Are you a realtor wondering what to share on your social media accounts? To keep your followers engaged, it's important to post daily. But coming up with interesting content ideas can be a struggle.
One great strategy is to provide helpful information about the home buying process. Consider breaking down the parts of a digital home contract so your clients will know what to expect before closing.
Deliver the information in bite-sized piecesso it will be easy to understand. Are you ready to get started? Keep reading for a complete guide to the details you should include.
What Is a Digital Home Contract?
A digital home contract is the online version of a home purchase contract between the buyer and seller of a property. It defines the details of the real estate transaction, including important dates, steps, and costs.
The contract protects both parties and ensures that everyone involved understands the expectations. A digital home contract can be used for standard real estate transactions or land contract homes. A home for sale by owner contract can also be digital.
Home contracts are overwhelming for first-time buyers and sellers. Helping your clients understand the basic elements makes everything clearer. Here are the typical sections and what they mean.
Property and Party Details
All home contracts include the address and a description of the property for sale. The buyer and seller are also identified in this section.
Sale Price and Terms
The home contract lists the agreed-upon sale price and specifies how the buyer will pay. Most buyers pay cash or apply for a mortgage.
Buyers should expect to pay earnest money soon after the contract is signed. This non-refundable amount serves as proof that the offer is serious. It should be subtracted from the final amount owed.
The closing date is when the transfer of ownership occurs. It is clearly stated in the home contract, along with title transfer details. Clients shouldn't worry too much about which company is set to transfer the title.
If they are unhappy with the service provider, there are steps to implement a change of title company after the contract is signed.
This section should also outline the closing costs and who will cover them—the buyer, the seller, or a combination of the two.
A realtor or home contract writer should know what is typically included in a real estate transaction. However, buyers should be clear if there are any fixtures or items they definitely want to be included or removed as part of the property transfer.
This section includes any information the seller is legally required to share about the property. Most details are safety-related.
If the seller is aware of any lead paint, termite damage, or flood damage in the home, they must disclose their knowledge to the buyer. Each state has different disclosure laws.
Outline of Contingencies
Contingencies are legally acceptable reasons to terminate the home sale contract. This could happen if the home inspector finds problems, financing falls through, or the appraised value of the property is less than expected.
Expiration and Signatures
This section specifies how long the other party has to accept or decline the contract before it expires. It also includes lines where both parties must sign and date the document to make it legally binding.
Your Clients Should Know the Parts of a Home Contract
Educating your clients about the sections of a digital home contract will lead to easier real estate transactions. Social media is a powerful teaching tool that all realtors should take advantage of. New buyers and sellers will appreciate you for helping them make sense of a complicated subject.
If you enjoyed this article about digital home contracts, please check out some of the other great content on our site!