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Category Archives: Real Estate

Sell Property Privately

Benefits of selling a home privately:

• You do not have to share your profits with anyone
Since you are selling the property without hiring an agent you do not have to a commission which is a percentage of the total sales amount.
• You are in control of the sales process.
When an agent sells your property, he has the control over the process. On the other hand, when you sell your property privately, you have control over the entire sales process.
• You have the flexibility to arrange viewings as per your convenience.
• You can negotiate a price you deem right.

How to sell your property privately?

De-clutter

Clear up your home to remove any articles of personal nature.

Inspect

Inspect your home for any faults or defects and correct them.

Home-staging

It is decorating your home to attract buyers. You could consider professional home-staging services. Home-staging not only attracts buyers but also helps your property fetch a better price.

Price your property

Accurate pricing of your property is important for selling it quickly. For this, you could research the prices of similar properties on the internet. You can also consider taking the services of a professional evaluator.

List your property

List your home on a reliable, high-visibility property portal. This will ensure that it reaches a large number of potential buyers. You could also consider multiple listing to enhance your reach. It also helps to promote your listing on social media channels to increase its exposure.

Connect with potential buyers

Potential property buyers will connect with you directly after viewing the listing.

Arrange Viewings

Arrange visits for your potential buyers to view your property. You have the flexibility to arrange the viewings at mutually convenient timings.

Negotiate

You are the owner of the property and you can decide what price you want to sell it. You can negotiate the price directly with the buyer.

Close the deal

Close the deal with all the necessary documentation. You can consider hiring a legal expert to scrutinize the documents.

Get Cash Offer On Home

When you sell a home through a real estate agent, there are many steps along the way that can delay the process. Some of the most frustrating are having to wait on buyers to obtain financing, which can turn a potential deal into one filled with chaos, especially if the buyer is declined financing by their lender. However, investors are usually ready to pay cash for their purchase, and also have the ability to close the deal far quicker than traditional buyers.

When you choose to focus on having an investor purchase your home, you’ll usually have much greater flexibility when working out a deal. This can be particularly important if you still have a mortgage on your home, since this can sometimes be a sticking point in negotiating a deal with a buyer. However, since investors are more willing to take on an existing mortgage, it’s possible to sell your house fast much easier than you anticipated.

When you are eager to sell your home fast due to an illness, job relocation, divorce, or inheritance, you may not have the time or money needed to make one repair after another. While this may hinder you selling your home through a real estate agent, it often works in your favor if you’re willing to sell to investors. Since they are likely buying properties to turn into rentals or to fix and flip, they are used to purchasing properties in need of repairs.

Which Impact Home Buying

1. Supply: When the supply, of house’s available, on the real estate market, exceeds the demand, we have a Buyers Market, which generally, lowers selling prices, and helps buyers, purchase more house, for less money! The economic theory of Supply and Demand, is extraordinarily, relevant, when it comes to real estate, and often, fluctuates, considerably, from time – to – time. Sometimes, this occurs, gradually, over a period of time, while at other times, it changes, dramatically, rather quickly. This is why, one must carefully evaluate and consider, pricing, not, merely, in terms of what has been, or what is, but also, what might be!

2. Demand: When the demand for houses, exceeds the supply, it creates a Sellers Market, For the past couple of years, we have been experiencing that type of market. Many factors effect this, including competition, job market, overall economy, public perceptions and comfort zone, and the specific, local market. We must all beware, and prepare, for factors which might impact real estate and the housing market, including the capping of so – called, SALT deductions, as well as rising mortgage interest rates.

3. Perceptions: Buyer and seller perceptions, are, often, quite different, The best thing for a homeowner, to do, is, go, to, some Open Houses, in the neighborhood, in order to get a better idea of the competition. Many owners over- value their house, while most buyers, seek the best possible price. In addition, perceptions of the overall economy, trends, etc, have a significant influence!

4. Financial considerations: Many financial considerations, are relevant to this discussion. This may include: the overall economy; the specific, local, one; mortgage rates and trends; real estate taxes; the employment/ job markets, etc.

Banks Are Approving Buyers

These days, when the banks send in their evaluators, they don’t just assess value. They also report back about any cracks in foundations, or major up-keep issues. This raises red flags on the file and the loan officer will likely ask to see the building inspection report.

Inspection report can bring up more problems than expected

The state of a property tells a story. Overdue maintenance on brickwork, cracks in the foundation, a deteriorating leaking roof will all significantly lower the value of a property.

When a property is flagged and the loans officer requests the inspection report, you must oblige, even if you put in an offer that was not conditional upon an inspection.

You must go back to the vendors and explain that the bank is insisting on a report.

Of course, this usually happens near the end of your timeline to get the mortgage approval.

If the inspection wasn’t part of the initial deal, the vendors can refuse to let you do an inspection.

This happens quite often because reports often bring up more problems than expected, which can scare off any skeptical buyer.

If the deal ends up falling through, the vendor now has a legal duty to declare all of its findings to any future prospects.

