Everyone is cost-conscious these days, and permits do have a cost. But before making the decision to skip that step, read on to see what things happen in the field, catching sellers off-guard. Sometimes these short-term savings have a much higher cost in the long run.
Do-it yourselfers assume that they are saving money by skipping the permits for room additions or modifications. Another motivation is the assumption that improvements will trigger a tax increase.
What many people find out the hard way is this:
Even worse, when a property falls out of contract, the seller may need to make those needed repairs anyway OR disclose those material facts to the next buyer. That costs time on market, often leading to a reduction in price, or a stigma that there is something wrong with the property.
The fact of the matter is simple – it is what it is. If you don’t have a permit and you plan on selling your house, do some investigative work. Prior to selling you could:
Often times I see sellers turn a blind eye and hope that the problem will just go away. Well, that’s rarely the case. Talk to the City, find out what is permitted and what is not, and take measures to rectify the issue, or at the very least, disclose it to the buyer upfront. Then when a buyer makes an offer on your property, you’ll know it is with a full understanding of what is permitted and what is not.
Getting an offer quickly is great, and more than one? Even better. Your house was priced correctly and appealed to a variety of buyers. In the Tri Valley real estate market, many sellers experience multiple offers, and this isn’t just at the lower price points –the competition is fierce.
Your agent will give you guidance on this, but here are a few tips.
Pricing – 90% of marketing a home is related to pricing. A house in poor condition or very out of date can be overcome by aggressive pricing. Is there a market in your area for fixers? This may be an option for you depending upon your timeframe and motivation for selling. (more…)
Those living in most areas of the East Bay are aware that the market has turned. Move up buyers are those who can benefit greatly from this market – it’s much easier to sell in a low inventory/multiple offer market. But purchasing a replacement home offers a few more challenges. So what are your options? (more…)
Negotiation has always been a component of real estate. But it’s not mandatory. One party can try and the other can say no. So much of that has to do with how the market is, and whether it’s a buyer’s market, a seller’s market or a balanced one. Negotiating is very common in a balanced market.
WHAT KIND OF MARKET IS IT?
Buyer’s Market – price tends to be first and foremost. The longer a property has been listed, the more likely a below-asking offer will be submitted – especially if it is the only offer. Once two parties come to agreement, there is usually another round of negotiation regarding repairs. When listed properties are plentiful, the buyer has other choices and may play hardball where offers are concerned.
Seller’s Market – appreciating prices and/or low inventory put sellers in the driver’s seat. They push back on price, and know the buyers don’t have a lot of other properties to choose from. They may also be competing with other buyers for the home. If the seller encounters a buyer with strong financing though, it’s less likely they’ll take too many chances where repairs are concerned. (more…)
Getting an offer on your property doesn’t mean that it is sold. Not all buyers make it to the finish line for various reasons – property condition, failure to get final loan approval, job transfer mid-contract. So while we may expect a 30-day escrow that may not turn out to be the case.
The terms of your loan with the bank on your property require monthly payments. Even though you have communicated to the bank that you are selling the house, that does not change your obligation to pay, and to pay timely. Here are a few good reasons to keep things on track: (more…)
When speaking with prospective sellers about selling their homes, the topic of disclosures of course always comes up. “Do I have to tell about the neighbors? And while most people have great relationships with others on their block, there are some who have minor annoyances they share, such as:
“I’ve heard spring is the best time to put my Livermore house on the market, and of course, my garden looks so nice at that time of year”. It’s true – homes do look wonderful with their greenery and colorful blooms. And the weather is certainly more accommodating to go out and tour houses. But since everyone else has heard that too, you may have more competition if you come on the market in spring.
“No one buys homes during the holidays”. Not true. Look at a few numbers for Livermore. (These are for single family detached homes sold in 2010).
*December of 2010 had the third highest number of unit sales (next to May and June). (more…)