What Commission Does 72Sold Charge?

a graphical house with upward trend line and 72Sold logo

What Commission Does 72Sold Charge?

72Sold is an Arizona-based firm that promises to sell homes within 72 hours or 8 days. It is an attractive alternative for homeowners who want to quicken the home-selling process. According to 72Sold, homeowners don’t have to compromise on the selling price.  The homeowners often wonder if the 72Sold’s commission is much higher. In this article, you will learn about the commission that 72Sold charges to sell the home within 8 days.  72Sold’s Commission Structure The commission charged by 72Sold is comparable to what the traditional agents charge. The commission range is between 5% to 6% of the home’s final price. This rate covers both the listing agent’s fees and the buyer’s agent’s fee. This commission is split between these two parties. They get around 2.5% to 3% each.  Traditional Agents vs 72Sold Commission The commissions charged by the traditional agents are similar to 72Sold. Besides that the traditional agents may take some extra fees. They usually charge additional marketing costs for professional photography and staging. Also, the traditional agents may take  administrative fees that increase the overall cost. Flat Fee Agents vs 72Sold Commission Flat fee agents like Ca Flat Fee charge a fixed rate rather than a percentage of  the selling price. But the overall cost of flat fee agents can be similar to the commission structure of 72Sold. The flat fee agents take some additional charges for marketing and open houses. You should evaluate if the quick sell is justified to trade off against the fixed rate of flat fee agents. Hidden Fees  You have to pay the closing costs and some hidden fees regardless of the agent you select. The closing costs are escrow fees, transfer costs, and insurance. You also need to prepare your home to make your home appealing to the potential buyers. For that, you have to bear the repair and maintenance costs.  Alternatives to 72Sold Though 72Sold offers a faster selling process within 8 days, this commitment can’t be guaranteed. The homeowners can opt for other trusted options like traditional agents, flat fee agents, and discount real estate brokers. Homeowners can also sell the home on their own (FSBO).  The discount brokers charge 1% to 2% of the selling price. Homeowners who are cost-sensitive may find this alternative reasonable. But the discount brokers may offer fewer services and the level of service may vary.  Is 72Sold Worth It? Homeowners whose house is located in a demanding market may find the 72Sold as a perfect option. As they offer to sell homes within 8 days at a higher price, they attract many sellers. However, you will have to pay similar fees to the traditional agents and other alternatives. You may also miss opportunities to grab a higher price. You can surely boost up your earnings by comparing the real estate agents to choose the best one.  Conclusion  Homeowners who are looking for a faster home-selling option may opt for 72Sold to sell their house. They can also consider other options like the flat fee agents and traditional real estate agents.  For example- the flat fee agents can guarantee the highest possible sale price at a fixed commission rate. By evaluating the prominent platforms, sellers can pick the right option according to their priorities. 

published on May 30, 2024

How to Buy a House in California? 

A California house with swimming pool

How to Buy a House in California? 

