When selling your home, there are no guarantees that a buyer will
simply walk through the front door. There are steps that you need to
take so that your property receives maximum exposure to attract a
ready, willing and able buyer.
The appearance of your home, a buyer's first impression, and other
considerations can also affect the sale of your home. Have you
considered that home prices in your neighborhood and the value of your
property are also factors used for pricing your home? In many cases you
may have to bring your home to the buyer. Effective marketing will help
ensure that your home is sold in a timely manner at the best price.
Below are some articles that you might find useful in the home
selling process. Please feel free to click on one the links to read
more.
Seller Articles
The Home Selling Process
Click HERE to view a roadmap of the home buying process.
Most cities require that homeowners obtain a
building permit before making modifications to their residence. Which
modifications require a permit vary by city. Also, some cities are more
vigilant than others in enforcing permit laws.
In order for the homeowner to receive a permit,
the homeowner or his/her designee are required to file plans and pay
fees to the city. In addition, the improvements are given a value. If
they increase the value of the property, this may result in an increase
in property taxes. Inspections are often required, and this means
having to schedule and then wait for inspectors to approve the work to
be done. This process can be time consuming and inconvenient in the
short run. It is for this reason that some homeowners skip the permit
process.
If a permit is needed and you fail to get one,
the city may discover this at some time in the future and getting a
permit retroactively can frequently be significantly more expensive and
much more problematic than having obtained the permit before work
commenced. If work is not done in accordance with city procedures or if
the inspector is unable to determine if the work has been done
properly, the homeowner could be required to open walls, tear up
floors, so that the inspection may take place. In addition, by law,
work not permitted where a permit was required must be disclosed to any
prospective purchaser. This may cause the owner to discount their sale
price or perform costly or time-consuming repairs before title can be
transferred.
For prospective buyers of a property, save
yourself the future hassle and loss of money by researching whether all
work on the premises has been done according to code and with the
proper permits. You may obtain these permits by going directly to
Building & Safety in the municipality in which the property is
located or by hiring a "permit puller" who will research the permits
for you.
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June and Fred Smith were diligent about getting
their home ready for sale. They ordered a pre-sale termite inspection
report. The report revealed that their large rear deck was dry-rot
infested, so they replaced it before putting their home on the market.
The Smiths also called a reputable roofer to
examine the roof and issue a report on its condition. The roofer felt
that the roof was on its last legs and that it should be replaced. The
Smith's didn't want buyers to be put off by a bad roof, so they had the
roof replaced and the exterior painted before they marketed the home.
The Smith's home was attractive,
well-maintained and priced right for the market. It received multiple
offers the first week it was listed for sale.
But the buyers' inspection report indicated
that the house was in serious need of drainage work. According to a
drainage contractor, the job would cost in excess of $20,000. Fred
Smith was particularly distraught because he'd paid to have corrective
drainage work done several years ago.
First-Time Tip: If you get an
alarming inspection report on a home you're buying or selling, don't
panic. Until you see the whole picture clearly, you're not in a
position to determine whether you have a major problem to deal with or
not.
What happened to the Smiths is typical of what
can happen over time with older homes. The drainage work that was
completed years ago was probably adequate at the time. But since then,
there had been unprecedented rains in the area, which caused flooding
in many basements. Drainage technology had advanced. New technology can
be more expensive but often does a better job.
The Smiths considered calling in other drainage
experts to see if the work could be done for less. After studying the
buyers' inspection report, the contractor's proposal and the buyers'
offer to split the cost of the drainage work 50-50 with the sellers,
the Smiths concluded that they had a fair deal.
The solution is not always this easy,
especially when contractors can't agree. Keep in mind that there is an
element of subjectivity involved in the inspection process. For
example, two contractors might disagree on the remedy for a dry-rotted
window: one calling for repair and the other for replacement.
