|
Statistics from Realtors and lenders show that agents and brokers currently account for nearly 90% of all home sales. Many experts speculate that the statistic may change as more real-estate deals are handled electronically.
|
|
|
|
Bridge loans — sometimes called swing loans or turnarounds — let you buy a new house if the sale of your old one hasn't been completed. You borrow the amount you need, pay only interest while you have the loan, and repay the lump sum when your sale closes. A signed contract can make a bridge loan easier to get.
|
|
Your first decision is whether to sell through a broker or sell your home yourself. Using a broker costs money — often 5% to 7% of your selling price in commissions or fees.
However, brokers generally know the local market, help you determine a fair selling price and screen potential buyers. It pays to invite several different ones to suggest an asking price and explain their commission structure. They'll ordinarily do this for free: They want your business.
Selling on your own requires more time. You must be available to show the house, and you'll have to make decisions about everything from setting a price to accepting an offer. You'll also have to judge if potential buyers are serious, and whether they'll be able to get a mortgage.
|
WHAT IF NOTHING HAPPENS?
The seller's nightmare is a house that won't sell. If it's the economy — national or local — you can't do much about it.
But you can consider:
- Lowering your asking price
- Changing agents — or using one if you haven't used one already
- Offering to finance all or part of the purchase price yourself
|
DOES FIX-UP PAY?
Opinion is divided about whether you should spend money to fix up your home before you put it on the market. Some believe that buyers want to do their own fixing up, so it isn't worth the trouble. Others argue that buyers respond better to places that look good: Minor repairs and cosmetic touch-ups don't hurt, and they don't cost much. Neither does cleanliness.
And if there are major problems — like a leaky roof — that you don't repair, you may have to lower your price in negotiating the final contract.
GETTING A FAIR PRICE
Realistically, a fair price is the best one you can get. To judge if your price is fair, check local sales records of comparables — similar homes that have sold in your community recently. Charts available in real estate agents' offices can tell you the asking price, time on the market and selling price of other houses.
SELLERS' HEADACHES
- Getting the price you want
- Deciding how much fix-up to do before selling
- Selling in a slow market
- Lowering the price or having to provide financing yourself
- Paying extra costs for needed repairs identified during inspections
- Avoiding unacceptable contract terms, like long delays or zoning approvals
- Discovering unexpected liens against your property, like unpaid contractor bills or court costs
|
Don't be misled by the asking price for houses in your area: It's what they actually sell for that counts.
For a small fee, you may also be able to get information on prices in your neighborhood from Consumer Reports Home Price Service, Home Price Check or Home Price Line. They all have 800 numbers.
NEGOTIATING A CONTRACT
When you get a good offer, you'll need a real estate lawyer to be sure the terms of the contract don't tie your hands if the buyer delays or drops out.
The sale usually depends on the buyer's being able to get a mortgage, and a free and clear title to the property. But any unusual contingencies — like dependence on inheritance or insurance money — should have a time limit. The contract should also spell out who pays specific closing costs, since these practices vary.
THE CLOSING
Though there's a lot of paperwork, selling all comes down to paying off what you owe and settling with the buyer. Here's what you can expect to pay:
The balance of your mortgage, plus fees
Real estate agent fees — usually 5% to 7% of the selling price
Pro-rated real estate taxes
Transfer taxes
Lawyer's fees
Other costs specified in the contract
If you're providing some of the financing yourself, you'll also get a copy of the loan agreement the buyer signs. Be sure to record it with the local government to secure your claim if the buyer defaults. Otherwise the primary mortgage lender could reclaim the property, leaving you unpaid.
|
Email This Page
Printer Friendly Version