Sunday, February 19, 2012
Tuesday, February 7, 2012
Problems with the home your selling-disclose
Sometimes sellers believe if they just put on a good face, no will know what's going on behind the scenes. These days, it's a crime to lie about things that are wrong with your home. While the buyer still has to prove you knew or should have known about these items, the damages (not to mention the defense) can be costly.
In the paperwork you receive from your realtor when you list your home, you are asked to fill out a seller's disclosure. This is a form which asks about the current condition, past problems, repairs and improvements that have been made to the home over time. Your are asked to check yes, no or unknown. Sometimes your response requires and explanation and if you don't know the answer (what year was the roof replaced) unknown is a perfectly acceptable response. This form should be filled out as completely and honestly as you are able. It will be signed by the seller and the buyer and is a part of the real estate contract. This disclosure relieves the seller of responsibility if a problem arises and it is addressed in the disclosure. If the buyer has knowledge of a problem and purchases the home anyone he is accepting the conditon of the home.
If you're honest and upfront about past problems and steps you've taken to correct them, your seller disclosures will be a whole lot easier. If the house has current issues, tell the broker and the buyer what you're doing to correct them. Or, make it clear that the purchase price reflects these problems. Either way, honesty pays.
In the paperwork you receive from your realtor when you list your home, you are asked to fill out a seller's disclosure. This is a form which asks about the current condition, past problems, repairs and improvements that have been made to the home over time. Your are asked to check yes, no or unknown. Sometimes your response requires and explanation and if you don't know the answer (what year was the roof replaced) unknown is a perfectly acceptable response. This form should be filled out as completely and honestly as you are able. It will be signed by the seller and the buyer and is a part of the real estate contract. This disclosure relieves the seller of responsibility if a problem arises and it is addressed in the disclosure. If the buyer has knowledge of a problem and purchases the home anyone he is accepting the conditon of the home.
If you're honest and upfront about past problems and steps you've taken to correct them, your seller disclosures will be a whole lot easier. If the house has current issues, tell the broker and the buyer what you're doing to correct them. Or, make it clear that the purchase price reflects these problems. Either way, honesty pays.
Monday, February 6, 2012
Making an Offer
When you make an "offer" or "bid", the seller of the home can accept or reject it, make a counter-offer or not respond.
If the seller rejects your offer, makes a counteroffer or doesn't respond, your options remain open. You can accept the counteroffer, make another offer or reject it and keep looking.
It's important that you think through your decision before you make an offer. You won't be able to think it over more you have come to a meeting of the minds.
Once both parties have signed the offer the contract is sent to both attorneys for review. The attorney review period is approximately 3 days or, until both attorneys are satisfied with the wording of the contract. During the attorney review period either party can cancel the contract for no particular reason. Once the attorney review period of over the contract is binding. At this time you will be given a time frame in which inspections must be done and deposit money delivered to your attorney. The contract will also contain a mortgage commitment date which is when you must have confirmation from your lender that you are indeed qualified for the mortgage you applied for and the lender is committed to lending you that money.
If the seller rejects your offer, makes a counteroffer or doesn't respond, your options remain open. You can accept the counteroffer, make another offer or reject it and keep looking.
It's important that you think through your decision before you make an offer. You won't be able to think it over more you have come to a meeting of the minds.
Once both parties have signed the offer the contract is sent to both attorneys for review. The attorney review period is approximately 3 days or, until both attorneys are satisfied with the wording of the contract. During the attorney review period either party can cancel the contract for no particular reason. Once the attorney review period of over the contract is binding. At this time you will be given a time frame in which inspections must be done and deposit money delivered to your attorney. The contract will also contain a mortgage commitment date which is when you must have confirmation from your lender that you are indeed qualified for the mortgage you applied for and the lender is committed to lending you that money.
Friday, February 3, 2012
What is a good offer
Once you've found the right home , you'll need to know the real value of the house so that you can make an educated offer.
A home's value is determined by the following:
If there are multiple offers on the house be careful of the "I want to win" mentality, I've seen buyers overpay because they get caught up in the heat of the bidding war.
The final price, regardless of what other homes have sold for, is what a ready, willing and able buyer is willing to pay for a property, so, the buyer is really the one who sets the value of the home.
A home's value is determined by the following:
- Sale Price History: Pay attention to trends in appreciation or depreciation on the home.
- Home Characteristics: The number of bedrooms and bathrooms, square footage and other characteristics of the home.
- Similar Home Prices: Prices of comparable homes in the neighborhood.
If there are multiple offers on the house be careful of the "I want to win" mentality, I've seen buyers overpay because they get caught up in the heat of the bidding war.
The final price, regardless of what other homes have sold for, is what a ready, willing and able buyer is willing to pay for a property, so, the buyer is really the one who sets the value of the home.
Thursday, February 2, 2012
Home Buyers Need to Take Notes
House hunting can become slightly overwhelming.
You might forget one house from the next. You may get frustrated that you haven't found your dream home or get so excited you forget to focus on your wants and needs.
Its a good idea to write down simple description of the homes you see. I usually give my buyers a copy of the MLS sheet so they can write on the back. After you see a few homes they all start to look the same and frequently you start remembering the good points of a few homes as features of the same home. Some buyers are very disappointed when they go back to the home they think they want to make an offer on only to find they had blended a few homes together in their mind.
The key to keeping the facts straight when viewing a number of homes is to write down the pros and cons of each home next to the address. If the seller will allow it, pictures help.
You might forget one house from the next. You may get frustrated that you haven't found your dream home or get so excited you forget to focus on your wants and needs.
Its a good idea to write down simple description of the homes you see. I usually give my buyers a copy of the MLS sheet so they can write on the back. After you see a few homes they all start to look the same and frequently you start remembering the good points of a few homes as features of the same home. Some buyers are very disappointed when they go back to the home they think they want to make an offer on only to find they had blended a few homes together in their mind.
The key to keeping the facts straight when viewing a number of homes is to write down the pros and cons of each home next to the address. If the seller will allow it, pictures help.
Subscribe to:
Posts (Atom)