4 Tips to Selling an Inherited Property

Selling an inherited house can be draining. Coldwell Banker gives 4 tips on how to successfully prepare, organize and sell your inherited house.

One difficult topic real estate agents routinely have to discuss is about selling an inherited home from a parent when they pass away. It is a situation that is an overwhelming experience, one filled with emotions and many questions. While talking about it is difficult, it is smart to be prepared. This includes having conversations as a family to determine who will be included in the will to inherit the home, where the deed to the home is kept and where other paperwork is located.

After the estate has been settled and the home received as an inheritance, deciding to sell, rent or keep the home is the first step which will help determine what to do next. For those who decide to sell the home, it is a good idea to work with a team of professionals including a lawyer and a real estate agents who can offer advice and guidance throughout the process.

Although each situation is unique, the professionals at Coldwell Banker have provided the following four tips to help prepare to sell an inherited home:

Assemble a strong team of professionals. Working with a real estate agent, lawyer and potentially a tax specialist can help make the process of selling an inherited property go more smoothly. A team of professionals can give the guidance necessary to prepare the home for sale and get all of the affairs in order. A real estate agent can offer crucial, local market information that is especially helpful if the heir does not live nearby. Lawyers and tax specialists can help put all of the processes in order to ensure that selling the home is as easy on you and your family as possible.

Do a home walk through and get organized. Going from room to room and looking at everything from the condition of the floors to how fresh the paint looks can help determine what may need to be done to the home to help it sell more quickly. If the inherited property is older, a home inspection is important before making any decisions as there may be certain systems that need renovations. Equally important is to gather all of the necessary paperwork such as the deed to the home as well as researching whether there are any mortgages on the inherited property that need to be paid. Even if the original mortgage was paid off, a reverse mortgage may have been negotiated to help cover expenses. Also looking into local property taxes and when they were last paid is important.

Have the home appraised and price it correctly. Property received as an inheritance is not considered to be income by the beneficiary. The adjusted basis of a home is its fair market value at the time it was inherited, so it is important to get an accurate appraisal of the home. A real estate agent can also provide counsel on an appropriate listing price to match market value. Out-of-town beneficiaries can also find it difficult to select competent appraisers, inspectors and other professionals to assist in the home selling process, all of which a real estate agent can assist with.

Consider staging or other cosmetic improvements. Although not necessary in all markets or price ranges, home staging can be the difference in getting a home sold in a price-competitive market. An inherited property may not be furnished in the style of other local homes on the market selling at a similar price. A real estate agent can help determine whether or not home staging is a good fit for a specific situation. They may also suggest making home design improvements such as repainting rooms and/or landscaping the yard or other parts of the property. Make sure the lawn and landscaping look good and that the exterior of the house is in good condition. Low curb appeal can keep potential buyers from researching a home they may otherwise love. Perhaps most importantly, having an experienced real estate agent to answer questions quickly and accurately frees up time to devote to other activities and events.

Find more information on selling your home on the Coldwell Banker Blue Matter blog.

Source: Coldwell Banker Blue Matter blog

Posted on August 8, 2017 at 9:45 am
Kappel Gateway Realty | Category: appraisal, Bidding, buying, Charity, closing, closing costs, curb appeal, distressed properties, Homeowners, investor, market trends, mortgage, open houses, real estate, Sellers Market, selling, Uncategorized | Tagged , , , , , , , , , , , , ,

How to Tell the Difference Between a Buyer’s Market and a Seller’s Market

This is SO IMPORTANT  for you to know as a Buyer or Seller so that you can strategize your plan of action wisely and accurately. Of course, your agent can easily explain this to you, but you need to understand it! Make no mistake, if you don’t pay attention to the difference in these two markets, you may not enjoy the results of the transaction.

What you need to know when buying or selling a home.

One important thing to remember about the property market is that it’s always in a state of change. Sometimes the market is favorable to buyers and sometimes it’s favorable to sellers. But don’t worry, a knowledgeable agent can guide you in the sale or purchase of your next home, no matter what type of market you’re facing.

