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MY REAL ESTATE ADVICE

Here's some helpful real estate advice for you.


Setting a good price for your property

Listing property at 5% above current market value gives it a sales advantage that is ten times greater than if priced at 15-20% above. An overpriced home will suffer from lack of exposure, and the longer it remains on the market the more difficult it will be to sell. And it will remain so, even after price reductions are taken to attract buyers.

Earnest Money

How much earnest money should you give the seller? A good rule of thumb is 1% of the offered price, so consult with your agent.

The listing broker will hold your money in a special trust account until the transaction closes, at which time it will be applied to your down payment.

If the seller doesn't accept your offer or if some condition of the contract is not satisfied, the listing broker will refund your money.

One word of caution; if you have a meeting of the minds with the seller and enter into a binding contract, you will be required to perform. Should you decide to walk away, you will lose your earnest money and perhaps worse...

Appraisals, help the appraiser and yourself . . .

Provide your appraiser with any information or records that may help determine the proper market value for your home. Some examples include a property survey, mortgage, recent sales and listings in the area, the title policy, items remaining with the house and a "brag" sheet about the house.

You should also provide the comparable listings and sales data from the BMA so it can be considered in the appraisal.

Take a minute to assess your home in terms of the following:

  • Local taxes.
  • Plat survey: size of lot, topography and landscape, easements.
  • Deed. (Is the title clear? Are there any deed covenants that would limit use or resale opportunities?) List of improvements, especially to kitchen and bathrooms. (Do you have permits, if required, for the alterations?) Homeowner warranties.
  • Value and condition of neighborhood houses.
  • Zoning of, and plans for, any nearby vacant land.
  • Age of neighborhood.
  • Ease of access to work, schools, shopping and recreation.
  • Adequacy and cost of utilities.
  • Adverse influences (such as proximity to highways, high tension wires, commercial areas).
  • Present and proposed assessments.