Shadow

Tips to follow while selling house quickly

When a house is for sale the home-owner becomes a property-seller. Yet, most of the decisions are linked to a personal connection to the home; this can have a negative influence on judgment. A few tips will help the seller focus on his goal which is the sale of a property.

Tips to follow while selling house quickly

If anxiety lurks, rights and obligations can be checked in the real estate section of the Canadian Bar Association, the American Bar Association or equivalent institutions in the country of sale.

The Realtor and the Sale Commission Agreement

The seller must understand that the sale of a house is a business partnership with the listing agent. Therefore, paying a commission does not put the burden on the agent alone.

The responsibility of the seller is to offer a product that will appeal to buyers. The agent’s is to market it through his expertise and professional services.

Commissions vary with countries. It is usually 6% in North America. As a comparison, the sale commission in the UK is 2-3% plus hefty taxes such as the current 17.5% VAT (Value Added Tax). Some real estate agencies market their services at 2% on the web, often with the additional support of a glossy magazine earning advertising revenue as compensation.

Another option is to sell privately as selling a home on line can be very effective depending on location and demand. However, professionals know best when an issue arises. Besides, a realtor will defend his client’s interests.

Last but not least, a commission can be negotiable. And, in some circumstances realtors might secure a sale by splitting a narrow difference between counter-offers.

The importance of Preparing a House for Sale

Prudential states that “more than half of the houses are sold before the buyer gets out of the car.” A property should be ready for sale before it is listed. Exterior appeal is as important as interior appeal.

If cosmetic or structural problems exist, the seller must be prepared to sell below market value. Guides on home-staging tips will help the owner identify cosmetic flaws. Hiring a professional home-stager will increase the appeal of a home, although structural flaws should be disclosed.

A House Sells When the Price is Right

A property that lingers on the market raises a red flag to agents. Pride is an emotional obstacle to selling and can be a costly mistake since the cost of owning a home is only terminated with its sale. When an offer is refused, the house remains on the market, with its costs:

Mortgage payment, insurance, property taxes, homeowner association fees if applicable, maintenance expenses.

Below is a simplified scenario for refusing a lower offer:

Asking price: $ 800,000

Monthly cost of ownership: 3,000

Offer refused: 785,000

Difference asking price/refused offer: 15,000

Cost of ownership over 3 months: 9,000

Cost of ownership over 5 months: 15,000

Accepting the low offer would have been a better decision since the seller did not gain anything after five months. If the intention was to downsize to a $500K property and invest the balance, an additional cost would be the interests lost.

Other reasons for considering a low offer are to factor the lower commission and the tax implications on capital gain. In a buyer’s market, the seller should think twice before refusing an offer.

Must Know Tips for Purchasing Bank Owned Homes

Real estate is local except when it comes to bank owned homes where it suddenly becomes national. This is because the lenders selling these homes are neither aware nor concerned with local nuances, instead opting for standardized addenda designed to amend the purchase contract into one appropriate across multiple states.

Differences still remain from state to state but these tips generally will smooth the way for those who wish to buy a lender owned property:

Know the Local Market

Market conditions vary wildly not just from state to state but from city to city. In many areas and at many price points, bank owned homes are selling in a matter of a few days at full list price or higher. Knowing the state of the local real estate market up front is the key to knowing how quickly a purchase offer need be made and at what price.

Recognize Price Has Meaning

Depending on the condition of the property, what seems like a bargain soon came become quite pricey once the additional costs of even cosmetic items such as new paint and flooring is added to the list price. Buyers need to recognize up front that homes priced below comparable properties likely are priced lower for specific reasons.

Understand the Lenders’ Motivation

While it’s true lenders don’t want to carry real estate owned – REOs – on their books, it’s also true that they are not willing to give homes away for pennies on the dollar regardless of the local cocktail party chatter. Lenders generally only will sell at close to market value, or what they perceive as market value, even if this means they reject offers at price points now that they would be happy to accept later. Illogical, but true.

Bank Owned Home Sales are As Is

Purchases of bank owned homes are nearly universally as is sales – what a buyer sees at the time a purchase offer is written is what they get at the close. Some lenders will make repairs required by the buyers’ lender in the case of FHA or VA loans but not all, leaving many foreclosed homes ineligible for those types of financing.

Home Inspections are Critical

While lenders won’t make repairs to bank owned properties, it’s still vitally important for buyers to have a professional home inspection conducted to determine the home’s true condition. An up-front cost of a couple hundred dollars can save thousands in repair bills later.

While the basics of the transaction on a bank owned purchase are similar to buying a traditional resale home, there are distinct differences that can cost the unprepared buyer time and money. Buyers should take care to check with a local real estate professional who can guide them through the slightly more complicated bank owned purchase process.

Leave a Reply

Your email address will not be published.