8 Hidden costs no one warns you about while selling your home (FSBO)

 Friday, July 29th 2022, 12:00 PM

Aim High Properties: Expect the unexpected costs of selling your home (FSBO) by being prepared for them

Delanco, United States - July 29, 2022 /Aim High Properties, LLC/

Planning to sell your house fast but want to save on paying commission to a real estate agency? Then it would help if one is prepared for the financial hits that will come your way as FSBO or For-Sale-By-Owner. Most of these costs could be a huge surprise for a first-time seller looking to sell a house quickly.

One needs to be aware of all the correct paperwork and disclosures, have excellent negotiation skills, and be prepared to throw in a family heirloom or two to impress the buyers when one is desperate to sell the house.

Keep the following tips to sell a house yourself to avoid substantial financial pitfalls and derive the right price for your home.

1) Pricing it right

For most homeowners, selling a home is a huge emotional rollercoaster. After all, one saves every hard-earned penny to buy it and makes plenty of memories there, which is why one intends to get as high a price as one can get. But if one prices it too high, it might sit too long on the market. On the other hand, if priced too low, one might face an overall loss. So you may want to consider hiring a professional appraiser to gauge the right price for your home.

2) Staging the home

Before showing the home to prospective buyers, one would need to do a facelift through repairs, decluttering, painting, and landscape additions. Maybe even hire an Interior decorator to do an excellent professional job of making the house look generically appealing to prospective buyers. Also, consider getting your home photographed professionally to be able to post impressive pictures on the websites.

3) Taxes to consider

There are generally 3-4 types of taxes associated with closing a home sale, depending on how the city/state of your residence applies them.

1. a) Transfer tax: A small percentage of your sale price might be retained by the State as Transfer Tax.
2. b) Property Tax: Most states charge a property tax, and if one has been negligent in paying them, a pro-rated amount will be taxed at the time of the home sale.
3. c) Capital gains tax: This is calculated based on several factors, and one needs to look into it carefully to see if they need to pay this or not.

4) Pre-inspection and survey costs

Failing to disclose issues like rotting timber, termite infestations, flooding, etc., can lead to the deal falling through or one being sued by the buyer later when trying to sell a house quickly. To avoid this, one needs to get a pre-inspection done to assess the home's worthiness to reassure the buyers. In addition, property lines might need to be determined in some areas, which can be handled by hiring a surveyor to prepare a report.

5) Closing costs

At the closure of the sale, several costs are deducted from the final sale amount, and these go towards:

i) Mortgage insurance
ii) Fees for title insurance
iii) Loan processing charges
iv) Recording the title deed

6) Moving out charges

Once you have put the house on the market or sold the property, you must be prepared to engage a professional moving company to help you shift out with your possessions.

7) Vacant house fees

If you have moved out and the house is yet unsold, you may need to consider paying for the utilities for electricity, water, etc. Also, you might need to engage professional services for home cleaning, landscape, etc., to maintain the house in perfect condition for viewing by prospective buyers.

8) Seller concessions

One might need to throw in some appliances already present in the house to sweeten the deal. Or even buy a home warranty as an incentive to reassure the buyer that buying your home is a great deal for them.

If all of the above sounds daunting to you, then it's a good idea to rope in the services of Aim High Properties to help sell your house fast and without all the hassles. Their extensive network of resources, years of experience, and up-to-date knowledge of the business have enabled them to connect the right house to the right buyer. 

Why should home sellers choose Aim High Properties?

• A one-on-one relationship with customers to handle their unique situations
• Ability to directly purchase homes and make cash offers
• Offers an extremely fast, and hassle-free transaction
• Purchases property as well as sells homes directly to buyers

Besides these advantages for home sellers, Aim High Properties also offers wholesale property deals and investing opportunities for private money lenders. It also partners with agents to discover the best property deals in the area.

