[nancyeh53]

What needs to be done for a sale of a home by seller ? Do we need to hire a title company? I have a buyer but I don't know where to go from here.

[AK lawyer]

May I correctly assume that you didn't use a realtor?

If so, you should get an attorney to guide you through the process. In general, a title company is engaged to insure that you have good title and may also, depending on the state, prepare the deed and handle the closing. The cost of title insurance and other fees should be paid (as between you and the buyer) according to the terms of the sale contract.

[ScottGem]

There are websites that will sell you a for sale by owner kit, but I would advise hiring an attorney. What you have saved in commission on the sale will more than pay for an attorney. A title company may be a lower cost alternative to managing a closing.

[Fr_Chuck]

You hire an attoreny, they do a proper contract for sale of the home, they will do the warranty deed for transfer. These should be part of the closing cost that the buyer will pay.

Also a seller can also purchase title insurance ( as well as the buyer) and I normally recommend that.

[LisaB4657]

In some locations, like California and southern New Jersey, buyers and sellers typically use an escrow company or title company to handle the closing but they usually have realtors who start the process and provide the form of contract.

If there is no realtor involved then your best bet is to retain an attorney. In my area an attorney will prepare and negotiate the contract and prepare and appear at closing. Unlike in Chuck's response above, the buyer never pays the seller's legal fees. Also, the seller never buys title insurance for the buyer.

Obviously there are different customs and procedures depending on your location. That's why it's best to have an attorney who will know the local practice and will be representing your interests.

[AK lawyer]

... Also, the seller never buys title insurance for the buyer. ...

Wouldn't make sense, to my way of thinking either, but it is, like anything else, subject to negotiation.

But it really doesn't make any difference. Let me give you an example. Purchase amount is $100,000. Costs, including title insurance, are, let's say, $1,000. Parties might agree as follows:

• The buyer pays the $1,000. Thus the net cost to the buyer would be $101,000. So the buyer might come down on the basic purchase amount, settling for $99,000 OR
• Seller pays the $1,000. Thus the net cost to the buyer is $99,000. Seller can insist on an additional $1,000 to the purchase amount. Again, same bottom line.

Either option, or something in between, can be negotiated before the parties agree to the sale.

[LisaB4657]

Sure those things can be negotiated. And years ago it was quite common to see the seller making a contribution of anywhere from $500 to $5,000 towards the buyer's closing costs, which included title insurance, bank fees, etc. But now the banks frown on that because they say it affects the appraised value of the property. Banks won't even allow credits for repairs to appear on the closings statements because of that.