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Buying or Selling a Home With Pest Issues Buying a Home With Pest Issues Purchasing a home with pest issues can be a major concern, as pests can cause damage to the structure of the home and create health problems for the occupants. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. Pest infestations can have serious consequences for the integrity of a home and the health of its occupants. Termites, for example, can cause significant damage to the structural wood of a home if left unchecked. Other pests, such as mice and rats, can damage wiring and insulation, posing a fire hazard. They can also carry diseases, which can be transmitted to humans through bites or contact with contaminated surfaces. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. A pest inspector will look for signs of infestations, such as droppings, nests, and damage to wood and other building materials. They will also look for potential entry points and conditions that may attract pests, such as excess moisture or standing water. If the inspection reveals the presence of pests, you should consider negotiating with the seller to have the pests treated or for a credit towards the cost of treatment. You may also want to consult with a real estate lawyer to determine your rights and options as a buyer. In addition, you should consider the long-term cost of pest control and make sure it is factored into your budget for maintaining the home. Pest control can be expensive, and it is important to have a plan in place to address any future pest issues. Selling a Home With Pest Issues If you are selling a home that has pest issues, it is important to be proactive in addressing the problem and transparent with potential buyers. Pest infestations can be a major concern for buyers, as pests can cause damage to the structure of the home and create health problems for the occupants. The first step in selling a home with pest issues is to have the pests professionally treated. A pest control company can figure out how bad the problem is and suggest a plan for treatment. Make sure to do what they tell you to do and give the treatment enough time to work. It is also a good idea to have the home re-inspected  to ensure that the pests have been effectively eliminated. Next, it is important to disclose the pest issue to potential buyers. Most states require sellers to tell buyers about any major problems, like pest infestations, that they are aware of. This can be done through a property disclosure statement, which should be provided to potential buyers as part of the home sale process. It’s important to be honest and clear in your disclosure, because not telling the truth about known major flaws can cause legal problems in the future. It is also a good idea to provide documentation of the pest treatment, such as receipts or a certificate of treatment. This will show that you have taken steps to deal with the pest problem, which can help buyers feel less worried. Lastly, you might want to think about giving the buyer a credit toward the cost of future pest control. This can help ease their concerns and make the home more attractive to potential buyers. If you can’t offer credit, you might have to lower the price of the home to make up for the cost of pest control. It is important to be flexible and open to negotiation in order to make the sale. Final Thoughts In the end, whether or not you buy a home with pest problems will depend on your personal situation and how willing you are to take risks. If you are okay with how much it will cost and how much work it will take to get rid of the pests and are sure that the problem can be solved, you might want to think about making the purchase. However, if the pest issue is significant or the cost of treatment is prohibitive, it may be best to look for a home without pest issues.
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Can I Sell my House During Foreclosure Introduction For someone who is unable to keep up with mortgage payments or other liens on the home, the foreclosure process is frequently drawn out and difficult. For those who are currently going through this process, there may be ways to continue without losing everything. Because of this, the people who live in the house can stay there until the dispute is completely settled. The homeowner should stay in their home, talk to a real estate lawyer, and do research to avoid a situation in which debts may still be owed for different reasons. This might result in a better outcome. The house can still be sold for a profit while the foreclosure process is ongoing. The current owner may sell the property for more than what is owed in mortgage payments if the property has not yet been sold through an auction. This would then generate enough income to pay off the mortgage debt and leave money on the table to buy a new home or rent or lease an existing one. This has to be completed, though, before the property is sold at auction to fund the foreclosure process. This calls for prompt action and proper documentation Aspects to Consider with Foreclosure A bank agent who starts the foreclosure process may be contacted by someone who is unable to make the required mortgage or loan payments to keep the account open. The homeowner may have other options, though, as these processes can take months or even years, depending on a number of factors. In some circumstances, the financial lending company may look for an alternative to foreclosure. It’s possible that a payment extension will be given. It might be possible to refinance or make a new payment plan by adding to the original agreement. Before leaving the property to foreclosure, it is best to get in touch and talk with the company to discuss any potential alternate routes. Others look at the contract for the lending facility to see what might be possible based on the fine print. To make sure that the payments are made at a lower interest rate or payment amount, another company may be contacted, or there may be a grace period to get the needed funds. Before taking any other action, it is best to seek the advice of a real estate attorney if this is not possible. He or she might explain that the best course of action might be to sell the property. However, the homeowner might only have a limited amount of time to do so. This means that before continuing with a sale before an auction, he or she should make sure that all of that information is known. Hiring a Real Estate Lawyer or Agent While the home is going through the foreclosure process, a seasoned and knowledgeable real estate agent might be able to get in touch with the lending institution and try to negotiate so that the property has time to sell. This may be a good way for the agent in charge of the case to make sure the homeowner gets their money, even if the bank or another institution won’t work with them. Before the sale can happen, a realtor might need to conduct a market analysis on the property to determine its true value. Then, to bargain with the bank, third-party authorization forms are typically required. In general, it is