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How to
Determine the Value of Your Home
You can
determine the value of your home by a CMA, (Comparative Market Analysis) or by a professional appraisal.
A comparative market
analysis is an informal estimate of market value performed by a REALTOR®
based on similar sales and property attributes.
An appraisal is a
professional estimate, performed by a certified appraiser, of a property's market value,
based on recent sales of
comparable properties, location, square footage and construction quality.
This
service varies in cost depending on the price of the home. Fees range from
$350-$550. Lenders require appraisals as part of the loan application
process.
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10
Common Mistakes Home Seller's Make
Selling your home can be an exhausting experience. A last minute walk-thru,
inconvenient calls, price adjustments and the possibility of being stuck with
two mortgages to pay at one time are real concerns. If you are not
completely prepared, you could end up losing hundreds, or even thousands of
dollars.
The difference between a profitable, smooth transaction and a break-even is a
miserable experience and often a fine line. In the majority of cases, it
comes down to the subtle know-how of your profession. By utilizing the knowledge
of a qualified professional, you'll ensure the quick, profitable sale of your
home.
1) Refusing to Make Profit-Inducing Repairs: It always costs
you more money to sell "as is" than it does to make repairs that will increase
the value of your home. Often, the minor improvements will yield as much
as 3 to 5 times the repair cost at the time of the sale.
Nearly all purchase contracts include a buyer contingency "inspection clause,"
which allows a buyer to back out if numerous defects are found. Once the
problems are noted, buyers will attempt to negotiate repairs or a lower price.
2) Refusing to Make Cosmetic Changes: The prospective home
buyer's first impression is the most important one. An incredible amount
of home sales have been lost to unkempt lawns, cluttered rooms, bad stains, and
unpleasant odors. These all seem to be rather small things to think about,
buy you have to imagine you were the buyer looking at the home, from top to
bottom!
If you have a lot of furniture and "trinkets" all over your home, this will
make your home seem smaller than it actually is. The potential buyer will
not be able to overlook all that clutter, thus ruining your chances of a sale.
In the long run, investing in a storage facility and packing away many of your
items will pay off.
If you have carpeting that is not a neutral color, or that is dirty or badly
stained, you might want to consider replacing it. Walls that are dirty are
also a no-no.
3) Not Considering Other Financing Terms: Cash is not always
the most advantageous transaction. Income level, tax benefits and current
legislation are all critical factors when considering purchase terms.
4) Not Providing Easy Access for Showings: Accessibility is a
major key to profitability. Appointment only showings are the most
restrictive, while a lock box that your REALTOR®
will use is the least. The more accessible your home is for potential
buyers to see, the better the odds are of finding a person to pay the price you
are asking for the home. You never know if the one that couldn't get a
viewing was the one that got away!
5) Priced Too Low or Priced Too High: It is important to find
the right REALTOR®
to work with to ensure your property is priced appropriately for a timely and
profitable sale. If the property is priced too high, it will sit and
develop the identity of a "problem property" in your marketplace. If it is
priced too low, it could cost you considerable profits.
6) Relying Solely on Traditional Methods to Sell Your Home: The
prospect today wants up-front information about the home they are considering to
purchase. After all, this is one of the most important purchases they will
ever make in their life. As the seller, you should demand innovative lead generation methods, and lead
accountability follow-up. These services exist and should be offered to
you to assist you in selling your home.
7) Market Timing: Just as a broker
continually follows the trends of a stock, your REALTOR®
continually follows the market trends involved in home selling. Your
REALTOR®
will know if the market cycle is poised to net you the most money.
8) Insisting On Being Present When the Home is Shown to Prospective Buyers: One way to discourage buyers from buying your home is to be home during
showings. For buyers to decide to buy a home, they first must discover and
discuss all of its flaws. Buyers are reluctant to say anything negative
about a home in the seller's presence. If you absolutely must be home at
the time of a showing because of pets or another reason, make sure that you let
the buyer's view the home without you!
9) Wasting Time With an Un-qualified Prospect: Be sure to align
yourself with a REALTOR®
that will eliminate the possibility of negotiating with potential buyers who are
simply not qualified to make the purchase. All potential buyers should be
screened before valuable time is lost.
10) Listing with a Contingency to find a Replacement Home: This
is like saying that your home might be for sale. Serious buyers make
offers on homes that are definitely for sale. Otherwise, buyers could wait
in vain for unrealistic sellers to find an acceptable replacement home.
Sellers often want a contingency to find a replacement home so that they don't
have to move twice. To avoid having to move to an interim rental, list
your home with a provision that you may need to remain in possession and rent
back the property for a period of time after closing. At least, the buyers know
they have bought a home, even if they can't move in right away.
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Short Sales
When a homeowner sells his or her
home for less than its mortgage, it is known as a "short sale".
Sometimes
homeowners can negotiate with Lenders and have them split the difference between
the
sale price and loan amount, which still must be paid.
A short sale may be
complicated if the loan has been sold to the secondary market because then the
lender
will have to get permission from Fannie Mae or Freddie Mac, the two major
secondary-market players.
