your house yourself when you see how much real estate agents charge for commission. After all, it’s not difficult to take a few photos and post an online listing.
While selling a home without a realtor in Phoenix can be the right decision, it’s important to think about some of the paperwork you may need to have in order first, such as these documents below.
Residential Seller Disclosure Statement
In Arizona, a residential seller disclosure statement can be an essential document to fill out for the property seller, regardless of whether you’re selling privately, with a real estate agent, or to a professional buyer.
This document allows you to disclose important facts about the property, even if the buyer doesn’t ask about them. For example, you might be aware of title issues affecting the property, safety issues with any part of the house or land, and issues relating to heating and cooling, wood infestation, plumbing, and more.
This document can be given to potential buyers so that they can make an informed decision about whether your property is right for them.
Purchase and Sale Agreement
When you’ve found a buyer for your property, an essential document to have is a purchase and sale agreement that outlines the details of the purchase, like the property’s specifications and the price the buyer agrees to.
Generally, a purchase and sale agreement also states the closing date, move-out date, and any contingencies both parties agree to. When you sell to a professional buyer, you generally get to enjoy a flexible negotiation process to meet as many of your needs as possible.
Property Tax Statement
After your chosen buyer has likely requested home inspection and home appraisal reports, you’re one step closer to closing the deal. At this point, provide your buyer with information on the property taxes you owe so that they know how much their taxes will cost them in the future.
Whether you have to pay property taxes or your new buyer can depend on whether your town or city collects taxes in arrears or advance. You may be able to come to an agreement with your buyer that they cover any taxes owing.
A deed is a legal document that confirms the ownership transfer of a house from you to your chosen buyer. It identifies who you are, who the buyer is, and describes the property at the heart of the transaction. Some people pre-sign the deed, but it’s generally a document that’s signed and finalized at closing.
1099-S Tax Form
The 1099-S tax form will not be necessary for all home sellers, but it can be for those who don’t qualify for a capital gains tax exclusion. If you have made a profit of more than $250,000 individually or $500,000 as a couple in less than 24 months of living in the home, you may be required to pay capital gains tax when you sell it.
Selling your home can require a significant amount of paperwork, which can be daunting when you sell your home privately. By selling to a professional buyer, you can rest assured that they understand all of the legal requirements surrounding the paperwork you need to fill out and sign and can help you navigate the process with ease.