What is a Seller’s Market?
A seller’s market is simply a property market that benefits you as a seller. In a seller’s market, there’s a scarcity of properties, which can drive up the price of homes, especially in desirable locations.

Sellers can depend on real estate experts to know what the market is doing, but here are some signs of a seller’s market:
– Low inventory when compared to previous months and/or years
– Homes are selling faster
– Less than six months of inventory on the market
– More homes are selling
– Median sales prices are growing
– Less information in real estate ads; just the bare details
– “For Sale” signs don’t stay up long before being replaced with “pending” or “sold”

What is a Buyer’s Market?
A buyer’s market is the opposite of the seller’s market. If you’re buying at this time you’ll be spoiled for choice as the supply of homes on the market exceeds the number of buyers, giving you the chance to score a fantastic deal.

A sharp agent will quickly be able to tell you where the market lies, but here are some signs of a buyer’s market:
– Inventory that is high when compared to previous months and/or years
– Homes are selling more slowly
– More than six months in inventory on the market
– Sales prices are shrinking
– Fewer sales are taking place
– Real estate ads are growing in size, giving more details and/or images
– “For Sale” signs are staying longer, meaning the days on the market are longer too

How Do I Figure out the Months of Inventory in a Market?
1. Look for the total number of active listings for the month prior to the current one
2. Look for the total number of sold or closed transactions for the same time frame
3. Divide the total number of listings by the number of sales. This figure represents the number of months of inventory there are.

For example, let’s say there were 6,500 listings in one month’s time. During that same time, there were 1,500 properties that were sold. Divide 1,500 into 6,500 and you arrive at 4.3 months of inventory, meaning that this is a seller’s market.

While a savvy real estate agent is the best resource for this information, other resources include real estate listing websites and/or your local real estate association.

Do All Markets Follow the Same Cycles?
Markets are always in a state of flux. At its core, people are the driving force behind the real estate market.

For example, as more people move into a location, the more need there is for housing. If the number of properties in the area cannot support the number of people moving in, prices of existing homes will likely rise until more homes can be built.

This constant change to the supply and demand in a market is how markets shift back and forth from being more favorable for either buyers or sellers.

Can I Buy in a Seller’s Market?
Absolutely, but it’s not going to be a walk in the park. You’ll need determination, knowledge, and most importantly, someone on your side who knows the market inside and out.

Something to consider – you don’t know the seller’s true reasons for wanting to sell. Maybe there’s a divorce pending or another baby on the way and they need more space fast. Whatever is going on with the seller, a savvy agent will spot opportunities to help you and the seller arrive at a mutually agreeable solution.

One key reason it’s vital to engage an agent in a seller’s market is for their negotiating skills. While it’s important to always negotiate, a seller’s market calls for serious help to ensure that you don’t pay more than you need to.

Should I Wait to Sell?
It depends. Is it mandatory that you sell right now or could you wait until it’s a seller’s market again?

Consult with an agent to get his opinion about your chances of getting what you need or want for the sale of your home. He just might have some options you may not have considered that will help you get out from under your home and get on with your life.

Don’t be afraid to sell or buy if you think the market isn’t in your favor. The real estate market can be highly varied, so trust your agent to help you get the best possible results, no matter what the market looks like.

Source: CB Blue Matter

 

Posted on July 26, 2017 at 3:11 pm
Kappel Gateway Realty | Category: Buyer's Market, Buyers, first time buyers, hot market, Inventory, Multiple offers, real estate, Sellers Market, selling, Uncategorized | Tagged , , , , , ,

How To Win A Bidding War Without Overspending

Winning a bidding war requires tactful strategy. What’s your next move?

Right now we are in a Seller’s Market here in Solano County. Oftentimes that means multiple offers over list price. It can be a frustrating and exhausting process. Read on for strategic tips!

It’s possible to win a bidding war without paying a cent more than you budgeted for.

