Selling Inherited Property? Here’s What You Need To Know

What You Will Read In This Article

• What Is An Inherited Property?
• Step-by-Step Instructions for Selling an Inherited Property
• Things to Consider When You Sell an Inherited Property
• How To Make the Most Profit from Selling an Inherited Property
• Alternatives to Selling an Inherited House

An inheritance is something most people would consider a blessing — it means someone close to you is gifting you something they deem valuable. However, inheriting a property comes with a lot of extra responsibility…

• What will it cost to keep and maintain the property?
• Is the home in good condition — good enough to warrant moving in or leasing to a tenant?
• What will owning the property do for my taxes and financial situation?

These questions and unknown variables are why many people wind up selling an inherited property outright.

If you’ve been left responsible for selling an inherited property, don’t worry — you’re in the right place. This article will outline the steps you should take to sell your inherited property as smoothly as possible.

What Is An Inherited Property?

Inherited property is real estate passed down to you from another person. Inherited properties can come in many forms — a home, a piece of land, a commercial building, or an investment property. However, the most common type of inherited property is a home.

Why You Should Know How to Sell Inherited Property

Selling your primary residence (where you live) is fairly straightforward. But selling an inherited home has a few unique challenges. Here are a few you might run into:

• if you sell too quickly, you might pay more in taxes
• if you sell too slowly, you might also pay more in taxes
• other family members might not want to sell the property
• your sale price might not cover an existing mortgage

However, with the help of this guide, you can avoid (or at least prepare for) the worst scenarios that might arise with selling an inherited house.

Step-by-Step Instructions for Selling an Inherited Property

We will outline the “best practices” approach to selling an inherited property. You can follow these steps in order or address them as they come up — whatever you prefer.

1. Get through the probate process
2. Get heirs and executor(s) to agree to sell
3. Weigh the tax implications
4. List the home or go off-market
5. Sell the house

It sounds simple, but the process of selling an inherited home is rarely clear-cut.

Go at your own pace, and feel free to skip steps that don’t apply to your situation.

Let’s jump in!

Step 1. The Probate Process

Simply put, probate is the period following a person’s death where an executor or administrator will use the deceased person’s assets to pay off any remaining liabilities.

Liabilities that are settled during probate include:

• existing mortgages
• credit card debt
• private loans
• delinquent taxes

As a beneficiary, you’ll want to determine if the property you’re due to inherit is paid off or if you’ll be taking over an existing mortgage. This information will help you decide how best to sell an inherited property.

Can you afford an extra mortgage, plus repair costs and utilities?

Or would it be better to sell “as-is” to a cash buyer and avoid ongoing costs?

You’ll have to consider these questions and more as you prepare to sell the home.

Note: if you’re both the executor and a beneficiary, we recommend hiring a finance professional like a CPA to help you get through the probate process quickly and efficiently. 

Unless the deceased person was meticulous about finances and bookkeeping… you might be in probate for months, even years. 

Sometimes, you might find it easier to sell the house in an estate sale to cover the deceased person’s liabilities.

Step 2. Getting an Agreement

You can skip this step if you’re the sole heir to the inherited property. For everyone else? — we hope you’re on good terms with your siblings.

Why?

Selling an inherited property requires consent from all parties involved — both the heirs and executor must agree to the sale.

As a new owner, it’s your job to convince the other beneficiaries to sell the property. You can do this by taking a slow approach and laying out all the variables.

Explain the tax implications of keeping the home, the costs, and the benefits (what they’d gain if they decide to sell). Be as transparent as possible about your desire to sell the home to avoid any suspicion or distrust.

Getting everyone on the same page is likely the biggest hurdle you’ll face selling an inherited property. Be patient here — take your time, and don’t try to force the sale.

Step 3. Weighing the Tax Implications

Once you have an agreement, it’s time to crunch the numbers (if you haven’t already).

The probate process should’ve churned out a “clean” property with few overhanging debts to service. But there are still taxes to think about when you look to sell an inherited home.

Here are a few taxes you might run into (though most are handled in probate):

• Federal estate tax (for assets valued over 12+ million)
• property taxes
• inheritance tax
• capital gains tax
• sometimes, even income tax

Inheritance tax and federal estate tax are largely unavoidable (but also rare), so I won’t talk in detail about them. Property taxes are almost always handled in probate and, thus, not a factor in the sales process.

That leaves the big, bad capital gains tax.

What is Capital Gains Tax 

Capital gains taxes are a tax on the profits of the sale of an asset (stocks, bonds, crypto, real estate, etc.)

Let’s say you bought a new house for $100,000. Two years later, you sell that house for $150,000. The $50,000 difference is considered capital gains and would be subject to capital gains tax.

There are several ways to avoid paying capital gains tax on inherited property. But since we’ve decided to sell, that will limit our options.

Ways to Avoid (or Lessen) Capital Gains Tax

Here are two sample scenarios involving a home sale:

Sample A.) You inherit property at a fair market value (or FMV) of $200,000 thanks to the IRS code that uses a “stepped-up basis” for inherited properties.

You can immediately sell that house for $200,000 and pay no capital gains tax.

Sample B.) You inherit the same $200,000 home but decide to hold it for a while.

If you sell it for more than $200,000 in 12 months or less: you will pay short-term capital gains tax. (Hint: this is taxed at your income tax rate.)

If you wait at least a full year (longer than 12 months) before selling: you’ll pay long-term capital gains tax.

Consider these options seriously, as a long-term capital gains tax could save you thousands compared to a short-term capital gains tax rate.

Step 4. List the home or sell it yourself

You’ve crunched your numbers and decided on a timeline to sell — now it’s time to get the house put on the market.

First, though, ask yourself these questions:

• Is the house in good shape? Could a buyer move in today and be happy?
• What are my margins? Can I make a profit or will I sell at a loss?
• How long can I afford to wait for a closing?
• Do I want to try selling the home myself?

These questions might halt you in your tracks unless you’re familiar with the home buying/selling process. You’re not alone either — most people will only go through the process once, maybe twice in their lifetimes.

When in doubt, list the home with a licensed real estate agent — you can find one here.

A good agent will do most of the “gruntwork.” They’ll do the property listing, marketing, and showing to buyers. They’ll liaise between you, the buyer, the title company, the home inspector, etc.

However, if you want to sell in a hurry, you might want to consider working 1-on-1 with a cash home buyer.

Cash home buyers are typically investors who look to buy “distressed” properties that aren’t an excellent fit for the retail market. They’re a good option if you inherit a property that needs significant repair or are interested in selling quickly for fair market value.

In the next step, we’ll highlight the most exciting part of the whole process: the sale.

Step 5. Sell the house

You’ve done the work and due diligence, and now you’re ready to get paid.

If you’ve listed your home with an agent, all that’s left to do is sit back and wait for offers to come in. Select an offer that works with your projected numbers, exposes you to the least amount of risk and greatest margins… then sign the paperwork. Easy.

If you’ve elected to sell the home yourself, you’ll need to do more footwork (marketing, hosting showings, etc.) Be honest about your reason for selling, price the home competitively, and take time to do things correctly — now is not the time for costly slip-ups.

Either way, there is a significant shortage of homes in the U.S, and it’s likely your home won’t stay on the market for too long.

Congratulations! It was a long road, but you’ve sold your inherited property!

Things to Consider When You Sell an Inherited Property

If you cannot agree with your siblings about selling the house, it might be easier to buy it from them first in probate. Don’t worry — you don’t need to have cash available for this purchase.

You can find a hard money lender offering estate funding (probate loans). These loans are collateralized against the value of your inheritance.

Alternatively, you can sell your part-ownership in the house to the other heir. Selling your share can be a good option if you don’t want to slog through the legal process or aren’t making any headway convincing the other party to sell.

How To Make the Most Profit from Selling an Inherited Property

If you want to maximize your profit from an inherited home, there are a few next-level tactics you could take…

Juggling Tax Exclusions

• If the inherited home is an upgrade to your existing home… move in. You can sell your primary residence and exclude any capital gains by $250,000 for singles and a whopping $500,000 for married couples!
• Live in the inherited home for ~3 years, and then you’ll be eligible for the tax exclusion again.
• Sell the inherited home and (again) exclude any capital gains.
• You’ve sold two homes in 3 years and avoided up to $1 million in capital gains tax.

Play the Long Game

• If your local market is experiencing a down period, or there are significant renovations needed in the house — it might benefit you to wait to sell.
• This waiting period will allow you to improve the house, wait for a more favorable market, and after 12 months, you’ll qualify for long-term capital gains tax rates.
• By waiting, you’ll be able to sell in a better market, the updates will demand a higher price point, and you’ll save money at the closing table on taxes.

Alternatives to Selling an Inherited House

Sometimes the stars don’t align, and you can’t sell the house. Or maybe you’ve changed your mind and want to explore what keeping the house might look like.

Either way, there are several alternatives to selling:

1. You can move in and make it your own. This is an excellent option if you’re upgrading from a smaller home or a place you’re currently renting.
2. You can rent the home to tenants. Have an interest in being a landlord? An inherited home is a low-cost way to get into the real estate investing game.
3. You can disclaim the property. Don’t want the added hassle of inheriting a house? Give it to someone else.

Wrapping Up 

Selling inherited property isn’t rocket science — it just involves a bit of patience and preparation.

You’re already preparing yourself by reading this article, and that’s a good start. But if you’d like to learn more, we have a wealth of free information on everything a homeowner would want to know.

Educate yourself on the entire process, A to Z, and you’ll always be the calm, collected head at the table when it comes time to sell your inherited house.

The post Selling Inherited Property? Here’s What You Need To Know appeared first on ISoldMyHouse.com.

When you are a North Carolina homeowner, you’re in a unique position when it comes to selling your property.

You’ve lived in your home. You’re privy to the property’s perks and unique details that a real estate agent might miss. Even with all the right tools, a Realtor lacks that special connection with your house.

Take advantage of this first-hand perspective. Use that personal touch whenever you can. It will help you connect with potential buyers and stand out from the competition—people like and remember personal details.

Do You Want To Sell A Home And Save On Commissions?

Did you know that we can help you save a lot of money when selling your house? Money that you can put towards moving, buying a new house, paying off debt, a much needed vacation or anything else you want. ISoldMyHouse.com has 3 ways for you to sell your house and NOT pay high commissions.

 

1. Sell It Yourself With Our Flat Fee MLS Listings
2. Sell With Top Local Agents With Negotiated Discounts on Commissions
3. Sell To A Pre-Qualified Cash Buyer

Find Out How It Works Now!

 

Here are ten tips you need to master in order to sell your house in North Carolina without a Realtor and sell it like a total professional so you can get the best return on your investment.

1. Scope Out the Competition (Be A Nosey Neighbor)

You know what they say about knowing your enemy. That applies even more so in a field as competitive as the North Carolina real estate market!

If you want to be able to sell your property, you need to do the legwork to gather all the market intelligence you can. Luckily for you, nowadays, information is abundant and readily available. Use all the tools at your disposal—you’ll need them.

An easy but essential part of your research is attending open houses. Find out which homes are showing in your area and visit them as a potential buyer. On top of getting an idea of what your house is up against, this exercise will also show you a few things:

• How to position and stage your property so that it appeals to potential buyers – Not all buyers are the same, and professional Realtors have experience in staging that you can learn from. Look for themes in the homes’ decor, especially with furniture and color coordination.
• How to behave like a pro and show buyers around your house like it’s your job – Note the kinds of features Realtors highlight during your tours. They know what to showcase to bring the perceived value of a property up. Pay close attention to what they avoid mentioning, too.

Searching for homes for sale in North Carolina online is another form of valuable research you can do to gather data. This step will give you insights into things like:

• How many properties are on sale currently and which ones have sold recently
• How to gauge direct competition and manage your expectations
• Analyze sold North Carolina listings to learn what they did well and apply it to your listing for maximum impact
• Look at listings that are more than 120 days old for examples of what not to do, and make sure you’re not making any of their mistakes. If they’ve been on the market that long, they’re doing something wrong.

Study the descriptions, photography, and language used to describe the properties that have sold for the highest prices, and apply what you learn when you create your home’s listing. Do the same later when you talk to interested buyers or host your own open house.

2. Give North Carolina Buyers What They Want

Whenever you’re selling anything, it’s crucial to understand the perspective of those you’re trying to reach. You’re asking them to part with a lot of money, after all. You must be familiar with current trends, and any features potential buyers consider must-haves or deal-breakers.

This sounds more complicated than it is. You can get a glimpse of selling features by looking at home décor blogs and magazines and comparing what you see with the listings you’re researching (especially the ones that sold). Pinterest searches are great for spotting current and up-and-coming trends!

More often than not, if you haven’t recently remodeled your home, you’ll have to do a few updates to your house to command top dollar from buyers. Choose wisely where you spend your money and invest in upgrades with an impact that will pay for themselves when you start receiving offers.

Some simple things that will make your house go from “meh” to “wow!” include:

A fresh coat of paint

Stay away from taste-specific shades that people either love or hate, but don’t rely too heavily on boring neutrals either. Instead, bring all you have learned to the table and apply a fresh coat of trendy paint in strategic places. You’d be surprised how much difference a brightly colored accent wall can make!

Give your flooring some love

If you have an old carpet, get rid of it ASAP. If your hardwood floors need refinishing, staining, or anything of the sort, get to work or hire someone who’ll leave them looking their best.

If you have no other option than replacing the floors, consider affordable laminated floors that won’t be as expensive as actual wood. When chosen well, laminate flooring will make your house look like a million bucks and drive the value up.

Update your kitchen cabinets

Most real estate agents call the kitchen “the heart of the home.” Never underestimate its importance of when you’re putting your home on the market.

If your kitchen is still in good shape but could use a little bit of love, an easy and cheap way to give it a fresh look is to paint the cabinet doors and replace the old, worn-out handles with some new and stylish hardware. Look at what updated kitchens look like on the current market and model yours after them.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

3. Analyze North Carolina’s Real Estate Market Data for a Correct Listing Price

Many factors dictate a property’s value, but the owner’s personal opinion isn’t one of them. Most homeowners in North Carolina have an emotional attachment to their houses, and that can cloud their judgment when it comes to pricing. This is when it becomes particularly important to consult outside sources.

Buyers don’t care about all the fond memories you have of that living room, so it’s essential to maintain an appropriate distance and a professional outlook when pricing your home.

Use websites like Zillow and Redfin to get an idea of what low, high, and average prices per square feet in your neighborhood look like. You can also consult public records in local municipalities in North Carolina and ask for advice from local Realtors who work with the same type of properties.

4. Make Sure Your Real Estate Photographs Don’t Suck

It’s hard to believe how, despite living in an Instagram world, some people still think images aren’t that important for their listing. They think any photo off their phone will do. Nothing could be farther from the truth.

Would you rather buy a pretty pastry at a restaurant or one equally tasty, but that looks like someone burned the top and then sat on it? You’d pick the pretty one with the fancy icing and flaky layers, right? Potential homebuyers are the same way.

Don’t skimp on this step because it will determine how many people actually show up to your open house and how many offers you get after they leave. If the pictures don’t catch the buyer’s eye, they’ll keep scrolling and move onto the next listing page, and you will have lost an opportunity.

They type of camera and the lenses used both influence the quality of your house photos. Phones might be great nowadays, but unless you have a brand new, top of the line smartphone, you’re better off using a professional camera that’s compatible with wide-angle lenses. Wide-angle lenses are the best at capturing details and making each room look ample and airy—and the bigger your home looks, the better.

If you know how to take decent photos and decide to go the DIY route, don’t forget to edit them before posting. Too often, people shy away from making small edits. You have to think like a professional, and professionals edit their photos so they pop. As long as you’re only enhancing the lighting and contrast, you’re not misleading potential buyers. It’s ok to edit out that pair of shoes you forgot to pick up before taking the picture.

If you’re on a tight budget and know someone skilled with a camera, consider giving them a call—but only if they truly know what they’re doing. Remember, photos are the first glimpse people have at your property, and they will use them to judge. Make them fall in love at first sight!

Lastly, if you can afford it, consider hiring a professional real estate photographer who specializes in North Carolina real estate photos. It’s even better if they work with a stager because, as a team, they can stage your home and make your listing shine. You want those photos to set it apart from all the other homes on the market!

The beautiful photos you see in magazines don’t happen by accident, and this is not an area where you can afford to be stingy.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

5. Your Secret Weapon (North Carolina Flat Fee MLS Listing Companies)

If you have decided to sell your house on your own, you should seriously consider going with a North Carolina flat fee MLS listing company instead of going 100% FSBO. The choice between the two is all about how much exposure to real and active buyers you want.

You will have to list your house with a North Carolina state licensed flat fee MLS real estate broker and offer a buyers agent commission but you still retain the right to sell FSBO.

Flat fee MLS listings are for hands-on sellers that aren’t afraid of learning and getting involved with all aspects of the sale of their homes. It’s also a good option for those who are interested in saving some money (even if that translates into more work and time) if you do it right.

We put together the video below for you to watch that shows you everything you need to know about how to use flat fee MLS to list your house without a Realtor.

 
Get Started Listing Your Home On The MLS Without A Realtor

What exactly is the MLS?

A Multiple Listing Service or Multiple Listing System (both names are used and they mean the same thing) is a database that lists all the properties that are available for sale at any given moment. Local North Carolina real estate agents can access this database on behalf of their clients. Listing on the MLS is how your property gets discovered and (hopefully) bought.

It also acts as the centralized data hub that will feed your house listing to the major real estate portals such as Zillow, Realtor.com, Trulia, Redfin, etc. This way your data listing will stay consistent on all these different websites.

Advantages of the North Carolina MLS

There are multiple MLS’s in North Carolina, each one is specific to your local area by county or a grouping of counties that share the same MLS platform.

