home sale Archives - Page 16 of 17 - Real Estate News and Commentary

May 20, 2011July 26, 2019

Planning to de-clutter

De-cluttering your home is not just reserved for a home sale. It’s also a bit more than just a thorough cleaning and putting away items that are not in use. You may already be overwhelmed by the thought of cleaning, but remember that if you prepare a realistic plan and stick to it, you will be finished before you know it.

When going through each room, decide which items are necessities and which items need to go. There are many items that you may decide are not necessary to keep, yet they are personal or sentimental. Professional home stagers talk about the idea of “depersonalization” when discussing de-cluttering. This means that the home should be “neutralized” so, rather than view your life and personalization, home buyers can have a vision of the home as their own. Keeping depersonalization in mind, decide which items need to go.

Remember that de-cluttering doesn’t necessarily mean that you dispose of everything you don’t need or want in your home. Many of your personal and sentimental items you wish to keep can be stored temporarily or for long periods of time. You can rent storage units of various sizes on a monthly basis, or you may decide to have a portable storage container delivered to your home. The portable storage container is a practical solution if many of the items that you’re pulling from your home will be used in your new home. Additionally, if you’re move is not immediate, the portable storage container can be transported by the company to storage until you’re ready to unload the container in your new home.

The items you decide that you no longer need or want can be donated, disposed of, or you might even decide to have a yard sale! If you have many items that need to be removed from your home, consider donating the items to a charity before throwing it all away. Since many charities vary on what is acceptable for donation, it’s a good idea to check with them before scheduling a pick up or dropping items off to their collection site.

Be careful when throwing items away; you may need to take precautions or make separate disposal plans for certain materials. Some items that cannot be picked up by the regular trash collection can be scheduled for pick up by the county or local municipality; or can be hauled to the local processing facility. If you’re unsure how to dispose of certain items, you can check with the Montgomery County Division of Solid Waste Services for facility hours and disposal/recycle procedures.

If you don’t have the time to haul your unwanted items on your own, you may decide to hire a hauling company. Charges to haul items away can vary depending on the company, as well as how they dispose of the items. Some haulers may drop everything to a county processing center, while some may sort your items either for donation or sale.

De-cluttering is the keystone to your home’s presentation. De-cluttering a home may sound laborious, but it doesn’t have to be if you have a realistic plan. If you’re unsure how to begin de-cluttering your home, you can check with your Realtor® or you can hire a Professional Organizer. The National Association of Professional Organizers (napo.net) maintains a national directory of Professional Organizers.

by Dan Krell
© 2011

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

September 30, 2010October 5, 2019

How unknown problems jeopardizes the home sale

“What you don’t know won’t hurt you” is an idiom that implies that you can be happier by not looking into the unknown. However, this does not apply to real estate transactions. Homebuyers and sellers both invest a great deal of time and money in the process prior to settlement and do not want to have it all squandered on an unknown that can ruin their home sale.

Homebuyers typically spend about twelve weeks searching for a home (according to NAR’s Profile of Home Buyers and Sellers 2009), and can spend a nice sum of money when the cost of a home inspection, loan application, appraisal, gas for driving, time off of work, etc. is totaled. Likewise a home seller invests time and money in preparing for closing all the while having their home sale depending on the performance of the buyer.

Unfortunately, a transaction can sometimes become laden with unknown landmines waiting to blow up the deal. Although most real estate agents try to vet their clients before entering into a contract, hidden issues threatening the closing may not be revealed until weeks after a ratified contract and sometimes not until closing. If you’re a buyer or a seller, it makes sense to ask about your counterpart; and if there’s opportunity, take the time to find out more about them prior to becoming invested in the sales contract.

Take, for example, divorce. Although divorce is a common issue that is encountered within a transaction, it is sometimes not fully disclosed and can affect the outcome of the home sale. A homebuyer’s ability to purchase a home could be affected by shared accounts that have not been revealed or responsibility is refused by their spouse; the resulting homebuyer’s high debt ratio could disqualify them from their mortgage. Likewise, a home seller going through a divorce can be tripped up by an uncooperative spouse who is unwilling to sign the deed.

Homebuyer issues can pose potential problems if not evaluated properly. Undisclosed credit, financial, and legal issues can pop up any time throwing a wrench into the home sale; sometimes these issues don’t reveal themselves until the end of the process because the loan officer and/or agent did not ask the right questions or ask for all the required documentation. Additionally, unlicensed lenders and loan officers that continue to attempt to do business can also be a potential problem as they may be prevented from providing the homebuyer a mortgage.

