Massachusetts Home Selling Process

Getting Ready To Sell

Selection of a real estate professional is a critical decision to make. The company and person you choose is directly responsible for representing your interests and presenting your home to the maximum number of qualified buyers in order to get it sold for the most money and in the time period that you would prefer. That is the reason a well-developed marketing plan is so important. You can meet with one of our Realtors® to go over our custom marketing plan for your home as well as to have a free comparative market analysis (CMA) done on your property to determine its value. This will begin the process of getting your home ready to sell.

Preparing your home for sale or "staging" is another important step in getting the most money for your property and getting it sold in a reasonable time.  Before you actually list your house you should determine what needs to be cleaned, painted, repaired, packed or even thrown away inside and out.  There are techniques to maximize space, spotlight the best features of the property and give your home curb-appeal so it attracts as many buyers as possible. We have many helpful ways to get your home ready. You can speak to one of our Realtors® and they can share their recommendations. We also have a printed checklist of things you can do to help prepare your home so you can get the most money for your property.

Once the comparative marketing analysis (CMA) is complete, a price has been set and your home is staged, the next step is to sign up with a real estate office to get your property sold.  This involves filling out and signing the appropriate legal forms including the Listing Agreement, Seller's Statement of Property Condition and Lead Paint Notification.

Learn how a Home Warranty can help protect you and also be a marketing tool for your home.

Once your property is listed and buyers begin looking at your home you are on your way to selling your home.  Learn about what happens when an offer is received and the Selling Process.

The Sale Process 

Once your house is put on the market, showings will begin and you will be on your way to receiving an offer on your property.  Below is some information that will help get you to the closing or "passing of papers" and get your home sold.    

Receiving an Offer - What happens when a buyer puts in an offer.

Home Inspections - The home inspection process.    

Title 5 Inspection - An explanation of Title 5 inspections and how they are conducted.    Purchase and Sales - The signing of the Purchase and Sales agreement.    Appraisals - The appraisal process.

Buyer's Financing - Getting the buyer's commitment letter.

Smoke and Carbon Monoxide Certification - Setting up your appointment and the process.

6D & Certificate of Insurance - Documents needed when selling a condominium or townhouse. 

Preparing the Deed - Getting the deed in the new owner's name.   

Final Water Reading & Oil Heat -  Getting the final readings before the closing.  

Final Walk-Through - Checking the home again before passing papers.

The Closing - What happens at the closing when you are passing papers and how to prepare for it.

Receiving an Offer

Getting an offer or multiple offers on your home is very exciting.  Once your Realtor® gets a complete offer with all the needed paperwork, they will sit down with you to explain the details of the offer.  Included in the offer is the total dollar amount being offered as well as the terms and conditions of the offer including a proposed closing date.  Some of the terms included are the dates in which the buyers will have their home inspection, sign the purchase and sales agreement, when the buyers will get their  mortgage commitment by and when they would like to close on the property.  Also included may be any items that the buyer may want included and/or excluded with the purchase if applicable.  This may include the refrigerator, washer, dryer, swimming pool equipment or any other items they want to include with the property.  Along with the offer the buyer also gives a first deposit check otherwise known as an earnest money deposit, which will be held in an escrow account by your real estate company.

As the seller, you will then have the option to accept, reject or change the terms of the offer and send it back to the buyer as a counteroffer. There are a few terms you should be familiar with including:  Counteroffers, Contingent Offers, Right of First Refusal.  Your Realtor® will be able to go over all the details on what happens when an offer is received.

It is important that you are aware of all the terms and conditions of the offer before you sign.  A fully accepted offer that is signed by both the buyer and the seller is considered a binding legal agreement. 

Home Inspections

Once you have an accepted offer and before you sign the Purchase and Sales Agreement, the buyer will have a home inspection done on the property.  This process involves the buyer, their real estate agent and their home inspector going to the property to inspect the interior and exterior structures and systems.  For more information about home inspections, including the "Home Inspectors Facts for Consumers" sheet, please visit: Commonwealth of Massachusetts, Board of Registration of Home Inspectors

Title 5

Title 5, 310 CMR 15.000, of the Massachusetts Environmental Code is about private septic systems (as opposed to town sewer).  Title 5 regulates private septic systems and is set up to make sure that these systems are functioning properly before a property changes ownership.