One of the main benefits of using the MLS is that it exposes your house to local buyer who are working with Realtors to find a house. 90% of active buyers who are looking for homes for sale in North Carolina still use a buyers agents services. If you don’t list your house on the MLS then you run a huge risk of not marketing your home to these buyers who are working with the North Carolina agents.

Additionally, it can save you a lot of money in the selling process if you list with flat fee MLS. Since you’re paying a small listing fee instead of listing agent commission, your closing costs won’t include a high commission for a Realtor on your listing side of the transaction.

You’re also much more in control of the whole process. You can decide to terminate your relationship with the North Carolina flat fee MLS company at any point. If you’re not satisfied with their work and the support they have or haven’t been providing, you’re allowed to stop the service.

You’re fully responsible for any negotiations you have with potential buyers and their agents. You decide everything, every step of the way. It’s stressful, but this way, you’re in as much control as you can be.

What is Flat Fee MLS?

A flat fee MLS is like its name suggests, a flat fee service you pay to have your house listed in the databases that Realtors use to find properties for their clients. It’s a flat fee because you pay the company a specific amount you agree to and no more. However, this doesn’t mean that all companies that offer flat-fee MLS offer the same things. The offering can vary as much as the fees.

When you’re hiring any kind of service company, make sure you understand what’s included and what’s not, as well as how their offerings apply to your particular needs. Flat Fee MLS might sound like they’re pretty much all the same, but their offerings aren’t one size fits all.

It’s also best to find out which flat fee MLS is used most frequently in your area. Some regions have one primary service, while the others are rarely used.

Disadvantages of North Carolina Flat Fee MLS Listings

Fixed fees usually mean lower overall selling costs at the end of the whole process. On the flip side, you’ll have to pay the fee in advance when you hire a company that will do the listing for you from the start.
Instead of only paying a commission once the property is sold, in this case, you’ll pay for the listing whether the property sells or not.

This arrangement makes it even more important to make your listing as attractive as possible. You can do that by following our guidelines, and by choosing the right company to work with. Find out which ones have helped other homeowners succeed in selling their listings.

Offer a competitive buyer’s agent commission

It is in your best interest to offer market standard or above when it comes to the buyer’s agent commission. Think about it. Why would a buyer’s agent be motivated to show your property to a potential buyer if they don’t believe they’ll be fairly compensated?

Remember, this is the agent’s business, and they’ll act accordingly. Don’t try to skimp or save money here because it could negatively impact—or completely sabotage—your selling efforts even if you do everything else correctly.

Things to be wary of

If you see a company that offers to list your house for very cheap or even free, resist the urge to go with the cheapest (i.e., free) option. Like grandma used to say, if it looks or sounds too good to be true, it probably is. And yes, in these cases, it’s almost always too good to be true.

Companies that don’t charge for this type of service usually don’t offer any real support or customer service, so you’re doing a disservice to yourself and your potential sale. With things like this, you do get what you pay for—or what you don’t pay for.

Another reason they might advertise their services as free is to hide various service fees. Make sure you read and understand all the terms you’re agreeing to before signing anything or hiring anyone. It’s easy to be fooled in real estate, and you don’t want to be caught with your metaphorical pants down.

Bottom line if you choose to work with a company that charges these low or even free rates, you will end up spending much more money in the long run. They have to make their money somehow!

Want To Learn More About Flat Fee MLS Listings?

If you want to save at least 50% of the Realtor commissions, check out our article about 9 Things FSBO’s Need To Know About Flat Fee MLS Listings

6. Don’t Get Yourself Sued or Fined

Since this is not your profession or area of expertise, inform yourself of all the rules and North Carolina state laws you need to follow when selling your home. When we said this was hands-on, we meant it.

Your North Carolina flat fee MLS company needs to keep your listing updated and update the MLS with any changes right away. This is one of the factors involved in choosing the right MLS company in the first place. If you fail to update them promptly, this will result in fines that you’ll have to pay out of pocket.

Other North Carolina regulations you need to keep in mind when selling include:

Follow North Carolina Property Disclosures Requirements

As with many regulations, the requirements can and will vary state by state, so read up on what is required to be disclosed in North Carolina. Then follow those requirements. Closely.

At a minimum, you’re usually required to disclose any imperfections your house might have, like if lead paint is present anywhere inside. You could get stuck with a lawsuit if you fail to mention things like electrical or plumbing systems that aren’t built to code. The same goes for additions to the square footage of the property that were made without the proper city permissions.

Don’t Discriminate by Following Fair Housing Laws

Be mindful of the language used in your listing contract and other materials. The law prohibits you from discriminating against any protected class of citizens, so you need to make sure you treat all potential clients equally.

7. Attract Offers from Local North Carolina Buyers

Local buyers shopping for houses for sale in North Carolina are the most likely to be interested in seeing and potentially buying your property, so don’t dismiss word of mouth promotion. Tell everyone you know who might be interested that you’re selling your place.

Tell everyone in your circle even if you don’t think they’d be interested because they might very well know someone who is. If you have the budget or access, you could even mention your intention to sell your home in local bulletins of businesses frequented by potential buyers.

Market Your Home

Marketing is everything nowadays. Gone are the days of “build it and they’ll come.” With so many homes competing for attention, you need to give it your all to distinguish yourself and get people to give you their time.

Selling your home is like owning your own business. If you don’t advertise and market, you don’t make money.

Go Viral on Social Media (Posting, Sharing & Facebook Neighborhood Groups)

Share your photos on all the social networks you’re a part of. Don’t underestimate how many people can see a quality picture on Instagram, or the vast reach a post in a neighborhood group can have on Facebook.

If you don’t believe us, ask around. You’ll find plenty of people (especially in the younger generations) who have found their current homes via a shared post in a group for a specific neighborhood. If you have the budget, you could also invest in some paid targeted ads through Facebook, Instagram, or even Google to find buyers who are moving to North Carolina.

Good Ol’ Fashioned Email

It might feel archaic, but the best way to reach the people you know and don’t talk to very often might be through email. Businesses have email lists, and most people check their emails daily. Even though it’s not used so much between friends anymore, email messaging is still effective.

Send a blast to all your contacts (but please, use BCC) telling them about your listing. If you’re part of a community center or are friends with a business owner with an active email marketing list, try to get a mention from them. Email messages could be what sells your home.

Word of Mouth Through Your Neighbors

While you’re telling everyone you know that you’re selling your house, invite them over to check the place out! Your neighbors would love nothing more than to finally get a look inside.

Open Houses

Open houses are the most obvious way to showcase your place. You’ll get people you know and complete strangers who may or may not bring their Realtors. You should always make sure that your home is ready to give the best impression, so clean up your kid’s toys and make your bed before guests arrive.

Show Your Home

You must be available to show your home within your schedule, even if you’re not officially hosting an open house. If a potential buyer contacts you and you’re free, invite them over for a tour!

If you want to get creative, you could even host a tea party or some other food-centered gathering (who wouldn’t show up for free food?). Use the opportunity to show your neighbors your home. You never know who they know and will tell about your property if they leave with a positive impression.

Want to sell a North Carolina home and save thousands? Find out how.
 

8. Be a Shrewd Negotiator

After you’ve done all the aesthetic improvements and all the promotion to get your property the attention it deserves, it’s time to focus on the real heart of the game—negotiations.

Read up on what constitutes successful negotiations, different methods of negotiating with different people. Learn from the attitudes of the business people around you. Learn to think like a seller and understand the mind of a buyer.

Offers

After you put your house on the market and host at least one open house, you should start receiving offers if you’ve done everything right. Make sure people submit their offers in writing to ensure you’re dealing with serious buyers.

If you see a lot of interest in your property, try holding all offers until a set day to instigate a bidding war. This tactic doesn’t guarantee you’ll get more offers, but it does serve as an incentive for buyers and their agents to submit better offers since they could only get one shot. Show them your home is in demand, and they’ll start to sweat.

You might also want to consult an North Carolina real estate attorney once this type of paperwork is submitted and legal contracts start to be agreed upon. This will ensure everything is in order for all parties involved.

Negotiations

You’ve come this far all on your own, so hopefully, you’re also a stellar negotiator! Remember that a good deal is not one where you get everything you want, but one where all parties walk away satisfied with the agreement they’ve made.

Try to keep your tone amicable and your communications cordial, so there’s a better chance to get to an agreement that makes everyone happy (or close to). If there are issues that pull each side in different directions, try to find a middle ground and see if a compromise is possible.

Objectively analyze everything buyers ask as requests rather than demands and consider whether these requests are reasonable by trying to put yourself in their shoes. Would you ask the same if you were buying? If the answer is yes, then you may want to give it to them.

Purchase Agreements

Have you and the buyer agreed to a price, closing terms, and all the bits and bobs? Wonderful! It’s time to draft and sign a North Carolina purchase agreement. Since this is a legal document, it’s a good idea to consult an attorney that specialized in real estate to check that everything is in order.

9. Don’t Let the Deal Fall Through in Escrow

Even after you get to an agreement that satisfies everyone, there are still many details to finalize. Pay close attention to every step of this process to keep your sale on track.

Appraisals

If your buyer is getting a loan, in most cases, the bank will have to do an appraisal of the property to see if the purchase price is at a fair market price. This might be annoying, but it’s how the bank guarantees their loans.

If the bank for any reason comes back with an appraisal that is lower than the agreed sale price, the buyer will have to pay the difference in the amounts or risk losing the property. The bank will not approve a loan higher than the appraisal determines the property to be worth.

Home Inspections

Most buyers will demand an inspection be made before the agreed-upon contract becomes enforceable. You can understand why. They need to protect their interests in case an expert finds that expensive repairs are required on the property.

If you disclosed all issues and have maintained your house properly, you shouldn’t be afraid of any of this, as it will most likely not affect your deal. However, you need to be prepared because if a North Carolina home inspector uncovers any issues, especially serious ones, this could change the whole game.

More Negotiations?

The inspection report came back, and something expensive needs to be repaired or replaced. Now what? If the buyer really wants the property, they’ll ask their Realtor to send you a modified offer. They will probably want you to deduct the price of the repairs from the buying price of the home that you previously agreed to.

Remember that you’d make the same request if you were in their place. Be fair in your negotiations and maintain a good relationship with the buyer.

That said, you can agree to their terms or try to negotiate, for example, to split the repairs. Think twice before you send any counteroffer regarding the results of the inspection, as the buyer is free to walk away over a previously undisclosed issue at this point.

Want to sell a North Carolina home and save thousands? Find out how.
 

10. Turn Over the Keys at Closing

Congratulations! You sold your North Carolina house without a real estate agent! Now that the deal is closed, all the legal documents have been reviewed and signed. All the terms have been met, and it’s time to give the new owners the keys to their new place. Selling your own home has been a wild ride, but look how much you’ve learned!

P.S. Remember what we said about personal details at the beginning?

If you want to make this moment extra special, consider leaving a thoughtful note or putting the keys on a personalized keychain. It’s not required, but it will be an unforgettable gesture for the new owners!

Here’s A Helpful Infographic Summarizing The Top 10 Tips When Selling FSBO In North Carolina!

Learn more about how ISoldMyHouse.com’s flat fee MLS listings work

The post How To Sell A House In North Carolina (Without A Realtor) appeared first on ISoldMyHouse.com.

Naturally, home sellers in the Empire State will want to know, how much will it cost to sell my house in New York.

So lets take a look at a practical example.

Mike and Amanda own a cozy single family home in Huntington Long Island, they need to sell in order buy a larger home for their growing family.

After preparing their home for selling, they hire a Realtor and list their house for sale on the Long Island MLS for $350,000. After a few weeks of being on the market they find a buyer and sell their home for $342,500.

What will Mike and Amanda expect to pay for closing costs?

Take a look at the below table as an example.

Closing Costs For Sellers In New York

 

Description	Formula	Fees for Sales Price of $342,500
Real Estate Commissions*	6%	$20,550
New York State Transfer Tax	0.004%	$1,370
Attorney Counsel Fees	$1000 - $2000	$1,500
County Recording Fees	$50 - $100	$75
Pickup Fee to Title Closer	typically about $200 per mortgage	$200
Total Closing Costs for Seller in NY		$23,695

As you can see, selling a house adds up to a lot of money out of your pocket.

Now, let’s take a look at Mike and Amanda’s situation if they owned a cooperative instead of a single-family house, and would have to pay additional costs in addition to the Standard New York Seller Closing Costs above.

Additional Closing Costs for Coop’s in New York

Description	Formula	Fees for Sales Price of $342,500
Filp Tax/Fee	1% - 3%	$5,137
Cooperative Attorney Fee	about $450	$450
Transferring Agent Fee	$250 - $750	$500
Moving Out Fees	$500 - $1000	$750
Pay off the Bank Fee/Pickup Fee	$250 - $500	$375
UCC-3 Filing Fee	$75 - $125	$100
Total Closing Costs for Coop in NY		$7312

Finally, there is one other type of residential property that we need to talk about.

If Mike and Amanda owned a condominium, they would have other costs in addition to the Standard New York Seller Closing Costs.

Additional Closing Costs for Condo’s in New York

Description	Formula	Fees for Sales Price of $342,500
Condominium Attorney Fee	about $500	$500
Moving Out Fees	$500 - $1000	$750
Waiver Application Fees	$250 - $750	$500
Miscellaneous Condo Fees	Varies	$250
Total Closing Costs for Condo in NY		$2000

Wow – thats a lot of fees, taxes and other costs!

If you are wondering what each of these costs are and what they mean. Below are explanations on each of the costs described above.

Standard New York Seller Closing Costs Descriptions

• Real Estate Commissions – this is the obvious cost that everyone knows about but hates paying for it. Real Estate brokers in NY will typically want to charge a commission of about 6% of the selling price of your home. This cost is for them to list your house for sale in the MLS and other marketing as well as getting home sellers through the process successfully. If you need the assistance in selling a home then hire an agent, if you are savvy and can handle it as a FSBO then be sure to check out our NY Flat Fee MLS listing plans.
• New York State Transfer Tax – You didn’t think you could sell your house and the government wouldn’t want a taste, did you? This cost is what the great state of New York will charge you when you sell your home. There is no way around it, you just have to pay it.
• Attorney Counsel Fees – Closing on a home in NY requires an attorney’s services and they are going to want to get paid for their hard work. A good attorney will make sure you are 100% protected when selling your house and ensure the paperwork is processed correctly.

• County Recording Fees – The town or county your NY house is located in is going to charge a fee to update the land records after you sell your house. They are also going to record the release of any mortgages and these are the costs of the town doing that work associated with the sale of your home.
• Pickup Fee to Title Closer – in order for you closing to take place, someone needs to make trips to the town hall for verifying the mortgage or lien amounts. This is the fee that person charges to do that work.

Coop New York Seller Closing Costs Descriptions

• Flip Tax/Fee – Flip Taxes are a fee the Coops Board of Directors sets to collect money from the seller when they are leaving the association. The amount you pay could follow a few different models, either a flat fee, percentage of gross sales price, set dollar amount per share owned in the coop or a percentage of the net profit. It’s a fee that the coop uses to increase their reserves to put toward the operation of the coop.
• Cooperative Attorney Fee – When you sell your Coop, they need to have an attorney process some of the paperwork for the transfer to happen legally. Like most organizations, they shift this cost onto the customer and in this case, that is the seller.
• Transferring Agent Fee – This is a processing fee the Master Agent of the coop will charge in order for them to process the transfer on the coop’s end. Yes, this is in addition to the attorney fee, everyone wants to be compensated for their time.
• Moving Out Fees – Coops charge sellers a fee to move out of the building and the costs associated with that process on the coops resources. For example, the maintenance men and elevators are being used heavily for moving out and I guess someone has to pay for it.
• Pay off the Bank Fee/Pickup Fee – There is a document prepared by the banks attorney for the coop that basically allows the bank to be protected in the even you default. This fee covers the time and expenses associated with that process.
• UCC-3 Filing Fee – Because Coops are an organization, they need to file a UCC or Uniform Commercial Code. The UCC system gives the public notice of the debtor secured party relationship and the collateral involved. This fee covers recording that notice.

Condominium New York Seller Closing Costs Descriptions

• Condominium Attorney Fee – When you sell your condo, the association has an attorney that needs to prepare paperwork for the condo. This fee will cover the time and expenses involved for the condos counsel to do that work.
• Moving Out Fees – Condos can charge sellers a fee to cover any expenses that they have associated with you moving out of the building. This covers those expenses and probably more.
• Waiver Application Fees – Condos have a right of first refusal on the unit in the event of a sale. This fee covers the time and expenses of them making that decision and processing a waiver if they choose to not purchase the unit.
• Miscellaneous Condo Fees – This bucket covers any other fee that the condos association could charge sellers in the event of a sale. These fees should clear be documented in the associations condo documents or bylaws.

That sure is a good amount of information about all the costs a homeowner can expect when selling their NY home.

Don’t make the mistake of thinking that closing costs are the only costs associated with selling your New York house.

So going back to our example, does that mean after the closing, Mike and Amanda will only of had to pay these fees described above? Not necessarily.

There are other costs associated with selling a house in NY.

Below are the high-level items that will eat away at the proceed from the sale of your home.

1. Cost of getting your house ready to sell – this can include everything from hiring a professional stager, having a pre-sale home inspection, maintenance and repair items, and preparing your house for being on the market.
2. Cost of being in escrow – After you sign a contract on your house with a buyer, there are some costs you are going to have to pay. Always refer back to the contract for exactly what you are on the hook for. One common cost that sellers in New York often overlook is making repairs to their house after a buyer has a home inspection. These repairs are done to save a sale that could fall apart otherwise.
3. Closing costs – (described above)

That about wraps up the costs of selling a house in New York. I hope you found it useful and helps you in whatever stage of the home selling process.

If you still have any questions about the costs of selling your home, or about my flat fee MLS listing plans, drop us a comment below.
 

The post What Are The Closing Costs For A Seller In New York? (Full List) appeared first on ISoldMyHouse.com.

