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selling your home - questions & answers |
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| 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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