If you are looking for cash buyers or looking to sell your house fast in Cinnaminson, call (856) 861-6000 or email at info@aimhighprops.com

Aim High Properties lists out the 8 Hidden costs no one warns you about while selling your home (FSBO), Images 26/7/22

 

The Contingency Clauses that Home Sellers must Avoid

Aim High Properties: Can home sellers avoid contingency clauses in contracts?

Delanco, United States - /Aim High Properties, LLC/

Contingency clauses to avoid if you are looking for a quick sale

Home sellers often find themselves in situations where they want to dispose of a property quickly. A traditional contract has certain contingency clauses that allow buyers to back out of an agreement if the seller doesn’t meet certain conditions. This can derail a home seller's plan to sell a house quickly. What are these clauses? And can home sellers avoid these clauses from being included in the contract? Aim High Properties, cash buyers in Cinnaminson, investigate what these contingency clauses mean for a home seller who wants to sell a house fast.

Standard contingencies in most real estate contracts

Contingency clauses in an agreement are written for various needs or concerns. If the conditions of the contingency clause are not met, the contract becomes null and void, and one party (most often the buyer) can back out without legal or financial consequences. If the conditions are met, the contract is legally enforceable.

1. Title – Property liens, ownership disputes, or so-called “title defects” can prevent a home's resale if not addressed. Before closing, a title search can be done by a buyer, buyer’s attorney, or a title company to see the history of the house ownership. This title contingency in a contract puts the onus of resolving any title issues on the seller and gives the buyer the liberty to walk out of the agreement if the title defects are not resolved.  

2. Inspection – An inspection contingency or “due diligence” contingency is a buyer’s right. Buyers can have an inspector examine a property’s interior and exterior, including the electrical, plumbing, structural, and HVAC elements, within a specified time period. This contingency clause protects the buyer from unpleasant surprises after purchasing a property. After viewing the inspection report, buyers can back out of the deal if there is an issue with the property, or they can request a concession or repairs. If the seller refuses, the buyer can back out of the deal and take back the earnest money. This means a seller needs to look out again for another buyer.

3. Appraisal – Typically, a loan is approved after the appraisal of the house the buyer plans to buy. This contingency ensures a property is valued at a specified minimum amount; if it isn’t, the contract can be terminated. In many cases, the earnest money is refunded to the buyer.

4. Mortgage – This contingency is very common as it allows buyers time to apply and obtain financing for the purchase of the property. This contingency clause allows the buyer to walk away from the agreement if the mortgage is rejected. This contingency will specify the number of days the buyer has to obtain financing, failing which the buyer can terminate the contract by that date or request an extension. After the given date, the buyer automatically waives the contingency and becomes obligated to purchase the property—even without a loan.

5. Sale of another property – Usually, buyers sell an old property to buy another one. Buyers may, therefore, insist on a contingency that they can sell their old property before buying the new one. This is a contingency that sellers avoid most because if they fail to sell the old house, they can back out of the contract and recover their earnest money. 

These contingencies protect the buyer, not the seller. The traditional broker-managed real estate contract will include the contingencies mentioned above. It is unavoidable. However, this can seriously delay the sale of a home. The only way to avoid a contract with contingencies is to find cash buyers such as Aim High Properties, who pay cash for houses. Sellers can sell their homes as-is and quickly, without any contingencies.

Why Aim High Properties, LLC?

With its extensive knowledge of the business, a network of resources, and years of expertise, Aim High Properties have been helping homeowners with a variety of real estate problems. Why should home sellers choose Aim High Properties?

• A one-on-one relationship with customers to handle their unique situations
• Ability to directly purchase homes and make cash offers
• It offers an extremely fast, and hassle-free transaction
• Purchases property as well as sells homes now to buyers

Besides these advantages for home sellers, Aim High Properties also offers wholesale property deals and investing opportunities for private money lenders. It also partners with agents to discover the best property deals.

If you are looking for cash buyers or looking to sell your house fast in Cinnaminson, call (856) 861-6000 or email at info@aimhighprops.com.