What You Will Read In This Article

• Questions to Ask Yourself Before Selling a House to Pay Off Debt
• Ways to Sell Your House and Save Money
• Ways to Keep Yourself Out of Debt After Selling
• What Are the Risks of Selling Your House to Pay Off Debt?
• What Can You Do Today?

Working to pay off debt can seem endless. People look for countless ways to speed up the process, such as taking on a second job or cutting down their living expenses. Selling your belongings is a great way to take off chunks of your debt. You can have a garage sale, sell your unnecessary vehicle, or get rid of your least favorite clothing items.

However, is selling your house to pay off debt something you should consider? Well, the answer is “it depends.”

For more details, we put together the information below for you to read before making your decision. In this article, we’ll cover when it’s a good idea to sell your house to pay off debt, and how you can do it the right way and finally break away from your bills.

We Found Great Agents and Negotiated Lower Fees For You!

ISoldMyHouse.com has negotiated significantly lower commissions with some of the best real estate brokers so you don’t have to. We will match you with a top local agent in your area that will sell your house (without sacrificing service) for a much lower fee!

 

Find A Top Rated Agent Near You!

 

Questions to Ask Yourself Before Selling a House to Pay Off Debt

Before jumping the gun and selling house to pay off debt, ask yourself the following questions:

Is the profit from selling your home enough?

Sure, selling your house can wipe out a large portion of your debt, but is it going to be enough to break free? If you don’t change your spending habits and create a realistic savings plan (stay tuned), you might end up right back in the same position. Or worse, if you have to sell your home at a loss, you could be facing further financial hardships.

Can you get a home equity loan instead?

A home equity loan is where the bank lends you money using your home’s equity as collateral. These loans can give you a large lump sum of money, which would help you pay off any debt you may have. As a result, you could reduce your bills and still keep your house. If you are looking for the best alternative to selling your house to pay off debt, a home equity loan is what you want to seriously consider.

How much is the rent in your area?

Even if you sell your house, you’re still going to have to live somewhere. It’s essential to consider the rental costs in your area, so you know what you’re getting yourself into. The last thing you want is to sell your house and then struggle to make rent every month; that’s extra stress you don’t need.

Are you prepared to move out of your house?

Understandably, you’re willing to do almost anything to get out of debt. Nearly 20% of people claim that debt hinders their productivity and overall quality of life. However, are you willing to move out of your house and will that cause you more stress? Make sure to think it through before deciding to sell.

Should I consider bankruptcy?

Bankruptcy is an option for those who have little or no means to pay off their debt. Filing for bankruptcy has a nasty reputation because of what it does to your credit score; however, it might be the only reasonable option depending on how much debt you have and the means you have to pay that debt back, even after selling your house to pay it down.

Should I seek professional credit counseling?

Sometimes seeking professional help is a viable option for those struggling to make payments to their debtors. A certified professional can go through all of the different options to see if there’s a better alternative to selling your home. Don’t ever think you are beyond seeking professional help, even if it is to just validate what your strategy is for selling your house to pay off debt.

Ways to Sell Your House and Save Money

Here are ways you can save money after selling your home to help your debt situation:

Sell FSBO

For sale by owner (FSBO) is typically the best way to maximize profits when selling your home. When you take this route, you don’t need to hire an agency or management team. As a result, you get to keep all of the profit when someone buys your house. However, selling your home on your own can be time-consuming and complicated, so we recommend you set aside time if you choose this option.

Sell With Flat Fee MLS

If you do choose to go with a real estate agency, you can choose to go with a flat fee MLS service. A flat fee MLS is where the broker agrees to list your house in the Realtors MLS for a low flat fee, rather than a percentage of the sale. This could help you to get more money from your home, depending on how much you sell it for. Keep in mind, these flat fee MLS brokers will not be providing you with other listing agent services, they will only be listing your house and then you are responsible for the selling tasks. Lastly, it is important to make note of the fact that a flat fee MLS company is different that a flat fee Realtor, they both charge flat fees but the level of service they provide is very, very different.

Negotiate Low Real Estate Agent Commissions

If you choose to use a real estate broker, a large chunk of the sale price is going into the pocket of the real estate agent when you pay them their commission. After all, they’re the ones who put in all the heavy lifting when selling your home. However, if you want to save money after selling your house, try to negotiate the lowest real estate agent commission possible.

We Negotiated Discounts With Great Agents. Find One In Your Area.

Ways to Keep Yourself Out of Debt After Selling

If you do sell your house, you should be one step closer to paying off those pesky debts. However, you have to ensure you do everything you can to keep yourself out of debt after the sale. Otherwise, it’s back to the drawing board. Here are some tips to keep yourself out of debt after selling your house:

Determine What Got You In Debt

If you’re struggling with debt, you’re far from alone. According to a source from CNBC, the average American has over $90,000 in debt. Debt is so typical that almost anyone you talk to is either struggling with paying it off or struggled in the past. The best way to keep yourself out of debt is to know what gets you there in the first place.

One of the leading causes of debt is buying things you can’t afford. It might not always be your fault, After all, your credit score and income gave the green light! However, just because we can make the purchase now, doesn’t mean it’s going to be the right decision in the future. Always ask yourself “Is this worth getting into debt over?” before swiping your credit card.

Another reason why several people fall into debt is that they don’t know how to manage money properly. Selling your home might be an excellent way to get out of debt, but if you don’t manage your finances the right way, you’re going to fall back into debt quickly. If you’re not great at managing money, consider speaking with a reputable financial advisor.

Don’t Buy More House Than You Can Afford

When you do purchase another home, remember not to buy a house you can’t afford. Although it might be tempting, this will only put back into more debt and negatively affect your future. If the debt to income ratio for your dream house is too high, it would be wise to find something cheaper. A good debt to income ratio when paying a mortgage is around 43%.

Here are some warning signs that you likely cannot afford a home:

• It’s way out of your budget. We all have dreams and aspirations to find the perfect house. However, we need to be realistic about how much we can afford. If you purchase a house you can’t afford, you’re likely going to lose it in the future. It’s best to stay within budget and make gradual upgrades.
• You depend on future income. Although everything might seem steady now, future income isn’t always guaranteed. It would help if you always accounted for emergencies and not make assumptions based on future income and expenses. Your expense column will increase parallel with your lifestyle, so consider that before buying.
• You can’t afford a 20% down payment. A 20% down payment is an industry-standard. If you cannot come up with enough money to get your foot in the door, you should find a more affordable option.
• You’re thinking with your emotions. Perhaps you want to impress your friends or showcase that you’re “living the dream”. While this might seem like a good idea at the time, it’s detrimental for your future. People will respect you more when you buy a house you can afford and always make payments on time.
• You’re paying more than 30% of your income towards your mortgage. For over half a century, the United States government recommends that you should only pay up to 30% of your income for rent. This isn’t an actual law but well thought out advice. If you’re paying more than 30%, you’re going to end up working hard to barely get by.

Learn to Set and Stick to a Budget

Setting and sticking to a budget can be tricky, but once you get into the habit, it’s relatively easy and fun. The reason why so many people fail to stick to their budget is that they set unrealistic expectations. You don’t need to sacrifice your lifestyle to save money. Here are some things you can do to create a reasonable budget and stick to it:

• Set something realistic. Above, we mention that setting something unrealistic will only set you up for failure. Instead, try setting a percentage of your income that won’t drastically change your lifestyle. You could start somewhere around 10%, then when you get comfortable opt for 15% and so on. Baby steps will take you further than you think.
• Develop a meal plan. Planning your meals ahead of time is a fantastic way to save money. Spontaneous munching can really add up, especially when you’re eating out for most of your meals. When you create a meal plan, you’ll likely buy in bulk which will help you save. Besides, cooking and preparing the meals can be an enjoyable new hobby.
• Learn self-discipline. Having the urge to buy something can be challenging to fight. When you have a budget, it’s not that you have to say no to everything, but it’s best to say “net yet”. If your friends want to go out partying every weekend or you can’t seem to help yourself from buying new clothes, try to stay home instead.
• Find someone who will keep you accountable. Just like working out in the gym, finding yourself a budget buddy will help ensure you don’t fall short. The two of you can keep each other motivated, give support, and make sure you stick with it. When you and your friends are in the mindset of saving, your creativity will allow you to find other affordable activities to enjoy.
• Track your progress. You don’t need to overwhelm yourself with complicated spreadsheets and analytics, but tracking your progress will help make sure you’re successful. See areas where it’s easy to save money and find where you struggle. Allocate more of your budget towards things that matter and try to minimize unnecessary expenses when they arise.

Save for Emergencies

How much more peace of mind would you have to know you have the funds to get you through an unexpected crisis? Most people would agree that it’s essential to have an emergency fund, but so many people neglect this piece of financial advice. However, having an emergency fund will protect you from unexpected events and keep you out of debt.

Several American families fall into debt because of one of life’s curveballs. Whether it’s a car accident, hospital bill, natural disaster, or sudden death, expenses can occur out of nowhere and leave you financially unstable. Creating an emergency fund is surprisingly simple, and you can start today.

The size of your emergency fund depends heavily on how stable your income is. If your income is high and your expenses are low, you don’t need to allocate as much towards emergencies.

However, if you’re the sole breadwinner, dependent on commissions, self-employed, you’ll need to be more frugal and prepare more cash for emergencies. In this situation, you should try to add at least six months worth of expenses to your emergency fund.

You should always make sure your emergency fund is liquid and easily accessible. The best places to keep your emergency fund is in a checking account or money market mutual fund that has a debit card. Try to refrain from using your emergency fund for things that aren’t an emergency.

We Negotiated Discounts With Great Agents. Find One In Your Area.

What Are the Risks of Selling Your House to Pay Off Debt?

Although selling your house to pay off your debt may seem like the best option, it does come with some serious risks if you aren’t careful. If you sell your house, it might be more challenging to buy a new one in the future. You’ll also be obligated to pay rent, and if you’re struggling to pay off debt, paying rent isn’t going to be easy.

Relying on selling your home to pay off debt isn’t the best way to think. Selling a house can take time and requires a lot of work. If you can find a better way to pay off your debt, you’re better off choosing the alternative. However, if you’re already planning on moving or know a few potential buyers, it could be a good idea to put your home back on the market.

What Can You Do Today?

If you’re knee-deep in debt, you’re likely under a lot of stress. It’s essential to try and stay calm and remember that there are options. Here are a few things you can do today to better your situation:

• Speak with a certified debt counselor who can advise you on why you’re so deep in debt and some ways to help get out.
• Begin researching ways to sell your home and calculate its value to see if it will be enough to remove your debts.
• List out the pros and cons about selling your home to see if it’s the best option.

Final Thoughts

We hope this article was helpful and gave you some insights about what you’re getting into when selling house to pay off debt. While the process can seem overwhelming, following the steps above can help reduce some of the stress, and make things a little easier.

The post Selling A House To Pay Off Debt appeared first on ISoldMyHouse.com.

Table of Contents

• Best Affordable Drones for Real Estate Reviews
• Best Mid-Range Cameras for Real Estate Reviews
• Best Professional Drones for Real Estate Reviews

Our Top 3 Recommendations

	Best Overall	Cheapest Option	Premium Option
Drone
Name	DJI Mavic Air Quadcopter	DJI Mavic Mini Quadcopter	DJI Phantom 4 PRO
Rating
Price	Check Price On Amazon	Check Price On Amazon	Check Price On Amazon

All 10 of the BEST Drones For Real Estate Photos and Videos

• DJI Mavic Mini – Drone FlyCam Quadcopter
• Ruko F11 Pro Drone 4K Quadcopter
• Holy Stone HS700D FPV Drone
• DJI Mavic Air Quadcopter
• Autel Robotics EVO Drone
• Parrot PF728000 Anafi Drone
• DJI Spark with Remote Control Combo
• DJI Phantom 4 PRO Professional Drone
• DJI Mavic 2 Pro Drone Quadcopter
• DJI Inspire 2 Quadcopter

People want fast and convenient service now more than ever before, and this can be seen across all industries. We want to see the world without lifting a finger. The same thing applies to people who want to buy real estate.

Potential clients do not want to spend hours driving from house to house. They prefer to browse homes and investment properties while sitting on the couch with a nice cup of coffee. It doesn’t matter if you like that or not; you can’t go against customer behavior if you are in the real estate business.

To keep up with this trend and offer what the market asks for, you need to be armed with the latest technologies and tactics. You don’t just take photos; you’re supposed to tell a story to capture your audience’s attention and compel them into taking action. That means you need to offer virtual tours and panoramic photos of the properties you’re selling. While you can get bulky equipment to make this possible, using a real estate drone will be much simpler. There are unlimited uses for these devices as long as you get creative.

In this article, we will look at some of the best drones for real estate. You’ll learn how to choose from the plethora of options on the market, based on your budget, expertise, and objectives.

Best Affordable Drones for Real Estate Reviews

For those just starting with drones, the best option is to buy something affordable and easy to use.

Most drones in this category are priced under $350 which makes them much cheaper than our professional recommendations. But the cheap option comes with low to mid-tier specs for photo and video use.

Who affordable drones are best used by

Showcasing real estate properties at a professional or commercial level is not what you’ll get from buying an affordable drone. This type of drones is best for beginners who want to learn the ropes of creating videos either for later use in a business environment or just for a hobby.

You won’t be able to use the drone for anything more than recreational purposes. Still, you will get valuable knowledge that will be extremely useful once you move to a better, higher-quality drone.

You can test doing virtual indoor tours if you buy a smaller drone, or you can experiment with outdoor panoramic videos of different properties. At this stage, it’s all about testing and having fun while doing it.

After all, you don’t have the risk of losing thousands of dollars if you make mistakes like you would with a professional drone. Test your piloting skills somewhere where it’s safe for everything and everyone around. When you’re ready to step up your game, pass this drone on to a friend and invest in a higher-end option.

Good and bad features about affordable drones

Good features:

• Many affordable drones come with easy to use flight tutorials and manuals since most buyers in this category are beginners
• Some drones don’t need to be registered with the government; you can charge it and get right to work
• These drones are inexpensive to repair or replace
• Most drones are lightweight and small, perfect for indoor use in apartments and condos

Bad features:

• Quality is mixed. You will usually get a drone that captures photos at an acceptable level. A few manufacturers might say they offer 4k video, but 4k on its own doesn’t do much in terms of quality
• Since these drones are often lightweight, they are not entirely stable in windy conditions and lower temperatures
• No microSD and limited internal storage capacity on most affordable drones
• Lack of obstacle avoidance systems, tracking, route drawing, and GPS location

Best Mid-Range Drones for Real Estate Reviews

When it comes to mid-range drones, you can nicely balance the price with the quality and features. This category has drones with prices that vary between $350 and $1,000.

You will have to take a bit more out of your pocket for these, but with a mid-range drone, you can shoot videos and photos for real estate listings, social media marketing, and general commercial use.

Who mid-range drones are best used by

You need a mid-range drone if you have at least a few months of experience with piloting drones. As someone who works in the real estate industry, this is an excellent fit if you want to create quality presentation videos and indoor/aerial tours or take panoramic photos.

The difference between a mid-range drone and an affordable one is that with the mid-range drone, you can use the content you create in your business without looking cheap. Many small real estate companies use drones from this category to add value to their services.

To get the most out of it, we recommend you hire a professional drone pilot. This is important if you have complex creative ideas that you want to put in practice. Otherwise, keep things simple and work with the traditional aerial/indoor tours yourself.

Whether you hire someone or fly the drone yourself, the unique shots you’ll take will draw people toward the properties you’re promoting.

Good and bad features about mid-range drones

Good features:

• Good storage capacity. Running out of storage when you’re in the middle of a shooting is not desirable. Luckily, most mid-range drones come with internal storage and space for a microSD card
• Excellent video/photo quality. After using one of these drones, you will see a return on investment because the quality of the videos and photos is more than enough to be used in advertising. It’s not Hollywood-tier, but it’s great for showcasing small properties, plots of land, and so on
• Better stabilization. Mid-range drones work well for aerial tours because they have unique gimbal stabilization for windy conditions
• Extended range control and transmission. As opposed to an affordable drone, a mid-range drone has a strong signal, allowing you to film large areas without having to relocate
• Speed. Some drones have a sport mode that provides speeds up to 25-30 mph. They are perfect for high-pace videos and tracking moving objects
• Temperature resistance

Bad features:

• Shorter flying time. With more features comes a higher energy consumption. Even though companies use lithium batteries for the drones, most can only stay in the air for less than 20 minutes
• Lack of obstacle detection/avoidance systems. Just as with the affordable drones, most mid-range drones don’t have this feature installed. There is a chance of accidents if you’re not a good pilot
• Can be tricky to set up and master since they have more features

Best Professional Drones for Real Estate Reviews

Professional drones are used solely for commercial use. These drones are not for hobby and recreational purposes, even though they could be used that way.

Most are priced between $1,500 and $3,000, but you can find drones at higher price points. You can decide which model you need based on how you plan to use your drone.

When it comes to real estate, the best models will give you fantastic video quality, smooth transitions, and stable flying mode for perfect aerial tours. They also should have slow motion and subject tracking modes if you want to create an indoor tour where the drone follows the real estate agent.

As we said, it’s all about what you want to focus on and the value you will provide to clients.

Who professional drones drones are best used by

These drones are not for the faint of heart or for those who don’t have the financial means to buy them. You will want to be sure of your piloting skills because breaking one of these will come at a substantial cost.

If you plan on creating stunning videos for your property listings, with clear shots and high frame rates, then professional is your category. One downside here is that these drones should to be handled by FAA licensed drone pilots.

Most established real estate companies use professional drones, especially for mansions, resorts, and land investments. If you are ready to step up your real estate marketing, then these drones are for you.