Title 5 does not regulate who must have a septic system test performed.  It is a certification of compliance that states that the septic system meets all of the inspection requirements. In this area of southeastern Massachusetts it is most common for the sellers to have a Title 5 test done prior to closing to make sure that the system is working properly. 

If a Title 5 test fails, meaning that the system needs repair and/or replacement, then the closing date you initially may have expected might need to be changed to a later date in order to accommodate this work being done.

There are many steps involved when a new septic system is being installed.  We have been through it many times and can walk you through the process and give advice to you.  If you have questions about Title 5 or septic systems please call us any time.  This includes answering your questions even before you list your property.

More information on Title 5 can also be found by visiting: http://www.state.ma.us/dep/brp/wwm/t5pubs.html

Purchase and Sales Agreement

The purchase and sales agreement, frequently abbreviated as the "P&S", is the formal contract that is typically signed after you have a fully accepted offer and the home inspection has been completed on the property.  The P&S has the same information or terms that is on the accepted offer and may also include additional terms.  At this time the buyer will need to give a second deposit check or earnest money.  After the buyer has signed the agreement then the seller signs the agreement and then you will be moving along towards your closing.

As with an offer, you may want your attorney to review the purchase and sales agreement before signing it.  We recommend you use a real estate attorney if you can, as they are more familiar with real estate forms and processes than a general practitioner attorney.

The Appraisal

In order for the buyer to secure a mortgage, the buyer's lender will need to have an appraisal done on the property to determine its value.  The seller does not need to be home for the appraisal and it is generally set up the same way as a showing.  A typical appraisal takes approximately 15 minutes.  We assist the appraiser by obtaining any information that they need for the appraisal if necessary.

Buyer's Mortgage Commitment

Stated in the purchase and sales agreement (P&S) is the timeframe in which the buyer has to actually secure a mortgage loan.  Once the buyer gets a loan, the lender will need to provide a mortgage commitment letter as proof.  A copy of this letter needs to be given to the listing real estate company by the date stated in the purchase and sales agreement. 

6D Certificate and Certificate of Insurance (Condos Only)

6D Certificate - Each time a condominium is sold the present owner needs to provide a 6D certificate at the closing. This is a document that shows that the present owner is current in payment of their condo fees. You will need to request this from your condo association or management company.  The 6D Certificate needs to be received and dated for the same month in which the closing takes place.

The condo association usually needs one to two weeks to get you the 6D certificate and there is a fee you will need to pay which is different for each condominium association. The closing office must have an original 6D Certificate in order to close on a condo. If the association requires a Right of First Refusal, then that original certificate will also need to be provided at the closing.

Certificate of Insurance - The seller also needs to provide a Certificate of Insurance at the closing. This is a document which shows that the condominium complex as a whole has insurance. You will need to request this from your condo association's insurance company.  Before you call the insurance company, you can call our office and speak to our Closing Coordinators and they can tell you the proper wording for the mortgagee clause (adding the buyer's name) on the Certificate of Insurance or we can take care of this for you. The insurance company usually needs at least a week to get you the certificate and there is no fee.

Smoke Detector & Carbon Monoxide Certification

In order to pass papers, the Commonwealth of Massachusetts requires all single and multi-family dwellings and condos to be inspected by the local fire departments. This ensures that your home's smoke detectors and carbon monoxide detectors are in working order and are installed in the correct places. Generally, smoke detectors should be installed at the top and bottom of every staircase including the basement. Carbon monoxide detectors are usually required on every level of the home and within ten feet of each sleeping area and in habitable portions of basements and attics. Be sure to ask your local fire department about their specific requirements for your type of dwelling and fuel source. Many departments also require your house number to be on the front of the property and clearly legible from the street.

It is recommended that you call your local fire department around three to four weeks before you are scheduled to close on your home. When you call, ask for "fire prevention" and tell them you would like to schedule a "Smoke/Carbon Monoxide Certification". Be sure to choose a day and time before the closing. You should check the acceptable method of payment and the amount charged because it varies from town to town.

