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Common Q&A About Selling Your
Home - Q & A
| Q: |
Do sellers
have to disclose the terms of other offers? |
| A: |
According
to experts, sellers do not have to disclose other offers |
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| Q: |
Should I add
on or buy a bigger home? |
| A: |
Consider
these questions before making a choice between adding on to an existing
home or moving up in the market to a bigger house:
* How much money is available, either from cash reserves or through a
home improvement loan, to remodel the current house?
* How much additional space is required? Would the foundation support a
second floor or does the lot have room to expand on the ground level?
* What do local zoning and building ordinances permit?
* How much equity already exists in the property?
* Are there affordable properties for sale that would satisfy housing
needs?
Ultimately, the decision should be based on individual needs, the
extent of work involved and what will add the most value.
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| Q: |
What are
some tips on negotiation? |
| A: |
The
more you know about a seller's motivation, the stronger a negotiating
position you are in. For example, seller who must move quickly due to a
job transfer may be amenable to a lower price with a speedy escrow.
Other so-called "motivated sellers" include people going
through a divorce or who have already purchased another home.
Remember, that the listing price is what the seller would like to
receive but is not necessarily what they will settle for. Before making
an offer, check the recent sales prices of comparable homes in the
neighborhood to see how the seller's asking price stacks up.
Some experts discourage making deliberate low-ball offers. While such
an offer can be presented, it can also sour the sale and discourage the
seller from negotiating at all.
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| Q: |
How do I
prepare the house for sale? |
| A: |
Making
your home look as nice as possible may seem obvious. Apparently, it's
not, because many sellers don't do much beyond vacuuming the living room
rug and maybe cleaning the ring off the bathtub, says George Devine, in
"For Sale by Owner," Nolo Press, Berkeley, Calif.; 1993. Short
of spending a lot of money, Devine offers several steps people can take
to make their home show better:
- Sweep the sidewalk, mow the lawn, prune the bushes, weed the
garden and clean debris from the yard.
- Clean the windows and make sure the paint is not chipped or
flaking.
- Be sure that the doorbell works.
- Clean and make attractive all rooms, furnishings, floors, walls
and ceilings. It's especially important that the bathroom and
kitchen are spotless.
- Organize closets.
- Make sure the basic appliances and fixtures work. Get rid of leaky
faucets and frayed cords.
- Ensure that the house smells good: from an apple pie or cookies
baking, for example. Hide the kitty litter.
- Put vases of fresh flowers throughout the house.
- Pleasant background music is a nice touch.
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| Q: |
How long do
bankruptcies and foreclosures stay on a credit report? |
| A: |
Bankruptcies
and foreclosures can remain on a credit report for seven to 10 years.
Some lenders will consider an borrower earlier if they have
reestablished good credit. The circumstances surrounding the bankruptcy
can also influence a lender's decision. For example, if you went through
a bankruptcy because your employer had financial difficulties, a lender
may be more sympathetic. If, however, you went through bankruptcy
because you overextended personal credit lines and lived beyond your
means, the lender probably will be less inclined to be flexible.
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| Q: |
What do all
of those real estate acronyms in the ads mean? |
| A: |
If
you find yourself stumbling over weird acronyms in a real estate
listing, don't be alarmed. There is method to the madness of this
shorthand (which is mostly adopted by sellers to save money in
advertising charges). Here are some abbreviations and the meaning of
each, taken from a recent newspaper classified section:
* assum. fin. -- assumable financing
* dk -- deck
* gar -- garage (garden is usually abbreviated "gard")
* expansion pot'l -- may be extra space on the lot, or possibly vertical
potential for a top floor or room addition. Verify actual potential by
checking local zoning restrictions prior to purchase.
* fab pentrm -- fabulous pentroom, a room on top, underneath the roof,
that sometimes has views
* FDR -- formal dining room (not the former president)
* frplc, fplc, FP -- fireplace
* grmet kit -- gourmet kitchen
* HDW, HWF, Hdwd -- hardwood floors
* hi ceils -- high ceilings
* In-law potential -- potential for a separate apartment. Sometimes,
local zoning codes restrict rentals of such units so be sure the
conversion is legal first.
* large E-2 plan -- this is one of several floor plans available in a
specific building
* lsd pkg. -- leased parking area, may come with an additional cost
* lo dues -- find out just how low these homeowner's dues are, and in
comparison to what?
* nr bst schls -- near the best schools
* pvt -- private
* pwdr rm -- powder room, or half-bath
* upr- upper floor
* vw, vu, vws, vus -- view(s)
* Wow! -- better check this one out.
Resources:
* "Real Estate's Ambiguous Language You Oughtta Understand,"
Glennon H. Neubauer, Ethos Group Publishing, Diamond Bar, CA; 1993.
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Copyright 1999 Inman News Features
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