Selling Your Home in a Slow Market

By: Gloria Smith

There are always ups and downs in the real estate market. If you are selling your home it is important to know what type of market you are going to be selling in. Take a look around your neighborhood. Are houses selling fast, or staying for sale for months?

Just remember the basics of selling a residential real estate property. With so many houses up for sale, think about making your home a standout from the others. This should be a priority. You need to keep your home in good condition before showing it to prospective buyers. By this, we mean fixing things that are not working well like your electrical, air conditioning and heating systems, repainting walls and ceilings that don’t look good anymore, cleaning your front and back yards as well as all the rooms inside the house and getting rid of the clutter. Keep in mind that a well-organized home promotes comfort and creates more space.

After you’re done preparing your home, be sure to set a fair market price. Avoid overpricing in a slow market when demand is low. What better way to do this is to find out the sales of comparable homes in your area during the past six months. This is what they call a market analysis. You can get information on this from your local county’s assessor or through its website. You may also consult a real estate agent you know if you’re still in doubt. Real estate experts even suggest to underprice your home by at least five to ten percent to attract more buyers. This strategy can lead to multiple bids and hopefully, to even a higher sale price than your estimated home value.

Offering incentives to buyers is another attraction. These incentives can include adding personal items in your home’s sale, covering the cost of repair to major appliances that breakdown within a year after the sale and paying the closing costs which normally is about three to six percent of the sale price. Another incentive that is gaining ground pertains to seller financing. This means that a buyer makes a big down payment of about 20 percent and then borrows the remainder directly from the home seller instead of getting a bank mortgage. The seller then gets paid by the buyer on a monthly basis and with a rate higher by about one percent compared to the bank’s charges.

Finally, don’t forget the marketing aspect. Have your home listed on various sites on the internet that offer free listing service and include a photo as well. Inform other family members, relatives, friends, colleagues and real estate agents you know about your home being sold and distribute flyers in public places in your locality.

Writing An Offer To Purchase Real Estate

Writing an offer to purchase real estate is critical in negotiating a sales contract with a property seller.

The purchase offer is a very important legal form that details the price you are intend to pay for a property as well as several terms and conditions such as the method of payment, the down payment, any inspections that will be performed, what personal property will be included, the closing date and costs and who will pay for them, terms of cancellation, any repairs you want done, and any other contingencies.

In writing the offer, your aim is to get what you want but it’s also best if you put yourself in the shoes of the seller. Anticipating the seller’s reactions will give you a better perspective in deciding what conditions to consider in your offer. Be sure to review the laws in your state as every state has its own laws on real estate.

One of the most important considerations in writing the offer is your purchase price. Be specific and realistic about your price. If you know that there are multiple offers, consider offering a higher price or making a large down payment to get the seller’s approval.

Making a reasonable down payment is also critical in a offer to purchase. You can pay in cash, personal check, cashier’s check or by using a personal property, real property, mortgage or promissory notes. Specify the person who will keep the deposit. Normally, it’s a third party like the seller’s attorney or the buyer’s agent.

Include your financing terms if it’s FHA, VA, conventional, contract of sale or assumption of mortgage. You may also include the maximum interest rate if you wish.

Contingencies are essential as well since these serve as your protection should the deal fails to push through. These written clauses will allow you to cancel the contract without penalty in case something goes wrong during the negotiation. Common contingencies include obtaining financing, property appraisals and inspections done by professionals to ensure that they pass your standards and that the property you are buying is in good condition.

Be specific about dates and timeframes. The expiration date of the offer should be stipulated and the seller should be given enough time to respond to the offer. Both the buyer and the seller have to agree on the closing date. For more information on purchase offer expiration, check your state contract laws.

The date of possession of property by the buyer should be clearly stated to avoid confusion and other problems. Will it be on the day of closing or a day after or two to three days after closing? The buyer and the seller have to agree on the date of occupancy. But normally, a seller is given up to three days to move out of the house and turn over the keys and possession to the new owner.

Stipulate in your purchase offer as to who will pay the necessary fees like title, escrow, county or city transfer taxes and closing costs. These fees may be shouldered by the seller or the buyer or split by both. If you’re not sure about the custom in your area, consult a real estate agent or lawyer before you write this portion.

View Sample Offer to Purchase Real Estate Form Purchase this form for $4.99

How to Use a Quit Claim Deed

Transactions involving the transfer of real estate normally involve several documents known as deeds (judicial, warranty, will, sheriff’s and deeds of trust). These deeds are vital to make the transfer of a property from one person to another legitimate. One of these deeds is the Quit Claim Deed.

A quit claim deed is a legal document which releases a person’s claim or interest on a certain real estate property and passes it to another individual. This type of deed, however, provides no assurance as to the rights of the person receiving it and makes no warranty that the person concerned owns anything. Quit claim deeds can be used in various situations such as in a divorce, transferring real estate properties between family members, as tokens or gifts or to remove doubts on title.

A typical example of a situation where a quit claim deed may be necessary is when one spouse disclaims any interest in the property that the other spouse owns such as during a divorce. In this circumstance, the spouse who foregoes his interest on the property is called the grantor while the spouse who owns the property is referred to as the grantee. The risks will be shouldered by the grantee especially since there is no warranty on the title.

If a married individual solely holds title to a property or the wife or the husband bought the property before tying the knot, the other spouse may be required to sign a quit claim deed when the property is sold to a third party. For instance, Annie bought a house before marrying Tom. A few years after the wedding, Annie decides to sell the house to Mr. Taylor and Tom, the husband, was required to sign a quit claim deed to Mr. Taylor. The main purpose of the quit claim deed here is to ensure that the spouse not on the deed does not return later on and reclaim the property.

