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When selling your home, you must guarantee that your property receives maximum
exposure that will attract a ready, willing, and able buyer.
The appearance of your current home, a buyer's first impression, and other
considerations can also affect the sale of your home. Have you considered home prices
in your neighborhood and the value of your property? Both are factors used for
pricing your home. In many cases you may have to bring your home to the buyer.
Effective marketing will help ensure the quick and effective sale of your property.
Below are articles that you might find useful during the home selling process. Please
click on one the links to read more.
Seller Articles
Risks of Remodeling Without a Permit
Most cities require homeowners obtain a building permit before making modifications to their residence. Which modifications require a permit vary by city.
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, improvements are given a
value. If the additions 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.
Should a permit be needed and you fail to get one, the city may discover this at some
time in the future and obtaining a permit retroactively can be significantly more
expensive and problematic than obtaining a permit pre-remodel. If work is not
completed in accordance with city procedures or if an inspector is unable to determine
the work has been done properly, the homeowner could be required to open walls, tear
up floors, etc., 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 could cause the owner to discount their sale price or perform costly or time-
consuming repairs before title can be transferred.
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Traversing the Pitfalls of Home Inspections
First-Time Tip: If you get an alarming inspection report on a home you're buying or
selling, don't panic.
The solution is not always 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 could 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 does occur. 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.
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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What is a CMA and Why Do You Need One?
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 yourproperty. Generally, this inspection won't be overly detailed. 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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The Home Sale: Securing the Deal
Sometimes unforeseeable issues arise just prior to closing. With negotiation, most of
these have a workable solution. If this is not the case, another buyer might still be
found who is willing to accept the house.
Imagine that your prospective buyers are a couple with young child. 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 lighting for the new space.
TThis 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.
First, you should 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 considering all possibilities and options, 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.
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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