Good and bad features about professional drones

Good features:

• The highest quality videos/photos. They provide HDR 4k videos with 100 Mbps and 60 FPS
• Wide field of view and fantastic panoramic options
• Obstacle detection systems
• Draw mode for charting routes
• Active tracking
• Gimbal stabilization for high winds and various weather conditions
• Functional in both low and high temperatures
• Subject recognition
• Multiple tracking and GPS applications
• Safe landing and launching
• Silent and energy-efficient motor

Bad features:

• Low battery life
• Expensive parts
• Must be FAA registered
• Possible software bugs because of how many features they have
• Unnecessary updates that can clog the system
• Hard to set up and configure
• Hard to maneuver and control in the air

Which should you choose?

As you’ve seen, there are plenty of drones that provide a range of features and a few downsides. Deciding what’s the best one for you and your real estate business comes down to some of these factors:

• Budget
• Experience
• Types of properties you want to showcase
• The features you need
• Flying skill level

Keep this in mind and take a good look at our reviews, as well as others. Think about what type of videos you want to make and how they will impact your clients.

No matter what you choose, do your best to tell a story with your videos and photos. Research has shown that real estate companies sell 50% to 70% more properties when they use drones for listings. Get your drone now so you can start selling more properties!

Further Reading: Real estate photography is one of the most important pieces of marketing a home for sale today. Read these articles for more information about taking real estate photographs.

• 10 Best Cameras for Real Estate Photography
• How To Take Real Estate Photos

The post 10 Best Drones For Real Estate (Photos & Videos) appeared first on ISoldMyHouse.com.

Here Are The 5 BEST Types Of Pumps For A Flooded Basement

• Trash Pumps
• Electric Submersible Water Pumps
• Utility Pump
• Pool Pumps
• Hand Crank Pumps

Our Advertising DisclosureAdvertising DisclosureISoldMyHouse.com is committed to recommending the best products or services to our readers. We may have an advertising or affiliate relationship with some of the products, services or offers included on this page where we may receive compensation when you click on links. However, this never affects our reviews or recommendations and all content is based on our fair, objective, original and editorial analysis.

If you are reading this guide then you probably have water in your basement or at least know someone who has a flooded basement and need a solution to pump the water out. Let us start out by saying, this is a bad situation to be in but completely solvable if you take the appropriate corrective actions.

There is no way around it right now, you will need a quality basement pump to get the water out of your flooded house. However before rushing out to buy one, you will need to understand the types of basement pumps that are available for you to remedy this problem.

But first a warning! If done incorrectly you can cause serious structural damage to your house if you remove all the water at once. This is due to water pressure that might be on the exterior of your basement walls that is currently being equalized by the water that has also flooded inside your basement.

FEMA recommends the following procedure when pumping water out of your basement in order to avoid further damage, collapse or even personal injury.

• Begin pumping when floodwaters are no longer covering the ground outside.
• Pump out one foot of water. Mark the water level and wait overnight.
• Check the water level the next day. If the level went back up (covered your mark) it is still too early to drain your basement.
• Wait 24 hours and then pump the water down one foot again. Check the level the next day.
• When the water in the basement stops returning to your mark, pump out two to three feet and wait overnight.
• Repeat daily until all the water is out of the basement.

With that out of the way, we will now get into how you can get the water out of your basement.

Trash Pumps

Our Top 3 Trash Pump Recommendations

	Best Overall	Premium Option	Cheapest Option
Picture of Pump
Pump Name	Champion Power Equipment 66525	Honda WB20XT4A	DuroMax XP650WP Trash Pump
Rating
Where To Buy	View Todays Prices	View Todays Prices	View Todays Prices

How a Trash Pump Will Help You

A trash pump is a work horse of a pump and is designed for the most extreme flooded basements. They can quickly pump large amounts of water that contains other hard and soft items typically found in flood water such as mud, leaves, sticks, sand, and thick sludge. Some trash pumps have the capability of pumping hundreds or even thousands of gallons of water out of your basement per hour.

The best trash pumps are gas powered, heavy-duty centrifugal pumps that are portable and have larger water discharge openings than other pump types. You will also need two hoses to operate a trash pump. The first hose will connect to the inlet side of the pump and needs be long enough to get into the basement and down to the bottom. The second hose will connect to the outlet of the pump and needs to be long enough to discharge the water far enough away from your house so that it doesn’t cause further issues.

If your basement is completely flooded, this is the best type of pump you will need to get the job done. They are also typically more expensive but are well worth the money and will last many years.

Electric Submersible Water Pumps

Our Top 3 Electric Submersible Water Pump Recommendations

	Best Overall	Premium Option	Cheapest Option
Picture of Pump
Pump Name	WAYNE WaterBUG Submersible Pump	Site Drainer SD 300	Superior Pump 91330
Rating
Where To Buy	View Todays Prices	View Todays Prices	View Todays Prices

How a Electric Submersible Water Pump Will Help You

If a gas powered trash pump is too much pump for your flooded basement situation, then you should consider another top water pump that has two features that are very different than a trash pump. First, an electric submersible water pump is (obviously) electric powered so you will need to ensure that you have access to a safe and dry power source to provide the pumps electricity. Second, these pumps are meant to be directly submerged under water into the flooded basement in order to suck out the water.

The best electric submersible water pumps can come in many different sizes and can move up to a few thousand gallons of water per hour, depending on the horse power of the pump. They are not as durable as a trash pump and can become clogged or damaged if your flooded basement contains a lot of mud, leaves, sticks, sand, or thick sludge. The pump sucks from the bottom and not from a hose, however there still is a discharge hose that needs to be long enough to direct the water out and away from the basement.

These pumps can also be used as a sump pump in addition to being portable for a flooded basement remediation. If your basement flood level is not all that high and the water is generally clean, you should consider an electric submersible water pump to get your basement dry again. Perhaps the best part is the price is generally much less expensive than a gas powered trash pump.

Utility Pump

Our Top 3 Utility Pump Recommendations

	Best Overall	Premium Option	Cheapest Option
Picture of Pump
Pump Name	Trupow 330GPH	Wayne PC4 55832	SumpMarine 11AA
Rating
Where To Buy	View Todays Prices	View Todays Prices	View Todays Prices

How a Utility Pump Will Help You

If you are looking for a handy way to get small amounts of water out of your basement a utility pump is a useful and inexpensive tool to have around. A lot of times a utility pump is also called a transfer pump and the names are used interchangeably. It really comes down to nomenclature or branding of the particular manufacturer of the pump.

Regardless of what you call the pump, when looking for one to buy you need to make sure the specifications meet your requirements. These pumps are a lot like trash pumps because they have two houses that attached to the inlet and outlet of the pump to transfer the water from point A to point B. The pump does not go directly into the water like electric submersible water pumps but the horse power is typically similar. They are no where near as durable as trash pumps or as powerful but they still work great if your flooded basement situation is not that extreme.

Pool Pumps

Our Top 3 Pool Pump Recommendations

	Best Overall	Premium Option	Cheapest Option
Picture of Pump
Pump Name	Pentair 340039	Hayward W3SP2610X15	Hayward W3SP1580X15
Rating
Where To Buy	View Todays Prices	View Todays Prices	View Todays Prices

How a Pool Pump Will Help You

If you find yourself in a bind and in need of a pump but can’t get your hands on one but have an inground pool, you might be able to use your pool pump. These pumps are designed to move water around the pool and not necessarily transfer water at fast rates of speed but the concept is still the same. In order to get these to work it is going to take a bit of Macgyver skills. You will need to rig it up with the pool hose into the basement and make sure the water doesn’t recycle back into the pool rather away from the house and foundation.

Unlike trash pumps that are designed to pump and withstand debris, these pumps are typically made with plastic impellers and will most likely break if your basement is flooded with debris filled water.

Hand Crank Pumps

How a Hand Crank Pump Will Help You

Last and most certainly least, is a hand crank pump. If you have exhausted all other options then this tool can also make the job slightly more bearable than carrying the water out of your basement in buckets. Perhaps there is no power, you can’t get a generator or you can not get a gas powered trash pump, if you find yourself in this situation a good old fashioned hand pump will get the job done… eventually. These pumps are typically used in wells to manually pump the water out of them so it could take some modifications to get the pump to work for your basement but it can be done.

The good part about using a hand pump is the workout your arms will get as well as an appreciation for how hard people worked before gas and electric powered tools.

Further Reading: Looking For More Information About Flooding and Home Cleaning? Check These Articles Out!

• The Truth About Buying the Cheapest Flood Insurance
• How To Get Rid Of Musty Smell In Basement
• How To Make Your House Smell Good
• 27 Indoor Air Quality Mistakes That Hurt Your Health
• 25 Best Essential Oil Diffusers for Aromatherapy

The post Best Pumps For A Flooded Basement appeared first on ISoldMyHouse.com.

Table of Contents

• Best Time of Year to Sell a Connecticut Home
• Cost of Selling a Connecticut Home
• Legal Requirements and Considerations
• Options for Selling a House in Connecticut
• Connecticut Purchase and Sale Agreements
• Negotiation Process – Offers, Counteroffers & Acceptance
• Escrow Process in Connecticut
• Closing Process in Connecticut

Your home is your castle. A place of refuge after a long day’s work and where you’ve no doubt made countless memories with friends and family. But there comes a time in many of our lives when selling our Connecticut home is necessary.

Perhaps the kids have moved out and it’s time to downsize, or you’ve outgrown your first starter home and are looking to expand your family. No matter the reason, selling a house in Connecticut can be a complicated process with numerous legal and other considerations to contend with.

For most Connecticut residents, their home is the largest financial asset they have. Not to mention, it often holds a certain amount of sentimentality, from pleasant memories to the hard work you put into remodeling the kitchen.

Because of this, selling a house in Connecticut isn’t a simple transaction. It’s ok to be hyper-cautious about making sure it’s done right, and in a way that benefits you and your family to the greatest extent possible.

While the process of selling a house in Connecticut is similar to that in other states, Connecticut does have its own unique local practices and real estate laws to contend with. Making yourself familiar with this process early on in the stages of selling your home can help you avoid major headaches and problems down the line.

This guide will walk you through the ins and outs of selling a house in Connecticut, making sure you don’t get hit with any major surprises along the way. From working with a listing agent to legally required disclosures, we’ve got you covered.

Best Time of Year to Sell a Home in Connecticut

When it comes to selling a house in Connecticut, timing matters. But it’s not just the month or season you need to take into consideration. Certain property types sell better at differing times of the year, and homes (on average) may sell faster or slower, or even at a higher closing price during particular months.

Best Time of the Year to Sell in CT

They say location is everything in real estate, but when it comes to selling a home, so is timing. For example, listing a home in mid-winter when moving companies and buyers have to deal with difficult road conditions and sub-zero temperatures isn’t exactly optimal.

The good news is that Connecticut has a very clearly defined real estate cycle, with property prices both rising and falling like clockwork. Using actual real estate transaction data, we can easily chart the best time to sell your property in Connecticut based on your goals. This makes planning to sell a home in Connecticut an easier and more fruitful endeavor.

If you’re planning to sell your home in CT, let historical data be your guide.

For example, selling a home in July could end up netting you almost 17% more on the closing of your property, while selling in February or March might cost you a whopping 14% at closing (as compared to the average sales price).

Best Time of the Year to Sell for a Profit 

Months Homes Sold at Above Average Prices (in order of highest to lowest):

• July
• August
• June
• November
• September

Months Homes Sold at Below Average Prices (in order of lowest to highest):

• March
• February
• January
• April
• May
• October
• December

PRO TIP: Remember, these figures are based on the moth the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across CT on average sit on the market for around 68 days. However, this number can go as low as 30 and as high as 120 days. So, plan accordingly.

Best Time of the Year to Sell your House Fast in CT

Money isn’t always the primary motivator for selling a home. Life circumstances often dictate that you need to sell your home fast. Looking at actual data we can uncover which months are the best months to sell your home quickly in CT.

Selling a home fast is especially important for many Connecticut home sellers. Job transfers, a death in the family, changing needs and other major life events may require you to move quickly. But oftentimes the one thing holding you back is the sale of your existing home (likely so you can purchase another).

For example, those homes closed in July or September were on the market 8-11 days less than average, while those closed in January were on the market for an additional 13 days on average.

Months Homes Closed Faster Than Average (in order of fastest to slowest):

• September
• July
• November
• December
• June
• August
• May

Months Homes Sold Slower Than Average (in order of slowest to least slow):

• January
• April
• May
• February
• March
• October

PRO TIP: Remember, these figures are based on the moth the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across CT on average sit on the market for around 68 days. However, this number can go as low as 30 and as high as 120 days. So, plan accordingly.

Buyer / Property Type Matters

Single-family homes are an ideal candidate for those with children. Buyers for these homes generally start looking in the spring, with an ideal “move in” date early June when the school year ends. Those with properties in the lake and costal regions often see more interest and action in the market between Memorial Day and Labor Day when interested tourists seek out the purchase of summer homes.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

Cost of Selling your Home in Connecticut

Selling a home comes with a lot of closing costs. Let’s take a look at all the costs you can expect when selling your Connecticut property.

1. Conveyance Tax (Transfer Tax)

The Connecticut Transfer tax is a tax that is levied against any transfer of real estate property. The only two exclusions are for foreclosures and “short sales”.

The state’s current rate of transfer tax is calculated at 0.75% for any sale up to $800,000. Sales of property above $800,000 are subject to a conveyance tax of 1.25% by the state. Further, it is not uncommon for the town or city the property is located within to charge their own local conveyance tax. This local conveyance tax at the city/town level generally ranges between 0.25%-1.25%.

2. Costs Associated with Remedying Title or Survey Issues

In the event that issues surrounding the title or survey emerge, contacting a local real estate attorney is the advised route to obtain counsel on your options and cost of resolution.

3. Local Government / Municipal Costs

Generally, there are localized costs associated with the sale of a Connecticut house. These may include local stamp taxes, recording fees, community association estoppel fee, or other fees imposed by the county, city or town such as those for utilities or local taxes.

4. Seller Attorney Fees

It is important to note that in the state of Connecticut it is required that a licensed attorney bet at the close all real estate transactions taking place within its borders. This is contrary to many other states in the US in which title companies are allowed to handle escrow and closing matters. Most attorneys charge by the hour, however, you may be able to find Connecticut attorneys offering “flat fee” real estate closing services.

5. Real Estate Agent Commission

While there are other ways to sell your home than going with the traditional real estate agent listing, if you do hire an agent, they are paid based on a commission rate calculated against the sale price of your home. We’ll cover the costs associated with hiring a real estate agent later in this guide.

For now, understand that real estate commissions in Connecticut are defined as a percentage of the sale price of a home and that while standard rates do exist, they are negotiable.

6. Home Warranty Fees

Some Connecticut home sellers opt to offer a home warranty to cover components or systems of a house that may pose a risk of failure for the buyer. Although optional, offering a home warranty is a way to sweeten the deal, attract more buyers and remain competitive during months when the real estate market heats up.

Legal Requirements and Considerations

Do You Need a Lawyer?

Although most states do not require an attorney for you as a seller to sell your home, this is NOT the case in Connecticut. Under Connecticut law, a real estate attorney is a mandated requirement in order to verify that the title of a property is marketable and valid, that the property is free and clear of any liens and that the transaction is ready to move forward. States with this requirement are often referred to as “attorney-only” states.

Although this may represent an additional expense, having a lawyer in your corner is also never a bad idea for contract review or to assist in negotiations. Real estate attorneys may also be useful for assisting with unconventional circumstances such as with a lease-to-own or owner-financed deal, and with any issues that might arise with contract disputes or title issues.

Connecticut Real Estate Disclosure Requirements

Connecticut, like most states, requires that sellers disclose certain information regarding known material defects about the condition of the home to prospective buyers. This requirement is outlined under Connecticut General Statuses § 20-327b. Such disclosure is part of The Uniform Property Disclosure Act and applies to the transfer of: Residential Real Property of 4 dwellings or less.

Failure to comply can result, in addition to other potential consequences, the requirement of crediting the buyer with $500 or the amount of cash designated in Section 20-327c at closing if the seller fails to provide the required disclosure report.

The form itself is comprised of 36 questions covering basic information such as when you purchased the home, the home’s age and so on, in addition to more specific information about the condition of systems and components. Each question allows you to provide additional comments if necessary, as well as encourages the seller to attach additional details in separate pages if warranted.

In addition to “yes” and “no” answers, you may specify “unknown” for instances where you are not aware of the condition of a particular item. Under CT law, you as a seller are under no legal obligation to have each component or system inspected for its condition.

Seller’s Federal Disclosure Requirements

In addition to the aforementioned disclosure requirements set forth by the Connecticut statute, sellers must also abide by federal disclosure requirements.

1. If the home you are selling was built prior to 1978 you must disclose any lead-based paint hazards in the property
2. You must provide any inspection reports relating to lead-based hazards in the home
3. Provide an EPA-approved informational pamphlet to buyers
4. Allow buyers to conduct their own lead-based assessment
5. Include specific warning language relating to lead-based hazards in the sale agreement

Purpose/Benefits of Disclosure

Although the state’s mandates regarding disclosure are pretty standard, there are a number of long-term benefits that can be had from or by making such disclosures for sellers.

Benefits of Disclosure Include:

• Improved negotiations at the deal table
• Early discover of issues leads to better valuation
• Opportunity to make improvements on the home
• Ensures a fair deal from both sides of the table
• Legal compliance
• Reduced liability

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

Options for Selling a House in Connecticut

Selling With A Real Estate Agent

When most Connecticut residents think about selling their home, they think of listing with a real estate agent. In the state of Connecticut, you may also see seller real estate agents being referred to as listing agents.

Not only does a real estate agent handle the listing and marketing of your property, but they also aid in helping you through every step of the process from showings and staging to contract negotiation and closing.

Listing agents will provide you with a comparative market analysis (referred to as comps), and provide pricing recommendations and strategies tailored towards your specific goals.

