What You Need to Know

Q.  I'm getting ready to sell my house and can't decide about price. Shouldn't I start high so that negotiations run in my favor?

A.  That might sound like a great way to begin - logical, even - but usually, starting at a higher price can result in netting less.  Here's why.  The first few weeks a home is on the market is when it gets the most attention and activity.  When agents preview a home that they believe to be priced too high, they'll cross it off the list for buyers they're working with.  Something else to remember is that, not only will your home have to compete with higher-priced homes with higher-priced features, it'll get a reputation fast.  You don't want it to sit.  Hire a real estate agent to help you price your home fairly.

Q.  I have a neighbor who said she saved a lot of money by selling her home herself.  She mentioned that it took some time, but she thinks it was worth saving the commission.  Why should I hire an Agent?

A.  Good for your neighbor!  Especially if she did save money.  But let's take a closer look at the process of selling before we decide for sure.  Many people aren't aware of the advertising, marketing, leg-work, and strategy - and all the expense that goes along with those things.  In a fickle market, pricing your home right is crucial.  The longer it sits, the less likely it will sell for what it's worth.  Agents are experienced in getting that fair price and in negotiating with buyers and their agents so that you're not clothes-lined by contractual language or someone who isn't representing you.  And don't forget attorneys - a step every fiscally responsible person should try and avoid.  For more complete information on the facts about selling a home yourself, click here: Why Hire an Agent? , and then contact me if you'd like.  I'm happy to go through the process with you even if you decide to go ahead with selling on your own.

Q.  Can you tell me what all is involved in making sure title is clear on my home before it can be sold?

A.  When a home is purchased, either existing or new, a title search must be done on the property in order to protect buyers and lenders from problems that could affect ownership.  Some of these problems may be property line disputes, utility or other easements, tax liens, or materialsmen liens.  Just to name a few.  In order for your home to "clear title", the buyer's lender is going to order a Preliminary Title Report, or "PR" to make certain that there are no issues that would keep them from lending money on the home.  If there are, those items must be cleared and proof of that clearance provided before the lender will loan or the title company will insure.  Even if a lender isn't involved, a title search should be done so the parties are protected and clear title can be given.  If you have questions about title or escrow, either myself or any local title company can help.

Q.  I'm getting ready to sell, but want to move into a smaller, less-expensive home.  How will the capital gains laws affect me?

A.  Tax laws change frequently and though I try to give an accurate answer, each person's situation is different.  According to the Internal Revenue Service, Tax Tip 2004-56 in March of 2004, if the home you sell is your primary residence, you may be eligible to exclude up to $250,000 ($500,000 if you're part of a married couple filing jointly) from your federal tax return.  For the entire article, click here:  IRS - Capital Gains Tax Tip .  Whatever your situation, make sure to contact your tax adviser on the best possible avenue for you to take.

Have questions?  Click the "Contact Me" button on the menu bar and ask.  We'll post it here.  For answers to your home BUYING questions, check back soon!

(Questions answered here are based on real estate education, knowledge and information gathered from those experts in their field.  No information given should be mistaken for legal advice.)