In America, many people dream of buying a house in California- the Golden State. California offers the diversity of big cities like Los Angeles. Then again you can also enjoy the tranquility of Santa Barbara. But buying a house in California can be confusing, especially for first-time homebuyers. According to the California Association of Realtors (CAR), California’s median home price is expected to be $860,300 in 2024. So, you should know the appropriate process before deciding to invest. This article will guide you through the steps to buy a house in California.  5 Steps to Buy a House in California Financial Preparation At the very first step, assessing your financial situation is essential. Only then you can create a realistic budget. Home affordability calculators will assess your income, expenses, and debts and evaluate your mortgage payment ability. Houses in California are indeed expensive. But the cost varies with the location.  How Much Do You Need for a Down Payment in CA? The down payment amount can be up to 20% in CA. Also, it can be a minimum of 3% in the case of conventional loans. You can have the option to put less money down. For that, the lender may ask you to get private mortgage insurance. Home Buying Down Payment Assistance Programs in California Down payment assistance programs lessen your hurdles of managing a down payment. The programs are designed for first-time home buyers. Also, buyers whose income falls below the median income are eligible for the programs. The first-time homebuyers assistance programs in California are: CalHFA Forgivable Equity Builder Loan CalHFA’s Myhome Assistance and Zero Assistance Program (ZIP) California Dream for All Shared Appreciation Loan Although there are certain requirements to avail of these assistance programs. CalHFA requires a minimum credit score of 660 to 680.  Credit Score Requirement for a Home Loan You will need a credit score above 650 depending on the loans. To improve your credit score, you can review your credit report and check what goes against your favor. First, try to pay off all the balances every month. Besides that, limit requests for new credit and avoid defaulted accounts. Find out the Right Mortgage In this step of buying your house in California, you need to get a pre-approval for a mortgage. You can find the best lender by comparing the bank rates. Some of the best mortgage lenders in California are:  Veteran United Home Loans  Bethpage Federal Credit Union  Wells Fargo,  First Mortgage Direct New American Funding. The pre-approval shows the maximum amount the lender is willing to give you as a loan. It helps you to decide the price range of buying a house in California. The lender evaluates financial documents before giving pre-approval for a mortgage.  Mortgage Options in California  To compare the bank rates, you have to evaluate different mortgage options. Buyers should select mortgage options according to their eligibility and needs. Some of the mortgage options are:  Conventional home loans VA loans FHA loans Jumbo loans USDA loans House Hunting in the Right Neighborhood Finding the best house in your desired location requires some effort. First, you need to gain knowledge about the diverse housing market and consider an appropriate location. The living cost in California is quite high. So, your budget is a vital issue in selecting a location. But the living cost is a bit lower in many areas.  For example: the cost of living in Sacramento is less than in Los Angeles.  Now, it’s time to search for your dream home. A real estate agent will guide you through the search process. Their expertise in the local real estate market will help you to compare the offers. Thus, you can pick the best house according to your budget.   You can find properties with your desired needs on the property search sites. Check the listing websites with the latest and comprehensive information. Plan your visit carefully when you are visiting open houses. It’s always better to prepare necessary questions beforehand. Look beyond the staging and take your agent with you. Then check the neighborhood well.  Make an Offer and Negotiate to Buy CA Home The next step to buy a house in California is making the offer. The offer price, contingencies, and proposed closing date are written in the proposal. Your real estate agent will help to negotiate efficiently. The offer price should be competitive but realistic.  The offer may include an earnest money deposit. It is usually 2% of the purchase price. It is paid to make the house off-market before closing as an incentive to the seller. The earnest money is adjusted with the down payment later.  Closing  You can proceed with closing when the offer is accepted by both parties. Make sure to get done with the home inspection appraisal process. If all goes well, you can close the deal. In this step, you have to pay all the closing costs.  Closing Costs of Buying a House in California The closing cost of buying a house in CA is 2% to 5% of the purchasing price. Some of the closing costs are loan organization fees, agent fees, appraisal fees, and title search fees. Escrow Process to Buy a California House Escrow agents handle the transactions of the buyers and sellers. They ensure the security of transactions. The buyer deposits the funds in the escrow account. Here both parties submit essential documents to the agent. The money is released once all the contingencies of both parties are met. The agent closes the escrow account after the transfer of ownership.  The Final Walkthrough and Closing  You are now at the final stage of buying a house in California. Schedule your final walkthrough to check the property’s  condition before signing the papers. The appliances should work properly and the seller should complete any agreed-upon repair.  Finally, you have to sign tons of documents to close the deal. Some of the documents are title transfer, final loan application, and deed. You may find it difficult … Read more

published on May 15, 2024

Selling Your House with a Mortgage in USA

A calculator and blue pen over home mortgage papers

Selling Your House with a Mortgage in USA

They say that buying a house is one of the most stressful experiences in life you’ll ever encounter, and while that may indeed be the case, there isn’t enough talk about the hardships associated with selling a house, especially one with a mortgage.   Despite the endless paperwork associated with selling a mortgaged property, we’ve lately seen a sharp increase in the amounts of homeowners selling their homes, despite them still being mortgaged.   Those looking to sell house with mortgage USA may wonder where they stand legally, and indeed, how easy selling a house with an outstanding loan actually is. Can you sell a house with a mortgage, and if so, just how easy is it? Well, the truth is that, despite there being several steps to sell a house with a mortgage, doing so is surprisingly easy, and very common.   Here is a quick overview for those looking to sell a house with a mortgage USA, and several key facts to understand.   Can You Sell a House with a Mortgage?   The simple answer is yes you can.   If you’re looking to sell a mortgaged property, you are perfectly within your rights to do so. In fact, doing so is extremely common.   Statistically, the average US homeowner stays in their home for 13 years. Typically they pay off their outstanding mortgage on the property by selling it. Providing you have enough equity to pay off the mortgage in full when the deal closes, there’s nothing stopping you from selling a house with an outstanding loan, I.E a mortgage.   Benefits of Selling a Mortgaged House   Despite being perfectly legal and common, some of us may be wondering whether it’s the right decision to selling a house with a mortgage.   Here are a few benefits associated with selling a house with a mortgage.   You can use profit from selling a mortgaged house to put toward your next property. If you are downsizing, you can keep the profits once your previous mortgage has been paid off. If you’re upsizing, you can use profit from selling a mortgaged house to put toward a down payment.   What Happens to My Mortgage When I Sell My House?   In a typical home sale, unless the real estate market is going through a very bad patch, you should be able to sell your property for more than you owe on your mortgage.   By paying off your mortgage over the years, you will have accrued equity in your home. This can then be cashed in on once you sell up.   When a house sale closes, between the mortgage loan and the down payment, the buyer will provide the funds at the settlement that are equal to the sale price of your home. You can then use these funds to pay off any equity loans, closing costs such as agent fees ETC, and of course, the outstanding mortgage balance.   Can I Sell my House If I Owe More Than It’s Worth? (Underwater Mortgage)   Selling underwater mortgage house issues are also fairly common in the real estate world. Put simply, an underwater mortgage is when the mortgage is worth more than the property is worth, meaning you have negative equity. If for example, you paid over the odds for the property, or simply bought before the property market tanked, you could find yourself with what is known as an underwater mortgage. Can you still sell, but it’s important to know your options.   First off, you could pay off any outstanding payments yourself, from your own savings or investments. This is obviously far from ideal, but it will help protect your credit rating. Another option would simply be to put the house sale on hold and wait for real estate prices to increase.   The third option is a short sale. This means that your mortgage lender must provide permission for the house to be sold for less you owe on your mortgage. The lender has the final say over which offer to accept or reject. This will, however, negatively impact your credit score.   How Much Equity Do I Need to Sell My House?   In truth, there is no clearcut answer to this question because it depends on a number of factors and circumstances.   A general rule of thumb, however, is that you should aim for around 15% if you wish to upsize, or 10% if you’re simply looking to relocate and purchase a similar-sized property.   What Are the Closing Costs for Selling a House with a Mortgage?   As far as closing costs when selling with a mortgage, again, there is no clear and concise answer to what they will be because each sale will be different. As a general guide, expect closing costs of between 2% and 6% of the total mortgage loan amount.   How Long Does It Take to Sell a House with a Mortgage?   How long is a piece of string? The simple fact of the matter is that we can’t give you a precise answer to this question because there isn’t one. You could list a mortgaged house for sale and find that it sells in less than 7 days, or it could take months, or even remain on the market for years.   Statistically however, as of March 2023, it took on average 54 days to find a buyer. Does this mean that your house will sell in that duration of time? Absolutely not. It could sell much quicker, or it could take much longer. It should be noted that, as soon as the Fed begins implementing the projected three interest rate cuts later in 2024, property sales should start speeding up.

