Selling a home is a complicated process, and it requires a lot of documentation at every step in your sale. In fact, 1 in 4 home sellers consider the paperwork involved with selling as the biggest challenge, according to a 2024 study done by Clever. As you prepare to sell your house, you should know what documents you’ll need every step of the way, as well as what you could do to potentially minimize the amount of documentation you’ll need.
Documents you need before your home sale
- Original sales contract: This is the agreement made with the previous owner of the house, including the date it was bought, the terms and conditions of the agreement, and any disclosures.
- Appraisal from your original home purchase: You will need to provide your buyer with the appraisal report from when you purchased the property, as well as any documented updates since then.
- Mortgage payoff statement: If you’re selling before you pay off your current mortgage in full, you’ll need this document. The mortgage payoff is the total amount required to pay off your mortgage loan, including any interest owed up until the day you plan to pay the loan in full, plus any fees from your lender. The exact number varies based on your loan terms, so you'll need to get the information from the lender, not by adding up your remaining monthly mortgage payments.
- HOA documents: These will include articles of incorporation, bylaws, rules and regulations, homeowners’ dues amount statements, copies of the minutes from the association’s meetings over the past two years, and the declaration of covenant, conditions, and restrictions.
- Maintenance and repair records: These include receipts for roof repairs, chimney cleanings, appliance warranty plans, dated records of most recent painting, gutter cleanings, window washings, and the utility map for your electric and gas systems.
- Homeowner insurance records: You will need to provide your buyer with information about damage or any repairs you’ve done to your house. You will need proof of homeowners insurance, and a claims reports list of all the claims on your home from time of purchase.
Documents you need to start your home sale
- Listing agreement: When working with an agent, this document outlines the arrangement between seller and agent. It also gives your agent the exclusive rights to sell your house within a specified amount of time.
- Comparative market analysis (CMA): This is a report that compiles information about local home sales, including houses that have recently been sold and houses that are currently for sale. This information will help you form your home pricing strategy.
- Seller’s net sheet: This is a worksheet that your agent provides, showing you how much you may expect to gain from your home sale, factoring in taxes, real estate agent commission, any remaining mortgage, and escrow fees.
- Preliminary title report: Also known as a “prelim,” a title search can help you and your agent understand what’s owed on the property, as well as whether there are any issues impacting the title that could hold up the sale or reduce the home’s value.
Documents you need during the home sale
- Purchase offer and counteroffer forms: A purchase offer outlines the agreement between the buyer and seller, which is subject to changes during negotiations. This document details the identification and specifications of the property, as well as the offer price from the buyer.
- Final purchase and sale agreement: This is a contract drafted by both parties’ agents. This will include information about the selling price of the house, the terms of the purchase, earnest money amount, the closing date, and any sale contingencies. Both buyer and seller need to agree to the terms and sign before moving forward with the sale of the house.
- Contingency removal form: A contingency is a condition that must be met before the deal can close. A contingency removal is a document showing which contingencies have been removed or satisfied from the real estate contract.
Documents you need at closing
- Home appraisal report: If your buyer requires a mortgage loan, the lender will require an appraisal to determine the fair market value of your house.
- Home inspection report: Typically, a buyer will require an inspection before closing on a home sale. This document details the condition of your home’s structure, electrical system, plumbing, heating, fireplaces, etc.
- Tax statements (most recent): You will need to provide recent property tax receipts to your buyer so that they can estimate their property tax costs at closing.
- Closing statement: Your closing statement will provide you with information on how much money you can expect to receive from your home sale after closing costs, taxes, and other transaction fees are considered.
- Deed: This is the legal document that officially transfers the ownership of your home to the buyer. The document identifies both parties in the sale, as well as a thorough description of the property sold.
- 1099-S tax form: You’ll need this document if you don’t qualify for a capital gains tax break. In most cases, you won’t need to report your home sale to the IRS. According to the Section 121 exclusion, a single filer won’t need to pay taxes on up to $250,000 of net profit, or up to $500,000 if filing jointly.
State-specific paperwork needed to sell your house
Depending on where you live, you may have a few special documents you will be required to use during your home sale. These can include:
- Statutory disclosure forms: Transparency is important in any real estate transaction. You may have mandatory disclosure laws to provide awareness to potential buyers of your house’s history of damage and any hazards. Hazards could include lead-based paint, asbestos, environmental hazards, water damage, defects/malfunctions of major appliances or systems, neighborhood nuisances, and property disputes. California, New York, and Washington are just a few examples of states with their own disclosure forms that have specific requirements. Keep in mind that every state that requires disclosure forms will have their own requirements.
- Natural hazards report: If you live in California, you will need to provide a natural hazards report, since the state is more prone to natural disaster events like mudslides, brush fires, and seismic movement.
Property surveys and pest inspections are sometimes required in certain states as well, but they are usually required for buyers to qualify for certain types of loans.
Can you avoid paperwork when selling your house?
There are a lot of documents needed to sell a house. Whether you’re selling FSBO (for sale by owner) or through a real estate agent, there’s a ton of prep work and paperwork you’ll be expected to deal with. In any case, you will at least need a purchase agreement, your deed, and deed of trust or mortgage in order to sell.
But you can potentially avoid roadblocks when you sell your house off-market. Getting fast offers from home buyers like us can help reduce some of the requirements and headaches that coincide with a more traditional home sale.
How to simplify your home sale with HomeVestors®
Selling your house to HomeVestors® can help you sell your home faster and easier by reducing the amount of documentation you would normally need. Paperwork for selling a house can be confusing and time-consuming, and missing or messing up anything along the way could impact the outcome of your sale and even lead to legal implications. When you work with HomeVestors, your property buyer will let you know what paperwork is needed, and you’ll have assistance throughout the process. You get to sell your house while:
- Avoiding disclosures and surveys: We don’t need them and won’t ask for them.
- Bypassing inspection reports and maintenance records: We allow you to sell your house “as is.”
- Skipping counteroffers and contingencies: We make an offer based on our assessment of your property, and we won’t ask for contingencies with your sale.
With our 3-step home-buying process, you can sell your house without the stress. With us, less paperwork is needed, and we’ll also help you through what’s needed for the sale. Ready to sell your house the simple way? Reach out today to get the process started.
This blog is for informational purposes only and should not be considered legal advice.