When a representative from your local fire department arrives to do the inspection, they will simply walk through your home and test each smoke and carbon monoxide detector. Upon completion you will be given a letter of certification which states that your home has passed inspection. This document is required by law in order to close on your home.  If you need any assistance with this process we are available to help you.

Preparing the Deed

The deed is the document that transfers ownership of your property from you to the new owner. It is signed at the closing and then filed at the Registry of Deeds to show that the property has been sold.

The seller needs to decide whether their own attorney or the closing attorney is going to prepare the deed.  The typical cost of preparing and filing a deed is between $150.00 and $250.00. If your own attorney prepares the deed it will still need to be reviewed by the closing office prior to closing.

Final Water Reading & Oil Heat - Just prior to closing, in order to be sure that the seller and buyer are charged only for their own consumption of water, a final water reading needs to take place.  The seller can either pay their final water in full and bring the receipt to the closing or have the water company fax the final water reading to the listing office and the amount owed will be deducted from the seller's proceeds at the closing.

Oil Heat - If you heat your home by oil, you will need to get a final oil reading just before the closing. You can ask your oil company if they provide this service. If they do not, you will need to read the gauge yourself to determine how much oil you have left in the tank. You will need the copy of your last oil bill along with the gauge reading so the amount owed to you for the remaining oil can be calculated. This should be done a couple of days before the closing and both the gauge reading and the copy of the bill should be given to your Realtor. The buyer usually writes a check at the closing to reimburse the seller for this amount.

Final Walk Through

This is the time before the closing that the buyers have a chance to go through the property to ensure that everything is in order and in the same condition as when they originally looked at the property.  By this point, the sellers should be moved out and the property in "broom clean" condition.  Your agent will arrange a time with the buyer's agent that is both good for you and the buyer. 

The Closing

Now that the home inspection has been completed and the Purchase and Sales agreement is signed by both the buyer and the seller, the next step is to close on the transaction.

The closing process, also know as "settlement", "escrow" and "passing papers", is a simple process in which the title of the property is transferred from the seller to the buyer.  During the closing the closing attorney will have you sign various documents.  Once you sign all of your documents then the buyer will sign their papers.  At this time you will then turn over any keys to the property, owner's manuals for appliances, garage door openers and any other items to the new owners.  Once the transaction is recorded at the Registry of Deeds then you will receive your proceeds check. 

We have Closing Coordinators that specialize in getting your transaction to the closing.  Our Closing Coordinators along with your agent help you to coordinate with the other real estate agent, the mortgage person, the buyers, the closing office and anyone else needed to successfully close on your purchase.

Below are items that you need to know about and/or will need to prepare for the closing.

Receiving Your Proceeds

At the closing there may be adjustments made for the following items: final water reading, oil left in your tank, taxes paid or not paid, reimbursement to your real estate company for any charges incurred by them on your behalf or other adjustments. Some charges which you will incur when selling include: paying off your existing mortgage(s) and any liens, assessments or betterments on your property, tax stamps, commission, deed preparation, mortgage discharge, recording of the mortgage discharge, home warranty cost and an overnight mail cost to pay off your mortgage.

Once you have closed on the property you will typically have a check which is due to you for your proceeds of the sale within 24 hours. Sometimes the check is at the closing, but may not be available right away as the closing office still has to go to the Registry of Deeds to put the sale on record. At this point either your Realtor® or the closing office will hold the check and release it to you once the closing is on record at the Registry of Deeds.

Utility Services

You will need to arrange with the utility companies to have the services cancelled as of the day of the closing.  We have a list of the companies in the area and their phone numbers to accomplish this including electric, gas, trash pick up, telephone, cable, and internet providers.

Change of Address Form

Remember to pick up a change of address form from the U.S. Post office to have mail delivered to your new home or change it online by visiting: https://moversguide.usps.com/?referral=USPS

Bringing Identification

You will need to bring your driver's license or picture identification to the closing.

Your Check Book

You should bring your checkbook to the closing as it may be needed for last minute adjustments.

Moving out of Your Current Home

Do not forget to make moving arrangements if you are going to use a moving company.  Moving companies tend to be very busy at the end of a month so you will want to make your arrangements as early as possible.