Archive for the ‘tips’ Category
Fair Housing and Anti-Discrimination is not Optional! It’s the LAW!
If you are selling real estate in the United States, you need to familiarize yourself with The Federal Fair Housing Act. According to the Federal Fair Housing Act, you cannot discriminate against someone when selling a home.
The act defines seven different classes that are protected against discrimination, these include:
Race
Color
National origin
Sex
Religion
Handicap
Familial status
(You may notice that Age is not a protected class, in and of itself. Sellers of property that are zoned 55+, adult only, etc. can discriminate on the basis of age, if it violates deed restrictions, zoning or restrictive convenants.
Attention Home Sellers: You put yourself at serious risk of violating this act, if you refuse to sell or show your home to an interested buyer. Remember that ignorance of the law is not a viable excuse or defense. You will be held legally liable, even if you accidentally violate these laws without realizing it.
Review the following list of words that cannot be included in advertisements of your home, because they are in violation of the Fair Housing Laws.
Bachelor apartment
Children welcome
Couples
Gentlemans Farm
Golden Agers
Handicapped
Integrated
Married
Mature
Mother-in-Law quarters
Professional
Section 8
Seniors
Singles only
Sports-minded
Why6Percent.com encourages all home sellers to avoid any form of discrimination, at all costs. The financial penalities and fines for violating the Fair Housing Act are Severe! If you have any questions, send us an email and we will try to help you.
What Does it Cost to Sell a Home?
Whether or not you use a real estate agent, the process of selling a house will involve certain costs.
Please note that some of the figures used in our examples will vary depending on the state or county a house is sold in, as well as the settlement company used and any other unique provisions that may be contained in a contract of sale. Additionally, the real estate broker commission is typically 6 percent of the sales price, but it is not a set amount. It is a sales expense negotiated between individual sellers and brokers. For the purposes of our example, a $250,000 sales price was used.
Transfer taxes
As you might expect, most state and local governments make sure they profit when someone sells a house. In most states, one-time transfer taxes will be due when a sale takes place. It is customary for transfer taxes to be split 50/50 between the buyer and the seller, but there is no set requirement that they be divided in that manner.
Some states, like Alaska, Idaho, Indiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah and Wyoming, have no transfer taxes at all. In other states, Colorado for instance, the transfer tax is nominal – the state charges only one tenth of 1 percent ($40 on a $400,000 house) in transfer taxes. The so called “Free State” of Maryland falls on the other end of the spectrum with some of the highest transfer taxes in the nation.
Commissions
As we stated earlier, real estate commissions are not a set amount. They are a point of negotiation between the seller and the broker. For illustration purposes here, we are using 6 percent, or $15,000 on a $250,000 sale.
Another seller expense you may run across in some area’s is a listing broker administrative brokerage commission. It’s usually adds another $250-$500 expense on top of the 6 percent commission fee. The seller will see it as a separate expense on their closing statement. So, what is this fee for? By law, brokers must keep records of all their real estate transactions for a period of years. And they must produce those records if asked for them. Although it’s a ridiculous added on fee, the listing broker administrative brokerage commission is an expense passed along by some brokers to help defray the cost of this requirement.
Settlement fees
The buyer is responsible for hiring the settlement or title company to perform closing, so the buyer will usually pay most of the fees associated with settlement. But, the seller does have some settlement expense. If the seller has an outstanding loan on the property, the settlement company will take care of paying that loan off out of the sales proceeds. They’ll charge something for the service, plus the cost of overnight fees to quickly get the loan payoff to the mortgage holder. In our example here, we’ll use $250. And, since interest in collected in arrears, the seller will be responsible for any interest charges that accrue after the last payment thru the day of closing.
The Bottom Line
If you sell your house for $250,000, you can probably expect to walk away with around $230,000 after taxes, commissions and fees. If no real estate commissions need to be paid out, the seller could expect to walk away with approximately $245,000. The real number will depend on exactly what it says in the sales contract and where the property is located.