 How To Win A Bidding War With Multiple Offers On a House

  1.  Know what you can really afford

    As far as emotional purchases go, buying a home ranks right up there with choosing a wedding dress — only the financial stakes are much higher. Unless you know ahead of time exactly how much house you can afford, you could easily be sucked into spending too much. Your lender or financial adviser can help you determine that number. Then it’s time to play ball.

    “Submit your best and final offer early,” says Skyler Irvine, senior partner at Myriad Real Estate Group in Phoenix, AZ. “If $1,000 keeps you from pulling into the driveway of your dream home just because you wanted to play hardball, then you might regret this more than you can imagine.” But the flip side is also true. “If you get outbid because someone offered more than you were comfortable with spending, then you didn’t lose anything and made a smart financial decision.”

    Here’s a real-life strategy from a client of Naples, FL, agent Gordon Campbell on how to submit the best offer in a “best and final” situation without going too high: “They simply added a clause stating that they would pay $1,000 more than the next ‘best and final’ capped at the original price as seen in the MLS.” The outcome? “They got the property for slightly more than the other bidder.”

  2.  Talk with the listing agent

    You can put in an offer, but unless your agent makes the effort to speak with the listing agent, your offer, in a multiple offer scenario, will probably not stand out. Gary Hughes, a Virginia real estate agent, recently received 13 offers for a property he listed. “Twelve were just emailed, and the buyers’ agents did not speak to me,” he says. But one agent called and had the lender follow up. “The lender and the buyer’s agent were able to address a concern in a way that assured me it would get to settlement. It wasn’t the highest offer, but it was close. Those conversations made all the difference.”

  3.  Propose a shorter closing

    It’s always beneficial to find the seller’s motivation for selling (if you can). Let’s say they just accepted a new job in another part of the country. This seller is probably highly motivated to sell quickly. “If you can close the deal in two or three weeks, you may win over the higher offer that comes with a six-week closing period,” says Eric Bowlin, a real estate investor.

    But just how do you go about closing faster? Here’s one way: “Tighten up your inspection time frame so sellers know that they can get through to a closing date quicker,” says William Golightly, a Florida agent.
    Buyers can also be preapproved, or even better, get a conditional approval, from their lender. Going through the mortgage process first allows you to close just as fast as all-cash buyers do.

  4.  Rent the house back to the sellers

    Some sellers aren’t interested in a short closing at all. In fact, the opposite could be true. Sellers who don’t have to sell quickly but who are just making a change, such as downsizing or upsizing, might want a long closing or some sort of flexible deal to give them time to find their new home. “Being able to rent back the property to the seller for a few months while they solidify their next purchase can go a long way into not needing to overbid on the property,” says Aaron Norris, a California real estate investor with The Norris Group.

  5.  Submit an as is offer

    The fewer conditions you put on negotiating the house price, the more attractive you look to sellers. Consider offering to buy the house as-is. Miami Beach, FL, agent Jill Hertzberg says, “You can opt out of conducting inspections.” But since this is an extremely risky proposition, Hertzberg suggests instead of waiving the inspection altogether, decrease the inspection period to two days maximum. Lilia Biberman, a Boca Raton, FL, agent says to only waive the inspection “if you have a firm grasp of all the possible defects a property may possess and the costs associated with remedying those defects.” Also, if you’ll be paying in cash, you don’t need a financing contingency, which protects buyers who don’t secure financing in time.

    Source: Trulia Blog

 

Posted on July 21, 2017 at 12:28 pm
Kappel Gateway Realty | Category: bid, Bidding, Bidding War, Multiple offers, real estate, Sellers Market, Uncategorized | Tagged , , , , , , , , , ,

5 Mistakes Buyers Make In A Hot Housing Market

 

The home-buying process moves quickly in a seller’s market. Be sure to keep positive as you search for your dream home.

 

We are in a hot Real Estate market right now with little inventory. These tips could make the difference in the success of your next purchase!

Buying in a hot house market is sometimes inevitable, but you can save money by avoiding these mistakes.