Real Estate Commissions in Connecticut

Commission paid out to a seller’s agent is generally calculated as a percentage of the final sale price of the home. The percentage of commission can vary, with lower levels of service usually corresponding to less robust services.

Full-service agents handle the listing, marketing, showing, staging, negotiation, and closing of your home. Marketing expenses are handled by the agent out of their own pockets. These agents on average charge between 5-8% in Connecticut. This commission rate is split with any agent that may be representing the buyer’s agent. Commission rates with your seller agent may be negotiable.

The commission is paid out as part of the sale price upon closing and is not required upfront.

Connecticut’s Multiple Listing Service

Developed by REALTORS®, the multiple listing service, also known as MLS, is a multimillion-dollar real estate technology. The fundamental principle behind the MLS is that it helps brokers and real estate agents share information on the properties they represent for sale through a singular network.

Sellers benefit by exponentially increased exposure for listed properties, while buyers benefit do to the ability to quickly identify ideal properties on the market for their clients who want to live in Connecticut to purchase.

This system facilitates cooperation between competing agencies, brokers and agents, leveling the playing field and providing value for every party involved.

As a consumer, you can access MLS listings published on brokers’ and agents’ websites, but the MLS itself is a private database created and maintained by licensed real estate professionals.

Listing Agreement

After interviewing and selecting a real estate or listing agent of your choosing, you will sign what is known as a “listing agreement”. This agreement grants the agent the legal right to market and coordinate the sale of your home on your behalf.

Listing Agreements Generally Cover the Following Terms:

1. Commission Rate 

The rate of commission you agree to pay as a seller (usually ranges from 5-8% in CT). This fee, as mentioned earlier, gets split between the buyer’s agent and your agent at closing.

2. The Type of Listing

Listings can either be “exclusive” or “non-exclusive”. Exclusive listings are the most common type and require you to pay a commission to the selling agent no matter who or where the buyer comes from. With open or “non-exclusive” listings, on the other hand, you pay whichever agent brings the seller the commission.

3. Listing Duration

Each listing agreement will cover a specific time-frame, after which the contract expires and you are free to hire another agent to do the job, handle the sale yourself, or extend the existing contract.

4. Listing Price

Your agent should provide you with an in-depth market analysis and a detailed breakdown of comparable sales in your locale. Based on the data, their experience as an agent and your goals, the listing agent will provide you with advice on pricing strategy. The agreed-upon price will be included as part of the listing agreement.

5. Any Items NOT Included as Part of the Sale

In some cases, there may be instances where certain items are not part of the home’s sale. For example, perhaps you plan to take the refrigerator with you when you leave, or an heirloom chandelier. Any such items you wish to take with you must be included in the listing agreement.

6. Detailing of the Obligations and Duties of Both the Seller and Listing Agent

Each listing agreement should (in detail) spell out the obligations you have as a seller to the agent and the obligations the agent has to you as the real estate agent representing your property. For example, the listing agreement will specify the ways in which your agent will market your property, the type of insurance that must be maintained on the home, and the disclosures you are required to make.

Selling Without a Real Estate Agent or By Owner

Although most Connecticut residents opt to sell with the help of an agent, non-traditional options offer a range of benefits of their own, with a growing number of sellers CT flocking to these opportunities in lieu of paying out high commission rates to an agent.

DIY or For Sale By Owner

Selling your home going the DIY or For Sale By Owner in Connecticut route has its challenges, and is certainly more work, but the payoff can make it more than worthwhile if you do your homework and put in the effort.

In fact, on a $250,000 home with a 6% commission fee, you can save $15,000. Further, according to the National Association of Realtors’ Profile of Home Buyers and Sellers, homes sold by their owners also often sell more quickly, sometimes in as little as two weeks.

But before you decide to dive off the deep end and handle your home’s sale on your own, bear in mind that the process isn’t exactly a cakewalk. Apart from marketing, staging and negotiating the sale, you’ll also be responsible for both the financial and legal paperwork associated with the transaction, something you’ll no doubt want to hire an attorney to help with.

Tips for Selling the DIY Way:

1. Prep your home for the market. This means professional cleaning, removing any clutter, and staging the property both inside and out for viewing.
2. Competitively price your property. With real estate platforms and data readily available online from sites such as Zillow and Redfin, you can do your own market research to find comparable properties and price your home similarly to those that best represent your home and sold within a timeframe that you are comfortable with.
3. Invest in a flat fee MLS listing service in Connecticut in order to exponentially expand your reach to prospective buyers both in the area and nationwide (more on this below).
4. Get a marketing plan together. Consider listing your site online, in classified ads and platforms, your local newspapers, social media, and even starting a website where you can digitally showcase pictures, videos of the property and more.
5. Know your home’s best-selling points and put a “pitch” together to “sell” them both in person and in print or online.

Flat Fee MLS Listings

As previously mentioned, MLS is short for “Multiple Listing Service”. The MLS consists of a network of over 900 individual MLSs nationwide in the USA. Each MLS is separate from each other, meaning that a real estate agent in West Hartford, CT cannot view listings in San Diego, CA. This makes it critical to ensure you are listed in the proper MLS.

Why is Paying for a Flat Fee MLS Listing Worthwhile?

• The MLS essentially represents the entire “real estate market”
• In the US, over 90% of all sold properties are the result (at least in part) of MLS listing exposure
• Listing in the MLS means that all local Realtors®, agents and brokers will be able to find and promote your listing to their clients
• Potential buyers can find your home listed on hundreds to thousands of public MLS websites
• Those properties listed on MLS tend to sell faster and at a higher price
• You can avoid Connecticut’s high real estate agent commission rage (on average 6%)
• You retain the right to sell your house yourself
• You have full control over your listing
• Qualified buyers will call you direct
• You set the terms of the contract offer and negotiate conditions directly
• Your MLS listing can be canceled at any time if your situation changes

We put together the video below for you to watch that shows you everything you need to know about how to use flat fee MLS to list your house without a Realtor.

 
Get Started Listing Your Home On The MLS Without A Realtor

Connecticut Residential Purchase and Sale Agreements

In simple terms, a home purchase agreement, also called a sale agreement or purchase contract, is a contract that details the conditions of the sale to which both the buyer and seller agree to. This agreement is legally binding, and it is advised that the agreement be both drafted and reviewed by an attorney you trust.

NOTE: The majority of clauses within the purchase agreement are designed to protect the buyer.

The agreement will cover such aspects of the sale such as

1. Sale Price

This will include both the actual sale price of the home as well as how much the buyer agrees to put down at the contract signing date, what amount will be financed and any balances due at closing.

2. Financing Contingency

Financing contingencies are a common rider included in many purchase agreements. Generally, they define a timeline during which the buyer must qualify for adequate financing in order to purchase the home.

Similarly, a rider may be included to protect the buyer, stating that the purchase is contingent upon them obtaining financing at favorable terms (such as within a specified interest rate rage).

Other Financing Clauses May Include:

• Dates by which the buyer must have applied for a mortgage
• Dates by which the buyer must have obtained pre-qualification, pre-approval and/or final approval by the lender

3. Property Description

Unlike some states, Connecticut is not a “buyer beware” state as it relates to residential property. This means that the rule of “Caveat Emptor” does not apply to homes and residential property. As such, sellers are required to meet full disclosure requirements.

NOTE: Caveat Emptor, is still the rule of law in Connecticut as it relates to commercial property, where it is the buyer’s, not the seller’s, responsibility (in large part) to do their own due diligence on the property.

The property description should accurately describe the property including:

• Size of the home’s square footage and any additional structures such as a detached garage
• Lot size
• Number of lots included
• Frontage on a road or body of water
• Number of living units
• Finished basement
• Rights of way, easements or appurtenant rights
• Etc…

4. Inspection & Repairs

Under the agreement, an inspection clause may dictate that the buyer has the right under the terms of the contract to inspect the property by hiring one or more contractors or licensed inspectors to look at the property.

The contract will need to specify which, if any, repairs the seller agrees to make as a result of the inspection prior to closing.

5. Title and Survey

The agreement will outline which party is responsible for title insurance and the duration of time the buyer has to review and/or object to the results. In the event that you, as a seller, provided a survey or the buyer ordered one themselves, the agreement will specify how long the buyer has to identify any issues. In the event that a resolution to a problem is required, a timeline for this solution will need to be established and incorporated into the contract. IN the event that you cannot or do not want to resolve the problem (due to finances or other considerations), incorporating a clause that states you have the right to cancel the agreement and return the deposit should be included.

6. Personal Property / Excluded or Included Items

Just because you are selling your home does not mean you have to sell everything in it. From furniture, to appliances, and even light fixtures, you get to decide. But, you must specify in the agreement which items are staying behind and which are not part of the deal. Both you and the buyer should make a list of the property they expect to sell/purchase. From there you can both negotiate a deal.

7. Closing and Move in/out Dates

Dates are very important with regard to the process of selling a home. Generally, the closing date for Connecticut properties lands around 30 days. However, this date is largely dependent upon the lender and may require an extension.

8. Other Riders

Connecticut Realtor forms also have a range of optional riders that cover such circumstances as those that involve:

• Owner financing
• Homeowners’ associations
• Condominiums
• And more… 

Negotiation Process – Offers, Counteroffers & Acceptance

Real estate deals are an evolving process with lots of moving parts, contingencies and more. All of which means that a lot can change between the point at which an initial offer is made and closing day.

Rarely is selling a home as simple as getting paid your list price without some form of concession and negotiation. These negotiations can go on for weeks until both parties reach (or don’t reach) an amicable deal.

Counteroffer

A counteroffer is the medium in which this negotiation is dealt with. Counteroffers are generally handled by either your real estate agent or attorney (unless you are selling DIY). Think of selling as a process vs a transaction.

Counteroffers arise when the terms of the initial offer are not agreeable. The counter-offer provides you with the opportunity to take a hard look at what items you are willing to compromise on and which are potential “deal breakers”.

Escrow Process in Connecticut

When a buyer decides on a property they are interested in buying, they first make a purchase offer. As part of this purchase offer, they most often provide “earnest money”. This earnest money is a deposit made as a consideration to be held in escrow by an escrow agent.

The role of an escrow agent is to ensure the transaction closes on time and without a hitch. It is the duty of the escrow holder to validate that all conditions and terms of the buyer’s and seller’s agreement are met prior to the finalization of the deal.

This process ensures that all funds, required forms, documents are accounted for and that any loans or liens have been paid off as part of the transaction, and that the new buyer will have a clean title prior to the purchase of the property.

Money is held in what is known as an “escrow account”. Think of this account as a type of “holding tank” for the money a buyer will use to pay for your home.

Escrow Agents May Collect the Following:

• Tax statements
• Insurance and fire policies
• Loan documentation
• Title insurance policies
• Terms and conditions of the sale
• Any requests for payment of services to be covered by the escrow funds

Common Elements of the Escrow Process

The Offer:

At this stage the buyer will make an offer on your home. Generally, this is done by signing a formal “binder agreement” or an “offer to purchase”. Accompanying this offer is a payment of 1% of the purchase price.

Inspections:

An inspection is often conducted by the buyer “post offer” acceptance. This inspection is generally conducted by a licensed home inspector and is used to uncover any potential issues that need to be resolved prior to signing of a purchase agreement.

Contract:

Presuming you accept the buyer’s offer, the buyer will sign the contract of sale. Your legal counsel will need to review the documents, negotiate any elements that need adjusting and so forth. Once the contract has been legally executed, the rights and obligations of you as a seller and them as a buyer become set in stone. Generally, neither party can back out of the deal from this point forward, except for as provided for under certain contingencies such as a “mortgage contingency”.

Deposit:

At the time of contract signature the buyer will provide a deposit on the property of around 10% based on the agreed up on sales price. This deposit is held “in escrow” and is non-refundable. In the event that the buyer backs out for reasons other than those allowed under any contingency in the contract, the seller (you) will get to keep the deposit.

Mortgage:

Due to the lengthy and complicated nature of obtaining a mortgage, the buyer will have likely began this process as early as possible.

Title Search:

Search and review of the title in order to verify and confirm that you have a clean title to the property free from liens or other restrictions.

Title Insurance:

As previously mentioned, title insurance protects the lender and buyer against any potential monetary losses due to exposed title defects or other claims against the property.

Survey:

Unlike some states, in Connecticut a survey is not often required by lenders. It is both a costly and time-consuming ordeal. Because of this most buyers waive their right to a survey.

Homeowner’s Insurance:

An often-mandated requirement by lenders and paid for by the buyer.

Final Walkthrough Inspection:

Just prior to “closing” the buyer usually conducts a final walkthrough of the property with their attorney or real estate agent to ensure nothing has substantially changed and that the condition of the property is that guaranteed in the contract.

Adjustments:

Adjustments refers to the alteration of the final sales price in order to take into consideration expenses incurred during the periods they owned the property (such as prorated taxes, water and sewer charges, condominium fees, etc.).

Closing:

The final stage of the process. At this stage the buyer will sign all required bank documents and pay any balance of the purchase price to you the seller. As the seller you will also execute any documents necessary such as a deed and paying conveyance taxes. They buyer’s attorney will file the signed deed and the buyer will take the keys and ownership of the property.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

Closing Process in Connecticut

The closing is the time at which you formally transfer ownership of your home to the buyer. This process can take place anywhere both parties agree to. In Connecticut, when the lender notifies that everything is ready, the closing attorney will coordinate with all involved parties and their respective agents to schedule the “closing ceremony”.

Generally, within three business days of closing the lender will provide the buyer with what is known as a “closing disclosure” that outlines and details the terms of the loan, and subsequently provides the funds the buyer needs at closing in order to make the purchase.

The closing ceremony itself takes around an hour or less. During the ceremony, the closing attorney will explain to each party what the closing documents mean and answer any questions either party may have. Presuming everything is agreeable, the attorney will collect and distribute funds from their trust account.

Once closing has come to an end, the attorney will record the deeds. One deed covers conveying the property and the other and the other the lender’s security deed. In Connecticut it takes approximately one month for the original deed to be returned to the buyer.

The Closing Process in Detail:

1. Title Search: ran just prior to the closing ceremony in order to uncover any assessments or liens on the title. If the title comes back as “clean” the closing can proceed unhindered.
2. Attorney prepares paperwork for the transfer of the title/deed and will file the application for title insurance presuming the lender requires such.
3. A final closing date will be scheduled that is amenable by both parties.
4. Calculation of the total amount (in the form of a cashier’s check) that the buyer needs to bring to the closing.
5. Final walkthrough, usually performed the day of or the day before the closing ceremony
6. Buyer and seller, at closing (settlement table) sign all requisite closing documents and any final loan documents.
7. Buyer remits remaining funds in their down payment to the attorney via cashier’s check
8. Attorney records the transaction and deed with the local municipality
9. Buyer receives keys and legally takes possession of the property

Final Thoughts

We hope that you have found this guide informational and beneficial. Selling a home can be an emotional and exciting time in one’s life. But it can also be a stressful one as well. Knowing what to expect and how to best prepare for the process can help you remain calm and in control throughout.
 

The post Read This Before Selling A House In Connecticut appeared first on ISoldMyHouse.com.

When you are a Michigan homeowner, you’re in a unique position when it comes to selling your property.

You’ve lived in your home. You’re privy to the property’s perks and unique details that a real estate agent might miss. Even with all the right tools, a Realtor lacks that special connection with your house.

Take advantage of this first-hand perspective. Use that personal touch whenever you can. It will help you connect with potential buyers and stand out from the competition—people like and remember personal details.

Do You Want To Sell A Home And Save On Commissions?

Did you know that we can help you save a lot of money when selling your house? Money that you can put towards moving, buying a new house, paying off debt, a much needed vacation or anything else you want. ISoldMyHouse.com has 3 ways for you to sell your house and NOT pay high commissions.

 

1. Sell It Yourself With Our Flat Fee MLS Listings
2. Sell With Top Local Agents With Negotiated Discounts on Commissions
3. Sell To A Pre-Qualified Cash Buyer

Find Out How It Works Now!

 

Here are ten tips you need to master in order to sell your house in Michigan without a Realtor and sell it like a total professional so you can get the best return on your investment.

1. Scope Out the Competition (Be A Nosey Neighbor)

You know what they say about knowing your enemy. That applies even more so in a field as competitive as the Michigan real estate market!

If you want to be able to get your home sold, you need to do the legwork to gather all the market intelligence you can. Luckily for you, nowadays, information is abundant and readily available. Use all the tools at your disposal—you’ll need them.

An easy but essential part of your research is attending open houses. Find out which homes are showing in your area and visit them as a potential buyer. On top of getting an idea of what your house is up against, this exercise will also show you a few things:

• How to position and stage your property so that it appeals to potential buyers – Not all buyers are the same, and professional Realtors have experience in staging that you can learn from. Look for themes in the homes’ decor, especially with furniture and color coordination.
• How to behave like a pro and show buyers around your house like it’s your job – Note the kinds of features Realtors highlight during your tours. They know what to showcase to bring the perceived value of a property up. Pay close attention to what they avoid mentioning, too.

Searching for homes for sale in Michigan online is another form of valuable research you can do to gather data. This step will give you insights into things like:

• How many properties are on sale currently and which ones have sold recently
• How to gauge direct competition and manage your expectations
• Analyze sold Michigan listings to learn what they did well and apply it to your listing for maximum impact
• Look at listings that are more than 120 days old for examples of what not to do, and make sure you’re not making any of their mistakes. If they’ve been on the market that long, they’re doing something wrong.

Study the descriptions, photography, and language used to describe the properties that have sold for the highest prices, and apply what you learn when you create your home’s listing. Do the same later when you talk to interested buyers or host your own open house.

2. Give Michigan Buyers What They Want

Whenever you’re selling anything, it’s crucial to understand the perspective of those you’re trying to reach. You’re asking them to part with a lot of money, after all. You must be familiar with current trends, and any features potential buyers consider must-haves or deal-breakers.