Aim High Properties highlights the contingency clauses that home sellers must avoid if they want to sell their homes quickly images 16/6/22

 

Aim High Properties shares the FSBO documents that home sellers need to sell their homes easily

 Aim High Properties: Important FSBO documents

Delanco, United States - /Aim High Properties, LLC/

FSBO paperwork to sell your house faster

When homeowners decide to sell their homes without a realtor, it is important to have all documents in place. The correct documents offer the information and tools that buyers need to make a decision swiftly. Aim High Properties, a cash buyer in Cinnaminson, shares the crucial documents that FSBO sellers must have to expedite the sale of their homes.

 

1. Completed Property Disclosures

Before they can market their homes, FSBO home sellers must complete all the required disclosure forms. Firstly, this is crucial information that buyers have the right to know. Secondly, some states’ laws require sales disclosures for a sale to happen. Ideally, a well-drafted seller's disclosure form will disclose all the material defects in a property and relieve sellers from liability. Some of the property information required in a home disclosure form includes known defects, easements or encroachments on the property, presence of lead paint or other toxins, and floodplain or wetland classification.

2. Title Review & Commitment

A preliminary title report can be made available to prospective buyers to help them decide. A title search examines the public records on the property to determine if there are any liens against it or any co-owners who haven’t signed off on the sale. FSBO sellers can use the services of a title company, which will review the title of a home within 10 business days and share the same with the seller. 

3. Survey Location Report

This is not mandatory but a good-to-have report. However, some buyers may want a survey, while some states may require an up-to-date survey location report for a home sale to occur. A survey location report can make a home more marketable because it answers questions for the buyer. It shows the location of the improvements on the property in relation to the apparent boundary lines of the property. This physical inspection of the property is accurate to plus or minus a few feet. This report may be costly and takes several weeks to be completed by a land surveyor in an area.

4. Covenants, Restrictions, and HOA or POA Rules

It is imperative to reveal any covenants, restrictions, or HOA (homeowner’s association) or POA (property owner’s association) rules to a prospective buyer. This ensures that the deal doesn’t fall through when the buyer discovers these rules later. FSBO sellers can collect current copies of any covenants, restrictions, and HOA or POA rules from the HOA/POA board, county recorder, or a title company and share these with the buyers to review. 

5. Purchase Agreement

Even though an FSBO seller is working without a real estate agent, a purchase agreement can be drawn by an agent representing both parties or by an attorney. This is a legally binding agreement that documents every detail of the sale. This tool can help buyers take the next step and write an offer. The purchase agreement describes every legal term. These terms may include the purchase price, down payment, agreed payment plan, closing date, disclosures, contingencies, etc.

This list is not exhaustive and can be drawn up by an attorney. Sellers and buyers must cover all crucial terms comprehensively in a purchase agreement to avoid disputes and outline how to handle conflicts when they arise.

6. Counter Offer Forms

These forms help sellers counter a buyer’s offer price or terms without having to rewrite the offer the buyer has presented. The condition can provide the buyer with a counteroffer that only amends the items the seller is countering. 

Home sellers can choose to sell their homes via the FSBO method. It is a lot of paperwork and trial-and-error as home sellers are not expert marketers or real estate agents. Those looking to sell their homes quickly without all the above paperwork hassle can seek out a cash buyer such as Aim High Properties. 

Why Aim High Properties, LLC?

Aim High Properties’ extensive knowledge of the real estate business and market, its vast network of resources, and significant years of expertise have helped home sellers and buyers with various real estate situations. Here’s why Aim High properties stand apart:

• A one-on-one relationship with customers 
• Direct home purchase and quick cash offers
• A swift and hassle-free transaction
• Buys and sells properties directly 

Aim High Properties offers wholesale property deals and investment opportunities for private money lenders. Its partnership with agents enables the discovery of the best property deals in the area.

If you are looking for cash buyers or looking to sell your house fast in Cinnaminson, call (856) 861-6000 or email at info@aimhighprops.com.

