Sellers

If you’re thinking of selling your home, prep up your kitchen. Homebuyers put a premium on the kitchen. Families do a lot of things in the kitchen – preparing meals, sharing meals, sorting through bills, and just hanging out.

According to a recent survey by SieMatic Corp., 85% respondents said that the condition of a home’s kitchen is a major consideration when making a purchasing decision.

You don’t have to give your kitchen a major overhaul. There are other things you can do to make your kitchen look attractive without tearing it down.

Give it a fresh paint. Painting your kitchen new is one, inexpensive way to prep it up. Choose a neutral color since potential buyers have different preferences.

Give your countertops a fresh look. Take a good look at your countertop. Does it need new tiles? Find inexpensive ways to improve it. It won’t cost much especially if your counter is not big. In terms of the color, again, keep it neutral.

Update the faucets. Nowadays, there are so many faucets to choose from. You can pick a stylish faucet to add a pretty and modern touch to your kitchen.

• Take time to think about why you want to sell your home. It can be from a need to move to another place or you need to find a bigger home for your growing family. Ask yourself what you want to accomplish from this sale. As you think about this, you need to also define the time frame and profit margin that you have in mind. Discuss these goals with your real estate agent.
• Set your price. In setting the selling price, you need to be fair. You need to research on the selling price of comparable homes in your area as well as the real estate climate in your area. Most homeowners set a price based on the personal value of their home. Don’t make this same mistake. Take into consideration the condition of your house – the age, wear and tear, damage. It’s usually hard for sellers to set a realistic, unbiased price so you’ll need to consult your real estate agent. This is why it’s important that you find an agent you can trust. Your agent should be able to provide you with information about the selling price of comparable houses in your neighborhood and the average time they waited to be sold. You could also ask someone to do an appraisal on your house so you could have a second opinion and a more objective one. Setting a fair market value price on your house is important. Studies show that houses priced higher than 3 percent of their market value, took a longer time to sell. When a property takes a long time to sell, buyers start to think there’s something wrong with it. This leads sellers to become desperate and sell the property for far less than it’s actual market value.
• All sellers want to sell their homes quickly. But only some are willing to make their houses look salable. Take away eyesores to make your house attractive to buyers. Check every area of the house especially the garage and make sure to remove clutter or stored boxes. Fix what needs to be fixed – broken light, hard-to-open windows and  doors. The appearance and condition of your house will influence it’s price and salability. Cleaning up doesn’t only mean wiping away the dust or scrubbing the floors. It also means putting away most of your personal stuff. It will be hard to sell a house that has so many family photos and mementos. When there’s too much of the seller’s personal stuff, the buyers will have a hard time thinking about making it theirs. Ask your real estate agent for some suggestions on how you could make your home attractive to buyers.
• Market your home. Get as much people to know that you have a house for sale. The internet is the best way to do this. It allows you to reach potential buyers from anywhere in the world who are probably planning to move in your city. But yard signs and local paper advertisements are still effective ways of reaching buyers. Your agent will know how to bring in qualified buyers. The first th/ee to six weeks are the busiest.
• Receive offers. When you receive an offer, your real estate agent will first check if the potential buyer is prequalified or preapproved. The next step would be to review the contract. The contract should include the following: Legal description of the property, Offer price, Downpayment, Financing arrangements,  List of fees and who will pay them, Deposit amount, Inspection rights and possible repair allowances, Method of conveying the title and who will handle the closing, Appliances and furnishings that will stay with the home, Settlement date and Contingencies. As the seller you have three options: to accept the contract as it is; accept it with revisions; or reject it. You need to be careful in dealing with contracts. It is legally binding. If there is anything at all that is unclear, ask your agent or lawyer before signing it.
• Negotiate. Most offers have to undergo negotiating so both parties can get whta they want. Real estate agents are experienced when it comes to this and they should be able to look after your interest and lead you throughout the bargaining process. These are the negotiable items: Price, Financing,Closing costs, Repairs, Appliances and fixtures, Landscaping, Painting, Move-in date. As soon as both parties have agreed to the terms of the sale, your agent will prepare the contract.
• Preparing to close. When you accept an offer, the next thing to do is to think about all the things that you and your buyer needs to do before you could close the sale. The house may need repairs; or the property needs to be  surveyed and appraised. Your agent can act as your spokesperson and deal with the buyer’s agent and service providers. It depends on your negotiation if you as seller need to pay for the cost of the services or a portion of it or even none of it. If the terms on the contract are fulfilled, then you can proceed with the sale. If however, there are problems in fulfilling the terms, you or the buyer can opt to revise or walk out. If you both decide to push through with the sale, make sure to prepare the papers. A few days before the signing, check to be sure that the necessary documents are there.
• Closing the deal. This is when the whole process of selling your house will end. After the signing of contracts, you are no longer the owner of the property. Your agent should be there to guide you through the proces. You may also invite a lawyer to be present. There are some states that require this. After the closing, there are still a few things you will need to take care of. You will need to cancel services like electricity, gas, lawn care, cable and other routine services. If the new owner decides to keep the services, change the name on the account.

If you sell your house looking like a model home, chances are you’ll sell it for a good price. This technique is called home staging. Sellers acknowledge the importance of home staging that it has become a fast-growing profession.