Thank you for visiting Why6Percent.com. We help do-it-yourself home sellers market their home to millions of home shoppers every day. We can help you get the word out about your home, too!!
Is it Cheaper to Buy or Rent in Your Town?
Is it Cheaper to Rent or Buy in Your Town or City? Take a look at a couple of fun and easy tools that make calculating the cost of ownership vs the cost of renting a snap.
The Rule of 15: Here is how the Rule of 15 works for real estate investors:
- Determine the rental rates for the area you are interested in. Rental rates can be found at Zillow, Trulia or a new fun website Rentometer.
- Calculate how much you would pay in rent for one year. (Example: $1000/month x 12 = $12,000/yr)
- Multiple the annual rent by 15. (In our example, $12,000/year x 15 = $180,000.
- Look up and compare the asking prices of comparable properties in the same area.
- If the sales prices in the area are higher than the annual rent times 15, the location is still over priced for the market and prices will continue to fall. In other words, keep renting and banking cash.
- If the sales prices of homes in the area are lower than your annual rent times 15, the market has probably gone through most of the bust cycle and if may be safe to step in and buy.
Rentometer.com is a very handy tool for anyone looking for a new place to rent or investors searching for the best place to buy a piece of rental property.
The website is simple and easy to use. Simply, type in a zipcode, add the number of bedrooms you are interested in, and, with one click, Rentometer comes to life with a map display and property links for all the rental options and rates in your selected area.
This site is a great example of why map mashups are so popular. It is one of the most useful rental sites on the web I’ve seen and it is a lot of fun to use.
Thank you for visiting Why6Percent.com. We are here to assist you in getting your property exposed to the largest number of qualified buyers. Visit the site or call 1-800-381-9496 to see what’s available in your area.
What Fickle Home Buyers Want…Today
Homebuyers are a fickle bunch. Thousands recently weighed in on everything from the macro (such as access to nearby parks) to the micro (walk-in closets). Five things to know about what real estate consumers want — or want less than they used to:
1. The elaborate clubhouse that is a fixture in many subdivisions has lost its appeal, as have community association-run swimming pools, health clubs and golf courses, said Cardis, who reports that consumers think of these things as “tradable” items — they’re basically indifferent to whether these amenities come with the deal.
“I think that’s all economically driven,” he said. “If you were to do a survey of homeowner-association fee increases in the past 24 months, there would be a high percentage that have shortfalls and are raising their fees by significant amounts, sometimes doubling them.”
One neighborhood amenity, though, that scored high desirability in the study: walking paths.
2. Green is good — and getting better.
“I was very surprised,” Cardis said. “I had been hearing that green (home features) aren’t quite here yet, that people aren’t willing to pay for them. But frankly, I was stunned by the increase in demand. This is our fourth year (of this particular study), and we’re seeing an increase every year.
“The magnitude of desire (for environmentally friendly home features) is high, considered a must in some categories,” he said.
Among the consumer-described environmental “must haves”: energy-efficient windows, appliances and insulation. “Desirable” features included recycled building materials, “green” flooring, and tankless water heaters that consume less energy by heating water on demand.
3. Kitchens haven’t lost an iota of importance to buyers, Cardis said. In particular, consumers voiced a preference for “big” kitchens, though it’s not clear how big is “big.”
“I think that’s the biggest limitation of the study, that the perception of what is large or energy-efficient isn’t defined, and we’re planning to do more on that,” he said. “But they do want a sizeable kitchen, relative to the house, and that’s the important takeaway, rather than (consumers saying), ‘Not really, I don’t need that.’ ”
But within that kitchen, it had better have a freestanding island — 41 percent called it a “must” and 38 percent said they really wanted one.
4. Consumer tastes are changing on how they’d prefer to bathe, Cardis said.
“Whirlpool baths are something they’re definitely ready to let go of,” he said. “They put them in and (the tubs just) sit. People use them once every two years.”