It’s the never-ending saga of homebuyers everywhere: just when you start looking for homes for sale in Fairfield, CA or Walnut Creek, CA, prices seem to be booming and you’re stuck trying to buy in a seller’s market. House-hunting is hard to time perfectly, and sometimes it’s impossible to avoid buying in a hot market.

But don’t let the fear of tough competition send you into a panic. Avoid falling into one of these traps when shopping in a hot real estate market, and you’ll likely save yourself some money (and a few gray hairs).

5 mistakes that will cost you in a hot housing market:

  1. Acting out of desperation

    It’s hard not to be let down when attractive homes are taken from “new” to “pending” before you even have the chance to look at them, but remember: Desperation has no place in a home-buying transaction.

    Once desperation sets in, you risk making an impulsive and otherwise unwise decision, such as talking yourself into a home that isn’t quite what you really want or paying more than you can afford. Even if you can’t or don’t want to make an offer, every home you research and visit will give you a better insight into the home-buying process and the market and allow you to refine exactly what amenities you want in your future house.

    Once you know exactly what you want, let others know too. Give your contact information to the listing agents at open houses and ask them to drop you a note if they get similar listings.

 

2. Hesitating (This is a biggie!)

What’s worse than seeing great properties come and go before you can get out to view them? Seeing them placed under contract before you make an offer.

Before you walk into an open house, make sure your paperwork is up to date and your loan approval hasn’t expired so you’re in position to make an offer that day. If you haven’t already gotten a loan approval, it’s time to start the loan approval process, stat.

 

3. Ignoring the market entirely

It’s nearly impossible to time the market and make your real estate decisions based on current trends. A better plan is to make your buying decisions based on what’s currently happening in your family, your career, and your life (and what you envision will happen in the next five to 10 years). That said, when it comes time to execute your decision to buy, it’s foolhardy not to pay attention to the market.

You need to be able to play both sides and avoid the panic-inducing fluctuations of the market while staying informed. Ask your real estate agent to help you pay attention to neighborhood-specific information, such as which types of properties move quickly, how many days they generally stay on the market, whether multiple offers are a reality you will face, and how much over asking price homes like the one you want are selling for.

Then use this information to make strategic decisions, covering everything from which properties and areas you’ll focus on to how quickly you’ll need to get out to see listings to — most importantly — what price range you should focus your search on.

 

4. Misunderstanding your budget

Don’t run the numbers in your head. Don’t ballpark your income, loan payments, and bills, stick your finger in the wind, and guess at how much you can spend on a home. Financially speaking, home buying is the big leagues, so you need to be sparkling, crystal clear on precisely what you can afford.

In a hot market, you may be faced with decisions about whether to increase your price range or your offer price on relatively short notice. If you need help, don’t hesitate to bring your tax adviser or financial planner into the home-budget discussion — especially if you’re a new homebuyer. They can help you understand tax breaks for new homeowners, which can free up some extra money for your mortgage, property taxes, insurance, and HOA dues or private mortgage insurance, if applicable.

Also, make sure you include line items for your savings, retirement investing, gifts, school tuition, travel, and recreation — the sort of things that lenders will not account for when they tell you what their guidelines say you can afford.

 

5. Overpaying

Hot markets mean multiple offers on the same home, which often result in a bidding war. And once you’ve had one too many homes pulled out from under you after a bidding war, it can be tempting to pay more than you budgeted for.

To avoid overpaying for a home just because it’s in a bidding war, be sure to go through comparable homes with your agent before you even look at the house.

Bonus: If your agent includes active and pending sales in their pull of the comparable data set, you may find out useful information such as whether other competitive properties have just hit the market, or that all of the competition is now under contract — things that might also inform your motivation levels or price strategy.

Source: Trulia Blog

 

 

Posted on July 8, 2017 at 1:53 pm
Kappel Gateway Realty | Category: Buyers, buying, hot market, mistakes, overpaying, real estate, research, Sellers Market | Tagged , , , , , , , , , , , ,