Unknown home seller issues may also jeopardize the home sale; surprise issues are typically related to providing clear title to the buyer, but can also include various legal problems. Title defects may include unpaid mortgages and (tax and mechanics) liens. Sometimes a seller may need third party approval from a trustee or lender (such as in bankruptcy or foreclosure), which can either prevent or prolong the sale.

Due diligence prior to entering a sales contract may prevent sticky problems; searching available public records and reviewing disclosures for discrepancies could provide extra information that can assist you in your decision process. Undisclosed buyer and seller issues, although aggravating, do not always kill the home sale and often are resolved. However, consulting an attorney about recourse over a soured real estate transaction is always a good idea.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of September 27, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell.

January 5, 2010June 30, 2019

Coping with the stress of the real estate transaction

Unless you are under the care of a psychiatrist prescribing you Valium, “stress free” is not something that comes to mind when describing real estate. According to the American Institute of Stress (stress.org), stress is subjective and can originate from negative and positive experiences.

On the “Holmes-Rahe Social Readjustment Rating Scale” otherwise known as the Holmes and Rahe Stress Scale (Holmes & Rahe 1967), having a mortgage over $10,000 rates 31 (just above being foreclosed upon) and moving is rated as 20. This commonly used stress scale (which rates life events to determine risk of illness) is cumulative, so the rating for buying a home is at least 51. Your stress level obviously increases when you add in other life stressors such as (but not limited to): getting divorced (73); getting married (50); having a baby (39); changing careers (36).

The reason why buying a home may rate so high on the Stress Scale is that, unlike other transactions, buying (and selling) a home is a large emotional investment! Gordon Gekko, from Oliver Stone’s Wall Street, was on to something when he said, “don’t get emotional [over stock], it clouds your judgment.” Emotions often become amplified when stress increases and can interfere with judgment.

Although most real estate agents don’t understand stress (what it is or how it’s reduced), it does not stop them from lecturing and blogging about “reducing stress” during the home buying or selling process. Being prepared and dividing the buying/selling process into segments is common advice and makes sense. This guidance often helps buyers and sellers feel a sense of “control” by understanding what to expect. However, the wonderful thing about real estate is that every transaction presents a new set of personalities, conditions, and (sometimes) problems. Reactions among buyers and sellers, as well as real estate agents, vary depending on their personalities and life circumstances. So no matter how much you plan, prepare, and visualize what it may be like, stress can be produced just by going through the process (created by both positive and negative feelings).

For some, being prepared is enough to help them anticipate and deal with most circumstances that may arise; while for others, the act of preparation may actually increase stress. Emotional factors, often based on needs and fears, can play a key role in your stress levels. Sometimes your needs are beyond your control and can increase your stress level, such as the need to stick to stringent timelines. And sometimes your needs can adapt and change which can mitigates your stress, such as finding the “perfect home.”

Fears about the outcome of the transaction can increase your stress, especially if you’re a first time home buyer. Common buyer fears include mortgage approvals and rising interest rates; sometimes buyers fear that the home inspection may reveal problems with the home. Common home seller fears include the home buyer’s qualifications and the ability to consummate the sale.

Good real estate agents know how to address the needs and fears of the real estate transaction to keep stress levels in check. Regardless, some people may turn to self help, “pop” or common stress reduction techniques (such as meditation); and if the stress is overwhelming, it wouldn’t hurt consulting with your physician or a qualified mental health professional – especially if you’re already stressed by your job, family and other life stress.

This article is not intended to provide nor should it be relied upon for legal and financial advice. Permission to use this article is by written consent only.

By Dan Krell
Copyright © 2010

April 15, 2008November 23, 2021

A lot’s at stake, proceed with caution

by Dan Krell © 2008
Google+

Separating? Divorcing? Separation and divorce can be one of the most challenging experiences anyone can endure. Even when you decide to work things out amicably, things can become contentious and difficult; disagreements seem to be at the heart of divorce, right? If you haven’t consulted an attorney yet, you should do so to get advice and assistance on the splitting of assets (including your home) and the tax liabilities you may incur.

Splitting couples often do things in haste out of anger, fear, and sometimes (mental) exhaustion. Getting to the nitty-gritty, there’s a lot at stake; making impulsive and rushed decisions can be reckless- especially when it comes to the disposition of the marital home. Before you make a move, explore the options available to you to protect your assets and your financial investment in your home.