Instead, plain old soaker tubs in the master bath got a warm response in the survey, though the greater preference now is for oversized showers with seating, he said.
5. Other “outs” or borderline interests: home theaters, traditional living rooms and dining rooms, mud rooms, hobby/game rooms.
“Musts” or at least, objects of strong desirability: granite countertops, home-office space, fireplace, two-car garage.
Article written by Dian Hymer of Inman News.
Thank you for visiting Why6Percent.com. Our $299 “List Until Sold” marketing program reaches 10 million home buyers a month. Serious homesellers should visit our website to learn more about this unique marketing opportunity.
3 Benefits of Buying a For Sale by Owner Home
Purchasing a For Sale by Owner property has a number of unique benefits that all buyers should be aware of. Too often, buyers don’t consider fsbo listings because they are working with a real estate agent. They are unaware that most builders and owners are willing to work with buyer’s agents and many advertise their homes on the local MLS. If you are in the market for a home and you are not considering “by owner” listings…you could be missing out on some great deals.
Save Thousands on Commissions and Fee’s
When purchasing a home listed by a traditional listing broker, a 6 percent commission is factored into the seller’s asking price. Buyers often think they aren’t paying the listing commission…but in fact…the agents $6000 cut is included in every $100,000 of the asking price. When a homeowner or builder sells their own property, they pay no commission or a much smaller 3 percent to the buyers agent. This substantial savings can be passed onto the buyer, who can now afford more home or get the same home for less money.
Easy Appointments to View
If you want to look a home listed by a full service broker, you have to schedule all appointments through the listing broker. The listing broker then contacts the owner and the buyer agent to schedule a time to look inside the home. This process can often be inconvenient, or sometimes aggravating, depending on the time lapse in getting everyone on board. When dealing directly with the seller, there is no need to go through a line of people to schedule a tour. The seller will look at his schedule and immediately give you the date and time, making the entire buying process much simplier.
Negotiating the Offer
When purchasing directly from the property owner, negotiating the offer can be much easier, too. Typically, the buyers agent presents all offers to the listing agent…then, the listing agent makes an appointment to relay the offer to the seller. If the seller makes a counteroffer, the whole procedure is reversed, making the whole process take much longer than it should. When making an offer directly with the seller, the middle men are eliminated, which increases the odds of putting together a deal that works for both parties in record time.
Why6Percent.com encourages all buyers to seriously consider the many benefits of fsbo properties, whether you are working with an agent or not. Dealing directly with the owner has many distinct advantages and benefits, with none of the drawbacks. Check out InfoTube.net The website has over 20,000 properties listed directly by owner or by builder, many offering fantastic deals!!!
Home Sellers – Up Your Odds
April has been a very strong month for home sales across all area’s and price ranges. Congratulations to dozens of our MLS and Realtor.com customers , who have received strong offers on their houses this month. Great job and good luck to each of you, as you move on to your new lives.
In order to help other customers, we looked into why some sellers were successful and some were not. We found that successful home sellers had 2 things in common. Thankfully, we were thrilled to find that the common denominator was not being the cheapest priced home in the neighborhood. This year, the homes that sold for near or at the asking price were properties that were in excellant condition and staged to sell. Every single one of them!!!
“Up the Odds” of selling your home by accepting two truths about this market… and then take action.
- First Truth: The market for homes that are in poor condition or need repairs is DEAD. The huge demand is for the homes that are immaculate and ”move in” ready.
- Second Truth: The homes that were sold this spring Showed Well. Many had lingered on the market for months on end. The owners recently neutralized, depersonalized, cleaned, decluttered and staged them. Not surprisingly, every single one of these homes Sold. There is no need for debating this issue…depersonalizing and decluttering sells homes.
Why6Percent.com recommends that home seller’s chant “this is no longer my home” at least 3 times a day. Neutralize, clean, declutter and pack up. Look at the property through the eye’s of the buyer. It’s the only way to Tip the Odds in Your Favor…We Promise!