preferable to sell the house for a profit as opposed to a short sale or auction, where the owner receives nothing after the house is bought by the buyer. Due to the foreclosure process costing the company money and not always recovering all of the money owed, lending institutions believe working with the sale is a better alternative than going through with the foreclosure. It might take 90 to 120 days to complete a short sale in which the owner receives no money. During this time, the homeowner may still be making mortgage payments. Depending on the state in which the house is located, the foreclosure process can take weeks or months to complete. The completion of all paperwork can occasionally take up to or even longer than a year. Depending on the state, the owner usually has up to 90 days to fix a late payment so that the problem can be fixed and business can go on as usual. A realtor or real estate agent should be hired to help sell the house if this is not possible. A real estate lawyer should be hired to handle these things from start to finish to make sure that everything is valid, legal, and done the right way.
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Closing Costs – What to Expect When you sell your house, there are many hidden closing costs that can eat into your profits. This article highlights what those common closing costs are. From agent commissions to transfer taxes, it’s important to be aware of all the potential expenses. One of the biggest costs you can expect is the real estate commission. This is a fee paid to the agent who represents the buyer. The commission is typically a percentage of the sale price, so it can add up to a significant amount of money. Fortunately, many closing costs are tax-deductible, and they can be offset against the proceeds of the sale. However, it’s important to be aware of all the potential costs involved so you can budget accordingly. Below are some of the most common closing costs and how you can budget accordingly: Agent commissions: Realtor commissions are the fees real estate agents charge for their services. The fee is typically a percentage of the total sale price of the home, and it is paid at closing. While realtor commissions can vary depending on the agent and the market, they are typically around 5-6% of the sale price. For example, on a $200,000 home, the realtor commission would be $10,000-$12,000. Realtor commissions are negotiable, and some sellers may negotiate a lower rate. However, it is important to remember that the real estate agent is providing a valuable service and is entitled to fair compensation. It is important to understand realtor commissions so you can factor it into your budget. Appraisal fee:  A home appraisal is an important part of the closing process on your home purchase. The appraiser will visit the property and assess the value of the home, taking into account factors such as the location, condition of the property, and recent comparable sales in the area. This appraisal will be used to determine the amount of closing costs that the buyer will need to pay. In some cases, the appraised value of the home may be lower than the purchase price, in which case the buyer may need to negotiate with the seller to bring the price down to match the appraisal. In other cases, the appraised value may be higher than the asking price, giving the buyer some negotiating power when it comes to closing costs. Either way, it is important to have a clear understanding of your home’s value before heading into closing. Legal fees: You may need to hire a lawyer to handle the legal aspects of your sale, or if you are selling directly to a buyer.. Their fees will vary depending on the complexity of the transaction and the location of the property. In some cases, the seller is responsible for paying all the legal fees associated with the sale, this includes any fees associated with the transfer of ownership of the property. Title insurance: This is a type of insurance that protects the seller against any claims made on the title to your property. It is typically required by the lender if you have a mortgage. The exact amount you will pay as a seller will depend on the specifics of your title insurance policy. However, knowing the typical closing costs can help make sure you’re not caught off guard. Mortgage discharge fee: If you have a mortgage on the property, you will need to pay a fee to have it discharged. This fee is typically around $200-$300. These fees are a common closing cost associated with refinancing your home. Discharge fees are paid to the lender to cancel an existing mortgage and create a new one. The fee is typically a percentage of the total loan amount but can vary depending on the lender. Be sure to ask about the fee and get an estimate from your lender before making any decisions about refinancing. Property taxes: One often forgotten potential closing cost is property taxes. Depending on the location of the property and the value of the home, property taxes can be quite expensive. In some cases, they can even exceed the mortgage payments! As a result, it’s important to be aware of the property tax situation before you purchase a property because they must be paid in full before the sale can be completed. Credit report: One cost that is often overlooked is the cost of ordering a credit report. A credit report is necessary because lenders use credit report scores to determine if buyers qualify for a loan and what interest rate they receive. While the cost of ordering a credit report may seem insignificant, it can add up – especially if you’re closing on multiple properties. For example, if you’re closing on a home and an investment property, you’ll need to order two credit reports. The cost of ordering two credit reports can range from $30-$50, depending on the provider. Pest inspection: A pest inspection can help identify any potential problem areas like termites and dry rot from pests, which could lead to costly repairs down the road. This will help uncover any hidden issues and help you with negotiating repairs or treatment prior to closing. Recording fees: To finalize the sale, you will need to pay recording fees. This amount is charged by your local government for registering the deed to your new home. Utility bills: Any outstanding utility bills will need to be paid before the property changes hands. These are the fees associated with finalizing the purchase, and they can add up quickly. utility bills are one of the most common closing costs. If you’re buying a home that is already occupied, you’ll need to pay for the utilities that have been used, through the date of closing. This can include things like electricity, gas, water, and trash service. In some cases, you may also be responsible for paying the seller’s utility bills if they haven’t been paid up to date to ensure you can have services turned on in your name. As you can see, there are a number of different closing costs that can add up when selling your house. It’s important to be aware of all of them so that you can budget accordingly and avoid any nasty surprises at the end of the process.

