Any agent can get your house sold the first time it appears for sale all of these factors are in place. So let’s take a moment and review these five factors.

Factor # 1 LOCATION
The location of your house is what is and cannot be changed. In the buyer’s mind a house on a busy street, near power lines, next to or backing up to a commercial business or perhaps too close to a school is less desirable.

Homes located in a quiet cul-de-sac, backing up to a greenbelt, or offering an exceptional view are more desirable.

Factor # 2 PRICE
Every home owner wants to sell their house for as much money as possible, but many times if the asking price is too high your house will help sell other houses in your area. Over-pricing property usually has the following effects:

A.    Increases market time, which causes homes to sell for less than market value.
B.    Buyers who should be looking at your house will not see it because it is out of their price range.
C.    Buyers who do look at it purchase larger homes that are priced the same.
D.    You receive low offers or no offers at all. Remember, a higher asking price does not automatically equal a higher sales price. The more you overprice a property, the more likely you will sell it at a price lower than it is worth.
You want to price your house to attract buyers for your neighborhood. The more buyers you have the more they will compete for your house, which will drive your price up. Then you can receive offers over and above your asking price.

Factor # 3 CONDITION
Buyers are wanting to get the most home for their money and many times are looking at new homes as well as resale homes.  Buyers will pay top dollar for homes that are in pristine condition. Your agent should be knowledgeable in this area and can make suggestions of minor things you can do to help your home show its very best.

Factor # 4 The MARKET
The real estate market is always in one of three types of markets.
A.    A hot seller’s market where there are low inventory and more buyers which, in turn, drive selling prices up.
B.    A normal stable market where there is an equal number of buyers in proportion to the number of homes for sale. The result is home prices remain stable.
C.    A buyer’s market where there are more homes for sale than buyers who want to buy. This, in turn, will cause home prices to decline.

Factor # 5 The AGENT you choose
Any agent will show enthusiasm and will want to list your house for sale. Unfortunately, many agents still cling to ineffective marketing ideas that do little to sell your home, which means that you miss out on the best buyers. Choose your agent based upon
A.    Experience at listing and marketing houses for sale.
B.    Ability to use technology to market your house world wide to buyers 24/7.
C.    Reviewing with you a comprehensive Marketing Analysis of home sales in your area.
D.    Ability to offer a step-by-step 30-DAY MARKETING PLAN that will get your house sold at the highest possible price, within a time frame that best works for you.

Working with a full-time professional real estate agent is a must. Choose your agent by asking questions of him or her. Find out how knowledgeable they are about houses currently for sale in your price range and also of houses that have recently sold. Does your agent work with a good lender that can assist your new buyer to obtain financing? A good listing agent can get your house sold quickly at TOP DOLLAR and help you find a new home.

The smart seller (and savvy realtor) will know that spending some money up front to do a pre-inspection is good insurance for the seller. Unless the home is being sold “as-is” then most buyers will have a home inspection done and information that comes out from the home inspection reports are the most likely cause for deals to fall through.

So sellers, get your home pre-inspected, find out from the inspection report what the prospective buyer would see, prioritize and repair.  Buyers do not always want to purchase something with a long “honey-do” list but they will generally flee, very quickly, when confronted with a list of costly, required repairs. The traditional seller choice of don nothing – no one will probably notice is an option that does not work in today’s market and will lead to lower prices and longer sale times.

• Be smart. Financial planners, your REALTOR®, mortgage brokers and lenders are all available to assist you to give you insight on what is likely to be your largest financial transaction ever. The more you know, the faster you can make decisions about how much you can afford, what loan is best for you, and how to shop for the best deal.
• Be creditworthy. Pull your credit report to determine if there are any black marks that could stall your application or get it rejected. You are entitled to one free credit report each year from each of the three major credit reporting agencies — Experian, Equifax and TransUnion — which means you can get three different credit reports each year at no cost.

• Be frugal. Certainly stretch to afford the most home you can buy, if you want to avoid the cost of adding on or moving up later, but stretch only within the scope of what you can truly afford. Determine how your mortgage payment will fit your current budget and, to some extent, your future obligations. Don’t let the lender make this decision for you.

When calculating what you can afford, don’t forget related insurance, taxes, homeowner association dues and any other expenses that come with the cost of owning a home in addition to the mortgage payment. Likewise, calculate the financial benefits of home ownership, including tax breaks and equity growth.