5 Fun and Easy Projects for Earthday!
In celebration of Earth Day, Why6Percent.com offers 5 fun and easy idea’s that perserve our environment and better the wonderful planet we all live on!!
Plant a Tree. As the date also roughly coincides with U.S. Arbor Day, over time Earth Day has taken on the role of tree-planting. Planting trees helps to reduce greenhouse gas emissions, cleans pollution, secures soil in place to prevent erosion, and provides homes for a lot of biodiversity.
Build or Put up a Birdhouse. Get together with your family and build a birdhouse or make a bird feeder to encourage the local bird population, which plays an important role in every ecosystem. Use objects that would’ve otherwise been thrown away to create beautiful works of art…Here, the possibilities are endless…
Reduce, reuse and recycle all day long. Buy as little as possible and avoid items that come in lots of packaging. Support local growers and producers of food and products – these don’t have to travel as far and so reduce greenhouse gas emissions. Take your drink container with you, and don’t use any disposable plates or cutlery. Recycle all the things you do use for the day or find other uses for things that you no longer use. Carry a cloth bag for carrying things in and recycle your plastic bags.
Get children to recycle their old toys and games. By giving their old toys and games to younger children who could make use of them, older children learn two lessons: One is about giving to others and the second is about reusing and recycling instead of throwing things away. Adults can also do this with clothes, electrical items, books and more. Learn about product exchange communities like Freecycle and other alternatives.
Pick up the Trash. Rid litter from our roadways. Many groups use the weekend of Earth Day to clear roadways, highways and neighborhood streets of litter that has accumulated since the last clean-up day. Many companies donate gloves and bags for clean-up groups and villages organize bag pick ups. Once the group has collected the trash and placed the recycled bags along the road, get the village public works department to pick the bags up. It’s a wonderful community project. Great for scout troops, rotary clubs and the like.
Why6Percent.com would like to remind our readers that every day is Earth Day. We are doing our part to improve the planet and we encourage you to do the same. Every effort makes a Big Difference! and a big thank you to Wikipedia for this information contained in this article.
Landscape Affects Buyer’s Moods and Home Sales
Most home buyers believe they should focus on the interior features of houses more than the landscape, but the truth is, that buyers will not get out of the car if the front landscape lacks interest and upkeep. The landscape and curb appeal should arouse the buyer’s interest and lure them inside to view the interior.
To get the highest return on your landscape dollar, utilize the principles found in Landscape Design Psychology. Landscape Psychology is based upon scientific research into the effects that the landscape has on home buyers. These proven idea’s will help your home sell faster, and for more money, by working on buyer emotions and senses.
The Power of Color
Coordinate the colors of your flowering foliage. Consider your selling season and plant flowers that perform well during that period. Use plants that support your atmosphere and climate. Also, use no more than 3 colors to give continuity and form to your landscape.
Colors also have psychological power. Green suggests freshness, coolness and vitality. White shows up at night and conjures feelings of cleanliness. Yellow is the first color our eye processes, so a spot of yellow by the front door will draw the eye to your entrance. Red, yellow and Orange are all Hot colors, which excite and pick up the mood of any weary house hunter.
About.com: Landscape is a great website for the average homeowner. The site provides idea’s and advice from professionals including a plant selector, great photographs, color scheme screener, DIY tutorials and helpful tips about hedges, fences, sidewalks, lawns and more.
Another great resource for help in creating an outdoor paradise can be found at HGTV.
The Power of Smell
Realtors advise sellers to bake cookies or burn vanilla candles before showings or Open Houses because a comforting and pleasant aroma has the power to influence minds and moods.
In addition to color psychology, smart home owners give thought to the use of scents when planting a landscape. They take advantage of the power of smell, especially near pathways and entry doors, that provoke a desired emotional response.
A few inexpensive and easy to grow suggestions that add a touch of scent to any landscape include lemon scented geraniums, jasmine, rosemary, lavender, basil, roses, hostas, honeysuckle, gardenia or heliotrope. In addition to providing months of enjoyment, many of these plants perform in a vareity of places such window boxes, planters, planting beds, hanging baskets or pathways.