Divorce agreements vary with the requirement to sell the marital home. Some separating couples agree to sell immediately, while others agree to sell after a number of years (allowing one spouse to stay in the home). Depending on when your agreement requires the sale of your home, you could owe additional taxes. The tax laws are complex (consult your accountant), however filing jointly would allow you to claim up to $500,000 in real estate capital gains without being taxed, while filing individually only allows you to claim up to $250,000 real estate capital gains without being taxed.

When it comes time to sell your home, finding a Realtor who has experience with divorcing couples can make the sale go smooth. Before hiring a Realtor, interviewing several can give you an idea of their communication skills and experience. It is wise to hire a Realtor who is neutral and can work with you and your spouse; hiring a Realtor because they are a relative or friend often creates or adds to the spousal discord, which deteriorates communication at a critical time.

Misunderstandings and bad feelings between you and your spouse can undermine the home sale by interrupting communication between all parties. To facilitate a smooth sale, everyone (you, your spouse and your Realtor) should agree on the communication methods to inform each about aspects of the sale, as well as the process to show the home and the preferred method of contract negotiations. By laying the groundwork prior to listing the home, everyone knows what to expect and how the sale process will be executed.

Pricing the home realistically can eliminate a lengthy time on the market. It is good practice for your Realtor to present an analysis of the local and neighborhood market to you and your spouse so as to agree in pricing the home.

Your Realtor should always be discreet about your domestic affairs during the sale. Domestic situations, such as divorce, are not material facts about the home and do not need to be communicated to home buyers. Keeping discretion about your domestic affairs can limit bargain hunters’ “low ball” offers.

Planning and counsel can lessen the overall impact of separation and divorce by exploring your options. If you have a home and are divorcing, consult with your attorney and accountant before agreeing to listing and selling the home.

October 14, 2006April 25, 2019

Home Selling Tips

Because not all listed homes sell, you should be strategizing how to make the most of your sale. What to do? Here are some home selling tips .

Think about the basics that go into a successful home sale. The first is to price the home according to the comparables in the neighborhood. The second is to consider the condition of the home. The third is to have a marketing plan. And lastly, you should have a close working relationship with your Realtor.

Home selling tips

Of course your home should be priced according to the comparables in the neighborhood, and progress should be gauged with the other homes on the market in the neighborhood. That means besides pricing according to the homes that are comparable, your Realtor should expect results within the parameters based on those sales also. Regardless of what you hear, the seller sets the selling price. Your Realtor is only an advisor providing you the data and opinion.

Sale price

Comparing your home to similar homes that sold is critical in deciding a sale price. Comparables are homes that match your home in style and size. If you have a three bedroom rambler, you should compare your home to other three bedroom ramblers in then neighborhood. Typically, comparables are restricted within a subdivision or within about 0.5 mile to 1 mile. And sales not older than six months (unless there is a lack of home sales).

Home condition

Why is your home’s condition important when deciding a sale price? If your home has deferred maintenance or hasn’t been updated for twenty years, it’s not going to get the same price as the renovated similar home across the street. Be honest with yourself about the home’s condition. If your home is not in move-in condition, think about the cost of renovating in the price along with market conditions. If it’s a buyer’s market, you may have to consider a lower price or the home will languish waiting for a buyer. If it’s a seller’s market, there are more home buyers willing to buy a home with the intention of renovating it.

Marketing plan

You need a roadmap to success. If your Realtor has not yet presented you with a marketing plan, ask for one. Your Realtor should have a plan of action to sell your home. Putting a sign in front of your home and entering the information in the MLS is not typically enough sell a home. Market conditions frequently change, and your Realtor should have a concrete plan to sell your home. The plan should include not only how the home will be marketed, but how the agent will take you from contract to closing.

Your listing agent

The final aspect that is important in selling your home is the relationship between you and your Realtor. Besides having confidence in your Realtor, you should feel comfortable being honest (for good and bad). It’s not a good sign if your Realtor is often defensive when you express concerns and needs. Your Realtor, on the other hand, should also be honest, as well as timely with information concerning your home. Besides communicating the activity of the potential home buyers, they should also keep you up to date with the neighborhood market keeping an eye on the other homes on the market.

How will you market your home and what will you do if the market changes? When you are interviewing Realtors to sell your home ask about their marketing plan. Ask about a home pricing strategy. Ask how your home’s condition affects the price. Ask how the agent communicates and what you should expect from them.