“Staging is not decorating. Decorating is optional, staging is mandatory in order to sell the house for the most possible money in the shortest amount of time,” says home staging instructor Joanne O’Donnell. She has been teaching home staging courses for several years.

The concept was started by Barb Schwarz in 1972 who was then a realtor. She realized that houses that were prepared to be sold prior to putting it up in the market, sold better than those that were not. Today thousands of real estate professionals understand the importance of home staging.

“When we put your home on the market it is no longer your home; it is a product and we’re marketing it,” O’Donnell tells her students.

Home stagers start by taking a close look at the house inside and out. O’Donnell encourages her students to go around the house with the seller. As they go through the house, they should take notes of the things that need to be moved or taken out.

Even though home staging is about improving the appearance of the house, O’Donnell emphasizes that it’s different from interior decorating. “You can’t go out and buy new things for every problem that you have with a house,” she says. Home staging is about decluttering in a way that it looks attractive to the masses. “Clutter eats up equity”, O’Donnell often reminds her students. “The whole idea of staging is that you want to market to the largest number of people to get as many offers as possible,” says O’Donnell.

There are five important points to remember in home staging. O’Donnell refers to them as the Five C’s of staging – clean, clutter-free, color, creatively staged, compromise with the sellers.

Gerin Canin, a lawyer from New York is transitioning into a home stager. She says, “People don’t see that a lot of things that are in their houses are part of themselves and when you try to sell a house you want to make it as neutral as possible, not necessarily in the colors, but in the way it’s presented.”

“I think that when people sell their homes they don’t necessarily see their house as a potential buyer would see their house. They become attached to things. [The seller] doesn’t notice things that other people would notice. So I do think it’s important to have an opinion from someone else,” explains Canin.

Here are some tips from professional home stagers:

Inside the house :

• Clear the clutter
• Remove from sight extra appliances and wirings
• Put away family pictures
• Do what you can to give a lot of open space

Outside the house:

• Paint/Power wash
• Put shutters
• Plants, high, medium, low — with lots of color
• Add decks to improve the look

The price you set for your home is very important. It will determine how long it will stay in the market and how much profit you will get. The knowledge of your real estate agent with regards to this matter is crucial. He or she should be able to inform you in terms of the current market condition, what sells and what doesn’t. Your goal is to price your house that fits its arket value but not too much.

Time. In real estate selling, time is against you. There are several factors involved that can determine the outcome. But time can be a good barometer to gauge your profit. Studies have shown that the longer a house stays in the market, it’s price decreases. So if you want to sell your house for as high as your asking price, do what needs to be done to sell the house quickly.

You need to be objective when you come up with an asking price. How much you value your home may not translate to how much it’s really worth. Don’t spend so much on home improvements and raise the price because of these renovations. Potential buyers might not like the improvements and find your house overpriced.

Because you are running against time. Try to keep things as simple as possible. Keep an open mind and be flexible to your buyers’ requests. As mush as possible do not include contingencies on the sale. This might drive buyers away. 

When you decide to sell your home, one of the things you’ll need to do is to determine an asking price. This can be difficult because you need to find a balance between attracting good offers and getting a high profit.

As you figure it out, you’ll learn about fair market value, which means the amount that you and the buyer can agree on (can be subject to some conditions). It is different from an asking price. 

If you work with a real estate agent, they usually begin by conducting a competitive market analysis of your home and giving you an estimate of the fair market value of your home which is based on the housing market in your area and how much similar houses in your area were selling for.

In areas like California and much of the West where the market is hot, you’re at an advantage. “The market has been gaining steam, and the seller is taking control,” said Nashat Benyamein, a broker in Long Beach, Calif. “Our average number of days on the market went from 30 days to 7 days or less.”

Overpricing sometimes also works to your advantage, but be careful; it might cost you more in the end. There may be several factors that can prompt you to set a high asking price –

• If you’ve made some improvements/additions. Don’t expect to get a full return for what you’ve spent on these projects. Some additions made that seem to suit your personal preference (like a new paint of your favorite color; custom-made fixtures; a sunroom) can actually work against you.
• Need for a lot of money;
• You’ll move to a more expensive house.
• You originally bought the house for an overpriced amount.
• You don’t have much knowledge with regards to factual comparable sales.
• You want bargaining room.
• The move isn’t necessary.

However if you’re in a neutral market like Minneapolis, you need to be careful in setting the selling price.

“While a few select neighborhoods are experiencing good activity, the market generally is favoring buyers,” said Mary Jo Oren, a Realtor in Minneapolis, Minn. “Price reductions are becoming more common and sellers are having a tough time adjusting to fewer offers, fewer multiple offers and increased market time to sell. Buyers are less emotional and not afraid to offer significantly less than list price plus ask for additional seller participation.”

Usually, the asking price is 1 – 3% higher than the market value. You should expect negotiations to take place until you and the buyer reach a price you can both agree on. If your asking price is a lot higher than the market value, you won’t have much offer and your house will stay long in the market, reducing its value eventually. Some buyers wait until sellers reach a point where they seem desperate to sell their home.

Think about the outcome you want. Do you want to sell quickly or you prefer to get as much profit as you can? Is the amount being suggested by your agent fair enough for you? If you were the buyer, would you buy it with the price you set?

You, as owner of the house will have a hard time assessing your house in an objective manner. Bring in some friends and relatives who can help you on this. A third party can help you see your house with all positive and negative points. This is essential in determining the selling price for your home. You should also compare it to the price of comparable houses in your area.