This sounds more complicated than it is. You can get a glimpse of selling features by looking at home décor blogs and magazines and comparing what you see with the listings you’re researching (especially the ones that sold). Pinterest searches are great for spotting current and up-and-coming trends!

More often than not, if you haven’t recently remodeled your home, you’ll have to do a few updates to your house to command top dollar from buyers. Choose wisely where you spend your money and invest in upgrades with an impact that will pay for themselves when you start receiving offers.

Some simple things that will make your house go from “meh” to “wow!” include:

A fresh coat of paint

Stay away from taste-specific shades that people either love or hate, but don’t rely too heavily on boring neutrals either. Instead, bring all you have learned to the table and apply a fresh coat of trendy paint in strategic places. You’d be surprised how much difference a brightly colored accent wall can make!

Give your flooring some love

If you have an old carpet, get rid of it ASAP. If your hardwood floors need refinishing, staining, or anything of the sort, get to work or hire someone who’ll leave them looking their best.

If you have no other option than replacing the floors, consider affordable laminated floors that won’t be as expensive as actual wood. When chosen well, laminate flooring will make your house look like a million bucks and drive the value up.

Update your kitchen cabinets

Most real estate agents call the kitchen “the heart of the home.” Never underestimate its importance of when you’re putting your home on the market.

If your kitchen is still in good shape but could use a little bit of love, an easy and cheap way to give it a fresh look is to paint the cabinet doors and replace the old, worn-out handles with some new and stylish hardware. Look at what updated kitchens look like on the current market and model yours after them.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

3. Analyze Michigan’s Real Estate Market Data for a Correct Listing Price

Many factors dictate a property’s value, but the owner’s personal opinion isn’t one of them. Most homeowners in Michigan have an emotional attachment to their houses, and that can cloud their judgment when it comes to pricing. This is when it becomes particularly important to consult outside sources.

Buyers don’t care about all the fond memories you have of that living room, so it’s essential to maintain an appropriate distance and a professional outlook when pricing your home.

Use websites like Zillow and Redfin to get an idea of what low, high, and average prices per square feet in your neighborhood look like. You can also consult public records in local municipalities in Michigan and ask for advice from local Realtors who work with the same type of properties.

4. Make Sure Your Real Estate Photographs Don’t Suck

It’s hard to believe how, despite living in an Instagram world, some people still think images aren’t that important for their listing. They think any photo off their phone will do. Nothing could be farther from the truth.

Would you rather buy a pretty pastry at a restaurant or one equally tasty, but that looks like someone burned the top and then sat on it? You’d pick the pretty one with the fancy icing and flaky layers, right? Potential homebuyers are the same way.

Don’t skimp on this step because it will determine how many people actually show up to your open house and how many offers you get after they leave. If the pictures don’t catch the buyer’s eye, they’ll keep scrolling and move onto the next listing page, and you will have lost an opportunity.

They type of camera and the lenses used both influence the quality of your house photos. Phones might be great nowadays, but unless you have a brand new, top of the line smartphone, you’re better off using a professional camera that’s compatible with wide-angle lenses. Wide-angle lenses are the best at capturing details and making each room look ample and airy—and the bigger your home looks, the better.

If you know how to take decent photos and decide to go the DIY route, don’t forget to edit them before posting. Too often, people shy away from making small edits. You have to think like a professional, and professionals edit their photos so they pop. As long as you’re only enhancing the lighting and contrast, you’re not misleading potential buyers. It’s ok to edit out that pair of shoes you forgot to pick up before taking the picture.

If you’re on a tight budget and know someone skilled with a camera, consider giving them a call—but only if they truly know what they’re doing. Remember, photos are the first glimpse people have at your property, and they will use them to judge. Make them fall in love at first sight!

Lastly, if you can afford it, consider hiring a professional real estate photographer who specializes in Michigan real estate photos. It’s even better if they work with a stager because, as a team, they can stage your home and make your listing shine. You want those photos to set it apart from all the other homes on the market!

The beautiful photos you see in magazines don’t happen by accident, and this is not an area where you can afford to be stingy.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

5. Your Secret Weapon (Michigan Flat Fee MLS Listing Companies)

If you have decided to sell your house on your own, you should seriously consider going with a Michigan flat fee MLS listing company instead of going 100% FSBO. The choice between the two is all about how much exposure to real and active buyers you want.

You will have to list your house with a Michigan state licensed flat fee MLS real estate broker and offer a buyers agent commission but you still retain the right to sell FSBO.

Flat fee MLS listings are for hands-on sellers that aren’t afraid of learning and getting involved with all aspects of the sale of their homes. It’s also a good option for those who are interested in saving some money (even if that translates into more work and time) if you do it right.

We put together the video below for you to watch that shows you everything you need to know about how to use flat fee MLS to list your house without a Realtor.

 
Get Started Listing Your Home On The MLS Without A Realtor

What exactly is the MLS?

A Multiple Listing Service or Multiple Listing System (both names are used and they mean the same thing) is a database that lists all the properties that are available for sale at any given moment. Local Michigan real estate agents can access this database on behalf of their clients. When your property is listed on the MLS that is how it gets discovered and (hopefully) bought.

It also acts as the centralized data hub that will feed your house listing to the major real estate portals such as Zillow, Realtor.com, Trulia, Redfin, etc. This way your data listing will stay consistent on all these different websites.

Advantages of the Michigan MLS

There are multiple MLS’s in Michigan, each one is specific to your local area by county or a grouping of counties that share the same MLS platform.

One of the main benefits of using the MLS is that it exposes your house to local buyer who are working with Realtors to find a house. 90% of active buyers who are looking for homes for sale in Michigan still use a buyers agents services. If you don’t list your house on the MLS then you run a huge risk of not marketing your home to these buyers who are working with the Michigan agents.

Additionally, it can save you a lot of money in the selling process if you list with flat fee MLS. Since you’re paying a small listing fee instead of listing agent commission, your closing costs won’t include a high commission for a Realtor on your listing side of the transaction.

You’re also much more in control of the whole process. You can decide to terminate your relationship with the Michigan flat fee MLS company at any point. If you’re not satisfied with their work and the support they have or haven’t been providing, you’re allowed to stop the service.

You’re fully responsible for any negotiations you have with potential buyers and their agents. You decide everything, every step of the way. It’s stressful, but this way, you’re in as much control as you can be.

What is Flat Fee MLS?

A flat fee MLS is like its name suggests, a flat fee service you pay to have your house listed in the databases that Realtors use to find properties for their clients. It’s a flat fee because you pay the company a specific amount you agree to and no more. However, this doesn’t mean that all companies that offer flat-fee MLS offer the same things. The offering can vary as much as the fees.

When you’re hiring any kind of service company, make sure you understand what’s included and what’s not, as well as how their offerings apply to your particular needs. Flat Fee MLS might sound like they’re pretty much all the same, but their offerings aren’t one size fits all.

It’s also best to find out which flat fee MLS is used most frequently in your area. Some regions have one primary service, while the others are rarely used.

Disadvantages of Michigan Flat Fee MLS Listings

Fixed fees usually mean lower overall costs at the end of the whole process. On the flip side, you’ll have to pay the fee in advance when you hire a company that will do the listing for you from the start.
Instead of only paying a commission once the property is sold, in this case, you’ll pay for the listing whether the property sells or not.

This arrangement makes it even more important to make your listing as attractive as possible. You can do that by following our guidelines, and by choosing the right company to work with. Find out which ones have helped other homeowners succeed in selling their listings.

Offer a competitive buyer’s agent commission

It is in your best interest to offer market standard or above when it comes to the buyer’s agent commission. Think about it. Why would a buyer’s agent be motivated to show your property to a potential buyer if they don’t believe they’ll be fairly compensated?

Remember, this is the agent’s business, and they’ll act accordingly. Don’t try to skimp or save money here because it could negatively impact—or completely sabotage—your selling efforts even if you do everything else correctly.

Things to be wary of

If you see a company that offers to list your house for very cheap or even free, resist the urge to go with the cheapest (i.e., free) option. Like grandma used to say, if it looks or sounds too good to be true, it probably is. And yes, in these cases, it’s almost always too good to be true.

Companies that don’t charge for this type of service usually don’t offer any real support or customer service, so you’re doing a disservice to yourself and your potential sale. With things like this, you do get what you pay for—or what you don’t pay for.

Another reason they might advertise their services as free is to hide various service fees. Make sure you read and understand all the terms you’re agreeing to before signing anything or hiring anyone. It’s easy to be fooled in real estate, and you don’t want to be caught with your metaphorical pants down.

Bottom line if you choose to work with a company that charges these low or even free rates, you will end up spending much more money in the long run. They have to make their money somehow!

Want To Learn More About Flat Fee MLS Listings?

If you want to save at least 50% of the Realtor commissions, check out our article about 9 Things FSBO’s Need To Know About Flat Fee MLS Listings

6. Don’t Get Yourself Sued or Fined

Since this is not your profession or area of expertise, inform yourself of all the rules and Michigan state laws you need to follow when selling your home. When we said this was hands-on, we meant it.

Your Michigan flat fee MLS company needs to keep your listing updated and update the MLS with any changes right away. This is one of the factors involved in choosing the right MLS company in the first place. If you fail to update them promptly, this will result in fines that you’ll have to pay out of pocket.

Other Michigan regulations you need to keep in mind when selling include:

Follow Michigan Property Disclosures Requirements

As with many regulations, the requirements can and will vary state by state, so read up on what is required to be disclosed in Michigan. Then follow those requirements. Closely.

At a minimum, you’re usually required to disclose any imperfections your house might have, like if lead paint is present anywhere inside. You could get stuck with a lawsuit if you fail to mention things like electrical or plumbing systems that aren’t built to code. The same goes for additions to the square footage of the property that were made without the proper city permissions.

Don’t Discriminate by Following Fair Housing Laws

Be mindful of the language used in your listing contract and other materials. The law prohibits you from discriminating against any protected class of citizens, so you need to make sure you treat all potential clients equally.

7. Attract Offers from Local Michigan Buyers

Local buyers shopping for houses for sale in Michigan are the most likely to be interested in seeing and potentially buying your property, so don’t dismiss word of mouth promotion. Tell everyone you know who might be interested that you’re selling your place.

Tell everyone in your circle even if you don’t think they’d be interested because they might very well know someone who is. If you have the budget or access, you could even mention your intention to sell your home in local bulletins of businesses frequented by potential buyers.

Market Your Home

Marketing is everything nowadays. Gone are the days of “build it and they’ll come.” With so many homes competing for attention, you need to give it your all to distinguish yourself and get people to give you their time.

Selling your home is like owning your own business. If you don’t advertise and market, you don’t make money.

Go Viral on Social Media (Posting, Sharing & Facebook Neighborhood Groups)

Share your photos on all the social networks you’re a part of. Don’t underestimate how many people can see a quality picture on Instagram, or the vast reach a post in a neighborhood group can have on Facebook.

If you don’t believe us, ask around. You’ll find plenty of people (especially in the younger generations) who have found their current homes via a shared post in a group for a specific neighborhood. If you have the budget, you could also invest in some paid targeted ads through Facebook, Instagram, or even Google.

Good Ol’ Fashioned Email

It might feel archaic, but the best way to reach the people you know and don’t talk to very often might be through email. Businesses have email lists, and most people check their emails daily. Even though it’s not used so much between friends anymore, email messaging is still effective.

Send a blast to all your contacts (but please, use BCC) telling them about your listing. If you’re part of a community center or are friends with a business owner with an active email marketing list, try to get a mention from them. Email messages could be what sells your home.

Word of Mouth Through Your Neighbors

While you’re telling everyone you know that you’re selling your house, invite them over to check the place out! Your neighbors would love nothing more than to finally get a look inside.

Open Houses

Open houses are the most obvious way to showcase your place. You’ll get people you know and complete strangers who may or may not bring their Realtors. You should always make sure that your home is ready to give the best impression, so clean up your kid’s toys and make your bed before guests arrive.

Show Your Home

You must be available to show your home within your schedule, even if you’re not officially hosting an open house. If a potential buyer contacts you and you’re free, invite them over for a tour!

If you want to get creative, you could even host a tea party or some other food-centered gathering (who wouldn’t show up for free food?). Use the opportunity to show your neighbors your home. You never know who they know and will tell about your property if they leave with a positive impression.

Want to sell your Michigan home and save thousands? Find out how.
 

8. Be a Shrewd Negotiator

After you’ve done all the aesthetic improvements and all the promotion to get your property the attention it deserves, it’s time to focus on the real heart of the game—negotiations.

Read up on what constitutes successful negotiations, different methods of negotiating with different people. Learn from the attitudes of the business people around you. Learn to think like a seller and understand the mind of a buyer.

Offers

After you put your house on the market and host at least one open house, you should start receiving offers if you’ve done everything right. Make sure people submit their offers in writing to ensure you’re dealing with serious buyers.

If you see a lot of interest in your property, try holding all offers until a set day to instigate a bidding war. This tactic doesn’t guarantee you’ll get more offers, but it does serve as an incentive for buyers and their agents to submit better offers since they could only get one shot. Show them your home is in demand, and they’ll start to sweat.

You might also want to consult an Michigan real estate attorney once this type of paperwork is submitted and legal contracts start to be agreed upon. This will ensure everything is in order for all parties involved.

Negotiations

You’ve come this far all on your own, so hopefully, you’re also a stellar negotiator! Remember that a good deal is not one where you get everything you want, but one where all parties walk away satisfied with the agreement they’ve made.

Try to keep your tone amicable and your communications cordial, so there’s a better chance to get to an agreement that makes everyone happy (or close to). If there are issues that pull each side in different directions, try to find a middle ground and see if a compromise is possible.

Objectively analyze everything buyers ask as requests rather than demands and consider whether these requests are reasonable by trying to put yourself in their shoes. Would you ask the same if you were buying? If the answer is yes, then you may want to give it to them.

Purchase Agreements

Have you and the buyer agreed to a price, closing terms, and all the bits and bobs? Wonderful! It’s time to draft and sign a Michigan purchase agreement. Since this is a legal document, it’s a good idea to consult an attorney that specialized in real estate to check that everything is in order.

9. Don’t Let the Deal Fall Through in Escrow

Even after you get to an agreement that satisfies everyone, there are still many details to finalize. Pay close attention to every step of this process to keep your sale on track.

Appraisals

If your buyer is getting a loan, in most cases, the bank will have to do an appraisal of the property to see if the purchase price is at a fair market price. This might be annoying, but it’s how the bank guarantees their loans.

If the bank for any reason comes back with an appraisal that is lower than the agreed sale price, the buyer will have to pay the difference in the amounts or risk losing the property. The bank will not approve a loan higher than the appraisal determines the property to be worth.

Home Inspections

Most buyers will demand an inspection be made before the agreed-upon contract becomes enforceable. You can understand why. They need to protect their interests in case an expert finds that expensive repairs are required on the property.

If you disclosed all issues and have maintained your house properly, you shouldn’t be afraid of any of this, as it will most likely not affect your deal. However, you need to be prepared because if a Michigan home inspector uncovers any issues, especially serious ones, this could change the whole game.

More Negotiations?

The inspection report came back, and something expensive needs to be repaired or replaced. Now what? If the buyer really wants the property, they’ll ask their Realtor to send you a modified offer. They will probably want you to deduct the price of the repairs from the buying price of the home that you previously agreed to.

Remember that you’d make the same request if you were in their place. Be fair in your negotiations and maintain a good relationship with the buyer.

That said, you can agree to their terms or try to negotiate, for example, to split the repairs. Think twice before you send any counteroffer regarding the results of the inspection, as the buyer is free to walk away over a previously undisclosed issue at this point.

Want to sell your Michigan home and save thousands? Find out how.
 

10. Turn Over the Keys at Closing

Congratulations! You sold your Michigan house without a real estate agent! Now that the deal is closed, all the legal documents have been reviewed and signed. All the terms have been met, and it’s time to give the new owners the keys to their new place. Selling your own home has been a wild ride, but look how much you’ve learned!

P.S. Remember what we said about personal details at the beginning?

If you want to make this moment extra special, consider leaving a thoughtful note or putting the keys on a personalized keychain. It’s not required, but it will be an unforgettable gesture for the new owners!

Here’s A Helpful Infographic Summarizing The Top 10 Tips When Selling FSBO In Michigan!

Learn more about how ISoldMyHouse.com’s flat fee MLS listings work

The post How To Sell A House In Michigan (Without A Realtor) appeared first on ISoldMyHouse.com.

What You Will Read In This Article

• How Far in Advance Should I Put My House On The Market?
• What To Do Right Now
• 2 Months Before Listing
• 6 Weeks Before Listing
• 1 Month Before Listing
• 2 to 3 Weeks Before Listing
• 1 Week Before Listing
• Listing For Sale
• Escrow, Closing & Moving Out

The time has come. You’ve been house hunting for months, your extra items are in storage, and you’re ready to take the next step.

But what is the next step? And what can you do to prepare for selling your home?

No matter if this is your first rodeo, or you’ve sold a home in the past, this guide will help bring you up to speed on the entire process. Best of all, the process and timeline to sell a home is similar across the USA (with a few minor differences). So no matter where you live or where you plan on moving to, we’ve got you covered.

Grab a drink, kick back, and take some notes as we walk you through the home selling process timeline start to finish.

How Far in Advance Should I Put My House On The Market?

Despite the Rolling Stones hit single, “Time is on My Side”, that isn’t always the case. Selling a home often means buying and/or renting another. This makes timing critical.

Knowing how long it will take, what happens at each stage and when you might be able to get cash in hand for your big move is important.

Although the average time to sell a home will depend on a broad range of factors, from the time of the year, to local market conditions and property type, the average days from market listing to closing across the USA comes in at between 65-93 days.

