What’s the Difference Between a Due Diligence Fee and Earnest Money Deposit?

Both North and South Carolina real estate Offers to Purchase and Contract are structured such that both an earnest money deposit and due diligence fee may be offered and negotiated between the parties. Many buyers and sellers ask, what’s the difference between a due diligence fee and the earnest money deposit? Both the earnest money deposit and the due diligence fee are credited back to the buyer at closing. If buyer doesn’t close on the transaction however, earnest money deposits and due diligence fees are handled differently.

An earnest money deposit is offered by a buyer as ‘skin in the game’ and is refundable under certain circumstances. In our market a $1,000 earnest money deposit it is typical for most purchases. For offers in a multiple-offer scenario however, the seller may find a larger earnest money deposit more attractive because it means the buyer is willing to risk more.

A buyer may, for any reason or no reason, terminate a contract with refund of the earnest money deposit if he has met the due diligence date deadline and communicated his termination in writing prior to 5 o’clock of the business day of the date given for the North Carolina contract. Although the contract states that the earnest money it is to be refunded to the buyer if the terms are met, be aware that the seller must sign a specific document to release that money back to the buyer.

The due diligence fee is basically an offer from a buyer to the seller to take the house off the market for the due diligence period, typically from 10 days to 3 weeks or more, depending upon the overall duration of the transaction.  In a typical transaction where Mr. and Mrs. Homeowner is the seller, a due diligence fee may be paid.  However, if the property is owned by a bank, no due diligence fee is paid.

A due-diligence fee is similar to a reservation fee. It is nonrefundable. Period.

Prior to advising a buyer on structuring an offer, a Buyer’s Agent has the fiduciary responsibility (the responsibility to promote the buyer’s best interests) to consider all aspects of an offer that may put the buyer’s due diligence fee at risk, including inspection time frames, availability of scheduling home inspectors, termite inspectors, appraisers and any other conditions deemed important to the buyer, and for the reports to be returned for review.

For additional questions on this or any other real estate topic, feel free to give me a call!  Text for faster service: 704.562.1030  Who do you know who’s thinking of buying or selling real estate?  SEARCH for your Dream Home or learn more about what clients who work with me are saying here: TheSafariGroup.com

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Chrystal Safari Roy, Broker in Charge of RERCharlotte, an Investor-Centric Real Estate Firm bringing you from Purchase to Portfolio located in SouthPark Towers, and Team Lead of The Safari Group, has over 20 years experience in investing, personal property management and residential real estate sales and is a licensed REALTOR® in North and South Carolina.  As a MASTERS Designation holder, she is a specialist in New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, and is a multi-million dollar producer.  Chrystal is a Certified Military Residential Specialist, Luxury Home Specialist, and HUD Registered Agent.  Search for your Dream Home at TheSafariGroup.com.

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Marital Property and Proceeds in North and South Carolina

*Consult your licensed and admitted attorney in your state for legal advice.  This post is sharing my own experiences as an experienced REALTOR® licensed in both NC and SC.

In North Carolina we have a saying, ‘It takes one to buy and two to sell real estate in North Carolina.’

Generally, if both husband and wife appear on title, both must sign documents (mortgage, rescission and TIL); If only one spouse is on title to property being mortgaged, individual state law applies.

North Carolina is what’s called a dower state. Properties purchased by a married couple is a marital asset even if only one buyer signs documentation (unless that property is purchased by an entity*) and the property is equally owned by both parties, each with rights and responsibilities to the property. When making a purchase, if the intention is for each spouse to protect the others’ marital rights to the property should one spouse pre-decease the other, the closing attorney should include both spouses on the title with rights in common, or as directed by your closing attorney.

Properties owned prior to the marriage are not necessarily marital assets unless the non-signing spouse completes major updates to the property as a major investment in the property.  Each scenario must be evaluated on a case-by-case basis.