Do I Need an Agent to Sell my House

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Do I Need an Agent to Sell my House
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Do I Need an Agent to Sell my House

Intro:

A skilled real estate agent can help you sell your home faster and for more money than you could on your own. However, the majority of agents charge a commission fee based on the sale price of the home, which can reduce your net proceeds. Technically, you don’t need one, but there is plenty to consider. Especially in today’s hyper-competitive housing market.

Is a Real Estate Agent Required to Sell My Home?

The use of a real estate agent, broker, or realtor is not required by law for home sellers. Depending on the situation, a smart and resourceful seller may be able to do the work of these professionals.

Yet, a for-sale-by-owner (FSBO) transaction necessitates time, knowledge, and trust. If you don’t have all three, hiring a professional who knows the ins and outs of successful listing and selling can help. Let’s take a look at some of the most important factors to consider.

Why is it Advantageous to Work With an Agent?

As determined by the National Association of Realtors most recent Profile of Home Buyers and Sellers, about 90 percent of sellers used an agent, and it’s easy to see why. 

According to NAR data, the average home sold with the assistance of a real estate agent in 2021 for $318,000, while homes sold without the assistance of an agent sold for $260,000.

A good agent can assist you in determining your best list price. Furthermore, agents can advise you on whether it is better to start at the top of the market and have some room to negotiate down or to start at a lower price to entice more people to make offers and bid against each other, driving your price up.

Agents are well-versed in all of the disclosures that sellers must make during a real estate transaction. These disclosures are legally required.

Real estate agents can also access the multiple listing service (MLS). 

An agent can list your home in your local multiple listing service, which will broadcast it to other websites with large audiences. This increases your chances of receiving the desired offer.

In addition to putting your listing on the MLS, an agent can help you figure out who is a real buyer and who is “just looking” or not serious about making an offer.

You’ll have the help of an expert when negotiating, weighing, and accepting offers. The agent can provide you with professional advice on what to include and leave out of your listing and what types of pictures and videos to take. You’ll have someone dedicated to performing the vast majority of the work involved in marketing and selling your home.

Realtors are also skilled at staging a home for sale, ensuring that your home looks its best to attract more buyers. Keep in mind that if you hire a professional stager, you will have to pay more money to make your home look more appealing.

Your agent will also set up open houses and private showings. The agent will coordinate with all other vendors involved in the selling process. Such as appraisers, home inspectors, title agents, and notaries. Also, he or she is ready to answer your questions and deal with your concerns right away. 

A real estate agent can help you get through the mountains of paperwork you need to sell your home.

Agent Disadvantages

The most significant disadvantage of working with a real estate agent is that you will almost always have to pay a commission based on the sale price of your home. This is usually between 4% and 6%, but it can be as low as 1% if you work with a “discount” broker who offers fewer services.

Some agents provide reduced-priced services. They’ll accept a lower commission in exchange for the home seller taking on more of the agent’s responsibilities, such as staging and photography.

You must also sign a listing agreement with the agent in addition to the commission costs. That means you’ll be required to work with this person for a specified period of time unless the agent agrees to let you out of the contract. This is why it’s important you agree with your agent’s approach to marketing, sales, and negotiating strategies.

