Selling Your Home – Don’t Be A Victim

Selling your home can be a complex process. If you make mistakes, you may be unable to sell your home or have seller’s remorse. There’s no need for this if you keep in mind the following.

Overpricing Your Home

It’s important to be realistic about the value of your home. Sellers should insist their real estate agents present them with objective criteria for pricing. Comparative information is the most critical in getting a house priced properly. If you ask for too much, it’s hard to ask for less later on in the process.

Not Displaying  Curb-side Appeal (I know – an American term – but it works!)

You don’t have to invest thousands of dollars into redecorating your home. But there some basic steps you must take to present your house in the most positive light.

Overdoing Home Improvements

Don’t go overboard staging your home. It should feel warm and inviting. Lawns should be freshly cut, plant some flowers, organise the home’s interior, rid the home of foul smells and apply new coats of paint to all walls and doors.

Not Understanding The Buyer’s Offer

Carefully reviewing and understanding the offer or purchase contract is imperative. Here are a few things to look for:

1. Has the buyer agreed to pay down a significant deposit?

2. Is the offer contingent upon the owner selling his or her present home? If so, how is the selling process transpiring?

Home Inspection/Open Houses

Have general inspections done in advance. Even though buyers will often have the house inspected again, it’s best to prepare for any potential problems.

Withholding Information

While it is tempting to hide or fail to mention the snafus of a home for example, it’s a hotel for cockroaches or termites, located in an area that’s prone to floods or fires, it is best to give buyers full disclosure. This kind of information can greatly affect the value or desirability of the property.

Be Objective:

While you may think your pink walls or roman columns are fabulous, it is best to keep that opinion to yourself.

Poor Real Estate Agent Communication

Sellers should take a pro-active approach to the selling process and not rely completely on the agent. Sellers should insist upon regular updates about the house and never assume the agent has taken care of everything. It is the seller’s responsibility to ensure everything is running smoothly.

Investigate Buyers

Once you have an offer on the table, it is imperative to secure confirmation of loan approval from the buyers (or their conveyancer/lawyer). Many do not ask about this – you are well within your rights to do so – and generally the buyer will have a finance clause in the contract that they must adhere to (unless you sell at auction and that is another article entirely!).

If you follow these steps, you will go a long way towards avoiding being a victim in the home selling process.

Author: Melanie Burns

To discuss this article or anything else to do with your finances, please call our office today on 0434 087 735 or email us and we will be happy to assist you.

Sherlock Holmes Lending Solutions

Budget for Settlement Costs – Loan Origination Fees, LMI (Lenders Mortgage Insurance) & Stamp Duty

Once you reach an agreement on the purchase of a home, things start moving quickly. In the chaos, it is important to remember to budget for settlement costs.

Settlement costs are fees associated with miscellaneous events associated with a home purchase, things such as property inspections, stamp duty, conveyancing fees etc. Even if you are purchasing a home for the first time, you are probably aware there are closing costs that have to be paid. Rarely, however, are you aware of just how much and how fast the can accumulate. If you have not budgeted for them, they can put a kink in the settlement or even cause you to lose the home.

A couple of closing costs to keep in mind are origination fees for home loans and lenders mortgage insurance. The mortgage related costs are only a small part of the overall closing costs you can face, but deserve a closer look.

Origination fees for home loans can be a shock to first time buyers. Few realise they are going to have to pay such things. Origination fees are costs charged by a lender for services used to determine if the lender should give you a loan in the first place. For example, a lender will often charge you fees for having a valuation done on the property. Infuriatingly, the lender will also charge you fees for processing the loan and preparing the loan documents. On a $400,000 loan, the origination fees can quickly add up to thousands of dollars.

Lenders mortgage insurance, often called LMI, can also be a nasty little surprise. The magic number when considering LMI is 20 %. If you pay a deposit on the home that is less than this amount, you are almost certainly going to have to pay LMI. LMI is simply insurance that protects the lender should you default on the loan. The cost can add up to hundreds and into the thousands of dollars, so make sure you know what is expected of you.

Stamp Duty is the one, in my experience, that is consistently overlooked.  As a general rule I always tell clients to allow approx. 4% of the purchase price to cover these costs.  It is usually a little less, and varies from state to state – however I find it always better to lean towards the conservative side. Settlement costs are aggravating – budget for them up front, and you will feel less aggravation.

Author: Melanie Burns

To discuss this article or anything else to do with your finances, please call our office today on 0434 087 735 or email us and we will be happy to assist you.

Once you reach an agreement on the purchase of a home, things start moving quickly. In the chaos, it is important to remember to budget for settlement costs. Settlement costs are fees associated with miscellaneous events associated with a home purchase, things such as property inspections, stamp duty, conveyancing fees etc. Even if you are…