published on April 30, 2024

How Soon Can You Sell Your House After Buying It?

a white woman holding home for sell sign, so she could sell her home sooner

How Soon Can You Sell Your House After Buying It?

Buying a dream house is a big decision so homeowners intend to live there for a long time. While you are probably planning to live there forever, circumstances may lead you to sell the house early. Here, the first question that comes to mind is how soon can you sell your house after buying it. In this article, we will guide you to the answer to your question. It also includes the consequences of selling your house early after buying it.  Reasons Why People May Sell Their Houses Early If homeowners are not flippers, they do not think about selling their houses soon after buying.  However, there can be exceptions. Sudden changes in job location, and health emergencies can force people to change their residence. The other circumstances include:  Sudden Rise in Property Value Your home’s equity value may rise and you can utilize the opportunity to earn quick profit. However, you have to consider the drawbacks of selling the house earlier than expected. This analysis will help you to make the best decision. Buyers’ Remorse The location or the neighborhood may not be the right fit for you or your family. This can turn your excitement into regret once you move in. However, one should wait and analyze the market situation before deciding to sell the house.  Financial Hardship Due to health emergencies, you may need to sell your house early to pay medical bills. You may also lose your job all of a sudden and need to cover up costs. Moreover, Paying the mortgage payment, property taxes, and maintenance costs can be too much to handle.  Change in Job Location If you get a lucrative job opportunity, you may need to relocate. Your current job location may shift as well and so you may need to sell your house to commute easily. Can You Sell Your House Within Two Years of Buying It? You can sell your house anytime you want after closing the deal. There is no fixed rule regarding the timeline of selling your house. Just be prepared for the capital gains tax and the financial hurdles that will come along with it. What is the Five-Year Rule?  According to industry experts, you should keep your house for at least five years. This time is adequate to build up your equity value and earn profit from selling the house. Also, to meet the breakeven point, five years is generally thought to be adequate.   Cons of Selling Your House Within Two Years Even though you have the freedom to sell your home whenever you want, there are some negative consequences of it. Consider the following drawbacks before deciding to sell your house early: Capital Gain Tax Implications Capital gain tax is one of the biggest expenses a homeowner must carry if they earn profit from equity. According to the two-year rule, your home has to be your primary residence for two years to get tax exemption. This condition allows individuals to get an exemption of up to $2,50,000 of their capital gain. Married couples can get an exemption of up to $5,00,000. It is wise to consult tax professionals to avoid tax penalties.  Mortgage Prepayment Penalties If you finance from lenders, you may have to pay a prepayment penalty for selling your house early. Lenders usually charge 2% to 5% of the remaining loan. This is because they miss out on the interest payment they could receive if you haven’t sold the house. Before taking a loan to buy a house, you should make sure there is no such clause in the contract.  Selling Costs You have to consider the moving and closing expenses while deciding to sell your house. Moving again within a short time can be expensive. For sellers, the closing cost can be 8% to 10% of the selling price. The sellers’ expenses are-  Agents commission Capital gain tax  Attorney’s fees  Transfer tax Insurance fee HOA fee Negative Perception in the Market Selling your home early creates a negative perception among the potential buyers. They may think there is something wrong with the house. You may not get the desired price even if there is increasing market demand. Real estate agents can help you solve this issue if you are trying to sell early. They can give reassurance to potential buyers through appropriate marketing strategies. Can You Sell Your House Soon Without Losing Money? It is possible to sell your house early without losing money. Your property value must be appreciated to recoup the expenses. You have to calculate the breakeven point and decide the best-selling price. How to Calculate the Breakeven for Your Home Calculate the closing costs, total monthly mortgage payment, property tax, maintenance cost, agent fees, and selling expenses. Then determine your equity gain value and tax exemptions (if availed). If your selling price recoups all of your expenses and justifies your equity gain, you can find a breakeven point. To select an appropriate price, you need to research the area’s market demand and evaluate the condition of your house.      Strategies to Selling Home Soon After Buying It Planning strategies can reduce the risk of financial loss. The strategies include:  Wait to Avoid Tax Penalty   First, you should wait for at least two years. By doing so, you can avail the facilities of tax exemption on capital gain. However, if you cannot wait for two years, you have to be prepared to pay the full amount of capital gain tax. Find an Expert Real Estate Agent  You should consult with real estate agents to find out the right time to sell your house. Their research and expertise can guide you to find the perfect time when buyers have demand. This way you can maximize your profit from selling the house early.  Stage Your Home Try to make the house appealing so that the potential buyers become fascinated. Selling your home early will put a negative perspective on the buyers. So, it is essential to renovate and decorate it properly to … Read more