Recently, one roofer recommended a total roof
replacement for a cost of $6,000. A second roofer disagreed. His report
said that the roof should last another three to four years if the owner
did $800 of maintenance work. Based on the two reports, the buyers and
sellers were able to negotiate a satisfactory monetary solution to the
problem for an amount that was between the two estimates.
It's problematic when inspectors are wrong. But
it happens. Inspectors are only human. Here is another example: A home
inspector looked at a house and issued a report condemning the furnace,
which he said needed to be replaced.
The sellers called in a heating contractor who declared that the furnace was fit and that it did not need to be replaced.
The buyers were unsure about the furnace, given
the difference of opinions. The seller called in a representative from
the local gas company. The buyers knew that the gas company
representative would have to shut the furnace down if it was dangerous.
He found nothing wrong with the furnace, and the buyers were satisfied.
In Closing: Sometimes finding
the right expert to give an opinion on a suspected house problem is the
answer, but it is always good to get two opinions.
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CMA is real estate shorthand for "Comparative
Market Analysis". A CMA is a report prepared by a real estate agent
providing data comparing your property to similar properties in the
marketplace.
The first thing an agent will need to do to
provide you with a CMA is to inspect your property. Generally, this
inspection won't be overly detailed (she or he is not going to crawl
under the house to examine the foundation), nor does the house need to
be totally cleaned up and ready for an open house. It should be in such
a condition that the agent will be able to make an accurate assessment
of its condition and worth. If you plan to make changes before selling,
inform the agent at this time.
The next step is for the agent to obtain data
on comparable properties. This data is usually available through MLS
(Multiple Listing Service), but a qualified agent will also know of
properties that are on the market or have sold without being part of
the MLS. This will give the agent an idea how much your property is
worth in the current market. Please note that the CMA is not an
appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process takes place before your home is
listed for sale. This is a good assessment of what your house could
potentially sell for.
CMAs are not only for prospective sellers.
Buyers should consider requesting a CMA for properties they are
seriously looking at to determine whether the asking price is a true
reflection of the current market. Owners who are upgrading or
remodeling can benefit from a CMA when it's used to see if the intended
changes will "over-improve" their property compared to others in the
neighborhood.
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Ready to close the deal? Maybe not.
Sometimes unforeseeable issues arise just prior
to closing the sale. Hopefully, with negotiation, most of these have a
workable solution. Unfortunately, this is not always the case. But
don't panic. Another buyer might still be found who is willing to
accept the house as is.
Imagine that your prospective buyers are a
couple with young children. They envision your unused attic as the
perfect playroom for the kids but, before closing the deal, they
request an inspection to see if it's safe and also if they will be able
to install a skylight to provide natural light to the new space.
This inspection reveals that under the shingles
that are in good condition is a roof that will only last another year
or two. The prospective buyers immediately balk, not wanting to incur
the time and cost of replacing the roof. Their plans were to move in
and only have to spend time and money renovating the attic. The
additional cost of the new roof, they say, is just too much.
At this point, you sit down with the
prospective buyers and calmly discuss the situation and how it can be
solved to the benefit of all. First, you agree to get another
professional opinion on what really needs to be done. Inspectors are
only human, and are not infallible. Once the extent of the damage is
agreed upon, you can jointly decide what to do about it. While the
buyers hadn't planned on that expense, you show them that instead of a
limited roof life that they would get with most existing homes, they'll
have a new worry-free roof that won't cost them in repairs for the next
decade or so. Since the roof wasn't in as good shape as you had
thought, you agree to lower the purchase price to help offset the cost
of the new roof.
By negotiating calmly and looking at all
possibilities, what could have been a "deal breaker" can be turned into
a win-win situation for both the buying and selling parties. In other
cases, the most workable agreement for both parties might be for the
deal to be called off. The seller can always find another buyer and the
buyer can always find another home.
To protect yourself against last minute
"buyer's remorse," make sure the purchase contract anticipates and
closes as many loopholes as possible after all known defects have been
fully disclosed.
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