When it comes to selling homes, a smart psychology landscape design can give you a huge advantage over your competition. If buyers feel good while they look at your home, it is more likely to sell quickly and for top dollar.
Thank you for visiting Why6Percent.com. Our clients are receiving more buyer traffic and higher offers than we have seen in the last 2 years. If you aren’t listed on the MLS, Realtor.com and major real estate sites, you are missing 10 MILLION buyers who are searching for a home every month. Call us at 1-800-381-9496 for help in marketing your home!
Neighbor’s Eyesore Home Stops a Sale
The appearance of nearby and neighboring homes absolutely affects a homeowners’ abililty to sell their property. Even if your home is the gem and pride of the neighborhood, buyers will be turned off if you live next door to an eyesore.
Problems with neglected, abandoned property and homes that have fallen into disrepair has escalated since the economic meltdown.
Why 6 recommends that sellers take action by placing a friendly call to the homeowner, explain they are trying to sell their home and ask them clean up their property. Or, if it’s appropriate, a seller can offer to clean up unsightly messes themselves. If a phone call fails to resolve the concern, contact local code enforcement officials or homeowners associations to find out if there is a code violation. If so, file a compliant.
A shabby run down home devalues every home near it. It’s your neighborhood. Step Up!!
Thank you for visiting Why6Percent.com. Place a Property listing on your local MLS, Realtor.com and all major real estate sites for $399…why pay 6 percent????
10 Tips for Open House Weekend!
Open House Strategies for Success
- Set the Stage. Mow, clean, store and pack. Open the windows and pull back the drapes. Turn on the lights and light a few candles.
- Consider taking your pet to a neighbor or pet sitter during your Open House.
- Use a sign-in notebook to record contact information and invite comments and feedback.
- Ask a mortgage company to assist you in holding an open house. Many local companies provide an on-site lending officer to assist buyers in calculating payments and exploring financing options.
- Consider calling your local title company to see if they offer assistance to sellers holding open houses. Most of these companies offer a variety of free, helpful assistance, often including food, signage, advertising, etc…
- It is best to keep your Open House an adult only event. Consider arranging for your children to be away during your Open House.
- Don’t crowd the attendee’s or become their tour guide. Greet each visitor at the door and be available to answer any questions they might have, but stay in the background. Encourage the buyers to tour on their own and at their own pace. Make every effort to insure that each person is at ease. Allow them the privacy and time they need to discover all features of your home that interest them.
- Place small items, such as jewelry and medications, in a safe place during your Open House. Theft and stealing are very rare, but do occur occasionally in some areas. Safekeeping a few items will give you peace of mind and will assist you in your effort to Stage and Show your home.
- Be prepared for comments that you may not appreciate and try to not go on the defensive. You are selling, but remember buyers are buying. Remain composed when hurtful comments are made about your décor, price, neighbors, floorplan or location. Bite your tongue, smile, remain professional and courteous. Showing your own home is a most difficult task. To do it successfully, it is necessary to remain objective and most of us are not, especially about our home. Be polite and helpful to the buyer at all costs, no matter how hard.
- Smile, relax and enjoy meeting new people. Your Open House is your time to stand in the spot light, so greet your visitors as you would like to be greeted.
In conclusion, remember that holding an Open House is not mandatory for selling a home. It is a valuable marketing tool because it allows home shoppers easy access to your home. They are also very cost effective in terms of exposure, if you get the buyers to attend. On the other hand, you may not want the public touring your home or open houses may not be popular in your area. The decision to host or not is up to you…
Thank you for visiting Why6Percent.com. National Open House Weekend is this Saturday and Sunday. Buyers will be looking for Royal Blue balloons flying at Open Houses held by Realtors. Make the most of this opportunity and make sure blue balloons are flying at your house, too. Best of luck and let us know how you did!