Given that the time to “close” generally ranges between 30-45 days, this means most homes on the market received an accepted offer between the 1-2 month mark.

Home Selling Process Quick Overview:

1. Decide to sell your home
2. Determine the best route to sell your home (i.e. real estate agent, flat rate broker, to investors or wholesalers for cash, “for sale by owner”, etc.
3. Determine your home’s worth and price it to sell
4. Make any necessary repairs or updates
5. Prep your home for sale (cleaning, staging, removing clutter, etc.)
6. List home on the market/market the home to potential buyers
7. Open houses and showings
8. Seller disclosures
9. Receive, negotiate and accept a purchase offer
10. Deal with inspections and title company
11. Appraisal
12. Negotiate details of the deal (such as contingencies)
13. Sign title and escrow documents and surrender the property to new owners

Learn how to sell a house and save thousands with ISoldMyHouse.com.

What To Do Right Now

Pick A Moving Date

Unless your new boss in another state is on your back like a monkey that won’t go away, you likely have some leeway to plan things out on your own time.

That being said, identifying the date of your “move out” is an ideal next step. But when is the best time to sell your home you ask?

The answer, like many things in life, is that it depends. Most real estate markets have a fairly well-defined buying and selling cycle, meaning that with a little research, you can time the sale of your house to match your goals.

For example, perhaps selling fast (regardless of peak price) is important to you. To others, selling at top price (even if it takes longer) is a bigger priority.

TIP: Check out the guides on our site to find out the best times to sell your home based on your state and goals.

2 Months Before Listing

Start Doing Your Homework

With months before you list your home, its time to get out the notepad and crunch some numbers. Put on your investigative hat, because we’re about to “Dick Tracy” this one.

At this stage, local market research is key to helping you determine a fair market price on your home. You want a number that is reflective of its value and amenities, but also that is an attractive deal as compared to other similar options that buyers have in your area.

Decide On Home Selling Options

Next up: how you plan to sell your home. In the past, you could sell it yourself or simply hire a traditional real estate agent. Today, we have MANY more options to choose from, each of which has its own unique set of features and benefits to consider.

Real Estate Agent

Real Estate Agents are one of the most popular routes to sell a home. Although you’ll pay more in commissions, they often can negotiate a better deal, get your home sold faster, and do ALL of the heavy lifting and paperwork for you. At least the good agents will! It’s a hands-off, stress-free process, or at least they should make it as much so as possible.

FSBO

For Sale By Owner (FSBO), as the name implies, means that you (the owner) sells the home on your own. Although you’ll save big on real estate agent commissions, you’ll also take on more risk (legal) and will be fully responsible for everything from staging and showing your home, to marketing the listing and negotiating a deal.

Flat Fee MLS

Flat fee MLS services allow homeowners who want to sell their house on their own access to one of the most powerful marketing tools available ONLY to real estate agents: the coveted MLS listing service.

By paying a Flat Fee MLS service, they will publish your listing for you, putting your property in front of thousands of agents, buyers and investors. Do keep in mind you’ll still be responsible for responding to inquiries, setting up showings and everything else that goes along with selling a home.

Learn how to sell a house and save thousands with ISoldMyHouse.com.

6 Weeks Before Listing

Wow! Time flies! We’re already sitting six weeks out from the listing date deadline you set for yourself. Let’s keep this train moving…

Hire Agent (if working with one)

If you’ve opted to go the real estate agent route, there is no time like the present to begin interviewing and vetting potential candidates for the role.

Things to Consider when Hiring:

PRO TIP: We have a guide on what questions you MUST ask a real estate agent before making a hiring them. Check it out!

• Ask friends and family for referrals
• Make sure you feel comfortable with the agent (you’ll be working closely together)
• Are they licensed and in good standing?
• What type of experience do they have in your market?
• What type of marketing plan do they have in mind?

Get Your House Ready To Sell

Look, we get it. You’re busy. Things get left unkept. It happens. But now is the time to start making a list of what can be done to quickly give your home a little life. Simple, cost-effective fixes, paint jobs, refinishing cabinets or floors, updating appliances, and a good professional cleaning are just a few ideas to get you started.

1 Month Before Listing

ONE MONTH LEFT!?! Ok, don’t panic. We’re right on schedule.

Start the Moving Process

We know it might seem a little premature, but trust us, this is NOT part of the process you want to leave until the last minute. You’ll thank us later.

Evaluate your possessions and make a detailed inventory including dimensions, weight (when applicable), worth (for insurance purposes), and what needs special care or handling. For example, heirlooms or special photos may be better off handled by you personally.

Once you have an inventory mapped out, consider temporarily storing any non-essentials in a storage unit for later transport to your final destination. This is also a good time to start looking into moving companies and/or truck rentals. Book your truck/move out date with them ahead of time so your truck will be reserved.

While you’re at it, give your neighbors a heads up. It’s not only courteous to do so, but they may know someone wanting to move into the neighborhood.

Learn how to sell a house and save thousands with ISoldMyHouse.com.

2 to 3 Weeks Before Listing

Run the Numbers & Determine List Price

First up, if you still have a mortgage (which most of us do), get out your loan payoff information. Figure out how much you owe, and what you need to make your move. For example, you may need to pay off the mortgage in full plus have $20k extra as a down payment on the next house.

However, remember that your list price needs to be competitive and appropriate for your home’s value and your local market conditions.

PRO TIP: If you have a real estate agent, they will prepare a Comparative Market Analysis report (or “the Comp” report for you.

Finish Deep Cleaning and Decluttering

As the listing date approaches, don’t slack off on decluttering and cleaning. This will help prep the home and rooms for optimal staging when the time comes. Remove unnecessary furniture, collectibles, and other personal items. You want the home to look like a “model” home or blank canvas ready for the new owners to make their own.

1 Week Before Listing

Your home is prepped, decluttered, cleaned and ready for the next step, so get your real estate camera ready!

Professional Staging, Photos, Video & Drones

Now is the time to show off all of your hard work. If you have an agent they will help guide you with staging your home for photos, videography and walkthroughs.

Here are Some Pro Tips on Staging:

• De-personalize the space
• Get rid of any clutter
• Spend more attention on rooms with the most potential or value
• Deep cleaning matters
• Keep things neutral
• Make the first impression count (i.e. front entrance)
• Open up areas by arranging furniture
• Let more light in (i.e. open blinds, turn on lights, etc.)
• Give walls a fresh coat of paint
• Refinish or stain flooring and cabinets
• Update cabinet hardware
• Consider updating appliances
• Don’t skimp on curb appeal (landscaping, flowers, shutters, etc.)
• Consider resurfacing and/or power washing patios
• Stage rooms to highlight their purpose and features
• Highlight storage spaces

Video Sells

Video walkthroughs represent the next generation of selling tools, allowing prospective buyers to get a true feel for your home before visiting in person. It also increases the chances of a buyer taking the plunge sight unseen, further expanding the marketability of your property.

Release the Drones

Real estate drone footage of your home can set your property apart from the competition while providing a unique and engaging view of your home that attracts more buyers.

Learn how to sell a house and save thousands with ISoldMyHouse.com.

Listing For Sale

Hitting the MLS and Real Estate Websites

If you have an agent, they will have access to the MLS and other key websites to list and promote your property. However, if you’re going the DIY route you’ll need to pay for a FSBO MLS listing service in order to do the same.

Other Unique Places to List Your Home:

• Classifieds ads online and in your local papers
• Online real estate listing sites
• Social media (don’t forget to ask your friends to share the posts)
• Social media marketplaces (such as FB marketplace)
• Local online communities and groups

Be Show Ready At All Times

Remember, you work on the prospective buyers’ clock not your own. Your home needs to be ready at all times for a showing, so keep it in pristine (almost unlived in) condition.

Take Corrective Actions Immediately

Feedback from your agent and prospective buyers is highly valuable, providing you with unique insights into what the market is looking for. Take this feedback with stride and take immediate action to address any particular concerns you uncover.

Work With Buyers To Accept An Offer

If you’ve properly priced your home to sell and have put in place a solid marketing strategy, you’ll no doubt begin fielding offers from buyers. As eager as you may be to close the deal and move on to the next stage of your life, don’t be afraid to counter-offer and do a little negotiating. If you’ve hired an agent they will handle this for you. If you’re on your own, its time to dust off the negotiation skills and do a little wheeling and dealing.

Common Areas of Contention Include:

• Final price
• Results of the home inspection and/or appraisal
• Repairs
• Closing costs
• What is and isn’t included (i.e. appliances, furniture, etc.)

Learn how to sell a house and save thousands with ISoldMyHouse.com.

Escrow, Closing & Moving Out

We’re nearing the end of this little adventure. Its time to hire a title company, collect earnest money from the buyer, and finalize the purchase agreement.

Escrow is used to ensure the proper remittance of funds as outlined in the agreement, as well as paying off any existing mortgage.

At closing a final walkthrough is generally carried out, after which final paperwork signed and later documented at the courthouse, and the keys relinquished to the new owner.

And that concludes the home selling process timeline. With a little preparation and planning, you can streamline this process, reduce stress and make your move with ease.

The post Home Selling Process Timeline appeared first on ISoldMyHouse.com.

Table of Contents

• Best Time of Year to Sell a New York Home
• Cost of Selling a New York Home
• Legal Requirements and Considerations
• Options for Selling a House in New York
• New York Purchase and Sale Agreements
• Negotiation Process – Offers, Counteroffers & Acceptance
• Escrow Process in New York
• Closing Process in New York

Your home is your castle. A place of refuge after a long day’s work and where you’ve no doubt made countless memories with friends and family. But there comes a time in many of our lives when selling our home is necessary.

Perhaps the kids have moved out and it’s time to downsize, or you’ve outgrown your first starter home and are looking to expand your family. No matter the reason, selling a house in New York can be a complicated process with numerous legal and other considerations to contend with.

For most New York residents, their home is the largest financial asset they have. Not to mention, it often holds a certain amount of sentimentality, from pleasant memories to the hard work you put into remodeling the kitchen.

Because of this, selling a house in New York isn’t a simple transaction. It’s ok to be hyper-cautious about making sure it’s done right, and in a way that benefits you and your family to the greatest extent possible.

While the process of selling a house in New York is similar to that in other states, New York does have its own unique local practices and real estate laws to contend with. Making yourself familiar with this process early on in the stages of selling your home can help you avoid major headaches and problems down the line.

This guide will walk you through the ins and outs of selling a house in New York, making sure you don’t get hit with any major surprises along the way. From working with a listing agent to legally required disclosures, we’ve got you covered.

Best Time of Year to Sell a Home in New York

When it comes to selling a house in New York, timing matters. But it’s not just the month or season you need to take into consideration. Certain property types sell better at differing times of the year, and homes (on average) may sell faster or slower, or even at a higher closing price during particular months.

Best Time of the Year to Sell in NY

They say location is everything in real estate, but when it comes to selling a home, so is timing. For example, listing a home in mid-winter when movers and buyers have to deal with difficult road conditions and sub-zero temperatures isn’t exactly optimal.

The good news is that New York has a very clearly defined real estate cycle, with property prices both rising and falling like clockwork. Using actual real estate transaction data, we can easily chart the best time to sell your property in New York based on your goals. This makes planning to sell a home in New York an easier and more fruitful endeavor.

If you’re planning to sell your home in NY, let historical data be your guide.

For example, selling a home in September could end up netting you 8% more on the closing of your property, while selling in November or May might cost you around 4.5% at closing (as compared to the average sales price).

Best Time of the Year to Sell for a Profit 

Months Homes Sold at Above Average Prices (in order of highest to lowest):

• September
• August
• June
• February

Months Homes Sold at Below Average Prices (in order of lowest to highest):

• November
• May
• March
• April
• December
• July
• January

PRO TIP: Remember, these figures are based on the moth the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across NY on average sit on the market for around 68 days. However, this number can go as low as 30 and as high as 120 days. So, plan accordingly.

Best Time of the Year to Sell your House Fast in NY

Money isn’t always the primary motivator for selling a home. Life circumstances often dictate that you need to sell your home fast. Looking at actual data we can uncover which months are best for selling your home quickly in NY.

Selling a home fast is especially important for many New York home sellers. Job transfers, a death in the family, changing needs and other major life events may require you to move quickly. But oftentimes the one thing holding you back is the sale of your existing home (likely so you can purchase another).

For example, those homes closed in July or September were on the market 8-11 days less than average, while those closed in January were on the market for an additional 13 days on average.

Months Homes Closed Faster Than Average (in order of fastest to slowest):

• September
• November
• October
• July
• August
• December

Months Homes Sold Slower Than Average (in order of slowest to least slow):

• February
• April
• March
• June
• January
• May

PRO TIP: Remember, these figures are based on the moth the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across NY on average sit on the market for around 68 days. However, this number can go as low as 30 and as high as 120 days. So, plan accordingly.

Buyer / Property Type Matters

Single-family homes are an ideal candidate for those with children. Buyers for these homes generally start looking in the spring, with an ideal “move in” date early June when the school year ends. Those with properties in the Lake Region often see more interest and action in the market between Memorial Day and Labor Day when interested tourists seek out the purchase of summer homes.

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

Cost of Selling your Home in New York

Selling a home comes with costs. Let’s take a look at what costs you can expect when selling your New York property.

1. State and Local Transfer Taxes

The New York Transfer tax is a tax paid for by the seller that is levied against any transfer of real estate property. The exception is if the home is part of a “new development” project and you are the sponsor of that project.

The state’s current rate of transfer tax is calculated at 0.4% (almost ½ of one percent) for any sale up to $3,000,000. As of March 31, 2019, sales of property above $3,000,000 are subject to a conveyance tax of 0.65% % by the state. Further, it is not uncommon for the town or city the property is located within to charge their own local conveyance tax. For example, NYC has a “New York City Real Property Transfer Tax of 1% of the sales price up to $500,000 or less and 1.425% if the sales price is over half a million dollars.

2. Costs Associated with Remedying Title or Survey Issues

In the event that issues surrounding the title or survey emerge, contacting a local real estate attorney is the advised route to obtain counsel on your options and cost of resolution.

3. Local Government / Municipal Costs 

Generally, there are localized costs associated with the sale of a New York house. These may include local stamp taxes, recording fees, community association estoppel fee, or other fees imposed by the county, city or town such as those for utilities or local taxes.

4. Seller Attorney Fees

It is important to note that in the state of New York it is required that a licensed attorney bet at the close all real estate transactions taking place within its borders. This is contrary to many other states in the US in which title companies are allowed to handle escrow and closing matters. Most attorneys charge by the hour, however, you may be able to find New York attorneys offering “flat fee” real estate closing services.

5. Real Estate Agent Commission

While there are other ways to sell your home than going with the traditional real estate agent listing, if you do hire an agent, they are paid based on a commission rate calculated against the sale price of your home. We’ll cover the costs associated with hiring a real estate agent later in this guide.

For now, understand that real estate commissions in New York are defined as a percentage of the sale price of a home and that while standard rates do exist, they are negotiable.

6. Home Warranty Fees

Some New York home sellers opt to offer a home warranty to cover components or systems of a house that may pose a risk of failure for the buyer. Although optional, offering a home warranty is a way to sweeten the deal, attract more buyers and remain competitive during months when the real estate market heats up.

Legal Requirements and Considerations

Do You Need a Lawyer?

Similar to many states, New York does not require that you hire an attorney to sell your home. However, it is highly customary to have legal counsel represent you in the sale, and it is less common for anyone in NY to not hire a real estate attorney to assist with at least part of the process.

Having a lawyer in your corner is also never a bad idea for contract review or to assist in negotiations. Real estate attorneys may also be useful for assisting with unconventional circumstances such as with a lease-to-own or owner-financed deal, and with any issues that might arise with contract disputes or title issues.

 New York Real Estate Disclosure Requirements

Historically, the state of New York has taken a “Caveat Emptor” approach to real estate sales. Meaning, “buyer beware”, with sellers obligated to share very little about the condition of the property prior to sale. Under Caveat Emptor the buyer was largely responsible for uncovering any defects or issues through their own due diligence and inspections.

However, over time, NY began to adopt exceptions to this rule, adding to the seller’s legally obligated responsibilities, as well as placing additional risk and liability on those sellers as it relates to defects in the property.

For example, any seller who has a “special relationship of trust” to the buyer (say as a relative, guardian, attorney or trustee) could be held liable under New York law for any undisclosed benefits. Further, under current laws, a seller who actively attempts to hide or conceal any material defects of the property could be found liable to the buyer for such defects.

Concealment under NY law is defined as a defect that the seller had prior knowledge of but failed to disclose and interfered in some manner with the buyer’s efforts to have the property inspected (See Laxer v. Edelman, 75 A.D. 3d 584 (2d Dept. 2010).

Disclosure Requirements Under the Property Condition Disclosure Act

The Property Condition Disclosure Act (the PCDA) (N.Y. Real Prop. Law § § 460-467) having gone into effect in 2002, imposes a fine of $500 payable to the buyer at closing if the seller fails to make certain disclosures.

Under PCDA, the seller is required to fill out and deliver to the buyer a standardized disclosure statement prior to the signature of the final purchase agreement. Interestingly, it is not uncommon for sellers to bypass this step and instead simply opt to pay the fine/credit the buyer at closing.

Who is Required to Make Disclosures Under PCDA?

Disclosure requirements apply to the sale of any property defined as “residential real property”. Residential real property, under NY law, means any 1-to-4 family dwelling that is to be used as a place of residence or home by one or more individuals.