In the case of a spouse inheriting a property, the non-inheriting spouse must sign all documentation to list and sell that property. Often the non-inheriting spouse tells me, ‘That’s not my property and I don’t need to sign.’ Signing to list and sell, and ultimately to close on that property’s sale is for the non-inheriting spouse’s protection.  The spouse who did not inherit the property is signing away both his rights and his further responsibilities to that inherited property.

In contrast, South Carolina is not a dower state, it’s a Homestead (owner occupied) state and common law jurisdiction – what’s hers is hers, what’s his is his. Any husband or wife may freely and individually buy or sell any property with no benefit or responsibility to the other party. As long as the spouse is not on title, the spouse will not be required to sign, and perhaps more importantly, not be due any proceeds.

In the case of a married couple who has purchased a home together, but with only one spouse on the title in SC, if the other spouse wishes to receive a portion of the proceeds from closing and the parties don’t agree, that non-titled spouse must be awarded a court order for the proceeds to be divided.

*A Caveat – properties owned by an entity, such as an LLC or Corporation, or an interest owned by a Trust follow different rules of law and the above doesn’t apply.

NOT INTENDED FOR LEGAL ADVICE – Consult your favorite real estate attorney for full details.

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Chrystal is a REALTOR®, Broker in Charge of Real Estate Realty LLC, a boutique firm specializing in working with investors, and principal of The Safari Group LLC, a local, homegrown real estate group, specializing in all phases of the residential and small business real estate market, including First Time Home Buyer, New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, Foreclosures, Short Sales, Portfolio Development, Luxury Homes and GREEN Features.  Contact her at 704.562.1030; TXT for faster service

How to Hire a Contractor to do Work in Your Home

  An important aspect of hiring a contractor to do work in your home is to understand what permits, special requirements or licensure are required for each job.  Once that’s understood, you can know whether it’s best to hire a licensed contractor or a handyman.

REFERRALS
Be sure to ask for referrals and references and know the relationship of those referring parties to the contractor. Ask for pictures of installations on similar jobs that have been performed for others and give those referring parties a call or visit to ask how the work was performed, the attitude during the job, coming in on budget and wrapping up on time.  Discover if there are any negative remarks online or with the BBB.   Be sure he or she is qualified to handle the scope and type of work needed, especially with regard to special conditions such as lead based paint, asbestos, mold, etc.

IDENTITY
If the home is occupied, if personal items are stored there or is otherwise not vacant, be sure to qualify your contractor if he’s unknown to you through online services such as mysmartmove.com or others.  Get a copy of the contractors driver’s license and have him sign a w-9 to include his social security number.  If you’re an investor and renovations are common for you, you may want to investigate the Verify Photo ID app recommended by Inman News.

CONTRACT
Next, execute an Independent Contractor Agreement with your contractor. Be certain it has no verbiage or requirements to suggest the contractor is an employee of yours.

PHASES
Now is the time to outline and understand the three phases of the renovation. The initial Phase One is paid on day 1 of the job.  The subsequent draws for Phases Two and Three should be paid by the week, on a Monday or Tuesday. In constructing the phases, the contractor should budget for each item and any overages or misquote is the responsibility of the contractor, not the homeowner. Make sure your agreement covers things such as milestones, and outlines the scope and sequence of the work to be completed. The contract should include the description of all work, and condition of Customer Satisfaction such as all items completed in a workman like manner, job site left clean and tidy daily, and no items incomplete.

MATERIALS
Ideally the home owner should have chosen paint colors, sheens, types for each space, cabinets, granite and whatever materials will be used in the project at the source. Have your Independent Contractor pay for those materials and have that provider deliver the materials to the job site, then reimburse the contractor immediately – this strategy avoids any appearance of establishing an employee/employer relationship. Do not pay for routine tools and supplies the contractor uses in his everyday business such as paint brushes, ladders tarps , etc.

UPDATES
If you’re not the owner occupant at the job site, require the contractor to provide daily pictures and videos of each phase when complete before scheduling a personal inspection and before payment on that phase is released.  An investor can use this in the future or marketing.

COMPLETION
In exchange for the final payment the homeowner should sign off that he is satisfied with the job, and the independent contractor should sign that he is releasing all liens in exchange for final payment.