• Be a comparison shopper. Shop mortgage lenders, brokers and online mortgage outlets to compare the best of all worlds. To the extent that it’s possible, compare all major loan costs, rates, points, broker fees and other costs to make the best comparison.
• Be prepared. When it’s time to complete your mortgage application, have all your “docs” in a row. The application will ask for information about your job tenure, employment stability, income, your assets and your liabilities. Have pay stubs, tax returns, rental agreements, divorce decrees, proof of insurance and any other documentation you’ll need to back up statements on your application. The sooner they are available, the faster your application will proceed.
• Be focused. You’ve done your homework. Settle on one loan. Complete one application and see it through. Don’t “double dip.” Online applications make it easy to fire off several quick applications, but each one could trigger a credit check. That could send the wrong signal to a lender who could reject an application that yields a credit report with numerous credit checks in a short period.
• Be available. Don’t complete an online mortgage application, say at work, if you don’t have Internet access at home or you’ll defeat the purpose of the automated online mortgage process. Online brokers use e-mail to keep you abreast of your application’s progress and some offer online application tracking. Brick and mortar operations may do likewise. Don’t plan a vacation, roadtrip or getaway during the application process. If there are questions about your application, you’ll need to be available to address them quickly.
• Be about locking down that rate. During the loan application, get a rate lock, in writing. A rate lock guarantees you a certain interest rate and terms. The lock is in effect for a given period of time, which should be stated in the lock contract. The lock cuts down on haggling time for the best rate.
• Be committed. Don’t behave like a retail shopper who fills out a credit application in the checkout line. Most housing consumers, 92 percent of those want to buy a home, have no idea if they can really qualify for a mortgage, according to Wisconsin-based mortgage banker and broker Majestic Mortgage Corp.

Getting prequalified, even preapproved for a loan have been superseded by getting a real loan commitment. As rock solid as the rate lock, a loan commitment guarantees you’ve got a loan. All you need to do is sign on the dotted line. When you go shopping for a home, the commitment tells the seller your offer is indeed worth a whole lot more than the paper it’s printed on.

Broderick Perkins

Copyright © 2006 Realty Times

Closing costs

Real property in most jurisdictions is conveyed from the seller to the buyer through a real estate contract. The point in time at which the contract is actually executed and the title to the property is conveyed to the buyer is known as the “closing”. It is common for a variety of costs associated with the transaction (above and beyond the price of the property itself) to be incurred by either the buyer or the seller. These costs are typically paid at the closing, and are known as closing costs

Examples of typical closing costs might include:

• Attorney (Lawyer) fees, paid by either or both parties, for the preparation and recording of official documents. The principals and/or lender may each be represented by their own attorney. Typically required by institutional/commercial lenders to ensure documents are prepared correctly.
• Title service cost(s), paid by either party according to the contract but by default seller may pay the majority, for title search, title insurance, and possibly other title services. In some cases the attorney may do the title search or the title service and attorney fees may be combined. Required by institutional/commercial lenders and often by the real estate contract.
• Recording fees, paid by either party, charged by a governmental entity for entering an official record of the change of ownership of the property. Required by the government for recording the deed.
• Document or Transaction Stamps or Taxes, paid by either or both parties depending on location (area of jurisdiction), charged by a governmental entity as an excise tax upon the transaction. Required by law.
• Survey fee for a survey of the lot or land and all structures on it, paid by either party, to confirm lot size and dimensions and check for encroachments. Required by institutional/commercial lenders.
• Brokerage Commission, paid by the seller to a Real Estate Broker, to compensate the Broker(s) involved in the sale for their services in marketing the property, finding a buyer, and assisting in the negotiations. Brokerage commissions are usually computed as a percentage of the sale price, and are established in a listing agreement between the seller and the listing broker. The listing broker may offer Buyer Agents a portion of their commission as an incentive to find buyers for the property. Payment is required if real estate brokerage service was used. This is often one of the largest closing costs.
• Mortgage Application Fees, paid by the buyer to the lender, to cover the costs of processing their loan application. In some cases, the buyer would pay the lender the application directly and prior to closing, while in other cases the fee is part of the buyer’s closing costs payable at closing.
• Points, paid by the buyer to the lender. Points are a form of pre-paid interest, charged by the lender as an alternative to charging a higher rate of interest on the mortgage loan. One point equals one percent of the loan principal.
• Appraisal Fees, usually paid by the buyer (although occasionally by the seller through negotiation), charged by a licensed professional Appraiser. Many lenders will require that an appraisal be performed as a condition of the mortgage loan. The purpose of this appraisal is to verify that the sale price of the property (upon which the underwriting of the loan is based) is equal to or less than the fair market value of the property.
• Inspection Fees, usually paid by the buyer (although occasionally by the seller), charged by licensed home, pest, or other inspectors. Some lenders require inspections (such as termite inspection) to verify that the property is in good condition, which is necessary to assure that the property will retain the necessary collateral value to secure the mortgage loan.
• Home Warranties, paid by either the buyer or the seller. Warranties are available on resale homes insuring major household systems against repair or replacement for the buyer’s initial year of ownership. Sellers will sometimes offer these warranties as a marketing strategy, or buyers can elect to purchase them at closing.
• Pre-paid Property Insurance, paid by the buyer. Lenders will typically require that a mortgaged property be insured at all times throughout the life of the mortgage, and will usually require that the first full year’s property insurance premium be paid in advance by the buyer. If the buyer has not already paid the insurance company directly, this would become another closing cost payable at closing.
• Pro-rata property taxes, paid by the seller, the buyer, or both. Most (but not all) jurisdictions assess taxes on real property, which are usually payable at a specified date annually. Since all but a tiny fraction of real estate transactions close on a date other than this one specified annual date, most transactions must include an adjustment to assure that both the seller and the buyer end up paying their share of the annual property tax, proportionate to the percentage of the year that each has ownership of the property. Usually required by institutional/commercial lenders and by the real estate contract.
• Pro-rata Homeowner Association Dues, paid by the seller, buyer, or both. If the property is covered by a Homeowner Association (HOA), the HOA will normally be funded by dues assessed against each property owner. Again, since the ownership of the seller and buyer are each fractional in the year of the transaction, there must be an adjustment made so that each owner pays their proportional share. Often required by institutional/commercial lenders and by the real estate contract.
• Pro-rata Interest, paid by the buyer. The monthly mortgage payment is calculated and payable on a specified day each month. If the closing does not actually fall on that specified date (which is usually the case), then an adjustment must be made to calculate the interest on the loan for the number of extra days until the first payment is due.

