SEATTLE AVENUE

First-time buyers eventually become first-time sellers. It’s a new experience and first-time sellers often feel as anxious and insecure about their first sale as they did about their first purchase.

Many people incorrectly believe that realtors control the entire selling process. Actually sellers control the price (positioning) and condition (saleability) of their property and buyers control sale prices (market values). Realtors control the process of the transaction (development, planning, implementation, promotion, administrative chain) and strategy for marketing the property.

Here are the most basic FAQs covering the home selling process.

How much is my house worth? There are a couple of different ways to price your home and several variables to consider. One way is to get a professional appraisal of your property and another way is to have your realtor do a Comparative Market Analysis (CMA) for you. Both methods take into account the neighborhood, the current real estate market, the condition of the house, and the most recent comparable listings and sales in your neighborhood.

Why is an appraisal price sometimes different than a market analysis price? The appraised value of a house is a certified appraiser’s opinion of what it’s worth, the market price might actually be higher or lower depending on current market conditions.

When is the best time to sell? It’s smart to be strategic about when you put your house on the market. The time of year can make all the difference in speed of sale and price. In general, spring is the best time to sell your home because that’s when the real estate market is the most active. (February through the end of May.) August can be a slower month with Autumn showing a resurgence of interest (September thru mid November.) The Holidays are usually a slow time of year although the buyers who are looking are likely to move quickly.

What are some of the costs of selling my home? The general rule of thumb is that selling your house will cost approximately 8.5% to 9% of the sales price. These costs include:

• Escrow fees. These fees are based on the price of the home and are generally divided between the buyer and seller.
• Title fee. As a seller, you are required to purchase title insurance to ensure that the title of your property is transferable. It is also based on the sales price.
• State excise tax. Currently 1.78% of the sale price of your home.
• Real estate fees. These fees vary, and refer to the cost of hiring a realtor to advertise, market, negotiate the sale of your home, and manage the transaction. Statistics show that full service realtors traditionally get you a higher sales price than you would on your own.
• Prorated property taxes. At closing, the buyer and the seller are responsible for taxes during the time of their ownership.
• Wire transfer and courier fees.
• County recording fee.
• Oil tank decommissioning fees. (if applicable)
• Septic tank pump and service fees. (Only if it hasn’t been done in the last six months).

What information am I obligated to disclose about my property? As the seller, you are obligated to disclose any information about your property that you know. You must provide the buyer with a Real Estate Transfer Disclosure Statement, which outlines the existence and condition of all known physical attributes of the property.

What are the some of the common contingencies in an offer?

• A financing contingency makes the purchase contingent on the buyer’s ability to get a loan and the bank’s appraisal of the home.
• An inspection contingency means that the purchase is contingent upon the findings of a professional inspection. The buyers have the right to back out of a contract if they’re not satisfied with the condition of the home, or the seller is not willing to make actual or financial modification.