Selling a home in South Dakota

South Dakota is part of the Dakotas in the Midwestern section of the U.S. It derived its name from Lakota and Dakota, both American Indian tribes. South Dakota is also known as the site of the famous Mount Rushmore situated in the Black Hills. The state’s main economy in the past was purely agricultural but all that has changed into manufacturing and tourism today. The state’s tourism boom can be attributed to Mt. Rushmore which attracts 20,000 tourists each day.

South Dakota’s real estate market continues to grow. More people are attracted to the state’s laid back western lifestyle as well as the sceneries it offers making them settle here for good. The National Association of Realtors said home sales remain high despite negative stories. Interest rates are still low and home sellers offer more competitive prices, the NAR added.

Selling on your own

It is always possible to sell your home by yourself. In fact, this can be very advantageous to the homeowner as it can save him or her thousands of dollars. If you can just devote your time to learning the process, consulting the right people and doing all the leg work needed, there’s no reason why you can’t successfully sell your home.

Setting the price for your home is vital. If possible, monitor the other sales in your neighborhood and the current market trend. You may ask some real estate agents or you may hire a local home appraiser to obtain a proper evaluation of your home’s value.

Decide also on the terms of sale whether it is cash or with an initial down payment with the balance to be paid at closing. Keep in mind not to set a very high or very low home price.

If you have a buyer, carefully review all the details of the purchase offer – the price and the other terms and conditions. Be wary of contracts that have numerous contingencies and avoid contingencies that are in favor of the buyer. By all means, evaluate the financial qualifications of your buyers. Find out if the purchaser is pre-approved and how much loan he is asking.

Do market your home aggressively. Remember that the more exposure your home gets, the more likely it will sell fast. Market your property by word of mouth, through the Internet, local newspapers and through brochures which you can distribute in public places.

Real estate forms

South Dakota requires a number of forms in the sale of a residential property. One is the property disclosure that should be provided by the seller to the buyer before a written offer is made. This form gives a description of the home being sold such as its age, condition, repairs made and existing defects. It also provides information on the location of the property. Failure to furnish this document could lead to legal problems later. Another disclosure form needed is that on lead paint hazards. This is required for homes built before 1978.

The purchase agreement is the most important document. It serves as a contract for the purchase and sale of a residential property with the buyer agreeing to buy the house for a specific price and the seller agreeing to deliver the title. The agreement must be written and signed by the two parties in order to be enforceable.

An escrow agreement may also be needed during the transaction. This form specifies the full or partial down payment of the buyer or what is sometimes referred to as an earnest money deposit. Depending on what has been agreed by both parties, the escrow agent can be the seller’s real estate lawyer, the buyer’s agent or the title company.

A seller may also propose a counter offer if he or she is not amenable to the buyer’s price. This form stipulates a new home price and other incentives favorable to the buyer such as closing costs to be paid by the seller. The success of your transaction is dependent on how well you negotiate. Just be cautious in giving more than one counter proposals at a time as it could lead to legal problems. Consult your real estate attorney if you’re unsure of any aspect of the deal.

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