Sixty seconds is all you have to create a good first impression. Here are detailed ways on how you can make your home attractive to potential buyers.

Outside the house:

• Cut the grass and make sure it stays that way. Make the yard look neat by taking away clutter.
• Pull out the weeds and put fresh mulch to flower beds.
• Wooden fences must be painted new.
• Make sure door handles are tight and clean.
• Windows should be cleaned inside and out.
• Powerwash the home’s exterior
• Gutters and downspouts should be firmly attached and functioning.
• Paint the front door.
• Put a new welcome mat.
• Place potted flowers near the front door.

Inside the house:

• Look at the furnitures in each room. Remove anything that looks “off” or anything that disrupts the design/theme. Take out any furniture that makes the room look smaller. Rent a storage unit if you have to.
• Clean and organize cabinets, closets and bookshelves.
• Inspect light fixtures and ceiling fans. Make sure they’re clean and functional.
• Wash the carpets.
• Take away too many “personal stuff”; including wall hangings and knick-knacks.
• Inspect plumbing system to make sure they’re not leaking; and if so, have them fixed.
• Repair torn screens, sticking doors, cracked caulking.
• Clean and repaint if necessary walls and ceilings.
• Replace worn cabinet and door knobs.
• Replace discolored grout.
• Replace broken tiles and worn countertops.

Additional details for showings:

• Turn on all the lights.
• Open drapes and shutters during the day.
• If you have pets, secure them outside.
• Use new towels for bathrooms.
• Use new beddings for bedrooms.
• Replace old lamps or lampshades.
• Play soft background music.
• Light the fireplace.
• Use a comforting scent, such as apple spice or vanilla.
• Set the dining room table for a fancy dinner.
• Do not stay in the house while it is being shown.

Before you put up that “For Sale” sign, make sure that your house is ready for showing. First impressions are very important. You need to attract the buyers at first sight so you can catch their interest.

You may think your effort won’t be necessary especially if you’re in a hot market. But a good first impression will get your house off the market sooner and will allow you to sell your home at your desired amount.

Here are some things you can do to make a good first impression:

• Maintain or improve your front landscaping.
• Put a new and colorful welcome mat at the front door.
• Add a nice, big potted plant to the side of the front door.
• Give your door a fresh coat.
• Put away toys, bicycles, and scooters from the front of the house.
• Wipe the windows clean and make them sparkle.
• Change the doorknob and locks to give it a new and stylish look. It will also impress a sense of security.
• Polish your house numbers or if necessary, change them, so they shine and stand out.
• Put on a beautiful foliage or floral arrangement on your door.
• If there are loose shingles on the roof, fix them before showing your house.
• Fix and repaint the gutters.

If you’ve won the buyer’s attention with your house’s facade, you need to keep their interest. You can start by:

• Remove all the clutter especially in the kitchen and bathroom countertops. Keep toys, photo frames, personal items hidden in drawers and storage bins.
• Hang new bathroom towels.
• Retouch paint in your walls.
• Have the carpet cleaned before opening your house to potential buyers. Vacuum the floors every morning.
• Check your faucets to make sure they are not dripping.
• Inspect all your lights. Replace bulbs that are not working.
• Clean your appliances, not just the outside but the inside as well, especially the oven and microwave.
• Put a pretty centerpiece in the dining table.
• Make the house and bathrooms smell pleasant by putting a deodorizer or potpurri or spraying air freshener. This is especially necessary if someone smokes inside the house or if pets stay inside the house.
• Allow the light to come in all the rooms of the house. In areas where natural light can’t reach, turn on the lights when you’re expecting potential buyers to go to your house.
• Clean the fireplace.
• Remove unnecessary furniture from the room.
• Add final touches like adding a pretty flower arrangement or potted plant.

 When you prepare the home, keep in mind that people’s taste and preferrences differ. Just aim to make the house look clean, spacious, flexible and pleasing to anyone.

When you put up your house for sale, you will come across different people – both pleasing and difficult to deal with. You will be meeting potential buyers, unqualified buyers, agents and unknown vendors. There is an unwritten protocol to how sellers, buyers and their respective agents interact. If you are having a hard time dealing with people, let your agent know so they could help you solve the problem.

• The aggressive agentWhen you hire an agent, they become the primary contact person with regards to the sale of the house. But there are some cases when the buyer’s agent tries to contact you directly. Do not negotiate with them directly especially if you do not have much knowledge in terms of real estate. They might take advantage of this or they probably do not want your agent to be part of the deal. This is not the right way to do business. Inform your agent if this happens.
• The unscrupulous vendorWhen you put your house on the market, there is chance you’ll get tons of junk mail.  Some companies find ways to use information on MLS and bombard you with junk mail. If this happens to you, let your agent know so he or she can get in touch with appropriate organizations.
• The naïve buyerWhen you start to market your home, expect some buyers to simply drop by without an appointment. You might be tempted to show them around but even if they are nice and easy to talk to, you might not be able to handle the situation well. you might get carried away with the easy conversation and discolse information that might compromise your house. If this happens, talk to them politely and refer them to your agent. Give them your agent’s number and tell them that your agent will gladly arrange a tour for them.

During the holiday season we think about a lot of things – family, food, decors, parties, shopping. Selling your house is probably not on the top of your list at this time. But the holidays actually be a good oppotunity to show your home to potential buyers. A home adorned with Christmas decors and lights add to its appeal.
 

