9 DEADLY MISTAKES HOME SELLERS MAKE # 4
DEADLY MISTAKES HOME SELLERS MAKE – #4
Selling the most expensive asset that most families own is serious business, not something to be taken lightly. It can be a highly stressful process and costly mistakes are easy to make. In order to net the most from the sale it takes careful planning and some work on the seller’s part.
Based on our years of first-hand experience, we have compiled a list of the 9 Deadly Mistakes Home Sellers Make to help home sellers avoid them. As the old proverb says, “forewarned is forearmed.”
A copy of the list is available at no charge to anyone who requests one by e-mail.
DEADLY MISTAKE #4 –
Forgetting about health and safety issues
Be up front and disclose to your Realtor any problems with the property. The chances are that the problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it is common for inspections relating to health, safety and even environmental concerns to be part of most sales contracts. Moreover, in many states, the seller must disclose to the buyer any knowledge of existing property problems. In many cases these issues have been or can be factored into the home’s listing price.
Lenders are more cautious than ever, requiring copies of every inspection report and demanding that every problem be corrected before the loan will be funded. So, disclosing problems and getting them corrected is the fastest way to get your home sold.
A good listing agent has two jobs. First to sell your home and get you the highest possible net proceeds. Second is to do so in a way that will not end up in litigation six months to a year after the sale because the buyer was not told everything about the property.
9 DEADLY MISTAKES HOME SELLERS MAKE – #3
DEADLY MISTAKES HOME SELLERS MAKE – #3
Selling the most expensive asset that most families own is serious business, not something to be taken lightly. It can be a highly stressful process and costly mistakes are easy to make. In order to net the most from the sale it takes careful planning and some work on the seller’s part.
Based on our years of first-hand experience, we have compiled a list of the 9 Deadly Mistakes Home Sellers Make to
help home sellers avoid them. As the old proverb says, “forewarned is forearmed.”
A copy of the list is available at no charge to anyone who requests one by e-mail.
DEADLY MISTAKE #3 – Taking for granted the “curb appeal” of your home.
When you’re preparing to sell your home for sale, remember the importance of first impressions. A buyer’s first impression can make or break the deal. I can not tell you how many times I have had a buyer refuse to get out of the car because of the way a prospective home looked from the street. If the curb appeal is not there they don’t want to look inside. Experts estimate that over half of the homes that sell do so before the buyer gets out of the car. If it looks good from the street their mind is made up on the spot. Naturally the interior has to be acceptable, but curb appeal is critical.
Given this information, stand on the street in front of your home and take a realistic look. Has the lawn been mowed regularly? Are the shrubs healthy and well trimmed? Is the trim paint fresh and clean looking? If applicable, is the paint fresh? Is the property covered with “treasures” that have not been moved for months or years? Have the windows been washed lately? It may be time for a dump run or dumpster delivery so that you can weed out those treasures.
Ask your Realtor, your friends and neighbors their honest opinion? Tell them to be frank. making the right moves can have a major impact on the final sales price.
ARE YOU PREPARED FOR THE HOUSING SHORTAGE?
ARE YOU PREPARED FOR THE HOUSING SHORTAGE?
Ready or not, we will be facing a housing shortage in very short order, many experts indicate that it will hit as early as 2011.
It seems ludicrous to think that there will not be enough homes to meet demand after our experience of the past few years. The housing market cycle has fluctuated wildly in recent years with prices skyrocketing year after year and then plummeting. Of course, any pretence of equilibrium in the market has long since disappeared. Banks remain reluctant to approve loans to all but the most credit worthy and new home construction has become a phenomenon of the past.
Our population is still growing and families still need a place to live. The old forces of supply and
demand continue in play. With too little supply, the demand will influence both rental properties and home sales. The prices that we have seen fall so far will start to rebound and rental rates will increase steadily.
The major question is how quickly will the financial institutions react? Will they loosen the reigns and allow more buyers to qualify for financing or will they remain conservative? We are betting that investors will continue to demand higher returns and cause a loosening of credit, although not to the same extent as happened in recent years.
