Rules for Selling Homes
Some "rules" involved in selling a house are designed to attract the buyer and close the deal, while other rules are legal obligations on the part of the seller. If you are putting your home up for sale, you should know which real estate laws vary from state to state. Although many real estate agents are knowledgeable, learn about real estate laws in your state by consulting an attorney who deals with real estate matters.
Other People Are Reading
-
Price It Right
-
One of the most important rules for selling a home in a reasonable amount of time is to price it right. A real estate agent can help you arrive at a suitable price based on “comps,” or the price of comparable properties in your area. These comparable prices are the prices for which homes sell, not the asking price. After all, people can ask for the moon. What you want to know is the market value, the amount buyers are willing to pay. If you have a large piece of property, if your house is bigger or if you have added desirable amenities such as a fireplace or hardwood flooring, price your house higher than similar properties without those advantages.
Fix It Up
-
As soon as the “for sale” sign goes up on your lawn, your home will attract the attention of those in the market to buy. Your home should be in good repair, especially on the exterior. Fix up the outside by repairing gutters and eaves, resurfacing the driveway, patching walkways and retouching or repainting the exterior of the house. Remove any trash, and trim shrubs and bushes. To add an attractive, homey touch, use hanging baskets of colorful flowers and potted plants at the entrance. Inside, small repairs and a fresh coat of paint go a long way. Remove clutter and depersonalize your home so buyers can visualize themselves living there.
-
Offer Incentives
-
Incentives can turn lookers into buyers when selling a home. Flexible finance options can encourage a wider range of prospective buyers. Buyers also appreciate incentives such as a home warranty covering appliances, an offer to pay some closing costs and extras such as a new refrigerator or lawn mower.
Meet Legal Obligations
-
The legal obligations of sellers vary from state to state, so research the rules in your locality. Sellers might be required to disclose potential house defects such as property damage, environmental hazards that affect the home and malfunctions of major systems. The seller might also be required to advise buyers of any problems associated with lead-based paint, which affects homes built before 1978. Liens such as tax liens, construction liens, and mechanic's liens must also be satisfied.
Understand Tax Laws
-
Tax laws have changed, and sellers may find it easier to comply with tax rules when selling their home. If the home has been your primary for two years and you have owned the home for five years, you do not have to pay tax if the profit is $250,00 or less for a single tax filer, or $500,000 for married people filing jointly.
Know about Lending Regulations
-
When selling a home, sellers should know about lending regulations so they can understand the chances for the buyer to obtain a mortgage. Some changes to lending regulations include tightened escrow requirements for subprime loans, a restriction on “stated income” loans without verification of income and assets of the buyer, and limitation on prepayment penalties.
-
References
- Photo Credit Comstock/Comstock/Getty Images