For a No Obligation Sample Copy of my Independent Contractor Agreement, email me.  I’ll be glad to help.  Chrystal.Roy@RERCharlotte.com | 980.355.9025

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Chrystal Safari Roy, Broker in Charge of RER Charlotte, an Investor-Centric Real Estate Firm bringing you from Purchase to Portfolio located in SouthPark Towers, has over 20 years experience in investing, personal property management and residential real estate sales and is a licensed REALTOR® in North and South Carolina.  As a MASTERS Designation holder, she is a specialist in New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, and is a multi-million dollar producer.  Chrystal is a Certified Military Residential Specialist, Luxury Home Specialist, and HUD Registered Agent.  View all our properties at RERCharlotte.com.

How to Prepare Your Home as a Product for Market

The 6 D’s of a Quick Home Sale

Preparing your home as a product for market is very different than living in your home. You must remove your emotion from the deal and look on it as a business proposition. If you’re not ready to do that, it’s best to wait and not put your house on the market. Think you’re ready?

Setting the stage for a home sale means preparing your home to appeal to the broadest market. Here are the 6 D’s to a quick home sale:

Declutter

You’ll be packing to move anyway, so it’s time to put away anything you wouldn’t find an a 4 star hotel room. That means you must walk around every room beginning from the left side of the door and sweeping back around to the right side of the door removing items are visually conflicting or create a sense of having no space. It’s time to put away anything that catches dust and doesn’t add to the attitude or identity of the room. Don’t forget to organize and purge the pantry, linen closets and garage.

Decorate

Each room should be decorated in a way that creates an identity for the intended space. You may have used the dining room for an office, but it’s important for a buyer to see the dining room decorated as a dining room. The decor should be as neutral as possible and not visually distracting. Neutral doesn’t always mean beige! The rule of 60-30- 10 applies. 60 % is a dominant color, 30% is the secondary color, and 10% is the accent color.

Consult the color wheel to select your palette. Keep trendy colors to the 10 percent; think throw pillows, table top decor or towel sets. White space also applies to decor. White ceilings and furnishings can make a dark room feel spacious and rich, yet intimate. Be sure adjoining rooms have complementary patterns and color palettes.
Add lighting where needed.

Deep Clean

Have your property deep cleaned. Don’t forget to change HVAC filters and have siding pressure washed. Buyers perceive a dirty house to have been ignored behind the scenes, such as plumbing, electrical, and heating and cooling systems.

Depersonalize and Demilitarize

Put away all family pictures & portraits. You can’t have buyers coming in and say to themselves, ‘Aww, we can’t make this sweet little family move!’ Set the stage for inviting buyers to picture themselves in your space. Buyers must feel that they only need to carry in their suitcases!
Remove all religious items and die-hard fan memorabilia. The home purchase is first made with emotions, then backed up with logic and secured with finances. I was once showing a house to a buyer and when we arrived in the bonus room filled with fan memorabilia, he remarked that he could not buy a house owned by a fan of his biggest college rival.

Demystify

Don’t have buyers shaking their heads when they leave your property. All homes will get a nickname. A personal favorite was ‘the crayon house.’ From the view from the kitchen to the great room to the second floor loft, each wall had a different color! It was very distracting for the buyer to evaluate the house as a whole because of that first impression visual impact and attitude of the crayon/toy box.
Buyers are usually in the car seeing several similar homes a day in the same price range. If your list price does not measure up to everything else that was seen in regard to size, condition and materials, it will confuse the buyer who will mentally put your listing aside and your property will not be seriously considered.

SOLD!

Staged homes sell faster and for more money.

For a personal inspection and recommendation of staging strategies for your home before listing, give me a call. Following my personal consultation with the seller 6 weeks prior to listing, my Personal Best Days on Market was THREE HOURS!! and it was 10% More than Sellers thought possible! For a free evaluation of what your property might bring in today’s market, contact me today.