published on April 17, 2024

Vacation Home Investment: Pros, Cons and Buying Strategies

beachside vacation home

Vacation Home Investment: Pros, Cons and Buying Strategies

Real estate investors get intrigued by the popularity of vacation home investment. But they have to consider a few things before deciding to invest. In this article, we will explore the pros and cons of investing in vacation homes. It will work as a roadmap for you to cherry-pick the right property.   Vacation Home Investment Vacation home is a second home which can be an investment for personal use or rental purposes. You can spend quality time with your friends and family in a vacation home. It can be an ideal requirement place. Some people prefer to use vacation property solely for personal use. Conversely, many investors go for renting the property. To gain the financial benefits, investors have to select the right property in the right location.  What are the benefits of Investing in Vacation Home Personal Vacation Home Hotel accommodation cost is one of the highest costs among the vacation expenses. You can avoid spending your hard-earned money on hotel accommodation expenses by investing in a vacation home. It helps to plan vacations without thinking about the availability of hotel rooms during the peak seasons.  Moreover, you can decorate it according to your taste.  Earning Additional Income Short term rental property Vacation home rental guarantees a steady inflow of passive income to pay mortgage and maintenance expenses. Buying vacation homes in tourist destinations creates high demand among tenants, especially during peak seasons. During off-seasons, you can lower the rent fee to attract tenants. You can list your property for short-term renting on the most visited renting sites like Airbnb, and Booking.com to maximize your earning. Property Value Appreciation Value of vacation homes may appreciate over time which makes it a considerable investment opportunity. You can diversify your portfolio by adding real estate. You can also use it as your permanent residence once you retire. Furthermore, the property can be used for solving any unforeseen financial emergency. Claiming Tax Benefits You can deduct your property taxes and mortgage interest of  the vacation home depending on how it is used. If you rent the property, you can deduct repair, maintenance, occupancy tax, property depreciation, listing fee, mortgage interest, insurance premium, and other expenses while determining tax. Tax professionals can help you to optimize tax benefits.  What are the Cons of Investing in Vacation Homes Property Management Hassle As a homeowner, you have to pay property maintenance expenses (such as repairs, cleaning decoration, etc.). If you rent the vacation home, it will require regular maintenance after each tenant checks out. One of the major hassles is managing the property from far away. Regular maintenance, finding tenants, negotiating and dealing with them in person can be difficult. But you can hire a property manager to conduct this task. They can manage the property efficiently as they have enriched knowledge about the property’s location.  Down Time Loss Market demand for different locations may fluctuate with the vacation seasons. During  vacancy, you have to pay the necessary costs anyway. In the case of renting, advertising and listing costs have to be paid. You need to plan strategies to offset the downtime loss. Here you can lower the rent, and offer incentives to attract tenants during off-seasons.    Higher Down Payment  The down payment cost of a second home is higher than primary residence. Usually, the down payment of a second home is at least 10%. This substantial amount creates a burden on the homeowners. Additionally, the homeowners need to have a higher credit score to avail of loan from banks for buying a second home.    Buying the Right Vacation Property for Investment After evaluating the pros and cons of investing in vacation homes, you need to develop a strategy for purchasing property. There are a few important factors that have to be considered before investing in vacation homes.  Choose the Right Location Profitable vacation property investment depends much on the property location. Buying property in tourist destinations can boost income. Moreover, you should consider locations that remain in demand during multiple seasons. The additional maintenance cost of buying property in the selected area is another important factor.   Evaluate Rental Demand Research about the market trend of the locations. Look into the rental rates and occupancy rates to augment the prospective income. Know the seasonal demand and calculate the occupancy rate. For example- the occupancy rate of rental properties near beach areas in the summer season is much higher. To calculate the occupancy rate, input the number of occupied rooms, divide it by the total number of rooms, and then multiply by 100.  Consider the Responsibilities Being a homeowner, you have numerous responsibilities even if the location is far-flung from your residence. There are many ongoing costs and property management hassles that you need to consider. Though you can outsource a property manager, it will come with a burdensome amount of expense. Select a Financing Option At first,  ask yourself “Am I in a financial position to buy a second home?” Contemplate all the expenses related to the investment. If the answer is positive then look into the available financial options and select the best one. Here are some of the financing options: Conventional loans Cash-out refinance Home loan Shared ownership of property  Calculate Return on Investment  You have to calculate the probable expenses to find out the potential return on investment.  Some of the expenses are: down payment, property tax, HOA fees, property maintenance and repairing costs, insurance expense, home listing fee and property managers fee.  Then determine rental earnings, property appreciation value, and tax advantages and deduct all the expected and unexpected costs. This is how you calculate the return on investment. If the result seems satisfactory, you can go ahead and buy your dream vacation home! Pitfalls to Avoid While Investing in Vacation Homes Inadequate Location Research Before buying a vacation property in an unknown area, you need to research by going above and beyond. Learn about the geographical location and weather conditions of the area to avoid any uncertain occurrence. … Read more

