Common Q&A About
Selling Your Home - Q & A
| Q: |
Do sellers have to disclose the terms of other
offers? |
| A: |
According to experts, sellers do not
have to disclose other offers |
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| Q: |
Should I add on or buy a bigger home?
|
| A: |
Consider these questions before
making a choice between adding on to an existing home or moving up in the
market to a bigger house:
* How much money is available, either from cash
reserves or through a home improvement loan, to remodel the current house?
* How much additional space is required? Would the foundation support a second
floor or does the lot have room to expand on the ground level?
* What do
local zoning and building ordinances permit?
* How much equity already
exists in the property?
* Are there affordable properties for sale that
would satisfy housing needs?
Ultimately, the decision should be based on individual
needs, the extent of work involved and what will add the most value. |
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| Q: |
What are some tips on negotiation? |
| A: |
The more you know about a seller's
motivation, the stronger a negotiating position you are in. For example, seller
who must move quickly due to a job transfer may be amenable to a lower price
with a speedy escrow. Other so-called "motivated sellers" include people going
through a divorce or who have already purchased another home.
Remember, that the listing price is what the seller would
like to receive but is not necessarily what they will settle for. Before making
an offer, check the recent sales prices of comparable homes in the neighborhood
to see how the seller's asking price stacks up.
Some experts discourage making deliberate low-ball
offers. While such an offer can be presented, it can also sour the sale and
discourage the seller from negotiating at all. |
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| Q: |
How do I prepare the house for sale? |
| A: |
Making your home look as nice as
possible may seem obvious. Apparently, it's not, because many sellers don't do
much beyond vacuuming the living room rug and maybe cleaning the ring off the
bathtub, says George Devine, in "For Sale by Owner," Nolo Press, Berkeley,
Calif.; 1993. Short of spending a lot of money, Devine offers several steps
people can take to make their home show better:
- Sweep the sidewalk, mow the lawn, prune the bushes,
weed the garden and clean debris from the yard.
- Clean the windows and make sure the paint is not
chipped or flaking.
- Be sure that the doorbell works.
- Clean and make attractive all rooms, furnishings,
floors, walls and ceilings. It's especially important that the bathroom and
kitchen are spotless.
- Organize closets.
- Make sure the basic appliances and fixtures work. Get
rid of leaky faucets and frayed cords.
- Ensure that the house smells good: from an apple pie
or cookies baking, for example. Hide the kitty litter.
- Put vases of fresh flowers throughout the house.
- Pleasant background music is a nice touch.
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| Q: |
How long do bankruptcies and foreclosures stay on a
credit report? |
| A: |
Bankruptcies and foreclosures can
remain on a credit report for seven to 10 years.
Some lenders will consider an borrower earlier if they
have reestablished good credit. The circumstances surrounding the bankruptcy
can also influence a lender's decision. For example, if you went through a
bankruptcy because your employer had financial difficulties, a lender may be
more sympathetic. If, however, you went through bankruptcy because you
overextended personal credit lines and lived beyond your means, the lender
probably will be less inclined to be flexible. |
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| Q: |
What do all of those real estate acronyms in the ads
mean? |
| A: |
If you find yourself stumbling over
weird acronyms in a real estate listing, don't be alarmed. There is method to
the madness of this shorthand (which is mostly adopted by sellers to save money
in advertising charges). Here are some abbreviations and the meaning of each,
taken from a recent newspaper classified section:
* assum. fin. -- assumable financing
* dk -- deck
* gar -- garage (garden is usually abbreviated "gard")
* expansion
pot'l -- may be extra space on the lot, or possibly vertical potential for a
top floor or room addition. Verify actual potential by checking local zoning
restrictions prior to purchase.
* fab pentrm -- fabulous pentroom, a room
on top, underneath the roof, that sometimes has views
* FDR -- formal
dining room (not the former president)
* frplc, fplc, FP -- fireplace
*
grmet kit -- gourmet kitchen
* HDW, HWF, Hdwd -- hardwood floors
* hi
ceils -- high ceilings
* In-law potential -- potential for a separate
apartment. Sometimes, local zoning codes restrict rentals of such units so be
sure the conversion is legal first.
* large E-2 plan -- this is one of
several floor plans available in a specific building
* lsd pkg. -- leased
parking area, may come with an additional cost
* lo dues -- find out just
how low these homeowner's dues are, and in comparison to what?
* nr bst
schls -- near the best schools
* pvt -- private
* pwdr rm -- powder
room, or half-bath
* upr- upper floor
* vw, vu, vws, vus -- view(s)
* Wow! -- better check this one out.
Resources:
* "Real Estate's Ambiguous Language
You Oughtta Understand," Glennon H. Neubauer, Ethos Group Publishing, Diamond
Bar, CA; 1993.
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