Date: 11/24/2003
If you have lived in your house for two of the past five years, you can automatically avoid paying capital-gains taxes on up to $500,000 profit per couple or $250,000 profit for an individual. Even if you haven’t lived in the house a full two years, you can receive a partial exemption if you have to relocate for work, health, divorce, or other circumstances beyond your control. (Refer to IRS publication 523.)
|
|
Date: 11/24/2003
To decide whether you are ready to use a discount broker, ask yourself the following questions...
|
|
Date: 11/24/2003
That depends on the agent. Many agents work as both buyer’s agents and seller’s agents. Each relationship is transaction based, so the house you buy and the house you sell will require you to sign separate agreements. Both of you would have to agree to the representation.
|
|
Date: 11/24/2003
The repairs that you choose to make will depend on how the contract is worded and how motivated you are to sell. You may choose to adjust the purchase price or contract terms instead of making the repairs, but the buyer may not be obligated to accept. Major repairs will generally require a renegotiation. Your agent will be able to advise you on a case by case basis concerning common practices and negotiation tactics.
|
|
Date: 11/24/2003
Your listing agreement stipulates how much total commission you will pay and whether your agent agrees to share that commission with the agent who brings the buyer to you, including buyer brokers. Some buyer’s agents work under different forms of compensation though, including hourly charges or up-front retainers. Even in these circumstances, these fees are often applied against commissions received at closing, so usually you will end up paying the same amount regardless of whether that agent is working for the buyer.
|
|
Date: 11/24/2003
In principle, if a buyer’s agent will be paid out of the commission proceeds from the sale of your home, he or she does have an incentive to increase the price the buyer pays for the home. In practice, a buyer’s agent who works that way will receive little referral business and will ultimately lose far more than he or she has gained. The opportunity for a conflict of interest is actually diminished when buyers are represented by an agent who works for them.
|
|
Date: 11/24/2003
Setting the right asking price is the single biggest factor in ensuring that your house sells quickly. Beyond that, be sure that your home is freshly cleaned and ready to be shown. Make your home available every time an agent calls to set up a showing, and be sure to leave the house to give the buyers time to linger and take in the best features of your home.
|
|
Date: 11/24/2003
Ensure that your house has neutral décor in move-in condition comparable or better than the other homes that are currently on the market. Present a great first impression and a scrupulously clean interior, remove clutter and ensure that your rooms are well-lit and bright. When combined with a reasonable asking price, these factors will help your home sell itself.
|
|
Date: 11/24/2003
Setting an asking price is tricky. If you ask too much, your house won't sell, but on the other hand, if you ask too little, you are giving away money that rightfully belongs to you. The right price depends on a lot of factors including:
|
|
Date: 11/24/2003
Agents are obligated by law and custom to disclose who they are working for, but this applies primarily to the buyer/agent relationship. Buyer’s agents should, however, notify you when they make the appointment to show your home. If they don’t, feel free to ask. Your agent will certainly obtain that information either way when she, or he, calls to follow-up after the showing.
|
|