published on March 28, 2024

2024 Real Estate Trends and Forecasts

2024 Real Estate Forecasts, Trends and Forecasts

2024 Real Estate Trends and Forecasts

2023 was not exactly a great year for the housing market. That’s true not only for the U.S, but globally as well. Thanks to record-breaking inflation, global conflicts, political uncertainty, and rising interest rates, the outlook for the real estate market here in the U.S looked pretty bleak. While we’re definitely not out of the woods yet, there are signs of improvement, and it does look as if there may be light at the end of the tunnel. Don’t get us wrong, the real estate market can hardly be described as ‘thriving’ but it’s certainly looking healthier than it was in 2023. With inflation easing, and interest rates slowly creeping down, is the housing market finally showing signs of improvement, or are we delaying the inevitable and hurtling towards a 2024 housing market crash? Here are four insights and forecasts for the 2024 real estate landscape. A Housing Market Crash Looks Unlikely While we can’t predict the future, we can look at past history and current statistics and it’s looking more and more likely that a housing market crash will be avoided in 2024. A housing market crash is basically a sudden drop in high home prices because of a lack of demand. Ironically, it’s a lack of inventory that’s helping to protect against a crash. With the markets as they were last year, there was growing talk of a housing market crash, with people attempting to draw comparisons to the financial crisis of 2008. In today’s landscape, homeowners are in a much better financial spot. This means that we’re unlikely to see the housing markets crash. Affordable House Pricing Looks to be a Driving Factor for Young Buyers Experts have predicted that Buffalo, New York looks set to be the hottest housing market location for 2024, closely followed by three locations in Ohio. With the costs of living having increased so much over the last two years, affordable house pricing looks set to be a driving factor in terms of the housing markets, especially for young buyers. Basically, people want affordable house prices with healthy employment. This is especially true for young buyers looking to get onto the property ladder. Buffalo, New York, is a part of the country that can provide that. Ohio, however, looks set to be the most popular state for real estate. Toledo in particular, is proving especially desirable, along with Cincinnati and Columbus. California’s Housing Market: Bullish California offers a strong job market along with affordable housing prices. This makes California an lucrative prospect for homebuyers. California’s housing market is expected to grow stronger in 2024. California is a good opportune for home buyers, because: Affordable Homes: In general, California is known for its high cost of living. However, this does not hold true for every city and town of the state. The Eastern part of California has more affordable housing compared to other US states. Robust Job Market: California boasts a strong and diverse job market. Especially, the tech sector is booming. Bullish economy is producing better paying jobs for Californians. It has increased their purchasing power and mortgage payment capacity. However, we should never forget that affordability is relative. While some areas may be more affordable than other parts of the country, California housing prices are still on the higher side than states like Arizona. Different areas of California has different amenities, so finding a place that satisfies needs within budget is a must. Buyers should carefully research and seek out guidance from professional real estate agents to make the best buying decision. Foreclosure Likely Won’t Increase in 2024 Even though 2023 saw an upward trend for foreclosure, experts aren’t expecting to see a sudden increase in foreclosure stats. In fact, they’re expecting the opposite as the year ticks by. The main reasons for this are healthy rates of employment and the economy looking decidedly more stable than this time last year. With things as they are, we can expect foreclosure activity to drop to pre-Covid levels sometimes in the third quarter of 2024.