Here are some important things to keep in mind as you prepare your home:

• The first things that buyers will see is the exterior of your house. This is why curb appeal is vital. If it’s snowing in your area, clear the walkway, path and stairs.
• Put holiday lights outside. They exude holiday cheer and show pride in ownership. But don’t overdo it because they can only be enjoyed at night. Unless potential buyers visit your home at night, they won’t be able to see it.
• Trim trees outside your home. You wouldn’t want to risk having someone get hurt or the house damaged because a branch fell because of strong winds.
• Put a pretty holiday welcome mat outside the frnt door.
• Clear the outdoor area. Put away bicycles, scooters, toys etc.
• Hang a cheerful wreath on the front door.
• Play holiday music softly to add to the effect.
• Set a cozy and warm feel. Adjust the thermostat to a comfortable level.
• Light the fireplace. But never levae it unattended.
• The holiday decor won’t be complete without a tree. Pick the tree carefully. Make sure it’s the right size for your house or living room. If you pick a tree too big, the living room will look small or crammed if you put it wth other furniture.
• Don’t overdo the decors. Potential buyers might be overwhelmed if you put too many that the house might look cluttered. Remember, your goal is to sell the house, not the decors.
• If you’re expecting buyers for viewing in the evening, make sure your agent knows which decors and lights to turn on. And if you don’t plan to be back home soon after the viewing, make sure the agent turns everything off to avoid untoward incidents.
• Bake holiday treats often. It will leave an enticing smell.
• Don’t forget your security. Remind your agent to turn back on your home security after your house had been shown.

Remember that the holiday decors should just accent your home and not overpower it. What’s important is that you’ll create a sense of love, joy and warmth.

Self-move means that you take care of packing and coordinating with people who can help you move your things to your new place. Since you have to take care of all these on your own, it can be overwhelming. Below is a list of things you’ll need to think about when you’re considering self-moving along with tips you might find very helpful.

• Moving truck – find one that’s as big as your need.Be prepared to drive the truck that you rent. Study the truck and its controls. Just because you can drive a car doesn’t mean you can drive a truck just as easy. They are bigger and heavier so they should be driven slowly and carefully. Braking distances are longer and they have large blind spots. Some trucks do not have power steering and power brakes and automatic transmission may not be available.
• Towing a vehicle – When you rent a truck, let the company know that you will tow a vehicle. Give them details like the make and model of the vehicle so the comoany can provide you with a truck that’s most appropriate for it.
• Dollies and Pads – they can protect your appliances and furnitures from friction and bumps. Straps are also necessary to keep your load in place. Refrain from using bungee cables. You might need to use hand trucks to move big and heavy things.
• Fuel – It’s a wise idea to refuel the truck before bringing it back. If you don’t, the rental company will charge you for the gas you used and usually it is more costly.
• Packing supplies – boxes, tape, bags. These things add up and will cost much when you buy everything at once. You might find it easier to gradually accumulate them. Rental facilities and package stores have them available.
• Reservations and Deposits – When you have finalized the date of your move, reserve the rental truck so you can be sure it’s available when you need it. Usually rental companies require a deposit.
• Rental Insurance Protection – Most insurance companies do not cover your things while you’re moving. Verify this information with your current insurance agent. Ask the self-move dealer or the rental company what protection they could offer you. When you pick up the paperwork for the truck, review to see if the rental protection is included there.

When you pick up the truck, the dealer should be able to show you everything you need to know about it. Ask questions if anything is unclear. Keep all the receipts and paperwork relating to your move like rental, gas, food and lodging expense. You might need them, especially if your move is required by your employer. 

There are many good ways to invest in real estate. Hopefully you got some of your insight from us. 

There are a lot of mistakes sellers can get into when they put up their house for sale. There was a seller in Virginia who had a half bath that was originally placed at the front of his house. He thought that it would be better if it was moved to the back of the main level. All the other similar models had the powder room in the same place for the past 20 years. It cost him thousands of dollars to move it, thinking it will get his house off the market sooner, but it didn’t. It became an expensive mistake.

Sid Davis, a real estate broker and author of “A Survival Guide to Selling a Home,” points out seven costly mistakes that sellers often make with regards to selling their home. In my business, I’ve seen each one of these mistakes played out and it just makes me shake my head as to why, sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional, he says.

Sid Davis, real estate broker and author of the book “A Survival Guide to Selling a Home,” points out seven costly mistkaes that sellers make with regards to selling their home. In my business, I’ve seen each one of these mistakes played out and it just makes me shake my head as to why, sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional, he said.