Chrystal Safari Roy / 704.562.1030 / MyAgentChrystal@gmail.com

Avoid Foreclosure – AND the Tax Man

Have you ever wondered why some foreclosures sit on the market for what seems like forever and others are foreclosed on right away? The homeowner who has diligently paid their mortgage on time year after year and have built up equity in their home are foreclosed on first! The bank sees the value and plans to make back their money AND get your equity when they auction off your home.

Other homeowners who have little or no equity are allowed to remain in the home without payment sometimes for years!  Banks know they will reduce the incidences of vandalism and have someone who may keep up the home for free if they are allowed to remain.  It also allows the market to appreciate over that time so that a future sale will be more profitable for the bank.

Then, if that’s not enough, the IRS will charge you income tax on the loan amount

in the form of a 1099 Miscellaneous. Your foreclosed loan is taxed as earned income in that single tax year!

Unfortunately sellers lose their home and their equity to banks all the time and then have the double jeopardy of having to pay an additional tax in already distressed situation.

You have options the bank doesn’t want you to know about.  I can help. Call me or go online here and answer a few questions, and I’ll work with you to get what you want for your home and get you moving forward again. I am a REALTOR®, but this is not about listing your home for sale.  I am also an investor and this is about getting you what you want for your house, helping you prevent foreclosure and the taxman. Don’t wait until you’re more than two to three months behind.  Then, it’s much harder to help you get what you want for your house.

Please call me as soon as you know you can’t make your payment.  I’ll ask a few confidential questions by phone to see if my team and I can help, and schedule a visit to see your property.  Call or email me today.  Click this link to see the questions.  My team and I can help you prevent foreclosure, the taxman and get you moving forward.

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Here’s a testimonial from a loyal fan:

‘Chrystal, your experience and professionalism helped me prevail through difficult times in the listing and sale of my long-time family home.

From creating professional marketing materials including onsite brochures, online photo tour, and email blasts, promotion of my listing through Twitter, Facebook, LinkedIn and YouTube.com, to showing the house 6 of the 24 times it was shown, you were on the job.

After the property was under contract, your previous experience and successful resolution of similar problems discovered during the home inspections helped me work through a difficult transaction that included a breakdown in communications, unexpected property conditions and lender required repairs, and keeping the buyer on track with lending requirements and in love with the house until closing.

I couldn’t have done it without you.  It’s my pleasure to recommend your real estate services to everyone I know.’

Tony Sweatt, Fort Mill, South Carolina

Navigating a Charlotte Area Short Sale

Prior to listing a property for sale, the seller must document hardship and the inability to pay the promised mortgage to receive approval from the lending bank to allow a short sale. Those documents must be updated monthly. Once the property is listed, showings and offers begin.

From a buyer’s point of view, once he’s decided to make an offer, the homeowner accepts, rejects or negotiates the offer. If and when all terms are agreed upon, the home goes under contract with the homeowner. The Offer to Purchase and Contract package is sent to the lender’s loan liquidation department along with a proposed HUD or settlement statement.

From there, an asset manager, sometimes called a file manager, is assigned. That can take hours to days, depending upon the bank’s volume of sales in the short sale department. Once the asset manager is assigned, all paperwork is forwarded and reviewed. Back up offers from other interested sellers are also received and submitted for consideration.

If all goes well, within 30 days or so, the investor who purchased the loan from the bank reviews the Offers/Contracts and decides whether or not he also accepts the terms offered. The bank then communicates the decision back to the seller who lets all parties know the verdict.

Behind the scenes, the bank must also eliminate or settle any second mortgage or other liens to make way for a clear title to be transferred to the buyer. Title companies won’t issue a title policy assuring no one else can step forward to claim ownership with any money still owed.

It can take as many as long as 6 months to iron out all the details. At any time, until the day and time of closing when the documents are signed and recorded, the investor may accept any other offer and bump the buyer’s to a null position.

Because many buyers don’t stay in the game for the duration, and for other reasons, fewer than 40% of short sales close. The property then becomes a foreclosure owned outright by the bank. It’s negotiated simply and can close in 15 days for a cash buyer, 30 days for conventional loan, and 45 days for an FHA loan.