published on March 7, 2024

Wondering How to Sell Your House? Check Out These 6 Easy Steps

key chain dangling in front of a sold house

Wondering How to Sell Your House? Check Out These 6 Easy Steps

From the time you think of selling your house to closing the sale, the journey can be an emotional roller coaster ride. You may feel nostalgic about the precious time you had there and also feel the stress of finding out how to sell a house, selling the house quickly, what to fix and what not to fix when selling the house and so on. However, we came up with 6 easy steps that may act as your guideline and reduce the stress of how to sell your house. Step One: Finding Desired Way of Selling House At first you need to decide “how to sell the house”; on your own or with the help of a real estate agent. Although people are tempted to choose the “For Sell by Owner (FSBO)” process, there are pros and cons of selling a house with or without a realtor. FSBO or With Real Estate Agent If you sell on your own, you can avoid the agent’s commission fee which is around 5-6% of the selling price; have flexibility of the time of showing your house to the potential customers but this process can be very time consuming and you may not find a wide pool of potential buyers. On the contrary, hiring a real estate agent has several benefits such as- They have in-depth knowledge about the market. Licensed agents have access to the Multiple Listing Service (MLS). They are skilled in negotiating and have knowledge to sell houses profitably and quickly using industry connections and brand name recognition. How to Find a Real Estate Agent If you decide to list a house through a realtor, research for finding a realtor who knows about the market of your area, take their previous clients’ testimonials, prepare questions to interview the potential realtors and select the one that falls into your desired criteria. Step Two: Prepare and Stage the House When you start thinking of selling a house, you should opt for a pre house inspection. Here you should analyze what to fix and what not to fix when selling a house. You need to calculate the Return on Investment of fixing any bigger stuff and see if that is cost effective. But there are certain fixes you must complete which are- structural and mechanical, floorings, bathrooms, kitchen, roof, cosmetic and exterior. You can also sell your house as it is but then you have to consider how much you lose because the buyer will pay a much lower price in that case. How to make your house look appealing To stage your house- declutter extra stuff, clean the house, move or rearrange the furniture in a way so that the house looks larger and appealing to the buyers. The real estate agent will guide you the right way of staging.The buyers may be attracted by the curb appeal and online appeal. For curb appeal, maintain landscaping, clean outside walls. And for online appeal, the agents will find a professional photographer to click enticing photos and make a 3D virtual tour of the house. Step Three: List Your House In this step, select the best listing price with your agent according to the market price and cost of selling the house. Remember that you may lose potential buyers if you set a much higher price. Consider the peak demand season of your location to get the best price. Then the agent will list the house for sale on MLS with necessary details and photos. Step Four: Review Offers, Negotiate and Finalize Buyer Once you start getting offers, the negotiation skill of your agent realtor will play a vital role. Buyers tend to offer lower prices than the listing price so your agent will send counter offers and negotiate. You can also accept the buyer’s price as it is or reject it in the beginning. The buyers may accept your listing price if the listing will be made during the peak period. Factors to analyze before finalizing the buyer And then you will finalize the buyer after discussing all the aspects. Step Five: Execute Closing Obligations In this stage, the contingencies stated in the offer will take place. The buyer will hire a home inspector and check the condition of the house. And for appraisal contingency, the lender of the buyer will analyze the current market value of the house through an appraisal. What are the Closing Costs You will have to pay some closing costs such as- repairing cost after the home inspection, transfer tax, title insurance and most importantly your real estate agent’s commission fee. Step Six: Close the Deal After fulfilling all the obligations, you can proceed to close the deal and plan to move out. For closing the deal, many documents need to be prepared. Some essential documents needed to sell house And finally, you will sign the documents, close any necessary transaction, hand over the key and move out!

published on January 26, 2024

Should I Change My Address Before Closing?

Woman holding packages with her address on it

Should I Change My Address Before Closing?

The ultimate goal of any homebuyer is to close on a new home and eventually move in. To make the entire location change seamless, you must make certain changes before and after closing. If you’re concerned about your past and current address, you might wonder: should I change my address before closing? Should I Change My Address Before Closing?  No, you should not change your address before closing. You should wait until you close to make official changes to your address. However, you can start all the necessary preliminary processes required to change your address as soon as you have a closing date. To change your address, you should contact the Post Office and have them forward all your mail to your new address. You also have to contact several other important parties like the gas and electricity companies to update your address. This can be done within a week of closing so you have greater certainty that everything will go through with the purchase and will guarantee a less stressful experience when you move in.  Tips to Follow When Changing Your Address When you do not change your address the right way and at the right time, you may be unable to receive mail sent to you. You could also lose access to basic utilities like electricity and gas. Here are some tips to help you with changing your address to avoid these scenarios: Verify Your Address and Gather Other Necessary Information While it may seem very trivial, making any errors in your home address would give you an entirely new address. This makes it important to verify your new home address with your realtor. Check the house number and the spelling of the address. Checking in with the post office can make this easier. You also want to gather all the information you need to fill out any forms you may have to fill out when changing your address. Having the information before filling out any forms reduces the possibility of mistakes.  Contact the Post Office  You want to start changing your address with the postal service since they would be the ones forwarding your mail. You can contact the United States Postal Service (USPS). All you have to do is walk into your local post office to pick up a Mover’s Guide packet and fill out the change of address form inside. Alternatively, you fill out the form online. However, you may be charged an identity verification fee to prevent the occurrence of fraud. Whichever option you go with, be sure to include the name of all your family members moving with you on the form. If you have someone with a different surname, they will need to fill out a different form. Contact Other Government Agencies Asides from the postal service, you also have to inform a number of government agencies of your new address. These agencies include: The DMV or any state licensing agency, especially if you are moving to a new state The IRS and necessary tax agencies Voter Registration Insurance policy, including life insurance Contact the Necessary Utility Companies To keep enjoying their services after you move into your new home, you must inform all your utility companies of your address change. This includes the gas, electricity, phone, cable, and internet service providers.  With the electricity company, you can arrange for a shut-off on the day you move out of your old residence and for service to start right before you move into the new house. This will ensure that you do not experience an electricity-free weekend. This applies to the water company too. You should also notify all your phone, cable, and internet service providers of your change in location and find out whether you have to terminate their services or if they can be transferred to where your new home is located. Inform Your Employers, Financial, and Insurance Institutions  You should consider notifying your employer of your new address. This is necessary even if you are changing jobs. This will help them keep their records straight and ensure that you get any files or documents, like pay stubs and tax forms, mailed to your home address. To ensure that your bank statements, bills, and other financial documents are sent to the right address, you want to inform your banks and other financial institutions. These include loan companies, credit card companies, and investment companies.  You should also inform your health insurance companies and other insurance companies of your new address like your car insurance. This is to ensure that you are still covered or if you need to make any amendments to your insurance policy. Update Memberships, Subscriptions, and Online Services You should notify any clubs and organizations you belong to of your new address. You should also update your home address on all subscriptions to magazines and other online services. If you are looking to buy or sell a house in California, you can get a flat fee realtor like CA Flat Fee to help handle the entire process of buying or selling. CA Flat Fee provides a complete service from listing on MLS to closing all for a flat fee of $5000. Related Questions Should You Move In on Closing Day? Yes, you should absolutely move in on the closing day! The day will be really exciting, and you can start setting up your home the way you want it. You must plan your move properly so you won’t have to worry about anything. That said, some people have plans for improvements or renovations that they want to make before moving in. This is something to consider, as even something as simple as repainting the interior of the home can be far easier without any furnishings moved in. How Long Will My Mail Be Forwarded to My New Address? Your mail will be forwarded to your new address for free during the first year. During the next six months, the mail will be returned with your new address to … Read more