• Mistake 1: Putting your home on the market before it’s ready. This usually happens because the seller is in a hurry to sell the house or the seller did not prepare early. And so, repainting is done while the house is shown. Or possible buyers view the house with a carpet that obviously needs to be replaced already. Presentation is vital. Prepare the home before putting it up for sale.
• Mistake 2: Over-improving the house for the neighborhood. Don’t make additions, bump-outs and upgrades that will make the house stand out from among its competition in a way that it becomes an anomaly rather than a good addition to the community.
• Mistake 3: Pricing the home based on what the seller wants to earn net. This is a bad pricing motivation. The sale price is dependent on the market climate and not on what the seller wants. Sellers can control the asking price but not the sales price.
• Mistake 4: Choosing an agent based on non-business factors. If you want to sell your house fast and with good terms, choose an agent because of their good track record, not because they’re your relative or friend.
• Mistake 5: Getting emotionallhy involved in the sale of the house. This is one of the biggest challenges that sellers face. When you decide to sell your home, you’ll need to think of your home as a commodity – prepare it as a commodity, market it as a commodity, and price it as a commodity. Many potential buyers will go to your house and scrutinize it. Don’t feel bad, they are only judging it based on their preferences.
• Mistake 6: Covering up or not disclosing problems. Most states have a property disclosure/disclaimer form. You can be sued for a leaky basement or wiring problems discovered 30 days after settlement.
• Mistake 7: Not getting your ducks lined up before you sell. This means getting your financing ready, making sure there’s no pre-payment penalties on your mortgage, monitoring your local market. If according to local market, you sell first before buying or vice vers, do the same.

Don’t fear making these mistakes. There are actually things you can do to avoid them. Learn from professionals who made resources like this for you to learn from.

If you want to sell your home in the soonest time at a good price, you need to make your house look attractive and interesting to buyers. Here are twenty sure-fire tips to do this:

Preparation

• The first thing you need to take care of is the outside since this is the first thing that potential buyers see. The lawn must be trimmed and free from clutter. Walks and s]teps should be clean from ice, snow and debris. The fron door needs to be clean and make the entry look inviting.
• Faded paint and worn out wood makes your house look old and cheap. Spending on a new wallpaper will be worth your money. Take time and effort to redecorate your house and you’ll sell your house at a good price.
• Bright and sunny rooms add to the charm. So open the curtains and let the sun shine in. It’s cost free but can do a lot of wonders.
• Do all the necessary repairs – Loose knobs, sticking doors and windows, warped cabinet drawers and other minor.
• Make your attic basement, and other utility space look bigger by removing storage bins. Painting the walls with a light color can brighten the mood and make them look more spacious.
• Ensure safety. Take away any clutter that can cause injury, especially in the stairs.
• Make closets, cabinets, shelves and cupboards look spacious by arranging things neatly.
• Bathrooms should look clean and bright. And the faucets should be working.
• Make the bedrooms look neat, beautiful and relaxing. Use attractive bedspreads and newly washed curtains.
• Make sure all the lights in the house are working. Turn on all the lights for an evening tour. It will give potential buyers a feel of glowing warmth.

Showing

• Avoid having too many people in the house during house tours or inspection. This will make the buyer feel like an intruder.
• Music helps. But make sure it’s soft and mellow. The agent should be able to converse easily with the buyers.
• If you have pets, make sure they are not in the way.
• Be polite and accomodating but don’t force conversation. Maybe the buyer needs space to think or just take everything in.
• Never apologize for the appearance of your home. Leave it to your agent to answer inquiries or objections.
• Just stay in the sidelines. Your agent is trained and experienced in doing this. They will know how to emphasize the positive features of your house. And allow your agent to discuss price, terms, possession and other petinent factors. They are qualified to bring negotiations to a favorable conclusion.
• Don’t dispose of furniture and furnishings before a buyer has bought the house.
• Show your home to prospective buyers only by appointment through your agent. They could handle the tour better as professionals and can sell your house more quickly.

When you sell your home, especially at a time when your taxes are due, you could get financial shelter. Thanks to The Taxpayer Relief Act of 1997, the real estate sector can receive what is considered the best tax shelter through their homes.

According to the federal tax law, when you sell your home, you can keep, tax free, capital gains of up to $500,000 if you are married filing jointly or $250,000 for single taxpayers, or married taxpayers who file separately.

To qualify for the $250,000/$500,000 exclusion, you must have lived in the house (as your primary residence) for at least two of the prior five years. The best part is, it’s not a one-time benefit. You can use this benefit as often as you qualify – every two years, to fulfill the owner-occupied-two-out-of-five-years requirement.

For example, if you have two homes and you live in one of them for two years, sell it and live in the other one for another two years and sell them both, both qualify for the exclusion. If due to some unforeseen reasons like a job change, illness, death of a spouse, divorce, disaster, war or some other hardship, you are forced to sell before you meet the two-year residency requirement, there are special provisions. In these cases, the $500,000/$250,000 exclusion (not your specific gain) will be prorated. For example, if after only a year of living in your house you are forced to sell it because of a qualified unforeseen reason, you can exclude from taxes up to $250,000 (half the exclusion) in capital gains if you are married and file jointly or $125,000 for separate and single filers.

One unforeseen event where homeowners were able to use the provision was during the September 11, 2001 acts of terrorism in New York, Pennsylvania and Washington, D.C.. Sellers were able to prorate the exclusions given these conditions:

• A spouse, home co-owner, or person living with the taxpayer was killed by the attacks.
• The taxpayer’s principal residence was damaged.
• The taxpayer or a person listed in (1) became eligible for unemployment compensation, or
• The taxpayer or a person listed in (1) had a change in employment or self-employment that resulted in the taxpayer’s inability to pay reasonable basic living expenses for the household.

Selling costs
If later, after you sell, you realize there’s still a taxable profit after the exclusion, you can bring down your gain with selling costs. Your gain refers to your home’s selling price, minus deductible closing costs, minus your basis. Your basis is the original purchase price, plus capital improvements, minus any depreciation.