Landlords will reap the rewards from higher rental demands. Perhaps they will make up for some of their losses from the past few years. Homeowners will benefit from the rebound in property values. Although we do not see home prices skyrocketing as they did in 2004 and 2005, they will rebound. Interest rates will also increase. They cannot stay at present low levels very much longer and will rise as the economy improves.
Potential homebuyers may find these conditions are not in their favor. Those in a position to purchase a home would be well advised to do so NOW, while market conditions are working to their advantage. Most of us operate a little behind the curve and miss the best deals because we keep waiting for validation of the present market conditions. Would it not be better to act BEFORE everyone else does and reap the benefits of foresight?
Check out the latest Forbes article on this subject: http://realestate.msn.com/article.aspx?cp-documentid=23505825
Or Money Magazine: http://money.cnn.com/2010/06/15/real_estate/new_housing_bubble/index.htm
PROPOSITION 8 — PROPERTY TAX RELIEF FOR HOMES THAT HAVE DROPPED IN VALUE
Proposition 8 –Property Tax Relief
California homeowners may or may not be aware of Proposition 8.
In 1978 California voters passed this constitutional amendment that allows a temporary reduction in the assessed value of their property when that property suffers a decline in current market value.
When, on January 1 of each year, the market value of a property falls below the assessed value, the assessor is obligated to review the property and enroll the lesser of the two values. If it is determined that the market value of the property at that time is less than the assessed value your property’s assessed value will be adjusted to the level of its current market value. This will result in a reduction of your property tax for that year.
To apply, contact your county assessor’s office. Some counties require the tax payer to complete a form requesting participation in the Proposition 8 outlined process, others will include you in the program based on information that you provide on the telephone.
Some counties have programs in place that review properties based on the purchase date. It is wise to contact them and ensure that your home is in the program. For more data go to:
http://www.boe.ca.gov/proptaxes/assessors/htm .
SCAM ALERT—NO FEE NECESSARY FOR THE VALUE REDUCTION
There is no reason to pay for a review that is required by law and will be performed FREE! Various private companies send mailings to property owners offering their services to pursue a reduction in the owner’s property taxes. These companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Some companies even impose late fees if the application is received after an arbitrary deadline. Homeowners do not need the services of a private firm to seek a property tax reduction. State law requires county assessors to review all requests for property value reduction for FREE! |
Note that the reduction is not permanent. Each year on January 1 participating properties will be reviewed until their values return to the former Proposition 13 values.
If you do not agree with the assessor’s findings you may file a formal appeal with the County Assessment Appeals Board or the County Board of Equalization. These boards are independent bodies established to resolve differences in property value opinions between the county assessor and property owners.
For more information go to:
http://www.boe.ca.gov/proptaxes/pdf/filingperiods.pdf
CONSUMER ALERT–REFINANCING CAN BE A MISTAKE!!
CONSUMER ALERT!!!
Homeowners should be aware of the fact that there can be a danger to refinancing your home if your existing loan is a “purchase money” loan.
Here is the deal. California is a non recourse state. That means that if a homeowner runs into financial difficulty and can not keep up with their mortgage payments, they are better off dealing with their lender(s) if the loan(s) are purchase money loans. A purchase money loan is one which was obtained strictly for the purchase of a property. If that home owner ends up in a short sale situation (trying to sell the property for less than they owe the bank) their chances of having the outstanding balance on their loan(s) forgiven is covered by California statute.
If, however, they end up in a short sale situation after they have refinanced their loans, the lending institutions have legal recourse to come after them for the unpaid balance of their loan. They can loose their home and still owe the bank thousands of dollars.
It would be a prudent move to check out the impact of a refinance if the probability of delinquency and/or a short 
sale in the future. Refinancing to lower loan payments may be a good move but everything has to be weighed carefully before making that move.
At this writing thousands of adjustable rate loans are about to adjust, increasing the loan payments significantly. Borrowers facing this reality should have all of the facts before they refinance.
The California Association of Realtors are vocally supporting SB 1178 to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure.
All of this is very confusing for most borrowers. Feel free to call and ask questions. If we do not have the answers we will point you in the direction of a reputable organization that can.
