10 Questions You Need Answers to Before Selling Your Home

10 Questions You Need Answers to Before Selling Your Home

1). Where do I start?  First, make sure you're ready to sell, then, determine what the market is doing in your neighborhood. Research what other properties similar to yours have sold for. Then look at what is currently on the market in your neighborhood. Determine how your house compares to these findings in terms of size, features, condition, terms offered, & location. You must be competitive with what others have done and/or are doing. You may want to consider getting a certified appraisal of your property. Typical cost for that is between $300 and $500. A Realtor® can help you with all the research you need. Visit http://www.benefieldrealty.net/ for additional tips.

2). What are the legal ramifications?  Legalities of a real estate transaction can be quite cumbersome, running the gambit from Fair Housing Laws to Mortgage Fraud to Contract Law to local code violations. A good Realtor® stays apprised of real estate laws and can help you avoid legal pitfalls.

3). Do I need to make repairs?  In some cases this is obvious. Other times, it can catch you by surprise. There may be certain repairs necessary in order for your house to qualify for bank financing, as determined by an appraisal. An inspection of your house by a certified home inspector (usually hired by a buyer) can reveal defects or safety hazards that need to be corrected before a buyer will move forward. Many times, simple cosmetics such as painting, cleaning, and landscaping need to be done so you can remain competitive in your marketplace. Visit http://www.benefieldrealty.net/ for additional tips.

4). How much will I net?  Aside from the obvious, which is the price, there are a number of things that will determine your net proceeds. First you need to find out what your payoff is on your existing loan balance. Next, subtract out the cost of any repairs you are required to make. The type of financing the buyer is getting can come into play here as well, and the amounts you have agreed to contribute to any closing costs. Some States and some types of loans have items that are required to be paid by the seller. Agreed upon tax and insurance prorations should be taken into consideration. Your Realtor® can help you calculate what your net proceeds will be to within a few dollars.

5). Where is the best place to find buyers?  Most buyers today are very savvy and have researched potential properties on the internet. Signage, open houses, & newspaper ads are all sources of generating calls from potential buyers. By far, the best source of finding buyers is through the local MLS systems that Realtors® use. Your property is exposed to 1000's of Realtors® who spend 1000's of dollars advertising for buyers through various available media.

6). How do I pay off my loan?  You will need to provide your closing attorney with the banks contact information pertaining to your loan. The closing attorney will make the payoff to your bank from the proceeds collected at the closing. Be sure that the attorney closing your loan is reputable and specializes in real estate. Your Realtor® can assist you every step of the way in this process.

7). Should I sell before I buy?  It is usually recommended that you at least have a solid contract from a buyer to purchase your home before committing on another property. No matter what the circumstances, you should always protect yourself with the proper contract language in your offer to purchase another home. Realtors® are very knowledgeable in this regard and can help protect you on both your purchase and sale.

8). How do I know if a buyer has the ability to purchase my home?  You can ask for a pre-qualification letter from the buyer's lender before tying up your property on a contract. A serious buyer should be willing to provide you with their lenders contact information. It is a good idea to make sure the lender has a good reputation and track record on loan approvals. Your Realtor® understands this process and can help minimize any lost time in the process.

9). What will my expenses be?  Practically all selling expenses are negotiable and can vary from transaction to transaction. Remember here that you need to be competitive in your marketplace. Repairs fall into this category. If you agree to pay closing cost on the buyer's new loan, you can expect the cost to range anywhere from 2.5% to 3.5% of the loan amount. You will need to provide a termite letter to the buyer at closing. Letters can be obtained for as little as $45, but if any current or previous infestation is found, then the house will need to be treated in order to get a clear letter. Depending on the extent of the treatment and the size of the house, the treatment can range anywhere from $400 to around $1000. Real estate brokerage fees are negotiable but a typical fee is in the neighborhood of 7% of the sale price. A recent national study has shown that homes sold through Realtors®, on the average, sell for 16% more than homes sold by owner.

10). Who can I trust?  First of all, look for someone that has something to lose if they violate your trust. Realtors® are licensed by the State and can possibly lose their license by violating the pubic trust. Not all real estate agents are Realtors®. Realtors® are agents who belong to the national, state, and local Realtor® associations and are bound by a strict code of ethics. Sanctions can be imposed by the association for any unethical behavior on the agent's part. Look for someone with a good track record who values referrals from past clients and customers. Benefield Realty Company has remained in business since 1948 by treating clients and customers with honesty and integrity. Visit http://www.benefieldrealty.net/ to see how we might serve your real estate needs.