You need skilled brokers to navigate around problems

As you can see, the waters become muddy very quickly. The offer may have been accepted under a condition of multiple offers. The vendor may have purposely accepted because it did not have an inspection clause and the buyer’s plan may have been to renovate the whole place anyway.

In these cases, the mortgage condition timeline is often extended and buyers change banks, hoping that the outcome is different. Most times it’s not.

I once put in an offer on a duplex where three other offers fell through due to the state of the building. I was lucky because my mortgage broker was very experienced and suggested getting a renovation loan to make sure that any major issues about the property were taken care of right away to ensure the bank’s investment.

As well, the mortgage broker sent my clients to the bank with which the property was already mortgaged. That was the edge that we needed and the mortgage approval was finalized.

Up front communication about potential problems with a property and smart skilled service providers are more necessary now than ever as banks continue to put new policies in place to protect themselves.

House Staging

1. Benefits/ possibilities: As the lyrics of the song, go, Accentuate the positive, eliminate the negatives, staging is often done, to achieve, the objective, of being able to show off a home, in its finest light! Sometimes, this means, simply, de – cluttering, or adding accent lighting, etc, while, at other times, a larger effort might be indicated. Sometimes, one hires a home – stager, to bring in, furniture which will make rooms appear, warmer and friendlier. larger or more, user – friendly! The height of chandeliers, often makes the room’s dimensions, appear, considerably different. When potential buyers are viewing a house, many lack the ability and/ or perception, to visualize, what the possibilities of a home, might be, and, thus, staging helps these people, see things as they might be., Selling a home, professionally, and proactively, often, means, ensuring, every viewing, is, appealing to the potential buyer!

2. Marketing: Many potential buyers, make their decision, whether to look at a particular house, is based on how a house, looks, in the pictures, posted on the Internet. Therefore, professionally staged houses, often, have a marketing advantage, because they attract, more qualified, potential buyers, to consider, proceeding forward, and taking a look. Selling a property, often is enhanced, when there are more people, viewing it!

3. Imagination: Because many potential buyers, lack the necessary, relevant imagination, to see, beyond – the – surface, and, focus, on lesser items, such as the color of the paint, and whether, they like the furniture and furnishings, professional home – staging, is, often, indicated! The reality is, when a home, is staged, to appear, to the best of its potential, more potential buyers, seriously consider it, as the home, of their dreams, and needs!

Avoid Buying A Money-Pit

1. Qualified, experienced, recommended, home inspector, and/ or engineer: Since most of us, are not experts, nor qualified, to examine the condition of your prospective house, before purchasing, nearly every attorney strongly recommends, getting a home inspection, before agreeing to purchase any real estate. Ask around, to others, you know, personally, as well as your real estate professional, and find the best one, to assist you, and direct you, properly! The more you know, in advance, the better, off, you will be!

2. Major, versus minor renovations/ repairs: While, nearly every house, needs some work, you should identify, routine things, from big projects, and deal – breakers! However, when you know, in advance, as much details, as possible, you should use this information, in order to add, these costs, to your purchase price. Can you afford this total cost? Are you getting what you need, and the best, bang – for – the – buck?

3. Needed, versus cosmetic changes: Most home buyers make some changes, to best meet their personal tastes, etc. This includes minor renovations, painting, and addressing, perhaps, certain appliances, flooring, etc. These are regular, expected, cosmetic changes, and must be distinguished from expenses, which will arise, because of necessary issues, etc.

Property Buyers

1. KNOW YOUR PROPERTY BUYERS WELL:

Being a home owner, it is your right as well as privilege to know your property buyers credentials beforehand itself. A reliable property buyer will ensure a smooth and transparent sale. While it is important that both sides are mutually aware of the property sale in question, you need to share mandatory information with your house buyers and keep all communication channels open and flowing for a step-by-step, peaceful and amicable transaction.

2. EDUCATE YOURSELF ABOUT YOUR OWN PROPERTY:

Before initiating a sale and reaching out to property buyers, it is important to keep yourself up-to-date regarding all matters pertaining to your property. Any house buyer will want to know that you have all of the relevant papers and supporting documents for your property. Therefore, it is pertinent to keep accurate records of all papers and supporting documents in a neat and organised manner for your property sale to go in a smooth and hassle-free way.

3. DO A COMPLETE LOCATION RECCE:

There are many reasons why you should insist on a location check along with property buyers beforehand. A professional house buyer helps you to gauge the true potential of your sale, thereby quoting the right price to the customer. A property buyer has visited many properties before yours and as a result can suggest new areas, competent rates and interesting ideas. As a result that can definitely get you more depth from your property sale. This is possible when you take him on a complete tour of your property and allow him to ask you questions, seek answers and try to gain knowledge out of the experience of the property buyers previous assignments.

4. BE PREPARED FOR ANY SITUATION

Property buying is not everyone’s cup of Tea. It is important to be aware of the risks and obligations involved in property ownership before you buy or sell. The best insurance against any uncertainty is making sure that you are educated. Learn about the latest trends in property management, involve yourself in various property anti-risk measures and be proactive in dealing with the current scenario in a time-bound manner. This will surely help you to be prepared for the future by all means.