Exclusions:

• Cooperative apartments
• Condominium units
• Vacant land
• Property as part of a homeowner’s association not owned by the seller
• Transfers ordered by the court (such as in foreclosure)
• Transfers to your lender to satisfy a mortgage
• As a distribution of the estate in a trust or will to an heir, or made as part of the administration of a conservatorship or guardianship
• Transfers to a spouse, blood-related relative, or another co-owner of the property
• Transfer as part of a settlement of legal separation, annulment or divorce
• Transfer to a governmental agency
• Transfer of new construction that has never been lived in

Types of Disclosures Required

• General information: such as the age of the property, ownership, utility costs, etc.
• Environmental: known issues such as being on a flood plain, presence of hazardous substances, etc.
• Structural Issues: structural damage such as that from insects, fire, water and more. Common areas of the home impacted are the foundation and roof.
• Issues with Major Home Systems: such as heating and cooling, electrical, plumbing, etc.

How to Deliver the Disclosure Statement

The listing broker (real estate agent, or attorney) has a legal duty to remind you of PCDA requirements and will provide or point you to the standardized document. In the event that a buyer is not “represented” by an agent or legal counsel, your “listing broker” will be required to inform the buyer of this requirement as well.

Completion of the statement can be done by answering the questions truthfully and to the best of your knowledge. Space is provided for any additional information needed. You may also attach additional pages for further explanation.

You will then sign and deliver the disclosure to the buyer PRIOR to them signing the final purchase agreement. Delivery is generally made by way of your listing broker, however, you may deliver this directly to either the buyer’s agent or the buyer themselves. Upon delivery, the buyer must sign to acknowledge both the receipt and their understanding of the contents.

In the event that you (the seller) later become aware of any inaccuracies to your original disclosure statement, or you later discover or become aware of any material defect to the property, you are required to revise the statement and provide an updated version to the buyer. However, under N.Y. Real Prop. Law §464. You are under no obligation to revise this statement after closing.

Seller’s Federal Disclosure Requirements

In addition to the aforementioned disclosure requirements set forth by the New York statute, sellers must also abide by federal disclosure requirements.

1. If the home you are selling was built prior to 1978 you must disclose any lead-based paint hazards in the property
2. You must provide any inspection reports relating to lead-based hazards in the home
3. Provide an EPA-approved informational pamphlet to buyers
4. Allow buyers to conduct their own lead-based assessment
5. Include specific warning language relating to lead-based hazards in the sale agreement

Purpose/Benefits of Disclosure

Although the state’s mandates regarding disclosure are pretty standard, there are a number of long-term benefits that can be had from or by making such disclosures for sellers.

Benefits of Disclosure Include:

• Improved negotiations at the deal table
• Early discover of issues leads to better valuation
• Opportunity to make improvements on the home
• Ensures a fair deal from both sides of the table
• Legal compliance
• Reduced liability

How Can I Sell My House Using ISoldMyHouse.com? Learn more.
 

Options for Selling a House in New York

Selling With a Real Estate Agent

When most New York residents think about selling their home, they think of listing with a real estate agent. In the state of New York, you may also see seller real estate agents being referred to as listing agents.

Not only does a real estate agent handle the listing and marketing of your property, but they also aid in helping you through every step of the process from showings and staging to contract negotiation and closing.

Listing agents will provide you with a comparative market analysis (referred to as comps), and provide pricing recommendations and strategies tailored towards your specific goals.

Real Estate Commissions in New York 

Commission paid out to a seller’s agent is generally calculated as a percentage of the final sale price of the home. The percentage of commission can vary, with lower levels of service usually corresponding to less robust services.

Full-service agents handle the listing, marketing, showing, staging, negotiation, and closing of your home. Marketing expenses are handled by the agent out of their own pockets. These agents on average charge between 5-8% in New York. This commission rate is split with any agent that may be representing the buyer’s agent. Commission rates with your seller agent may be negotiable.

The commission is paid out as part of the sale price upon closing and is not required upfront.

New York’s Multiple Listing Service

Developed by REALTORS®, the multiple listing service, also known as MLS, is a multimillion-dollar real estate technology. The fundamental principle behind the MLS is that it helps brokers and real estate agents share information on the properties they represent for sale through a singular network.

Sellers benefit by exponentially increased exposure for listed properties, while buyers benefit do to the ability to quickly identify ideal properties on the market for their clients to purchase.

This system facilitates cooperation between competing agencies, brokers and agents, leveling the playing field and providing value for every party involved.

As a consumer, you can access MLS listings published on brokers’ and agents’ websites, but the MLS itself is a private database created and maintained by licensed real estate professionals.

Listing Agreement

After interviewing and selecting a real estate or listing agent of your choosing, you will sign what is known as a “listing agreement”. This agreement grants the agent the legal right to market and coordinate the sale of your home on your behalf.

Listing Agreements Generally Cover the Following Terms: 

1. Commission Rate

The rate of commission you agree to pay as a seller (usually ranges from 5-8% in NY). This fee, as mentioned earlier, gets split between the buyer’s agent and your agent at closing.

2. The Type of Listing

Listings can either be “exclusive” or “non-exclusive”. Exclusive listings are the most common type and require you to pay a commission to the selling agent no matter who or where the buyer comes from. With open or “non-exclusive” listings, on the other hand, you pay whichever agent brings the seller the commission.

3. Listing Duration

Each listing agreement will cover a specific time-frame, after which the contract expires and you are free to hire another agent to do the job, handle the sale yourself, or extend the existing contract.

4. Listing Price

Your agent should provide you with an in-depth market analysis and a detailed breakdown of comparable sales in your locale. Based on the data, their experience as an agent and your goals, the listing agent will provide you with advice on pricing strategy. The agreed-upon price will be included as part of the listing agreement.

5. Any Items NOT Included as Part of the Sale 

In some cases, there may be instances where certain items are not part of the home’s sale. For example, perhaps you plan to take the refrigerator with you when you leave, or an heirloom chandelier. Any such items you wish to take with you must be included in the listing agreement.

6. Detailing of the Obligations and Duties of Both the Seller and Listing Agent

Each listing agreement should (in detail) spell out the obligations you have as a seller to the agent and the obligations the agent has to you as the real estate agent representing your property. For example, the listing agreement will specify the ways in which your agent will market your property, the type of insurance that must be maintained on the home, and the disclosures you are required to make.

Selling Without a Real Estate Agent or By Owner

Although most New York residents opt to sell with the help of an agent, non-traditional options offer a range of benefits of their own, with a growing number of sellers NY flocking to these opportunities in lieu of paying out high commission rates to an agent.

DIY or For Sale By Owner

Selling your home going the DIY or For Sale By Owner in New York route has its challenges, and is certainly more work, but the payoff can make it more than worthwhile if you do your homework and put in the effort.

In fact, on a $250,000 home with a 6% commission fee, you can save $15,000. Further, according to the National Association of Realtors’ Profile of Home Buyers and Sellers, homes sold by their owners also often sell more quickly, sometimes in as little as two weeks.

But before you decide to dive off the deep end and handle your home’s sale on your own, bear in mind that the process isn’t exactly a cakewalk. Apart from marketing, staging and negotiating the sale, you’ll also be responsible for both the financial and legal paperwork associated with the transaction, something you’ll no doubt want to hire an attorney to help with.

Tips for Selling the DIY Way:

1. Prep your home for the market. This means professional cleaning, removing any clutter, and staging the property both inside and out for viewing.
2. Competitively price your property. With real estate platforms and data readily available online from sites such as Zillow and Redfin, you can do your own market research to find comparable properties and price your home similarly to those that best represent your home and sold within a timeframe that you are comfortable with.
3. Invest in a flat fee MLS listing service in New York in order to exponentially expand your reach to prospective buyers both in the area and nationwide (more on this below).
4. Get a marketing plan together. Definitely list your site online, in classified ads and platforms, your local newspapers, social media, and even starting a website where you can digitally showcase pictures, videos of the property and more. The key is to target buyers who are going to be moving to New York.
5. Know your home’s best-selling points and put a “pitch” together to “sell” them both in person and in print or online.

Flat Fee MLS Listings

As previously mentioned, MLS is short for “Multiple Listing Service”. The MLS consists of a network of over 900 individual MLSs nationwide in the USA. Each MLS is separate from each other, meaning that a real estate agent in Hartford, CT cannot view listings in San Diego, CA. This makes it critical to ensure you are listed in the proper MLS.

Why is Paying for a Flat Fee MLS Listing Worthwhile?

• The MLS essentially represents the entire “real estate market”
• In the US, over 90% of all sold properties are the result (at least in part) of MLS listing exposure
• Listing in the MLS means that all local Realtors®, agents and brokers will be able to find and promote your listing to their clients
• Potential buyers can find your home listed on hundreds to thousands of public MLS websites
• Those properties listed on MLS tend to sell faster and at a higher price
• You can avoid New York’s high real estate agent commission rage (on average 6%)
• You retain the right to sell your house yourself
• You have full control over your listing
• Qualified buyers will call you direct
• You set the terms of the contract offer and negotiate conditions directly
• Your MLS listing can be canceled at any time if your situation changes

We put together the video below for you to watch that shows you everything you need to know about how to use flat fee MLS to list your house without a Realtor.

 
Get Started Listing Your Home On The MLS Without A Realtor

New York Residential Purchase and Sale Agreements

In simple terms, a home purchase agreement, also called a sale agreement or purchase contract, is a contract that details the conditions of the sale to which both the buyer and seller agree to. This agreement is legally binding, and it is advised that the agreement be both drafted and reviewed by an attorney you trust.

NOTE: The majority of clauses within the purchase agreement are designed to protect the buyer.

The agreement will cover such aspects of the sale such as

1. Sale Price

This will include both the actual sale price of the home as well as how much the buyer agrees to put down at the contract signing date, what amount will be financed and any balances due at closing.

2. Financing Contingency

Financing contingencies are a common rider included in many purchase agreements, unless the sale is a cash deal. Generally, they define a timeline during which the buyer must qualify for adequate financing in order to purchase the home.

Similarly, a rider may be included to protect the buyer, stating that the purchase is contingent upon them obtaining financing at favorable terms (such as within a specified interest rate rage).

Other Financing Clauses May Include:

• Dates by which the buyer must have applied for a mortgage
• Dates by which the buyer must have obtained pre-qualification, pre-approval and/or final approval by the lender

3. Property Description

Unlike some states, New York is not a “buyer beware” state as it relates to residential property. This means that the rule of “Caveat Emptor” does not apply to homes and residential property. As such, sellers are required to meet full disclosure requirements.

NOTE: Caveat Emptor, is still the rule of law in New York as it relates to commercial property, where it is the buyer’s, not the seller’s, responsibility (in large part) to do their own due diligence on the property.

The property description should accurately describe the property including:

• Size of the home’s square footage and any additional structures such as a detached garage
• Lot size
• Number of lots included
• Frontage on a road or body of water
• Number of living units
• Finished basement
• Rights of way, easements or appurtenant rights
• Etc…

4. Inspection & Repairs

Under the agreement, an inspection clause may dictate that the buyer has the right under the terms of the contract to inspect the property by hiring one or more contractors or licensed inspectors to look at the property.

The contract will need to specify which, if any, repairs the seller agrees to make as a result of the inspection prior to closing.

5. Title and Survey

The agreement will outline which party is responsible for title insurance and the duration of time the buyer has to review and/or object to the results. In the event that you, as a seller, provided a survey or the buyer ordered one themselves, the agreement will specify how long the buyer has to identify any issues. In the event that a resolution to a problem is required, a timeline for this solution will need to be established and incorporated into the contract. IN the event that you cannot or do not want to resolve the problem (due to finances or other considerations), incorporating a clause that states you have the right to cancel the agreement and return the deposit should be included.

6. Personal Property / Excluded or Included Items

Just because you are selling your home does not mean you have to sell everything in it. From furniture, to appliances, and even light fixtures, you get to decide. But, you must specify in the agreement which items are staying behind and which are not part of the deal. Both you and the buyer should make a list of the property they expect to sell/purchase. From there you can both negotiate a deal.

7. Closing and Move in/out Dates

Dates are very important with regard to the process of selling a home. Generally, the closing date for New York properties lands around 30 days. However, this date is largely dependent upon the lender and may require an extension.

8. Other Riders

New York Real estate forms also have a range of optional riders that cover such circumstances as those that involve:

• Owner financing
• Homeowners’ associations
• Condominiums
• And more…

Negotiation Process – Offers, Counteroffers & Acceptance

Real estate deals are an evolving process with lots of moving parts, contingencies and more. All of which means that a lot can change between the point at which an initial offer is made and closing day.

Rarely is selling a home as simple as getting paid your list price without some form of concession and negotiation. These negotiations can go on for weeks until both parties reach (or don’t reach) an amicable deal.

Counteroffer

A counteroffer is the medium in which this negotiation is dealt with. Counteroffers are generally handled by either your real estate agent or attorney (unless you are selling DIY). Think of selling as a process vs a transaction.

Counteroffers arise when the terms of the initial offer are not agreeable. The counter-offer provides you with the opportunity to take a hard look at what items you are willing to compromise on and which are potential “deal breakers”.

Escrow Process in New York

When a buyer decides on a property they are interested in buying, they first make a purchase offer. As part of this purchase offer, they most often provide “earnest money”. This earnest money is a deposit made as a consideration to be held in escrow by an escrow agent.

The role of an escrow agent is to ensure the transaction closes on time and without a hitch. It is the duty of the escrow holder to validate that all conditions and terms of the buyer’s and seller’s agreement are met prior to the finalization of the deal.

This process ensures that all funds, required forms, documents are accounted for and that any loans or liens have been paid off as part of the transaction, and that the new buyer will have a clean title prior to the purchase of the property.

Money is held in what is known as an “escrow account”. Think of this account as a type of “holding tank” for the money a buyer will use to pay for your home.

Escrow Agents May Collect the Following:

• Tax statements
• Insurance and fire policies
• Loan documentation
• Title insurance policies
• Terms and conditions of the sale
• Any requests for payment of services to be covered by the escrow funds

Common Elements of the Escrow Process

The Offer:

At this stage, the buyer will make an offer on your home. Generally, this is done by signing a formal “binder agreement” or an “offer to purchase”. Accompanying this offer is a payment of 1% of the purchase price.

Inspections:

An inspection is often conducted by the buyer “post-offer” acceptance. This inspection is generally conducted by a licensed home inspector and is used to uncover any potential issues that need to be resolved prior to the signing of a purchase agreement.

Contract:

Presuming you accept the buyer’s offer, the buyer will sign the contract of sale. Your legal counsel will need to review the documents, negotiate any elements that need adjusting and so forth. Once the contract has been legally executed, the rights and obligations of you as a seller and them as a buyer become set in stone. Generally, neither party can back out of the deal from this point forward, except for as provided for under certain contingencies such as a “mortgage contingency”.

Deposit:

At the time of contract signature the buyer will provide a deposit on the property of around 10% based on the agreed upon sales price. This deposit is held “in escrow” and is non-refundable. In the event that the buyer backs out for reasons other than those allowed under any contingency in the contract, the seller (you) will get to keep the deposit.

Mortgage:

Due to the lengthy and complicated nature of obtaining a mortgage, the buyer will have likely began this process as early as possible.

Title Search:

Search and review of the title in order to verify and confirm that you have a clean title to the property free from liens or other restrictions.

Title Insurance:

As previously mentioned, title insurance protects the lender and buyer against any potential monetary losses due to exposed title defects or other claims against the property.

Survey:

Unlike some states, in New York, a survey is not often required by lenders. It is both a costly and time-consuming ordeal. Because of this most buyers waive their right to a survey.

Homeowner’s Insurance:

An often-mandated requirement by lenders and paid for by the buyer.

Final Walkthrough Inspection:

Just prior to “closing” the buyer usually conducts a final walkthrough of the property with their attorney or real estate agent to ensure nothing has substantially changed and that the condition of the property is that guaranteed in the contract.

Adjustments:

Adjustments refers to the alteration of the final sales price in order to take into consideration expenses incurred during the periods they owned the property (such as prorated taxes, water and sewer charges, condominium fees, etc.).

Closing:

The final stage of the process. At this stage, the buyer will sign all required bank documents and pay any balance of the purchase price to you the seller. As the seller, you will also execute any documents necessary such as a deed and paying conveyance taxes. The buyer’s attorney will file the signed deed and the buyer will take the keys and ownership of the property.

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Closing Process in New York

The closing is the time at which you formally transfer ownership of your home to the buyer. This process can take place anywhere both parties agree to. In New York, when the lender notifies that everything is ready, the closing attorney will coordinate with all involved parties and their respective agents to schedule the “closing ceremony”.

Generally, within three business days of closing the lender will provide the buyer with what is known as a “closing disclosure” that outlines and details the terms of the loan, and subsequently provides the funds the buyer needs at closing in order to make the purchase.

The closing ceremony itself takes around an hour or less. During the ceremony, the closing attorney will explain to each party what the closing documents mean and answer any questions either party may have. Presuming everything is agreeable, the attorney will collect and distribute funds from their trust account.

Once closing has come to an end, the attorney will record the deeds. One deed covers conveying the property and the other and the other the lender’s security deed. In New York it takes approximately one month for the original deed to be returned to the buyer.

The Closing Process in Detail:

1. Title Search: ran just prior to the closing ceremony in order to uncover any assessments or liens on the title. If the title comes back as “clean” the closing can proceed unhindered.
2. Attorney prepares paperwork for the transfer of the title/deed and will file the application for title insurance presuming the lender requires such.
3. A final closing date will be scheduled that is amenable by both parties.
4. Calculation of the total amount (in the form of a cashier’s check) that the buyer needs to bring to the closing.
5. Final walkthrough, usually performed the day of or the day before the closing ceremony
6. Buyer and seller, at closing (settlement table) sign all requisite closing documents and any final loan documents.
7. Buyer remits remaining funds in their down payment to the attorney via cashier’s check
8. Attorney records the transaction and deed with the local municipality
9. Buyer receives keys and legally takes possession of the property

Final Thoughts

We hope that you have found this guide informational and beneficial. Selling a home can be an emotional and exciting time in one’s life. But it can also be a stressful one as well. Knowing what to expect and how to best prepare for the process can help you remain calm and in control throughout.
 

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