Aim High Properties shares the FSBO documents that home sellers need to sell their homes easily, Images 17/5/22

 

Aim High Properties shares tips to help home sellers choose the right cash buyer

 Aim High Properties: Tips to choose the right cash buyer

Delanco, United States - /Aim High Properties, LLC/

How to choose the right cash buyer?

Several personal and financial reasons drive homeowners to sell their homes to cash buyers. Moving away from traditional listing or FSBO, home sellers are now increasingly opting to sell their homes for quick cash to real estate investors. But how to make sure that the cash buyer is right for you? Aim High Properties, a cash buyer in Cinnaminson, suggests some insightful tips that can help home sellers choose a reliable cash buyer. 

Tip 1: Buy a home as-is

The purpose of a cash offer is to sell the house as-is. Selling a home for cash means no staging and no repairs. Home sellers may want to sell their homes due to some financial duress, relocation, divorce, and so on. By asking for repairs, the complete purpose of selling the house for cash is defeated. Moreover, the value or the offer price of the house is unlikely to improve by investing more money and time into the repairs. So look for a cash buyer who is able and willing to buy the house as-is. 

Tip 2: Simple process

A cash offer is supposed to be swift and seamless. Excessive paperwork, repairs, and other demands from the buyer can complicate the complete sale process and cause immense delay. A professional real estate investor who is also a cash buyer will simply view the property once, make a cash offer and close the deal within a few days. They are running a business where time is of the essence, as it is for the home seller. A ton of paperwork with fine print and legal jargon from the buyer is a reason to be wary. 

Tip 3: Experience in real estate investment 

Investing in a property requires a profound knowledge of the legal processes and laws in a particular state. For a successful home sale, it is imperative for cash home buyers to understand every nuance and intricacy of homeowners, housing markets, home titles, finances, and everything related to a cash home sale. Moreover, the cash buyer must have an established system and history of offering a seamless experience to the home sellers. 

Tip 4: A fair price and swift closing date

A cash offer is distinguished from the traditional selling method by a fair price and a quick closing. Why else would a home seller go to a cash buyer? Just because a home seller is in duress and needs to sell the house quickly does not warrant an unfair or low price. A cash buyer must be able to offer a fair price that is in tandem with the current market prices and should have the capability to close the deal swiftly.  

Tip 5: A solid reputation

Before working with a cash buyer, home sellers must do their homework. With reviews and reputable consumer advocacy websites, home sellers can access facts and honest perspectives about every brand online at the click of a button. Home sellers can identify the best cash buyers online basis the reviews and also ask for recommendations from friends and family. 

Tip 7: Covers closing costs

A cash home buyer that doesn’t cover closing costs or title fees is probably cheap and/or strapped for cash. These fees are not so monumental, and ideally, most cash buyers cover them considering the profit they will make once they sell these properties further after renovation. A professional and reputable cash buyer will want to close the deal at the earliest and will cover closing costs without batting an eyelid. 

Tip 8: A local cash buyer

It is crucial for cash buyers to have knowledge and insight into the real estate market of Cinnaminson. A local cash buyer is a part of a community and understands the local market trends. This expertise in the local real estate means that they will offer better cash offers, better service, and a seamless experience. 

Why Aim High Properties, LLC?

With its extensive knowledge of the business, a network of resources, and years of expertise, Aim High Properties have been helping homeowners with a variety of real estate problems. Why should home sellers choose Aim High Properties?

• A one-on-one relationship with customers to handle their unique situations
• Ability to directly purchase homes and make cash offers
• Offers an extremely fast, and hassle-free transaction
• Purchases property as well as sells homes directly to buyers

Besides these advantages for home sellers, Aim High Properties also offers wholesale property deals and investing opportunities for private money lenders. It also partners with agents to discover the best property deals in the area.

If you are looking for cash buyers or looking to sell your house fast in Cinnaminson, call (856) 861-6000 or email at info@aimhighprops.com