FAQ's

Commonly Asked Questions

There is no “best” time to sell per se.  Selling a house depends on supply, demand and other economic factors.  But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price. 

            Weather conditions are less consideration in more temperate climates, but most of the time, the real estate market picks up as early as January and February, with the strongest selling season usually lasting through May and June.

            With the onset of summer, the market slows July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates.  Also, many prospective homebuyers and their agents take vacations during mid summer.

            Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, fall market, which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays.

            It makes you wonder if you should take your home off the market for the holidays, consider the advice of veteran agents:  You are always more likely to sell your house if it is available to show to prospective buyers continuously.

            Price and condition are the two most important factors, even in a down market.  The first step is to price your home correctly.  Second go through the house and repair any obvious cosmetic defects that could deter a buyer.

            A comparative market analysis and an appraisal are the standard methods for determining a home’s value.

            Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood.  Be sure you get listing prices of current homes on the market as well as those that have sold.  You also can research this yourself by checking on recent sales in public records.  Be sure that you are researching properties that are similar in size, construction and location.  This information is not only available at you local recorder’s or assessor’s office but also through private companies and on the internet.

            An appraisal is a certified appraiser’s opinion of the value of a home at any given time.  Appraisers review numerous factors including recent comparable sales, location, and square footage and construction quality.

            While it may not reduce the actual value, a cluttered landscape next door can detract from the positive aspects of your home.  Review your local laws, which should be on file at the public library, county law library or City Hall.

            A typical “junk vehicle” ordinance, for example, required any disable car to either be enclosed or placed behind a fence, and most cities prohibit parking any vehicle on a city street too long.  It may also be worthwhile to check into local zoning ordinances.  An operator of a home-based business usually is required to obtain a variance or permanent zoning change in residential areas.

            In addition, if a neighbor’s repair work produces loud noises, he may be breaking local noise control ordinances, which are enforced by the police department.  Before bringing in the authorities, you may want a copy of the pertinent ordinance and give it to your neighbor to give them a chance to correct the problem

            Doing whatever you can to put your house’s best face forward is very important if you want to get close to your asking price or sell as quickly as possible.  Short of spending a lot of money, here are several ideas for making your home show better:

• Sweep the sidewalk, mow the lawn, prune the bushes, and weed the garden and clean debris from the yard.
• Clean the windows (both inside and out) make sure the paint is not chipped or flaking.  If your home was built before 1978, federal law gives a buyer the right to request a lead inspection.  If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
• Be sure the doorbell works.
• Clean and spruce up all rooms, furnishings, floors, walls and ceilings.  It’s especially important that the bathroom and kitchen are spotless.
• Organize closets.
• Make sure the basic appliances and fixtures work.  Get rid of leaky faucets and frayed cords.
• Make sure the house smells good from an apple pie, cookies baking or spaghetti sauce simmering on the stove.  Hide the kitty litter.
• Put vases of fresh flowers throughout the house.
• Having pleasant background music playing in the background also will help set your stage.

            If you want to get top dollar for your property, you probably need to make all minor repairs and selected major repairs before going on the market.  Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair.

            The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market but many buyers willing to buy at almost any price.  On the other hand, making such repairs may be the only way to sell your house in a down market.

            Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction.

            A buyer could forfeit a deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract.

            The purchase contract must include the seller’s responsibilities, such as things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

            If you are a seller in a seller’s market, in which there is more demand than supply, you probably won’t have to entertain too many contingencies.  But if you are selling in a buyer’s market, when buyers are few, prepare to be very flexible.  Granting contingencies also depends upon what kind of price you want to get and on the condition of your property.  Remember contingencies are written in the contract and are negotiable during the negotiation phase only.

            In most states, it is the seller, but obligations to disclose information about property vary.  Under the strictest laws, you and your agent, if you have one, are required to disclose all facts materially affecting the value or desirability of the property, which are known or accessible only to you.

            There are several cardinal rules to negotiating effectively.  One is do your homework, and learn as much about the seller or buyer as you can.  Another is to play your cards close to your vest and not reveal too much information to the other party or their agent.  Don’t let yourself get rushed into any decision, no matter how tempting it may be.  Finally, if you have doubts about your negotiating skill, hire someone to help you.

            Even in a down market, real estate experts say the price and condition are the two most important factors in selling a home.

            If you are selling in a slow market, your first step would be to lower your price.  Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.  Secondly, you need to make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and listings on the local multiple listing service (MLS) and on the internet.

            Another option is to pull your house off the market and wait for the market to improve.  Finally, of you have no equity in the house, and are forced to sell because of a divorce or financial considerations, you could discuss a short sale or a deed-in-lieu-of foreclosure with your lender.

            A short sale is when the seller finds a buyer for a price below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings.  The latter are radical options.  Your simplest, and in many cases most effective, option is the lower price.

Yes, in some cases you can sell your home for less than what you still owe on the mortgage.  But it is complicated and depends on the lender.  This situation is known as “short sale.”  Sometimes a lender will be willing to split the difference between the sale price and loan amount, which still must be paid.

A short sale may be more complicated if the loan has been sold to the secondary market because then the lender will have to get permission from the secondary market players.

If the loan was a low down payment mortgage with private mortgage insurance, then the lender also must involve the mortgage insurance company that insured the low-down loan.

            Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:

How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?

How much additional space is required?  Would the foundation support a second floor or does the lot have room to expand on the ground level?

What do local zoning and building ordinances permit?

How much equity already exists in the property?

Are there affordable properties for sale that would satisfy housing needs?

Ultimately the decision should be based on individual needs, the extent of work involved and what will add the most value.

            Property taxes on all real estate, including those levied by state and local governments and school districts, are fully tax deductible against current income taxes.