Another example during a divorce is when one of the spouses wants to keep their conjugal home. In this case, the spouse who wants to remain in the house needs to request a quit claim deed so he or she could have sole interest in the house.
Of course, in selling any residential property, the owner is usually required to file a quit claim deed with the county in their state. The document will then transfer the interest of the house involved from the seller to the buyer.

Still another use is when a family home inherited by several siblings who share ownership is sold to a new owner. However, even before the sale, a sibling can already sell his or her share in the home to another sibling and sign a quit claim deed to give up all his or her rights and interests in the property.

Legal experts say there are important things to keep in mind when using a quit claim deed. They point out that the document should bear the current legal names of the parties involved. For divorced couples, the names that appear in their divorce decree should be the same as that will appear in the quit claim deed. The quit claim document will not be needed, though, if the divorcing couple decides to live in separate homes but would like to remain on the title.

Sample Quit Claim Deed Form

Benefits of a Home Appraisal

Setting a fair market price is vital in selling a home. Many home buyers are meticulous about the price of their future home hence it is important not to price your residential property too high nor too low. Keep in mind that a fair market value often leads to a speedy home sale.

Appraising your home should be done before negotiating with prospective buyers. To determine the real value of a home, a seller can use several methods. One is to make a market analysis by gathering information on prices of homes that recently sold in your neighborhood and comparing them with your estimated selling price. Research also about your local housing market and find out how long homes for sale stay on the market. By following this method, you will be able to get a good idea on how to price your home.

However, if you still have doubts after conducting a market analysis, then maybe it’s time you hire a professional home appraiser. By getting the services of a home appraiser, you can be sure to get an official estimation of your home value. And not only that, a good appraisal will also guide you in negotiating a better deal for your home and will provide you with an official document on your home’s worth which you can show to prospective buyers.

In hiring an appraiser, get referrals from real estate agents you know or from close friends. Go ahead and ask them about their rates and references as well as their professional designations such as if they are members of the Appraisal Institute and the American Society of Appraisers. Don’t be afraid to ask more questions you’d like to know like when the appraisal will be conducted and when will you be issued the document. You may also ask to see the appraiser’s license if you wish. Once the appointment has been set, be present while the appraiser inspects your home but avoid giving unsolicited comments. You may only inform him about recent improvements you’ve done to your home.

Be aware that professional appraisers, before coming up with a residential property’s appraised value, should make an assessment of your home and neighborhood, analyze market data such as previous and current comparable sales in your area within the last three months, current offers, pending sales and proposed improvements.

Other vital factors will be taken into consideration and an appraiser will normally use many sources to make his appraisal including the local multiple listing service, local real estate professionals, private data vendors, country courthouse records, information he gets from home owners and his personal knowledge.
Once the appraiser is done, he should provide you with a document stating the estimated market value of your property.

Having the right knowledge about the home selling transaction including the appraisal process most often benefits both the buyer and the seller. A home appraisal is indeed a great help in real estate investment because it serves various purposes other than estimating a home’s market value. Appraisers can aid homeowners in estate planning, assessing the feasibility of planned home improvements and in insurance valuations.

An Attractive Home Will Sell

What are the ingredients of a successful home sale? Of course, a good selling price is important. But more than that is a beautiful, sweet-smelling and well-organized home. Nothing beats a house that has been thoroughly cleaned and repaired inside and out.

Preparing a home is as vital as marketing it to potential buyers. You don’t even need to spend a fortune for this because your creativity and resourcefulness can do the trick. The preparation stage, though, is not just a one shot deal because it entails cleaning the front and back yards as well as all rooms of the house and organizing appliances and accessories.

Cleaning means mowing the lawn, removing clutter and putting things were they belong to create a spacious look. Clear the pathway from the front yard to the door by taking out the weeds and other rubbish. Many buyers will most likely want to see the interior of the house that has a clean and beautiful front yard filled with colorful flowers and healthy plants.

When assessing the interior of your house, try to put yourself in the shoes of a buyer. By standing from the front door, check what needs to be fixed and repainted and how to best position your appliances and fixtures to provide more space. Space is tantamount to comfort. Remove large and extra furniture and keep tables and dressers neat and clutter-free. Choose a light and neutral color if you feel the need to repaint your walls and ceilings. And do wait for several days for the paint’s smell to disappear before putting your home on the market.

Focus on the kitchen and bathrooms because they are considered vital parts of a home. Keep them looking bright, clean and free from odor. Check faucets for leaks and have them repaired as soon as possible.

Windows should be cleaned inside and out to accommodate more light to your home. Mirrors in small rooms including bathrooms and hallways are also great in creating a brighter and bigger ambience. Your mirrors should also reflect lovely things like flowers and paintings.

A fireplace is a good attraction to a home so make sure to keep it clean. However, you may want to light it up when potential buyers come for a visit especially in the evening. This is also one way of providing a warm atmosphere.

Keep your home smelling good because the scent of your home is an essential deciding factor for many buyers. Use fresh flowers and potpourri but avoid spraying deodorizers right before the scheduled visit of buyers. Deodorizers are also not good for people with allergies so to be sure, don’t use them. You would not want to make your visitors sneeze while they check your house, would you? If you have pets, keep them in their cages to rid your home of any animal smell that normally turns off buyers.

Remove personal things such as photos from your living rooms because they can be a distraction. Keep other precious personal items such as jewelry and money in secured places. Remember that those visiting your home are complete strangers to you hence, it’s always best to be safe.

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