Other items in addition to the above may be common in some jurisdictions, and some transactions may include unusual or unique items as closing costs. In the United States, Federal law requires that all residential transactions financed by a mortgage have all closing costs documented in detail upon the standard HUD-1 form. This information must be provided to the principals but does not have to be sent to the government. Instead a Declaration or Statement by Buyer and/or Seller is often required to be provided to the government office recording the deed. Form 1099-S may be required to be sent to the United States Internal Revenue Service, but Federal law does not allow a charge for this.

Closing cost
From Wikipedia, the free encyclopedia

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article: http://en.wikipedia.org/wiki/Closing_cost

ImageThe home inspector cannot charge in and start to tear out ceilings, walls and fixtures to inspect the plumbing or electrical wiring but they do have training to detect the signs of water damage, mildew, faulty electrical connections, roofing problems and construction or renovation work that does not meet local building codes specifications.

As a buyer, you should make every effort to be present for the home inspection. For one thing, houses do not generally come with an owner’s manual (even for new construction) and this is an ideal time to learn about the home even if there are no major problems. Not only will you know where the shuttoff valves, access and breaker panels etc are located but the inspector will typically explain how things work if you just ask them. The inspector can show you how to drain the boiler, change filters, shuttoff utilities e.tc. Consider this an introductory training session on your new purchase. The home inspector can also alert you to other inspections that he may think you should do such as a termite inspection or Radon emission testing (a colorless, odorless gas that can build up in basements).

While a buyer should absolutely get a home inspection even when buying a property “as is”, to be certain that they know exactly what they are buying, sellers should also consider using a home inspection service before putting their home on the market. Problems can be identified and addressed before they become closing “deal breakers” and the security of knowing that there are no major problems strengthens the basis for the asking price.

Related Articles:

A basic home inspection checklist

Resources:

· American Society of Home Inspectors Inc.

Ø Website: http://www.ashi.com

Ø Phone: 800-743-ASHI (743-2744).

National Association of Certified Home Inspectors.

Ø Website: http://www.nachi.org
Ø Phone: 800-448-3942.

This strategy may work to some extent in a hot “sellers” market where asking prices are often the “opening bid” for prospective buyers, or if there are local property circumstances, like being a neighbour of a celebrity, that might make the property attractive to buyers willing (and able) to pay the premium.

In general though, above market prices will result in fewer buyers even looking at the property and a longer sales cycle assuming that a buyer is eventually found. Even when a buyer is found, the above market value pricing may create problems if the buyers down payment cannot bring the loan amount inside the “appraised” value of  a property as it may become difficult for the buyer to obtain a mortgage.

Determining and then pricing “at the market value” is why you turn to your realtor to prepare your Comparative Market Analysis. You can of course use the services of Zandra Lawrence to request a free CMA. There are a number of factors that make up a CMA including:

• Public records of Real Estate transactions in your area – specifically at least three comparable homes to yours that have sold in at least the last six months.
• Current asking prices for comparable homes in your area.
• Prices of houses that have NOT sold.
• Condition of the property

Using the above sources plus experience and knowledge of the local community and market conditions your realtor would prepare a CMA. Zandra Lawrence will also meet with you to discuss how the CMA was evaluated and the initial market price determined. If you consider listing the property with Zandra Lawrence a more detailed recommendation will be made, based on your requirements for the sale,  to arrive at the asking price.

• Water Damage and Drainage: Check for white marks along the walls of the basement (or lowest floor) – persistent water leaks can leave behind noticeable mineral stains on the walls.
• Mold and mildew – this is one of the most frequent problems noted by new homeowners who have noted problems after the purchase.
• Gutters – need to be checked because they are the main contributor to mold problems. Damaged gutters allow water to drain inside the walls causing mold to develop. Check that the gutters are level, with no obvious bends or gaps.
• Yard drainage – check that the yard is sloped away from the house to keep the water flow and runoff away from the house.

If you decide to use a home inspector that is recommended by the seller or the agent, then ask questions. You need to be sure that the inspector will be working for you and that they do not depend on a relationship with the agent (or seller) for their referral business if the report they give you on the property is not positive. Last but not least,  make every effort to be present and walk through the actual inspection.