Regardless of the current real estate market, selling a home is a complex and potentially problematic endeavor, and knowing where to start can be a daunting task. For home sellers, there are piles of paperwork, legal considerations, foreign terminology and weighty financial concerns to contend with. Then there’s the question of professional legal assistance. Should you hire a real estate attorney? What legal fees will you face? Below we provide an introduction to these and other important home sale questions.
When is a good time to sell my home?
Be best conditions under which to sell your home are these:
A strong, thriving economy in which people are feeling optimistic about their own future and the future of the economy.
Low interest rates, which let your potential buyers (and yourself, if planning to buy a new home) borrow money at cheaper rates.
The time of year matters quite a lot, believe it or not. People typically are more likely to move during the spring and summer than during late fall or winter months.
Newly created or renovated public facilities such as pools, parks or even sidewalks look very attractive to potential buyers. Highly rated school districts are also a selling point.
How do I decide how much my home will sell for?
Professional appraisals are the simplest way of getting a good idea of how much your home is worth. These appraisals take into account not only the size, condition, age, etc. of your own house, but they consider how your house compares to other houses in the surrounding area.
To get an idea of how much you could expect to sell your house for on your own, you should take a look at what other houses in the area have recently sold for. An Internet search can quickly yield answers to these questions, but keep in mind that this will give only a very rough idea of your house’s value.
Do I need a real estate lawyer?
If this is your first time selling a home, then the answer is most likely yes. The laws surrounding the sale, purchase and maintenance of real estate are highly specific to the field and can often be confusing, and convoluted. Below are a few reasons why novice (and experienced) homebuyers decide they need a real estate law professional.
The bottom line is that a lawyer will be able to catch and solve common legal problems that arise when buying or selling a home.
Relators, for example, will often use standard forms that aren’t tailored to your specific situation or needs, and which might overlook, omit or misstate certain legal, or other, concerns of your sale.
Sometimes home sellers who are unable to sell their home are surprised to find that they are still required to pay brokerage commissions, or that they are required to pay multiple brokerage commissions. A lawyer can help avoid or alleviate this problem by creating an agreement that prohibits this.
As the seller, you need to be aware of the taxation consequences of selling a home. These are complicated and often require a lawyer who specializes in real estate law to fully understand. A lawyer will also be able to help you determine if there are any tax provisions of which you, the seller, may be able to take advantage.
Having the guidance of a real estate attorney is most useful when it comes to legally binding agreements and related paperwork. The purchase agreement, for example, is a crucial document in the home buying/selling process and must be carefully worded, edited and reviewed by someone with a good understanding of the world of real estate law. You can certainly find generic forms online to draft purchase agreements yourself, but there are a few issues that often arise, with which an attorney can help. One of these common issues is the question of what to do if the real estate has been altered or amended unlawfully. Whose responsibility is this? Are the buyer’s planned amendments going to be legally acceptable? There is also the question of hazardous materials in the home such as insect infestations, lead-based paint or asbestos. Payment planning is also an important issue to have your lawyer address in a purchase agreement.
Real estate attorneys are also versed in zoning laws and so they can help you determine what sort of residences are permitted and which are forbidden on your property.
The all-important closing usually involves the two involved parties – the buyer and the seller – as well as their respective legal representation, the real estate broker, a representative from the company that manages the home title and legal representatives from the bank or other lender. Protect your legal rights by having your own legal professional at the closing.
Other considerations:
Think about getting a professional to come conduct a home inspection before you put your home on the market. This is a crucial step in preventing any sort of legal disputes later down the line. Be the first to know about any problems with your house’s construction, materials, code compliance or modernity, and you can decide how best to solve them. Depending on local laws, disclosure of most problems of this sort is legally required. Discuss with your legal professional what exactly must be disclosed and what you problems might consider fixing before the sale.
Selling your home really comes down to timing sometimes. It’s important to be patient and you should attempt to put your house up for sale well before you buy a new house. The longer you can wait before your next house purchase, the better. This is mostly because you want to avoid paying two mortgages at the same time.
A note about tax-deductible home selling costs:
While property taxes and interest are deductible each year, other expenses involved with the purchase of a home are not instantly tax-deductible. Costs such as closing costs, loan application fees, service fees, settlement fees, legal fees, and title insurance can, however, be taken into account in the adjusted cost of your home when you’re selling.