Real Estate Article

So, you’re selling your home (house, townhouse, condo, apartment, land, lot, farm, ranch, etc.), what can go wrong? The sad fact is that a lot of things can go wrong. However, don’t despair, there are almost as many solutions as problems. In this article, we look at problems related to pricing and a buyer’s inability to get a loan.

Price Negotiation

A problem that shows up all too frequently during contract negotiations is that the seller has left no room to negotiate the price. If the seller shows no flexibility, they are apt to chase buyers away. Mad.

The solution is simple and obvious, price your property a little higher than you feel you have to get. It needs to be a reasonable market price for your home, but you can start at the top of the market. Then, if your buyer wants to negotiate price, you have built in wiggle room.

Price isn’t the only thing that matters to buyers. Settlement and move in times are important, too. This is especially true if the move involves a new employment situation, a new school district, etc. If you can be flexible on those points, that can tip the choice to your property over a competing home.

Another sticky wicket during contract negotiations is encountered when buyers ask sellers to pay all, or some, of the buyers’ closing costs. Often, sellers’ knee jerk reaction is, “Why should I pay his closing costs? Mine have never been paid by the seller.”

Effective home selling in North America requires real estate know how, particularly when you make the decision to sell your home FSBO. Here are some key terms that you should know

A 1031 Exchange is a tax aspect of the Internal Revenue Code to allow a real estate investor who meets all the requirements to sell their property and defer paying taxes on the gain. By completing an exchange, the owner can dispose of their investment property, use all of the equity to acquire replacement investment property, defer the capital gain tax that would ordinarily be paid, and leverage all of their equity into the replacement property.
 
A Breach Of Contract occurs when a party is in violation of a direct obligation or failure to perform provisions in the contract agreement. In the world of real estate, a contract breach occurs most often in two ways 1 A failure to perform in the property listing agreement between the broker and the seller. 2 A violation of terms in the sales contract between the buyer and the seller.

One of the biggest mistakes people make when selling a house, is not understanding real estate value. It doesn't matter at all what you think your home is worth. The value of your home, and any improvements you made, is determined by buyers. What you enjoyed about your house is irrelevant when it's time to sell it. Think in terms of what other people want, and use some of the following tips.

What are the options for anyone looking to sell their property?

Traditional Estate Agent route - expensive and VERY slow

Online Estate Agent - less expensive but still slow

Property auction - fast but price not guaranteed to reach reserve, still have to pay auction house fees and VAT

Sell to a buyer who specializes in purchasing property for cash - slightly below market value but VERY fast

DIY private house sale - a fast option that could save you $

So, how do you go about selling your house privately?