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.
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.
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.

Four Questions Cash Buyers Do Not Want You To Ask

You’ve seen them on commercials, bus stops and billboards. If you’re in a distressed situation you’re likely getting mail, phone calls or, even worse, unannounced home visits! Everyone has seen the “We Buy Distressed Houses,” type of business in some capacity. Every one of these organizations has the exact same motive, and I’m guessing you already know what it is: Make money!

In fact, these companies are sometimes not companies at all. It’s sometimes one guy who works from his basement poking around the internet searching for a “sucker” or just someone in a real financial bind, or both! Do a quick Google search with the phrase: “Learn to flip houses with no money,” and you’ll see the massive industry that has been built around these pseudo-investors. There are legitimate cash buyers out there, and Fair Property Buyers is proud to be one of them, but it can be hard to tell the difference between the real deal and one of “them.” Well, know that we are here to help with that!

Here are the top four things you have to know when you’re dealing with a “cash for homes” or “we buy distressed houses” type of organization:

#1: Can you provide me with immediate proof of funds?

The vast majority of these “Cash for Houses” people don’t have 2 nickels to rub together! And yet they pretend that they want to buy your house for cash, quickly and seamlessly. What’s the deal?

They never plan on actually purchasing your house from you. Their goal is to get you to sign a contract that grants them what is called “equitable title” or (depending on your state) “an interest in the property”. Once they’re positioned with a signed contract they now have the leverage to go out and sell your house to a real investor.

What do you do to avoid this? Request immediate “proof of funds”. There is absolutely nothing wrong with this request and is actually a standard in the industry. The problem is most unsuspecting home sellers don’t know this. As a seller it is your right to ask for proof of the buyer’s ability to pay. If they have the cash it should be pretty easy for them to show you a certified bank statement or some other form of proof.

You are going to be able to tell a lot about them by their response. If they say something like “I don’t show strangers my bank account,” then you know they don’t have the funds. Every bank, financial institution, lender, title company, and Realtor knows that a “Proof of Funds” statement is standard practice. It’s done all day, everyday on millions of real estate transactions.

There’s a “part 2” to this process. You are not just asking to see proof of funds, you’re asking to see immediate proof of funds. If they provide you with proof of funds but it takes them some time to pull together chances are they’re showing you someone else’s money.

So, why is this a problem? If your “cash buyer” is borrowing the money to buy your house it means that they’re using what we call “hard money”. Hard money is money that is lent on speculative business ventures at high interest rates. You can be absolutely sure that your “cash buyer” has factored this “cash cost” into the offer price, which basically means that YOU are paying the interest.

Remember: you want to see proof of funds and you want to see them now!

Fair Property Buyers can provide immediate proof of funds to back up any cash offer that we make on a property.

#2 How did you arrive at that price?

Most “cash buyers” are just trying to purchase your property for the absolute minimum possible. The less they give you the more they can make. Is there anything wrong with this? Maybe not, some might even call it good business. But when you’re trying to sell a house, you’re also allowed to practice good business! The best way to call out a phoney offer is to ask the “cash buyer” to justify their offer. Be very direct and ask things like:

    • How did you arrive at that number?
    • Can you show me the comps you used?
    • How do you calculate the rehab budget?
    • What qualifies you to properly value my home?

There’s no use in haggling over something as large as a piece of property. Cut to the chase with the buyers who don’t seem above board and ask them outright: “Can you justify the price you’re offering?”

They should be able to justify the price that they offer for your home using very real data and analytics. Even if you don’t like the offer you should be able to see very clearly how they arrived at it.

At Fair Property Buyers, one of the core tenets of our business (and the reason we have been so successful for so long) is the ability to properly evaluate a home. We have a unique, proprietary and highly guarded algorithm that we have been building upon for the past twelve years. We can gauge market conditions, anticipate changes, incorporate comparable properties and determine the cost of any repairs necessary almost to a penny. In fact, the team behind Fair Property Buyers is building a SAAS product that is meant to assist other real estate investment professionals in more accurately valuing property.

#3 Is your offer genuine or is this a “sucker price”?

This is easily one of the worst tactics of the business. A “sucker price” is a cash offer that is made simply to lock up the control of a property and then wait out the homeowner. Here’s how it works:

You have a house that you want to sell FAST for cash so you reach out to a few cash buyers that you find online. One of the cash buyers actually agrees to your original asking price and sends you a contract to lock up the house. Perfect!

Here’s the problem – By placing the property in escrow you now have a contractual obligation to sell the property to this one particular buyer. However, because the buyer has the right to verify the condition of the house and cleanliness of the title your “cash buyer” is not yet obligated to buy.

If I came to you the next day and offered you a million dollars for your house, you could not legally sell it to me. Because you have entered into escrow with a buyer and have a legal obligation to sell it to him unless he walks away.

Now that the “cash buyer” has your house locked up they just have to wait. They will wait out any other buyers you might have been talking to, make sure that any momentum you had elsewhere dries up, and because you need to sell fast, your timeline expires.

Close to the expiration of the escrow period, they come to you and give you some made up story about the condition of the house and demand a price reduction. What do you do? You’ve already signed a lease on another property, the moving vans are in your driveway and your mortgage payment on a house you thought was sold is coming up. This is a dirty trick but it is sadly one that cash buyers often use.

An ounce of prevention is worth a pound of cure. The best way to fix a situation like this one is to never be in it in the first place. This means that you have to be realistic about the true value of your house. This ties directly to Question #2: If someone offers you a price that you believe is too low, make sure you ask them to justify their price. The same is true in the other direction! If someone offers you a price that you think is too high, make sure you ask them to justify their price! Ask them direct questions like:

    • How can you profit from paying me that much?
    • What do you plan on doing with the house?
    • What comps did you use to reach that number?

Oftentimes, the specifics of their answer matter less than the fact that they actually have an answer. You just want to make sure that they’re actually interested in purchasing your house and not trying to lock up control and then force you into a position where you have no choice but to sell.

Fair Property Buyers is exactly that, fair! Are we in business to make money? Absolutely, everyone should be. But we’re not in business to take advantage of people. Please take the time to look at our testimonials and small sample of people we have helped. If we offer you a price for your home then it’s the price we intend on paying. Does that change in some cases? Sometimes it does. If we put your house under contract and then find out that there’s a lien against your title that you didn’t know about or you have an unpermitted addition to the property (just two examples of many) then we’ll need to renegotiate our offer to account for those new circumstances. You are under no obligation to accept the new price and we have no intention of just “running out the clock.” We’ve been in this business for twelve years and are proud of every deal we’ve ever done.

#4 Are you just a fix and flipper or do you have other investment tools?

This question is designed to give you insight into the “cash buyer’s” business model. If you have a solid understanding of how they plan to approach the monetization of your property, you are better equipped to negotiate with them. In the vast majority of cases, dealing with a “one trick pony” type company (like a fix and flip company) puts you at a massive disadvantage.

As I’m sure you can see by now, selling a house to a “cash buyer” isn’t always as cut and dried as it appears. Are there companies that truly can provide you with immediate cash for your property? Absolutely! We’re one of them. But you always have to be careful because for every legitimate company there’s someone out there trying to find the next “sucker.”

If you have a house to sell and want a fair cash offer TODAY please call us, chat with us online, or fill out the form below and we’ll get back to you immediately.