Selling costs also include real estate broker’s commissions, title insurance, legal fees, administrative costs and inspection fees. It can also include repairs or additions completed within 90 days of your sale to make the house more marketable.

Moving costs
If you need to move and sell your home because of a new job, you can deduct part of the moving costs. These are the requirements that need to be met:

• Your new job must be at least 50 miles from the old;
• you must work full time at the new work place for 39 of the 52 weeks after the move;

The exclusion could also include costs for travel, transportation, lodging and storage.

If you are self-employed, you can be eligible for tax deductions if you work full-time for at least 39 weeks during the first 12 months and a total of 78 weeks during the first 24 months after arriving at the new job location.

To get more information about home selling-related tax benefits, get in touch with tax professional and state and local tax authorities in your area.

As a seller, your goal is to sell your home in the soonest possible time at the most favorable price. To achieve this, there are many factors involved. Some of these factors like the home’s condition, asking price and marketing strategy are factors that you can control. However there are some other things that influence a buyer’s decision in buying a house.

When you enter the market, you need to understand most buyers’ wants and needs if you want to be succesful. Competition is tough so you need to know what your buyers want. Your real estate agent can guide you on how you could effectively sell your house despite some flaws.

• LocationThis is one of the primary considerations that buyers have and unfortunately, is one thing you can’t control. According to the National Association of REALTORS(r), neighborhood quality is the number 1 reason buyers have for choosing a home. It is followed by commute times to work and school.
• SizeHome sizes have continuously increased since the 1950’s. The market for smaller homes are often limited to new home owners, couples without children, or families with grown children who no longer live with them. 
• AmenitiesThere are certain floor plans and amenities that become outdated as time goes by. Your real estate agent can inform you of current design preferences in the market. You can opt to renovate to increase profit and marketability. But don’t do this without consulting your agent. They can advise if it’s a wise investment based on the market condition and several other factors.

Some people are wondering if luxury homes can also be subject to short sales. The answer is yes. But it has to be done properly because it is sensitive. There are more factors involved. With the use of our technamicra and marketing strategies, we will find qualified buyers.

A short sale can work to the advantage of any property. But they vary in terms of the property situation and the goals of the owners. How?

• It will not cost the seller. The bank will pay the realtors when the house is sold.
• It’s probably the fastest way to sell your home if you’re trying to avoid foreclosure.
• This proviees a way out from financial burdens and start anew.
• You can still stay in the house for free while the short sale is still being processed.

Losing your home to a short sale may not be easy but it could solve your financial problem as long as it’s done right. Talk to us. We’re here to help you make informed choices.  

They say that if you want to sell a house, it should have curb appeal. What it means is that you chould make your house look captivating enough that homebuyers who drive by your house should be compelled to stop and take down the contact information for your agent.

According to the National Association of Realtors, curb appeal is the reason for the sale of 49% of houses. 

However, there are some things that you can’t control such as your neighbor’s houses and yards. You can do everything to make hour home and lawn tidy and beautiful but what if the other houses in the neighborhood are not as attractive as yours? Don’t worry. In fact you can use it to your advantage. This means your house will standout. If the other houses look as good as yours, they might be more interested in those houses or think that yours look inferior. If the houses are sprawling with toys, it gives the homebuyers an idea that there are many kids in the neighborhood. If they have children, they’ll be happy about it. Their children will have playmates. If however the neighborhood has a lot of junk, then it’s a problem.

Based on my experience on curb appeal, this is how you can beautify city and suburban (or semi-suburban) houses:

• In the case of a yardless townhouse

  1987. A time when the real estate business is taking a downturn. There are many other townhouses for sale downtown. The house is located near a public-housing project which gives an impression of the area being high-risk for crime. On the other hand, it is home to beautiful townhouses, a school around the corner, streets with many trees and a close-knit neighborhood. Since their are many children playing in the street, crimes are prevented. There are no abandoned cars in the street.

• What I did to prep it up

  I repainted the blue paint on the trim and on the front door. To give a feel of warmth and privacy, I added shutters to the windows in the living room. Then I set up a flower box on the window ledge. I also added a filled half-barrel on the side of the two marble steps up to the front door as well as the small area around the tree in front of the house. The front steps were bleached and scrubbed.

  To deal with the children, I treated them with ice cream so they’d be less rowdy on open house days.

  All my efforts yielded a favorable outcome. The succesful buyer was at the first open house. Prior to this, the house was on the market for five months with two real estate brokerages.

• Golden rule:
  Give all the neighborhood kids ice cream. Unfortunately, I missed one kid who announced to everyone on open house that someone stole her bike. (It wasn’t true though)
• In the case of a city house with front yard

  June 2001. The real estate market is booming. Houses in the $150,000-to-$300,000 range are a hot item. The house is located at a semi-suburban neighborhood. The flowers are in bloom; there are plenty of trees; and the street has reopened after a year of railroad-bridge replacement.

  On the downside, there’s a beer ditributor at the corner and they cause a lot of trash. And the street is busy since it’s a main route between two major city avenues.

• What to do to prep it up

  Clean the facade of the house. Clean the porch columns and rails carefully to get rid of the mildew. Repaint the porch floor. Trim the hedges regularly and plant lots of pretty flowers. Touch up on the paint of the concrete bench under the dogwood. Repaint the stairs on the porch. Fix the sidewalk. Wash the windows.