If the loan was a
low-down-payment mortgage with private mortgage insurance, then the lender also
must
involve the mortgage insurance company that insured the low-down loan.
Are you having trouble keeping up with your mortgage payments? Are you
afraid that you owe more on your home than it's worth? Call me today.
702-278-4200
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Closing Costs
Closing costs are the fees for services, taxes or
special interest charges that are associated with the
buying or selling of a
home. They include
upfront loan points, title insurance, escrow or closing day
charges, document
fees, prepaid interest and property taxes. Unless, these charges are rolled
into
the loan, they must be paid when the home is closed.
Certain fees are automatically
assigned to either the buyer or seller, however, these fees are often
negotiated between the buyer and the seller.
Seller closing costs
If the seller has not yet paid for the house in full, the seller's most
important closing cost is
satisfying the remaining balance of their loan. Before
the date of closing, the escrow officer will
contact the seller's lender to
verify the amount needed to close out the loan. Then, along with any
other fees,
the original loan will be paid for at the closing before the seller receives any
proceeds
from the sale.
Other seller closing costs can include:
-
Real estate agent's commission
-
County transfer tax
In Clark
County Nevada, $5.10 per $1,000.
Home Sales Price x 5.1% The transfer tax on a $300,000 home in
Clark County would be $1.530.00
- Homeowner's
Association document fees (Contact your homeowner's association
for cost)
- Homeowner's
Association transfer fees (Contact your
homeowner's association for cost)
-
*Title insurance
(for the Buyer-Often paid for by the Seller in Las Vegas)
- Property taxes (prorated)
- Homeowner's
Association fees (prorated)
- 1-year home warranty
for the Buyer (approximately $400)
- *Title company
escrow fees (In Las Vegas, normally split 50/50 between buyer and
seller)
- Fax, Courier and
Recording Fees
In Las Vegas, a
conservative estimate to figure a seller's closing costs, (not including real estate
agent's commission) is to figure approximately 2% of the sales price of the
home.
*To calculate Title Insurance and Escrow fees, contact a
Las Vegas Title Company.
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The fees will vary slightly with
each title company. They are based on the sales price of the home.
How are Property Taxes Calculated? Visit the Clark County Nevada website.
Buyer Closing Costs
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Negotiating Closing Costs
In addition to the sales price, buyers and sellers frequently include closing
costs in their negotiations. This can be for both major and minor fees.
A buyer may want to save on up-front
expenditures, and pay the seller's full asking price, in return for the
seller paying all the buyer's allowable closing costs, as long as the home will
still appraise per the Lender's conditions.
However, in a seller's market, the buyer has less negotiating power, and the
seller may even ask the buyer to pay for some of the closing costs that a seller
would normally have to pay.
There's
no right
or wrong way to
negotiate closing costs; just be sure all the terms are
written down on the
purchase agreement.
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Pro-rations
At the closing, certain costs are often prorated (or distributed) between buyer
and seller. The
most common
pro-rations are for property taxes. This is because
property taxes are typically
paid at the end of the year
for which they were
assessed.
Thus, if a house is sold in
June, the sellers will have lived in the house for half the year, but
the bill
for
the taxes won't come due until the following year. To make this situation
more equitable, the taxes
are prorated. In this example, the sellers will credit
the buyers or half the taxes at closing.
For more information and tips on selling your home, visit the
ABC's of Real Estate.
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HELP! I can't sell my house!
If you are trying to
sell your Las Vegas home and you haven't been successful, you are not alone.
The number of homes in Las Vegas that are for sale is at
an all time high. (See
Real Estate Statistics link).
There are three things that
will get your home sold before others.
- Priced correctly
- Shows well
- Market timing
Ask your Listing Agent to
view other homes that will eventually be your competition before you put your
home on the market. If your house shows better, (clean, new paint,
upgrades, etc.) and your home is priced less than the competition, it will more
than likely sell before the others.
In today's market, it is more important than ever to have a home that shows
well, and that is not only priced correctly, but priced below market.
Today's Las Vegas home buyer is looking for a deal. With the number of
foreclosed homes available for them to buy, your home must be priced in line
with these homes, in addition to showing like a model.
Having good communication between yourself and your Listing Agent is crucial.
If he or she is telling you that your home is priced too high, or does not show
well, listen to their advice!
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Investors:
Save on Capital Gain Taxes - 1031 Exchanges
Whether your property is
owned free and clear or encumbered, the benefits of a tax deferred exchange are
significant. The tax dollars saved by doing an exchange can be utilized to
purchase additional investment property. To learn more about 1031
Exchanges, visit
IPX Investment Property Exchange Services, Inc.
Tips for Avoiding Foreclosure
Are you having
trouble keeping up with your mortgage payments? Have you received a notice
from your lender asking you to contact them? Don't ignore them!
Contact them immediately! Visit
hud.gov
for more information.
If you need to sell your home because it is in danger of going into foreclosure,
contact your Lender first! Then contact me!
Stop Home Foreclosure - If you are facing foreclosure its essential to get someone in your corner right away who understands the laws of your state. An expert who knows your rights and the assistance programs to save your home. |
