TYPES OF HOME SALES
- Contract to close 45-60 days
- Condition is typically more “move-in ready”
- May not be as negotiable on price depending on homeowners’ situation
-If they have a mortgage on the property they may not be in a position to sell beneath a certain point.
- Can request repairs/credits based on home inspection findings
-The homeowners retain the right to decline any request.
- Contract to Close ranges from 3-10 months
- Committed to contract for 90-120 days depending on Short Sale Addendum
- Negotiate contract with homeowner, then contract is submitted to bank with homeowners financing docs and hardship letter.
-Bank will need to verify that the homeowner cannot afford the mortgage and that they have a valid hardship (death, divorce, illness, jobloss)
-Bank can cancel the short sale if they feel the homeowner can afford the mortgage.
-Bank will have either have an appraisal or broker price opinions done to determine the value of the property.
-If they feel the contract price is less than what the property is worth, they can counter you at a different price. You would have the option to cancel, accept, or counter.
- Home Inspection
-Depending on whether you do your home inspection before or after bank approval of short sale, you could possibly spend money on a home inspection and have the deal not go through. The home inspection fee will NOT be reimbursed if the contract doesn’t close.
- Conditions can vary from fair to average
-Typically some deterred maintenance.
- Typically can close in 45-60 days
- May or may not pay for their part of closing costs.
- Condition can range from poor to average.
- Home Inspection
-Depending on the bank they may or may not activate utilities for the home inspection.
-In some cases, you will need to pay to dewinterize the property for the home inspection/appraisal.
-If plumbing is not holding pressure, they will not allow the water to be turned on which will eliminate some types of financing.
-Depending on the bank you may be able to request a credit if there are home inspection issues.
- Typically will not activate utilities for home inspection/appraisal.
- Usually will start the price low, however there is usually a reserve price that will need to be met before they will accept an offer.
- Often, you will need to pay a fee on top of the purchase price to the auction house.
- They do not always allow for attorney review/inspection period.
How to Increase the Value of Your Home Inexpensively
Do a basic cleaning. Nothing will give you a better return on your investment than a little elbow grease. A cleaner house will look more appealing to your realtor when he or she helps you set a price, as well as to the appraiser the bank sends out when you have an offer. Here are some ideas:
Get rid of clutter. Make your house look more spacious by eliminating junky or unnecessary items. Get rid of battered furniture, decaying knick-knacks and piles of paper – or, if you can’t stand to part with anything, throw your stuff in a storage unit until after the house sells. Remember that it’s better to show a somewhat barren house than one that’s filled to the brim with clutter.
Do a deep clean. Once you have more room to work, undertake a thorough housecleaning. Not only should you do usual chores such as mopping or dusting, but focus on rarely-cleaned areas such as baseboards, grout and heating vents. Steam clean your carpets, and wash walls and windows. Wipe down the blinds, and remove any broken screens. Pressure-wash any siding on the outside of your house, as well as the sidewalks and driveways. If you don’t have the time to undertake such a project, consider hiring a professional cleaning service. Many of them specialize in residential properties for lease or for sale.
Eliminate odors. A common saying among realtors is, “If you can smell it, you can’t sell it.” Sometimes, people can’t detect how their house smells because their noses are so accustomed to it. If you think your home smells fabulous, have a trusted friend confirm or deny this as soon as they walk in the door. If you keep pets, thoroughly shampoo carpets and furniture, and wash all bedding – you’re not selling the bedding or the furniture, but they’re capable of smelling up the house just the same. If you smoke, do everything you would for pets in addition to washing (and possibly painting over) the walls and ceiling as well as you can.
- When you know your realtor will be showing the house, try to make it smell good by baking something delicious beforehand (which you can put on the counter for your guests) or lighting a candle. If you don’t have candles or time to bake, pour a few drops of vanilla on an empty cookie sheet and put it in the oven at 200-250F. It will make your house smell like warm cookies.