It takes a special kind of dedicated buyer to pass by all other listings and continue hammering through a short sale for weeks and months at a time with no update from the bank. It you think that’s you, let’s talk. There are many great deals out there. Call me to discuss your big picture. 704-562-1030

Seller Tip: Don’t Try This at Home

Or What a Seller Did to Infuriate Me and cut off his own nose to spite his face.  My investor buyers, who already had a renter lined up, wanted to see a cute house set atop a hill near their home.  The house was newer, had a 2 car garage, large yard, larger bedrooms and walk-in closet in the master and looked like a great potential investment.  We submitted a complete package, made a cash offer to close in 10 days, and hoped for the best. 

We were overjoyed when the listing agent called with a counter offer that was reasonable and my clients accepted.  Before the paperwork could exchange hands, the listing agent called back to say there were now multiple offers on the table and that my clients should come back with their highest and best, after our verbal offer had been accepted!  Well imagine my surprise when the listing agent argued there was no contract to honor!  She had not gotten the counter offer signed by her seller before presenting it, and in fact, it was true – there was no contract to honor. 

The North Carolina Real Estate Commission states a broker can only give Notice of Acceptance; the broker can’t bind a client to a contract that the client hasn’t signed.  A Broker will create a binding contract by notifying the party making the offer/counter-offer, or that party’s Broker, that the Broker has in their possession the offer signed & accepted by their client as written;  A call to the Legal Department that day revealed that although what the agent did was not illegal, it was, however, unethical.  

Much of real estate is transacted in good faith, and it’s common practice and legally binding to communicate acceptance by phone, email, fax, and mail.  In this case, the agent communicated acceptance of the counter offer without having the seller signed docs in hand.  The greedy seller then violated his word, and lured by the smell of money, accepted another offer described by the listing agent as ‘WAY WAY over the list price’ instead of signing what he’d agreed to.  The agent said the offer was so ridiculous that it probably wouldn’t work out, and that she’d call me if and when it went back on the market.  

My clients and I were angry and frustrated.    They went on the get another great property under contract.

Then, you guessed it.  The email arrived.  The buyers, who had their contract accepted on the basis of a cash purchase, couldn’t get a loan.  Poor buyer.  Poor seller.  My offer had gone in with a proof of funds letter; apparently, theirs did not.

My buyers are very happy with their new purchase, and we close Friday. 

There’s no way they’d have gone back to negotiate with the previous seller after what they’d experienced.  There was just too much risk with all the behind the scenes chain of events that must come together smoothly to close that the seller and listing agent couldn’t be trusted to perform. 

And the seller’s property is still on the market… and that smell of cold hard cash has long wafted away.

For an agent who does things the right way, and protects your best interests from contact to close, contact me by phone or text at 704.562.1030 For a property search to get you on your way to building your investor portfolio, visit TheSafariGroup.com and SEARCH Properties.

Room for Negotiations

One of the most important rooms in your listing is room for negotiation.  It is critical in every market to set your list price accurately.  In any market, if your listing isn’t priced right, you price yourself out of showings.  Pricing with room for negotiations can be a dangerous practice and may sabotage your chances to make the sale.

Here’s where a trained and experienced broker is instrumental in getting the property priced right, not only to achieve vigorous showings, but also to elicit that all important high offer.  A skilled broker is trained by appraisers who are actively working in your market and who partner with lending institutions in providing their professional services to set market value once the property is under contract. 

Once your broker has researched your neighborhood’s recent sales of properties most similar to yours, several line-item adjustments will equalize the subject (your property) and the comparables (homes sold in the last 6 – 12 months in or near your neighborhood) for a suggested list price range.  Then the competition will be evaluated.  If new construction is in the area, the product, incentives, and desirability will also be considered.  Any home, in addition to yours, that would be included in a buyer’s tour must be carefully considered.

Once a range of value is determined using several calculations, it’s time to discuss price.  If your home is found to be a unique value, then its suggested list price would be on the upper range of calculated value.  This unique value may include condition, location, or the fact that there’s nothing like it available in your price range.  Here’s where sellers sometimes are tempted to become greedy. 