  Water the lawn regularly and mow it once a week. When you pick up trash in front of your house, do the same with nearby houses.

Outcome: It only took one weekend to get the house off the market. As early as day 2, eighteen couples were scheduled for appointments.

Golden rule: Don’t risk selling your house at an ugly state. Do what you can to make it attractive. But don’t overdo it. Don’t spend so much to beautify the house. Your main goal is to get their attention, make them stop and give your house a good look. But keep their interest by making the inside of the house desirable as well.

For a seller who has a house in the market for quite a while, it’s exhilerating to get a call telling you that someone is making an offer. You go through a series of emotions – intitially you feel ecstatic, the next moment when everything sets in, you start to worry thinking that the offer may may not be as good as you were hoping for.

Agents usually don’t tell you the price offer over the phone because there are other things to consider aside from the price – contingencies, seller concessions and real property requests.

Don’t stop at the price. Look at the rest of the offer. Focus on how much net you’re going to get.

Your agent should be able to explain to you the parts of the contract. But it’s better if you already have prior knowledge about real estate contracts. They could vary depending on your state but generally they should be similar.

Here are the basic parts you can expect in a contract: 

• Earnest money deposit – As the name suggests, it is intended to show that the buyer is sincere. If the offer doesn’t seem favorable, the buyer sets a large earnest money. In most cases, the buyer is the one who decides where the money will be deposited – usually not to the seller but a third party like an escrow, attorney or sometimes a broker’s trust account. The earnest money is usually counted towards the downpayment. If for some reason the sale will not push through, the money deposited will be returned to the buyer. Typically, real estate contracts have a section on any disputes going to arbitration, and most of the time, sellers do not get even a portion of the earnest  money.
• Purchase price – This is what you’re most interested in. This is most probably the first thing you want to look at. But don’t rejoice until you’ve given a thought on what the buyer wants to include in the offer.
• Mortgage contingency – This is usually the first contingency you will see. This states that the buyer is acquiring a loan with a specific term and rate. You need to analyze this carefully. Some buyers use this to hold you down while they scout for better bargains. Make sure that the terms specified are realistic such as a 30-year, 5 percent fixed-rate loan with no points when that type of loan carries a 7 percent rate with 1.5 points in your area. Another thing you should be mindful of is the time limit. If not, the buyer might take as long as they want, leaving you tied commited to them and your house unsold. In this contingency, the buyer can also specify if they want you to carry back a first or second mortgage.
• Seller concessions – The buyers could ask for anything – especially if they know that there isn’t much competition out there. But if the property is a hot item, you can expect the buyers not to ask much seller concessions because they know there isn’t much chance they’re going to get it.
• Inspection contingencies – This states that the buyers can back out of the deal if the outcome of the inspections show that the house is too much of a problem. There is even a contingency that is dependent on the approval of their mother-in-law. So again, the contingencies should be realistic.
• Personal property – The buyer can ask for anything that is physically attached to the house being sold. They are considered part of the transaction. It can be the book shelves, light fixtures, kitchen counter. So, those that are not attached to the house like appliances or furnitures still belong to the seller. So if there are things attached to the house that you want to keep, make sure you have them listed. On the other hand,buyers can state the items that they want removed from the house before closing; such as storage bins or boxes of useless items. 
• Appraisal contingency – The buyer adds this contingency to ensure that they acquire enough amount for the sale price. There are some unlikely cases when the bank doesn’t give an appraisal high enough for the price of the house, usually it happens when there are more seller concessions. Example, the agreed upon price is $300,000 but includes up to $10,000 in buyer closing costs, the house may not appraise if it’s really worth $295,000.
• Buyer selling property contingency – This applies when the buyer is also trying to sell their property. This means that they can only push through with the sale if they have already sold their house. There is a risk that the seller will let you wait for months. To protect sellers from this, there is usually a 72-hour clause, also known as a kick-out clause. This clause allows the seller to keep the house on the market. If there is another offer, the buyer has 72 hours to fulfill the agreement or the deal is off.

f you want to sell your house, aside from the washing and the scrubbing, you need to remove the clutter. This doesn’t only mean taking taking out the obvious trash like, empty cans of paint or boxes of unused items that have been sitting in the garage for as long as you could remember. It also means removing personal items from the house. To you, these things are special and looks part of the house. But to potential buyers, they are clutter.

When you show your house to buyers, they need to be able to visualize themselves living in it. But they can’t do this if there are too many personal things like souvenir items from your vacations or events, personalized wall decors and pictures. Instead of making them feel like this house could be theirs, it will make them feel like they’re intruders.

No matter how clean your house is, if there are many things, it will look crowded and it will be unappealing to buyers. I know, these things are important and special to you, so removing them from where they’ve always been will be heartbreaking. But you don’t have to get rid of them, you just need to move them away from the house you’ll eventually part with too. Consider renting a warehouse where you could still keep them.

You need to clear the house from clutter but it doesn’t have to be empty. Just aim to make the house look neutral.

Classify your things according to things you’re going to keep, donate and throw away. It might actually be high time for you to go over your stuff – especially those you haven’t even seen for years and say goodbye to them for good. You can think about selling some of your things in a yard sale or online but it will take time and effort – two things you usually don’t have enough of when you’re in the process of selling your home. If however you are intent on selling some of them at a later time, eBay and Craigslist are the most popular sites to turn to. But you’d be doing yourself and a lot of people a big favor if you just give away as much as you can.