Choose Which is Best for You

Every situation is unique, and you may still be wondering, “Do I need an agent to sell my house?” If you’re debating whether to hire a real estate agent, consider the following key questions to determine whether you need their services:

Do you have a good idea of how much your house is worth?

A real estate agent will look at similar homes in your area to figure out what price to put on the listing. Though nothing prevents you from doing the same. If you know what other homes like yours have sold for on the market, you’ll have a good starting point for selling your home without an agent.

How much time do you have available?

Selling a home requires a significant amount of effort. Taking professional-quality photos, advertising the property online, screening and welcoming homebuyers for tours are just a few of the many responsibilities you’ll face if you do it yourself. If you have an open calendar and strong marketing skills, you might be able to do the work of a real estate agent.

How comfortable are you with awkward conversations?

A house is a valuable asset, and you may be proud of the work you’ve done on it. But keep in mind that a buyer is looking for a good deal. You may receive an offer that is significantly less than what you believe is fair. You must deal with the back-and-forth of telling a buyer that you will not budge without the assistance of an agent.

Alternatives to Hiring an Agent

Instead of listing your home with a real estate agent, you could list it as “for sale by owner” (FSBO) and sell it yourself.

You can put ads for your property for sale in public places and on websites that help people buy and sell real estate. When a seller uses these platforms instead of a traditional real estate agent, finding a buyer depends a lot on how good the seller is at marketing, how quickly they can respond to interested buyers, and how willing they are to work with buyers whose agents want commissions.

If you go the FSBO route, your home may fail to make an impression on the market due to a lack of marketing skills or an inappropriate pricing strategy. This can reduce your chances of selling fast and for the highest possible price. You may also face some logistical difficulties. The National Association of Realtors says that two of the most common problems for FSBO sellers are not being able to fix up the house and not being able to understand and fill out the paperwork.

Going with a discount broker to save money is another option. Yet most discount brokers will only list your home on the MLS. Some provide additional services à la carte or on an hourly basis. This puts your house in front of a large number of people, but you are left to manage everything else.

A third option is to sell your home to a cash buyer. These services make selling your home quick and easy. All you need to do typically is fill out an online form or make a call, and the cash buyer will provide you with an instant cash offer, but there is a catch.

There is no need to go through the hassle of staging, listing, and hosting open houses, which saves time and money. Cash buyer offers, on the other hand, are always below full market value because they need to buy, repair, and resell the home for a profit. As a result, you will not get top dollar for your home.

How Home Sellers Can Save Money

If you prefer to work with a real estate agent but want to keep costs low, there are still ways to save:

Negotiate the commission with your agent

Try bargaining the commission with your agent ahead of time. Many agents will negotiate commissions, which could save you 1 to 2% on the sale of your home. 

If the buyer’s agent is not involved in the deal, other agents will lower their fees.

Don’t overspend on home improvements.

If you’re not careful, it’s easy to overspend on extravagant staging or expensive upgrades that don’t provide a significant enough resale return. Talk to your real estate agent or an appraiser to find out which improvements, if any, could make you money.

The Bottom Line

In conclusion, a real estate agent’s commission fee can eat into the money you make on the sale of your home. Well-prepared sellers can sell their homes without the help of an agent. However, as with many things in life, you get what you pay for.

You must be honest with yourself about whether you have the time and knowledge to price, stage, and market your property. Not only that, but you also need to negotiate with buyers and their agents. This includes knowing what disclosures your state requires. Something you’re unlikely to be an expert in unless you’re an experienced seller.

Finally, it’s understandable that sellers would prefer to avoid paying a commission. A good agent is supposed to raise the sale price to compensate for the commission, so that the seller nets more money from the sale with an agent than if they tried to sell without one.

Regardless of how you decide to sell your current property, you can always choose to buy your next home without using a real estate agent.

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Greg Bilbro

Greg Bilbro

Greg Bilbro is the CEO and co-founder of GeoFlip. After a decade of successfully flipping hundreds of distressed residential properties himself, Bilbro founded GeoFlip. His single focus is to deliver in-bound leads and build 7-figure results for REI's nationwide. His history of 20+ years as principal buyer, 10+ years generating leads and 2,600 Conversion Coaching hours makes him an authority in the lead gen space. Prior to entering the real estate space, Bilbro was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities. Soon after being named “Rookie of the Year”, he was promoted to become the youngest Partner nationwide at New York Life at just 25 years old. Bilbro is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity.”

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