published on August 25, 2022

Different Options for Selling a House

A realtor putting up the home fore sale sign

Different Options for Selling a House

Every home seller dreams of a stress-free sale. They just want to put their house up for sale, get a buyer, receive payment, and close the deal. Unfortunately, this is rarely the reality. As a home seller, you have to explore the options available to you. So what are the different options for selling a house? Different Options for Selling a House Selling a house is a huge financial decision. It requires meticulous planning, especially because there is a risk of getting scammed or even losing out on the sale. There are various sales methods you can choose from when selling a house. Some of these methods are more traditional, while others are more modern. Each of these methods has its respective pros and cons. The right choice to go with ultimately depends on your goals, as each option will give you different results. Here are the different options for selling a house: Sell it by Yourself When selling your house, the first option available is to sell the house by yourself. The For Sale By Owner option or FSBO is where you choose to sell the house by yourself without the use of any realtors. With this option, you are in charge of the entire process. That means you handle the listing, the showings, the negotiations, and all the necessary paperwork. FSBO transactions are significantly cheaper than most of the other options because agents are not involved, and as a result, you do not have to worry about commissions. However, FSBO homes typically sell for less, and the process is very time-consuming.  You will also need to have some understanding of the way the market works. This will help you handle certain tasks more effectively, such as pricing, marketing, showings, and even legal documentation. This option is ideal if you are looking to avoid a third party. While it is very possible to sell your house yourself, it is not usually as easy as it seems. Pros You have full control and responsibility over the entire process It is a good option if you do not need to sell urgently as it offers flexible timing You get to save costs on agent fees and commissions Cons An FSBO sale can be very time-consuming and exhausting You may have to sell for less than with an agent You may require some knowledge of the industry or get someone who does Inexperience could cost you more than working with an agent Sell to a Real Estate Investor The second option you have when selling your house is to sell to a real estate investor. Investors usually buy homes with the aim of making a profit off them. They often buy homes and make necessary repairs and then sell them to a final buyer or hold them as rental property. Virtually every city has local investors looking to buy homes with cash. This means finding a reputable one you can work with should not be too difficult. This is a great option if you are looking to sell your house quickly. However, investors tend to offer lower prices considering that they are looking to resell. Once you reach out to a real estate investor, they will assess your home and make an offer. Once you accept the offer, they pay in cash, and the title is transferred.  Pros You can sell your house very quickly sometimes You do not have to worry about commissions  You do not have to spend on repairs Most real estate investors will cover the closing costs Cons They tend to offer lower prices than the actual market value of the home Use a Traditional Real Estate Agent Using a traditional real estate agent is one of the most common ways to sell your house. These agents understand the market and all the necessary processes and effective strategies to get your house to sell at the highest price possible. They will help handle the listing of your home, the marketing, and showings. It is also their duty to help you with evaluating offers from potential buyers, negotiating the terms of each offer, and helping determine which offer is best for you. They also provide expert advice on deals, making sure that the transaction is successful. Upon finalization of the deal, they receive their fees.  This is often determined using a commission-based structure. Traditional agents earn a percentage of the final sales price. This is usually around 6% of the final sales price. This is then split between your agent and the buyer’s agent. If you are selling a house worth $500,000, you could pay as much as $30,000 in agent fees. Pros  You can access professional help and advice throughout the process Agents handle marketing and can help sell your house for a competitive market price They handle the evaluation and negotiation of the terms of the contract They also significantly reduce your workload with regard to the sale Cons Traditional real estate agents can be expensive, charging about 6% of the final sales price You have little or no control over the marketing strategies and timeline and you will have to bear the costs of marketing The buyer may ask that you pay part of the closing costs Use a Flat Fee Agent A good alternative to using traditional agents is to use flat fee agents. Flat fee agents are just like traditional agents. The only significant difference is that they do not charge a percentage of sale price commission-based model.  Instead, they typically charge using a flat fee structure or a discounted-fee model. However, most times, all that a flat fee agent does is to only list your house for a flat fee and call it a day. On the other hand, full service flat fee agents such as CA Flat Fee offer comprehensive services for a flat fee. This is unlike traditional agents who charge a percentage of the final sale price or flat fee agents that would only list your house for the … Read more

published on July 25, 2022

Can You Keep the Curtains When You’re Selling a House?