Here are some tips for clearing the clutter:

• Take out unnecessary furniture to make the room look more spacious.
• Clear the foyer or mudroom of shoes, coats, umbrellas and other outdoor items.
• Remove big equipment like a drum set or treadmill.
• Take out your photos so the buyers can imagine their own photos in the house.
• Throw away old magazines, newspapers and books. If you have time and creativity, recycle.
• Arrange your wires neatly. Make sure it doesn’t look messy and won’t cause accidents.
• Remove everything you have in your nightstand – tissue, medicines, magazines. But you can keep the lamp, clock and a book to add to the look.
• Organize your bookshelves so they look orderly. Add a decor like a vase or an artwork to make it look pretty.
• Clear your kitchen countertops. But you can leave important items like a microwave and toaster. Don’t forget to clear the fridge from personalized magnets, pictures, your children’s drawings, coupons or whatever you always stick there.
• Put away plants that look unhealthy.
• In the bedroom, take out shoes, clothes and toys off the floor and make sure the bed is done.
• Tidy up your bathroom by hiding razors, toothbrushes and shampoos in a cabinet. Prep up your room by putting fresh soaps, towels or maybe plants.
• Take out some clothes in the closet so they don’t look too full.

When you sell your home, you can’t expect to take home all of the sale price. There are many fees to pay – commissions, taxes and miscellaneous and they can take out up to 7% of the sale price.

How do you determine your net profit? When you receive an offer, your real estate agent will give you a Seller’s Estimated Net Proceeds worksheet, which will give you an idea of all the costs that will be deducted when you close.

Here are some of the costs that could are usually deducted from the sale price. They may vary depending on yoru state.

• Mortgage payoff balance.
  They can include your own home loan, second mortgages and home equity lines of credit.  
• Loan payoff fee.
  Some lenders charge an administrative fee to pay off your loan.
• Lien release document.
  If you need to pay for a contractor, court judgments or for property taxes, you’ll need to settle them first before you could close the sale.
• Prepayment penalty.
  Ask your lender if you’ll need to pay for a prepayment penalty if you pay for your loan early.
• Recording fees.
  If you previously loaned on the house, you’ll need to pay this fee to show that you’ve paid for it already.
• Commissions for agents.
  This is the fee you pay to both your agent’s brokerage and your agent’s brokerage. Usually this takes off 6% from the sale price. This amount is split by the two brokerage and they are in charge of paying each agent.
• Notary fees.
  You pay a notary to confirm your identity and verify the documents.
• Escrow fees.
  The escrow serves as a third party. An escrow ensures that the money is protected while negotiations and processing of necessary documents are still ongoing. You could split the escrow fee with the buyer.
• Title search fees.
  Before the sale of a home could be finalized, a title company does a search on public records to verify if the property is free from any issue and can be sold.
• Seller concession. 
  You and the buyer might agree to the price of a house but the buyer asks for a 3 percent closing cost concession.  3% is given back to the seller to pay for the closing costs.
• Repairs.
  If repairs are necessary, you’ll need to set aside a portion of the sale to spend for it. Sometimes it’s the buyer who requires it and sometimes, the lender.
• Home warranty.
  There are times when the buyer asks the seller to pay for a home warranty which offers protection for the buyer’s first year in the house.
• Termite letter. 
  Some states require this. It indicates that the house is free from termites.

There may be more costs not mentioned here. It’s best to ask your real estate agent so you can anticipate and prepare for it.

The outside of your home is the first thing that buyers will notice. It’s what gets them interested in your home. If you’re thinking about improving your home, you’ll be getting your money’s worth if you do a good job on the exterior.

According to Remodeling Magazine’s 2009-10 Remodeling Cost vs. Value Report, six out of the top ten remodelling projects were all related to outside improvements. The report surveys realtors across America. Based on the report, even a simple move like replacing a steel door for about $1200 can recoup more than 120% of your investment when you sell the house. An attic bedroom which costs $49,350 yielded $40,990. It brought back about 83% of what was invested. Adding a deck returned about 80% of the cost.

One of the primary reasons why people invest in outdoor improvements is that it doesn’t cost much and the investment will surely pay off. Usually, exterior improvements costs less than $15,000 but it can do a lot for your home’s curb appeal. Curb appeal is important because it holds the key to selling your home. Midrange outdoor projects in the report’s top 10 are a deck addition, vinyl siding replacement, wood and vinyl window replacements and steel and fiberglass door replacements.

Another reason for exterior improvements is energy efficiency. Plus, homeowners can get tax credits for weatherizing their houses under the American Recovery and Reinvestment Act. Improvements like upgrading windows, roofs and siding can be counted towards it. In the process of doing this, homeowners are also making their houses marketable.

It’s also a good investment to improve your kitchen and bathroom, but don’t spend too much. A small kitchen remodelling in a midrange house that costs $21,410 can yield about $16,775 or about 78 percent of its cost when you sell. If you decide to do a major renovation that costs $57,215 you can expect to recover $41,260 or 72 percent.

In an upscale home, a major kitchen remodelling at $111,800 can give you about 63 percent of your investment while a bathroom costing $52,300 would give you a little more than 61 percent.

Improvements in a home office or sun room can only yield about 50 percent of construction costs.