It’s just not worth the potential sabotage to your sale to price your property greater than ten percent above the suggested list price of your broker.  Buyers are out touring the listed homes and generally getting a better hands-on look at competing inventory than most sellers, and will see the inequity.  Most won’t make the offer even if they like the house.  What seller wants lots of showings, but no offer? What buyer wants to make an offer, only to hear “No?”

Take your broker’s advice in pricing your listing.  The result will be a quicker sale at a higher percentage of the list price.  Who wants the deal to fall apart when the appraisal is returned?

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I love what I do, I’m good at it, & I’d love to work with you! My personal best is 8th with foreclosure bid; we not only won (it was NOT more $), but listing agent complimented me on my complete package, & asked permission to use my secret weapon! 

My listing was on Google, first page, number three position, ‘above the fold’ within minutes of my blog post featuring it!

Chrystal is a REALTOR® and principal of The Safari Group, a local, homegrown real estate firm, specializing in all phases of the residential and small business real estate market, including New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, Foreclosures, Short Sales, and Luxury Homes and GREEN Features.  Contact her at 704.562.1030 TXT/PH or Chrystal@TheSafariGroup.com

Eliminating the Top 3 Short Sale Problems

Short Sales have a specific benefit to neighborhoods.  In contrast to a foreclosure, where the bank takes possession of the house and it sits on the market for months or even years, a short sale allows one family to move out and the next family to move in.  It reduces the number of vacant homes in the community that may invite mischief or decline in condition, and keeps the property and yard well-kept.

The Top Three Short Sale problems include:

1. The process takes too long.
2. Broker Price Opinions from offsite brokers can inaccurately reflect a property’s value in its market.
3. Inexperienced agents are not able to execute the arduous and complex process with the strategies, knowledge and grace needed.

Statistics show that fewer than 40% of short sales close.  This is due in part to the volume of short sales managed by a lender’s asset management department, and in part to buyer frustration caused by delay ending in a withdrawn contract.

Delay can be caused by the bank-selected offsite broker’s inexperience with the local market values resulting in the return of an abnormally high broker price opinion of the property’s value.

Or your listing agent’s lack of knowledge of skill in the short sale transaction.  

“‘Short Sale’ is not a legal term, but a term of art,’ says Scott Green, Attorney at lawAvania in Charlotte, NC.  However, there are certain legal consequences of the short sale that can be decreased or eliminated by following expert legal counsel from an experienced real estate attorney such as Scott.  His firm specializes in partnering with the seller and listing agent to protect the transaction from floundering and to reduce the legal affect a short sale has on the seller’s assets, tax liability, credit worthiness, and future home buying ability.  From coordinating with the bank’s negotiator to representing the seller at the foreclosure hearing, Scott and his team attempt to postpone the forced sale of the home, allowing the homeowner more time to complete the short sale process. 

Buyers benefit by having their transaction coordinated by a short sale specialist attorney to assure closing on time.

Scott doesn’t list your home for sale or negotiate your offer to purchase and contract – that’s your REALTOR®’s job.  Scott’s expertise, added to your Short Sale Experienced REALTOR®’s part of the transaction, brings 95%+ more short sales to the closing table.

My job as your listing agent is to accurately set the list price on your property using the latest comparable sold properties in your neighborhood, to uncover your net, represent your best interests in the transaction from concept to closing, and to coordinate behind the scenes with your bank knowing the scope and sequence of events and documents required to bring you to a successful closing.

If you, or anyone you know in the Charlotte Metro area, is facing a short sale, please give me a call.  I am a highly trained and experienced with the short sale transaction and can make the difference between closing and not closing on your sale.

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I love what I do, I’m good at it, & I’d love to work with you! My personal best is 8th with foreclosure bid; we not only won (it was NOT more $), but listing agent complimented me on my complete package, & asked permission to use my secret weapon! 

My listing was on Google, first page, number three position, ‘above the fold’ within minutes of my blog post featuring it!

