Sarasota Real Estate

Selling Your Home - Negotiations

• How is the price of my home set?

• What contingencies are put in an offer?

• Is it a good idea to put in a low offer?

• Is there a better time to sell my home?

• What is appraised value?

• What about 'discount brokers'?

How is the price of my home set?
A.  Your real estate agent can provide you with a comparative market analysis which will give you a good idea of what your home should be priced at.

It is very critical to price your home correctly at the start.  If you are interviewing several agents for the job of selling your home, be wary of the agent whose opinion of value is way out of line from the others.

What contingencies are put in an offer?
A.  There are 2 standard contingencies:  financing and inspection.  The purchase contract must include the seller's responsibilities.  Other contingencies are written in depending on the situation.  In a seller's market, where there is more demand than product, you probably won't see or have to contend with many of these.  Just remember that they are negotiable.

 Is it a good idea to put in a low offer?
A.  As a seller, you may be looking at several offers.  Some people could come in with an offer considerably lower than your asking price and for several reasons.  You do not have to accept them.  Your potential buyer could be testing you on your price.  More importantly, because you can counter their offer, is to look at the contingencies.  Your real estate agent should be able to advise you on these items.

Is there a better time to sell my home?
A.  Being in a moderate climate, there is really no pre-determined time which is better.  A lot depends on the market and economic conditions.  Your real estate agent will advise you.

 

What is appraised value?  What is market value?
A.  Appraised value is an experts opinion of value on a particular day and is required as part of the loan application process. 

Market value is the price the house will bring at a point in time.

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Pricing Your Home To Sell

• What are the most important factors when selling a home?

• How do you sell a home that is not getting any offers?

• How do you prepare to sell your home?

Q. What are the most important factors when selling a home?
A.  Price and  condition are the most important factors when selling a home.  If your home is not selling and it is getting the exposure it deserves, you should first look at lowering the price.

Q.  How do you sell a home that is not getting any offers?
A.  The first step should be to lower the price.  Next you should look at any cosmetic defects that could be repaired.  Real estate experts will tell you that price and condition are crucial factors.

Q.  How do you prepare to sell your home?
A.  What you want to do is put your home's best appearance forward.  There are several things you can do that do not require a lot of money and you could request any of my reports which will give you some wonderful ideas as well as serve as a guideline for you.  I also have a video entitled "The Seller's Role" which I would be happy to lend you.

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People to Contact

• Where can I get information about closing costs?

• Where can I obtain information on IRS publications?

• How do I find a real estate attorney?

Where can I get information about closing costs?
A.  Your lender can provide information on closing costs and your can also contact the Federal Reserve Bank at 415.974.2163 and ask them for their 'Consumer's Guide to Mortgage Settlement Costs' booklet.

Q.  Where can I obtain information on IRS publications?
A.  The IRS publishes several real estate publications.  Call 800.TAX.FORM

Q.  How do I find a real estate attorney?
A.  Contact your local bar association, ask your Realtor, check the yellow pages or ask relatives, friends or neighbors who may have some recommendations for you.

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Considering Your Taxes

• Are home buying costs deductible?

•  Are taxes on second homes deductible?

Q.  Are home buying costs deductible?
A.  Points your or the seller pay for your home loan are deductible for that year.  Property taxes and interest are deductible every year.  Some other costs could be deductible but you are advised to consult your tax expert.

Q. Are taxes on second homes deductible?
A.  Yes, but you must itemize.  Check with your tax advisor.

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Short Sales, Bankruptcies and Foreclosures

• What is a short sale?

• What is the length of time bankruptcies and foreclosures stay on a credit report?

• How does a home go into foreclosure?

Q.  What is a short sale?
A.  This is when a homeowner sells a home for less than its mortgage.  Sometimes a home owner can negotiate with their lender to accept less than the loan amount.  If the mortgage has been sold to the secondary market it can be complicated.  A good resource is 'How to Fight Foreclosure" by Jeff Jensen.  The number to call is:  714.843.0321.

Q.  What is the length of time bankruptcies and foreclosures stay on a credit report?
A.  They can remain on a credit report seven to ten years.

Q.  How does a home go into foreclosure?
A.  The proceedings usually start after a borrower has skipped three mortgage payments.  A notice of default is recorded against the property.  Unless the debt is satisfied or the home owner can negotiate for reinstatement, the home will be sold at a trustee sale.  Borrowers should do all they can to avoid foreclosure.

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Property Taxes

• Can property taxes be appealed?

• How do property taxes work?

• Are property taxes deductible?

• Are taxes on second homes deductible?

Q.  Can property taxes be appealed?
A.  Yes.  Contact your local tax assessor's office and ask them what procedure to follow for an appeal on your tax assessment.  Sometimes you can handle this procedure informally.  Other times you may have to go through a formal tax appeal process.

Q.  How do property taxes work?
A.  Property taxes are what homeowners pay for the privilege of owning real estate.  The taxes which are collected are used to help pay for public services.  See the link provided on my links page to the Sarasota Property Assessor's Office.

Q.  Are property taxes deductible?
A.  Yes, property taxes on all real estate are tax deductible.

Q.  Are taxes on second homes deductible?
A.  Yes, if you itemize.  Please check with your accountant.

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Closing Costs

Q.  Where can I get information about closing costs?
A.  The 'Consumer's Guide to Mortgage Settlement Costs' put out by the Federal Reserve Bank of San Francisco is a good source.  Call 415.974.2163
Another option would be to speak with a real estate attorney, your Realtor or a title company.

Discount Brokers

 

Q.  What can I expect from a discount broker?
A.  Well, consider this...
Would you take your dog to a discount vet? 
Would you go to a discount doctor?
How about seeing a discount heart surgeon?
Or would you fly in a plane that only hires discount part-time pilots?

Using a discounted agent sounds as if it is a way to save money, doesn't it?  You probably think they will do the same work and charge a whole lot less, don't you?

The reality is that this could work against you!  If you consider the fact that you are trusting a discount agent to sell your home for the most amount of money, you will be expecting them to market your home (or will they?).  And, should you get an offer, remember that this discount broker will be the one negotiating for you!

Ask yourself if you feel comfortable with someone who is so eager to give away their own income just to get your listing.  Then, what do you think they are going to do when it comes to YOUR money?

The whole concept sounds good at first, and they get their business by giving you discounts.  The problem for you is, that is exactly how they sell homes, too.  If they really knew how to get top dollar for you wouldn't they start by NOT discounting their own livelihood?

Just think about it!

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