White curtains

Can You Keep the Curtains When You’re Selling a House?

Most people do not get to buy and sell houses on a regular basis, especially if they are not realtors. This explains why a lot of confusion can arise about what to leave or take when selling your property, particularly with personal effects like curtains. So, can you keep the curtains when you’re selling a house? Can You Keep The Curtains When You’re Selling a House? Yes, you can keep your curtains when you’re selling a house. Most people regard curtains as personal property. So, as long as they are not permanently attached to the house, you can take them off and keep them when selling your house. However, you cannot take along the rods and poles attached to the walls – all based on typical contract language. That said, you can always specify in your listing and reaffirm in the purchase contract which items you are excluding from the sale. The general principle when determining the things you should keep or leave when selling your property is that you cannot keep any items that are fixtures and improvements. This refers to items that are fixed to the property. If you keep anything that was supposed to stay without negotiating with the buyer, there is the possibility of ruining the sale or even facing a lawsuit. How to Determine What to Keep or Take When Selling a House The general rule is that fixtures stay and you cannot keep them without any prior negotiations with the buyer once your home is under contract. Regardless, it can be difficult to determine whether some items qualify as fixtures, especially if you also installed them during your stay in the house. According to the standard in most sales contracts, any item that is permanently attached to the house or that is fixed in place. This generally includes electrical fittings, central air conditioning systems, and heating systems. Shelves, cabinets, and mirrors that are in place, as well as the landscaping, are all considered fixtures.  If you are still unsure about an item being a fixture, you can apply the MARIA Tests. The MARIA Test can help you narrow down any uncertainties about an item. Method of attachment: You can determine whether an item is a fixture from the way the item is attached. Can the item be easily removed or is it permanently fixed? If the item is bolted in position or screwed in, then it is a fixture. Adaptability: You should also understand the role the item plays in the house. Can you remove it without causing any damage to the house no matter how little? If it will cause any damage or if it is integral to the house, then you cannot remove it. Relationship of parties: The party asking for an item is also worth considering. This is because the buyers are likely to win if a dispute occurs between the buyer and seller.  The intention of the party: At the time of installing an item, was the item intended to be permanent? Your answer to this question will provide more clarity on the steps to take, especially during negotiations. Agreement between the parties: Lastly, you have to consider the sales contract states. You can always negotiate with the buyer to determine what you can keep. Keep in mind that sales contracts typically differ from state to state. In California, having the expert opinion and advice of a flat fee realtor like CA Flat Fee can be very helpful. Things to Leave When Selling Your House While leaving or keeping some items may cause some level of confusion when selling, there are certain things that you should not take along with you. Here is a list of things you definitely have to leave in place when selling your house: Immovable Property Any item that is immovable or permanently fixed in a house should be left when selling the house. Once an item is nailed down, mounted, or bolted in place, it has to stay. This typically includes built-in furniture, storage sheds, and fences. A common area of dispute is often with mounted televisions. Be sure to clarify details about the mount and the television with the buyer. Window Treatments While curtains are considered personal property, other window treatments like blinds are regarded as fixtures since they were attached to the house, and removing them would cause some damage to the walls. Mirrors are another item to consider. If the mirrors are hung, you can take them, however, if they are bolted in, they are fixtures. Lighting Fixtures A lot of home sellers usually have attachments to certain lighting fixtures such as their priced chandeliers. Regardless of the emotional attachment, you may have with a lighting fixture, you have to leave them when selling the house. However, you can choose to have them replaced before listing.  Landscaping Buyers expect that outdoor natural elements like trees and plants are part of the sales agreement. Permanent and semi-permanent structures like sheds, fountains, built-in fire pits and grills, and garden statuary. If you plan to keep any of these, you may consider taking them out before listing your home or include them as an exclusion in the contract. If the house you want to buy or sell is located in California, consider having CA Flat Fee realtors handle your transaction. Our team of real estate professionals will handle the process from listing to closing and provide you with all the necessary advice to make well-informed decisions, all for a fixed price of $5000 instead of the traditional 3-6% commission. Related Questions Can I Leave My Shower Curtains Behind When Selling a Property? Shower curtains are generally considered to be personal items and they barely influence the deal in any way. It is best to remove or replace them before the sale if you specifically which to keep them – or specify in the contract.  Should You Leave Appliances When Selling a Property? No, you do not have to leave your appliances behind. Most appliances … Read more

published on July 18, 2022