Chrystal is a REALTOR® and principal of The Safari Group, a local, homegrown real estate firm, specializing in all phases of the residential and small business real estate market, including New Construction, Finance, Marketing, Objection Handling, Relocation, Technology, Foreclosures, Short Sales, and Luxury Homes and GREEN Features.  Contact her at 704.562.1030 TXT/PH or Chrystal@TheSafariGroup.com

Ways to Make Your Home Sell Faster and For More Money

In addition to right pricing, condition, condition, condition is the watch-word for selling a home faster and for more money.  Simple fixes and staging practices can focus buyers’ attention in the right places and keep them from getting sidetracked by personal items in the home.

 

Condition Affects Perception   

 

Presentation begins with online pictures and continues with the front yard and door, and are the buyer’s first impression of your product.  If buyers won’t drive by or leave the car, you can’t make the sale.  Clean the gutters, paint the front door, pull weeds and spent flowers, polish the hardware, and power-wash walkways and siding.  Pay attention to the specific needs of each season.

 

 Be prepared for a white glove inspection. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain, and inspect the oven. Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral. 

 

Eliminate furniture that makes rooms feel crowded or décor that will distract buyers from your home’s architectural features.  

Use furnishings to give each space a logical identity.  Although it may have worked best for your family to use your formal dining room as a home office, get rid of the desk and computer, and bring back the dining table and chairs.

Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious. Store personal items, including toiletries; stash family photos and team and religious memorabilia.  Remember, you are preparing your home to become a product for market; one that appeals to the broadest market.  Don’t feel offended that your REALTOR® insists your coveted widget collection is stored, away from view.  Plus, the condition or state of your property’s storage capability is very important to buyers whether the home is 1100 square feet or 11,000 square feet.   Make the place look both spacious and suitcase ready.

Dripping faucets, burned-out light bulbs, and squeaking hinges become a distraction and can falsely magnify a home’s need for routine care and maintenance and tend to make the buyer question the condition of other items that can’t be seen, such as the HVAC, roof, and other expensive items.

 

Finally, ask yourself, “Is this property’s condition what I would like to see when I go house hunting this afternoon?”

 

Condition Affects Proposition$

 

The buyer is mentally subtracting thousands of dollars from your list price with every flaw he sees and his perception of your property will be reflected in the offer price.

 

Condition Affects Performance

 

With FHA loans offering competitive rates with conventional loans, and the FHA lending requirements more attainable by a larger number of prospective home buyers, condition becomes important where an appraiser in concerned.  Same is true for VA loans.  FHA and VA appraisers have a much different inspection checklist than if he or she were inspecting for a conventional loan.  Condition is key.  Some defective items may be required to be repaired prior to closing.  This can come as quite a shock to both sellers and buyers, especially when the condition of the house has resulted in a much lower sales price than allows the seller needs to cover the cost of required repairs.   Buyers may find that sellers are not willing to make the necessary repairs and it may leave them vested in the process, but unable to get money spent on inspections refunded.  Here’s where you’ll need a savvy real estate broker on both sides of the transaction who’ll make sure the seller’s and the buyer’s best interests are protected with knowledge of what FHA property conditions are.  This will help insure an smooth, on-time closing.

 

 

 

For a checklist on how to prepare your home for market, email your request to: chrystal.safari@gmail.com

 

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February 2006

I highly recommend Chrystal Safari as a Real Estate Broker. In the selling and purchasing of our home she worked with us for over 9 months, even before we were sure about selling and re-purchasing. With her input we were able to sell our home in 7 days. In the purchasing of our new home Chrystal was very patient and extremely knowledgeable. Chrystal took us thru several neighborhoods and areas and providing us with great feedback and input on what is a great investment and purchase for our family.  Chrystal has a great knowledge of real estate, including national markets and international markets. Chrystal was born and raised in the area; she has lived aboard and has strong ties to the international communities here in Charlotte. Chrystal has provided us with so much information, I think it would be worth your time to just take a couple of minutes and speak to her about what you and your family’s needs and desires are in your new home.

Desi and Dinika B.
South Charlotte