USLegal Offers Tips for Buying or Selling Your Home
Home sales are kicking into high gear for spring and summer. Whether you are considering buying or selling a home, a real estate transaction involves a major legal obligation. The following information for potential home buyers and sellers is taken from the LegalLife Multistate Guide and Handbook for Selling or Buying Real Estate.
For Buyers
Buying vs. Renting
The decision of whether or not you should buy or rent property is based on a number of factors. If you decide to live in an area for a brief period of time – say less than 2 years, renting may be best. Other the other hand, if you have decided to settle in a location for many years, home ownership might be your goal.
Do you qualify for financing?
Unless you have the cash to pay in full, one of the first things you’ll have to do in buying a home is to see if you can qualify for a mortgage loan from a financial institution. Factors that go into qualifying for a loan include your credit rating, level of income, and assets. If you have found a home you are interested in buying, you can contact any number of lenders who will help you with the qualification process and tell you more about what types of loans are available, what loan amount you are approved for, or if not approved, what you need in order to try to quality for a loan in the future.
Real Estate Agents
A real estate agent can help in finding a suitable home at the right price and generally takes a commission for their services. Realtors have access to computer databases containing information on all regional property sales and can accurately ascertain the value of property in any area. In transactions where there are real estate agents representing both Buyer and Seller, the Seller normally pays all agents out of the sale proceeds (though this may vary by region). However, if the Seller is selling the home himself, without an agent, then he may not be willing to pay the Buyer’s agent. Buyer may have to pay the agent himself. When a Buyer is considering obtaining an agent, the Buyer should question the agent on how the agent’s fees will be paid in the even that the home purchased is “For Sale by Owner.”
For Sellers
Setting an Asking Price
How much is your house worth? The answer can be found in what similar houses are selling for in your neighborhood. Local real estate agencies are good sources of information on local housing market prices. Call an agency and ask for a Comparative Market Analysis, a document listing recent sale prices for homes in your area. Many websites now offer information online in terms of what homes are selling for in your local area.
Advertising and Showing through a Realtor
In order to get your house sold, you have to get the word out to potential buyers that your home is on the market. You have to advertise. A chief advantage of using a real estate agent to sell your home is that the agent acts as your “advertising executive,” using a database known as the “multiple listing service” to get the word out to all other realtors that your home is for sale. This makes advertising easy.
In addition to using the multiple listing service, you can ask your realtor about advertising in local newspapers or magazines.
Selling a Home on Your Own
If selling on your own, you can place a “For Sale By Owner” sign in your front yard. Purchase one from a home-supply store or make one yourself. Make sure your sign looks nice, is durable, includes your phone number, and can be seen and read clearly from the street.
To increase awareness of your home, you can call your local newspaper directly and ask about real estate advertising rates. Typically, you can place an ad, probably with a picture, that will run for several weeks at a reasonable price.
Many internet websites offer the same home listing services as newspapers. More people are browsing homes on the internet every day, and it may be in your interest to check into placing an ad on one or more real estate websites. Use an internet search engine to search for the terms “Real Estate Advertising.”
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Real Estate Handbook
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The LegalLife Multistate Guide and Handbook for Selling and Buying Real Estate is a concise and informative summary of procedures and guidelines to make your home selling or purchasing experience as smooth and profitable as possible. Where appropriate, specific state law provisions are included for your state. The Handbook discusses considerations important to the sale or purchase of property from the moment you begin thinking of selling or buying. Topics include whether or not you need a real estate agent, preparing the property for sale and the house-hunting process. Financing, the contract, inspections and closing are also covered. Through increasing your knowledge of the very specialized “game” of real estate sales, our Handbook can lower your stress, raise your profits, and is the smartest first step you can take. Arm yourself with knowledge from the experts, and avoid stressful and costly surprises.
Your Legal Life
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Law and Legal Definitions
What is a deed?
A written document for the transfer of land or other real property from one person to another.
What is real property?
Real property generally means land and all the things that are attached to it. Real property is of a permanent and immovable nature.
Who is the grantee?
The grantee is the person who is receiving the property being transferred.
Who is the grantor?
The grantor is the person who is transferring his or her interest in the property in question.
Is recordation necessary?
Generally, in order to be enforceable both between the parties and toward third parties, deeds must be recorded.
What is a warranty deed?
A deed that provides that the person granting the deed agrees to defend the title from claims of others. In general, the seller is representing that they fully own the property and will stand behind this promise. The warranty deed is the most common type of deed used to transfer property from one individual or business to another. Warranty deeds usually require that a title search be conducted by a trained professional to ensure that the property is free and clear of liens or encumbrances. Any lien or encumbrance discovered would effectively “cloud” the title of the property and make warranting the property risky or impossible.
What is a quitclaim deed?
A deed that transfers the owner’s interest to a buyer, but does not guarantee that there are no other claims against the property. Quitclaim deeds are also used when an heir or former spouse gives up all interests in a piece of real estate.
What is a deed of trust?
A legal document conveying property to a trustee, often used to secure an obligation such as a mortgage or promissory note. A deed of trust typically specifies, among other things, the collateral for a loan, and gives a lender the right to seize and sell the collateral if the borrower fails to repay.
For more legal definitions, please visit our free online legal dictionary at http://definitions.uslegal.com/.
