For Sale by Owner
Selling your home yourself, or buying a home listed by its owner? Here’s what to expect, step by step.
Going it alone? We can help.
While we believe the purchase and sale of property is best left to professionals, we have information that can help if you decide to handle it yourself.
- Sign a purchase agreement. This binding contract is the blueprint for your transaction. Buyer and seller negotiate the purchase price, type of transaction (cash, new mortgage or land contract), deposit amount, post-closing occupancy and personal property such as appliances. A sample is available on our Forms page.
- Order title insurance. Once the purchase agreement is signed, place your order online. Before closing can be scheduled, provide lender contact information and loan amount, attorney contact information (if any), and the seller’s signed Payoff Authorization Form.
- Review the title commitment. It shows proposed coverage for the buyer and lender, current owners, liens, easements and restrictions, plus requirements that must be met by closing. Read it carefully.
- Schedule your closing. When everyone is ready, call our Closing Department at 586-772-7020. Closing documents are sent to all parties for review in advance.
Understanding your closing documents
Seller Settlement Statement
Shows every credit and charge affecting the seller’s net proceeds. Credits: sales price, tax prorations. Charges: water/sewer escrow, occupancy escrow, title insurance premium, county and state transfer tax, mortgage payoff (if applicable) and document preparation fee.
Buyer Settlement Statement
Shows the credits and charges that determine what the buyer owes at closing. Credits: earnest money deposit, mortgage loan amount. Charges: sales price, tax prorations, recording fees and closing fee.
Bill of Sale
Transfers ownership of personal property on the premises, such as appliances and window treatments.
Water/Sewer Escrow Agreement
Unpaid water and sewer bills can become a municipal lien on the property, so funds are held in escrow until a final meter reading is taken and the final bill is paid. A minimum of $200.00 is typically withheld from the seller’s proceeds — your purchase agreement should address this.
Occupancy Escrow Agreement
When the seller stays in the home for a short time after closing, part of the seller’s proceeds is held to ensure rent is paid to the buyer. The agreement sets the number of occupancy days and the rent amount.
1099-S Report
Federal law requires the sale, including the gross sales price, to be reported to the IRS. The seller must provide a Social Security Number at closing.
Payoff Statement
Once we receive a signed Payoff Authorization Form, we obtain payoff statements for secured liens — mortgages, land contracts and other encumbrances — showing the amounts needed to pay them in full.
Title Transfer Document
Usually either a Warranty Deed, which conveys the seller’s title, or a Land Contract, an agreement to convey title once the contract is paid off.
Property Transfer Affidavit & Principal Residence Exemption
The buyer signs the Property Transfer Affidavit, which is filed with the local assessor’s office. Michigan lowers property taxes on one principal residence, so buyers typically file to claim the exemption on their new home and sellers file to rescind it on the home they sold.
What to bring to closing
- Your homeowner’s insurance policy
- Certified or bank checks for the balance of the purchase price
- A valid driver’s license or state identification card
- Anything else listed in your closing package or requested by your lender
Forgetting a required item can delay your closing — call us if you’re unsure what you need.
Ready to get started?
Order title work online or call our team — we close deals throughout the entire State of Michigan.