Important Tips to Remember when Selling Homes

Do you think selling homes is easy? Definitely not. It is not like a piece of cake which you can give to anybody whenever you no longer want to finish it up. Deciding on selling your home is a major decision to make. In whichever way, however, selling homes require a lot more considerations to take charge of.

Do you have a new target house to buy? Are you leaving the country? Do you want to transfer to a smaller house because you need to cut down the expenses that your family incurs? There are several reasons why an owner would want to sell their homes. Whatever the reason may be, selling homes is still one major task to attend to.

Today, the market value of properties has increasingly changed. Selling of homes is one part of the industry. Selling homes is letting go of one major investment. Everyone knows how hard it is to work on the achievement of investments such as homes. Owners would at least want to get the most profit when they sell their homes. Nobody for sure would want to sell their homes in an underrated amount as compared to their original expenses.
After finally having thought of it, selling homes require the most important person, and that is the buying party. The seller must attract buyers of his home. And how can this be possible?

One who is selling homes has to open the doors for worthy buyers. In order to attract worthy buyers, the person selling homes needs to take note of special tasks to fulfill. These days, the real estate market is continuously changing. That is why someone who has to venture into selling homes must be very particular with the details that must be taken cared of.

You may think that if the home you are selling exudes a fine aroma or if the frontal phase is too pretty to look at, the buyer will already be left in awe and amazement, thus, finally deciding on buying it. Well, you are wrong as this may not always be the case. Home sellers need to prepare their homes to be able to reach a top-dollar sale.

The prospect home buyers will first look at a line of choices of homes to buy before finally pinpointing to one particular investment. So the chance of a home to be bought lies in the hands of the home owner. The seller of the home must do everything to let his home be a standout in the list of choices considered by the buyer. What are the tips to be followed by the one who is selling homes in order to attract the buyers?

Take a look at the house from the street. As the one who is selling homes, pretend that you are the buyer who happens to pass by the home up for sale. What do you see? What do you think are the points that will first capture the buyer’s interest? If you are the actual buyer, will you be tempted to get off your car and try to have a peek of the home? Take note: place well-trimmed plants and fresh seasonal flowers. Make sure that the frontal phase already exhibits an appealing sensation.

Remember to make repairs.
Buyers are very particular with details. Light scratches and dents when noticed can turn them off. One who is selling homes must note to have faucets, doors, toilets, and lights repaired.

Exterminate the living insects.
Have a deep cleaning scheduled. When there are pests around or the surrounding is very messy, the buyers will automatically leave at once. Clean the carpets or replace them if necessary. Plus, a bad reputation will go along with your home.

Remove all clutters.
Always arrange things in an orderly manner so the prospect buyer will enjoy touring around to see the home’s features.

Lighten up the home.
Ensure a good lighting system that will enhance the atmosphere of the home. Let the home shine with a warm glow and a cozy feeling.

Never fail to wash the walls and apply fresh paint.
Buyers would want the best from their money spent. So naturally, they will not long to have too much repair expenses in the future.

When selling homes, it is important to prioritize the appeal that will be created. In selling homes, first impression lasts. When any flaw has been seen by the buyer, then you can say goodbye to a possible handsome amount as well.

Short Sale Tips for Sellers

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

* Your property is worth less than the total mortgage you owe on it.
* You have a financial hardship, such as a job loss or major medical bills.
* You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

* Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
* Help you set an appropriate listing price for your home, market the home, and get it sold.
* Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
* Ease the process of working with your lender or lenders.
* Negotiate the contract with the buyers.
* Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

* A hardship letter detailing your financial situation and why you need the short sale
* A copy of the purchase contract and listing agreement
* Proof of your income and assets
* Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

* If you have only one mortgage, the review can take about two months.
* With a first and second mortgage with the same lender, the review can take about three months.
* With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

* You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
* Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
* Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.