Quick Sale of Property

Plan of action for a quick house sale

There are some actions required on your part if you desire to sell your house as soon as possible. There are bound to be many sellers in the market offering a similar type of property. In order to complete your sale soon you need to compete with them and for that you need to stand out of the crowd. Following are some tips to sell a house quickly-

1. The first and the best move is to contact a real estate agent to plan your sale and know the market value of your property. A real estate agent will fetch a buyer soon for you and give you the best advices on your sale plan.

2. The next move is to enhance the appeal of your property and bring updates which are in your budget. For your property to be sold the major condition is that a potential buyer should like it. You should clean every corner of your home and beautify it before the buyer visits to check your property for the first time. Upgrades are important to add value to the appeal of your property. All this should be done taking the advice of property agents because you yourself may fail to realize the shortcomings of your property.

3. Proper pricing of your property is equally important. You have to balance your best interests as well as market rates while setting up the sale price of your property. The price itself can sometimes fetch your property a buyer.

Selling your home privately

Sometimes you have no time to wait for a buyer at all. In such cases choose consulting a quick house sale company. When you sell your house to a cash buying company, there is no fuss of meeting an agent, having buyers checking around your property, hoardings and all the advertisement, etc. You can privately sell your house to a company for cash as soon as in a week.

Real Estate Terms

New Roof

The term “roof” is misleading in that it implies the roof covering plus the roof sheathing, rafters or trusses. The word “new” is rather nebulous as well. “Shingles replaced in 2015” is a more accurate description.

Updated Wiring

Does updated wiring mean the size of the service has been increased or additional circuits have been added? Does it mean that the older knob tube wiring has been torn out (which is not a requirement of the Electrical Safety Code, however most often an insurance issue)? Sometimes it means that the old outlets have been replaced with modern-looking ones, however the wiring has not been changed at all.

A better approach may be to comment on the adequacy of the incoming service and more importantly the adequacy of the distribution network. Both of these however, are very difficult to assess without a solid understanding of electricity. We all know that you cannot determine the size of an electrical service by reading the sticker on the main box in the basement. It may be best to leave this one alone.

Thermal Windows

There is really no such thing. The R value (resistance to heat transfer) of a typical wall in a modern house is approximately R12 to R20. The R value of a single glazed window is R1. What about a double glazed window? R2! Maybe R3. The window manufacturers call this a 100% improvement! The real benefit of double glazing is that it increases the surface temperature of the inside pane of glass so that condensation does not form on the windows in the winter time. “ThermoPane” was a merely a brand name.

If the second pane of glass is a separate storm window, there will be a separate frame for the storm. This creates a second barrier to air infiltration and in some cases, it is a better arrangement than a double glazed window in a single frame.

Upgraded Plumbing

Are we talking about new bathroom fixtures or new copper pipes? If we are talking about new pipes, are we talking about all new pipes within the house or just the accessible ones in the unfinished portion of the basement? When we say “all copper plumbing” do we mean the waste piping as well? From the mid 1950’s to the late 1960’s, waste plumbing was also copper.

Pros and Cons of Rent To Own

Pros and Cons

A pro of participating in a rent to own program would be the final down payment issue. You do have to provide a down payment with the lease signing $6000 to $12,000, but in comparison to what a bank would require, (15-20% of the price of the house) this is a steal! Like I mentioned earlier, the final down payment is being collected in your rent that it makes it effortless to save for the down payment. For example, if the rent is $1800 a month, roughly $200 to $400 is saved for the future down payment. It’s an easier way to save!

Another pro of this program would be the market price of the home being the same. Let’s say that the agreed upon purchase of the house at the beginning of the lease is $280,000, this will be the same price at the end of the lease. This will save you in times where the market may go up due to a market upswing, your contract will still be at $280,000, but the value could be much more! You will not have to pay for the increase in value, just what was agreed upon in the beginning.

A con of this particular program could be the rent. Depending on where you would like to purchase your house, the rent could be a bit higher than expected in the area. The surrounding area could have an average rent price of $1500, but since your rent will be including part of your future down payment, the price to rent may be $1500 and up. If you do decide to do this, you have to understand that even though you are paying more per month than a neighbour who would be renting their house, your increase in rent will allow you to save and purchase the house in the near future, where your neighbour will just be renting and never owning that house.

Another con would be the lease and final purchase of the house. In the beginning, you will have to put a small $6000 – $12,000 down payment on the house before you rent it which allows you and the landlord to agree upon the rent to own program. If there is no down payment, it will be a straight rent and would not allow you to make the jump from renter to owner. The lease agreement could last from 3 years or more. If you decide in the second year, you do not want to permanently move into the home, you will forfeit the down payment. You will be in breach of the lease contract and you would not be entitled back to your down payment. But if you were to live in the house for 2 years, why would you want to leave? You have the option to redecorate, remodel and upgrade the house to a certain extent since this will be your future home. If you wanted to paint it, you can! You can make the home comfortable and catered to your likes to make it your home. If you make it your home, there will be no reason for you to leave!