Like toilet paper at the start of the pandemic, homes are flying off the shelves all across the country. Existing home sales hit 6.1 million last year, which was the highest level since 2006. Believe it or not, we’re on track to beat that in 2022!

If you’re buying or selling a home, preparing for closing can be stressful, especially if this is your first time. Fortunately, all you need is a checklist to make it easier to prepare. Here’s a comprehensive home closing checklist to help you reach a smooth and successful closing!

The Ultimate Pre-Closing Checklist

Before we get started, what is a closing checklist, and why is it important?

Well, there are two types of closing checklists for both sellers and buyers, and we’re going to discuss both of them. The first includes everything you need to do before closing. This is the essential checklist for closing on a house!

1. Finalize Contingencies

As a seller, you may have several contingencies hanging over your head before closing. Finalizing these should be your top priority. As a buyer, you should verify that these contingencies have been finalized ahead of closing.

For any home inspection contingencies, buyers may back out of a sale or request that something is fixed before closing. If that’s the case, it is the seller’s responsibility to handle these issues ahead of time. 

With an appraisal contingency, buyers may hire a third party to evaluate the fair market value of the home. If the appraised value is less than the sale price, this contingency allows buyers to back out of the sale without forfeiting any applicable deposits. If you haven’t had an appraisal yet, find your home value today to get ahead!

There are also financial contingencies. These give buyers the right to back out if their mortgage approval falls through. Buyers will have a specified period (stated in the sales contract) when you have to obtain a loan that will cover the cost of the home.

If any of these contingencies apply to your sale or purchase, finalizing them ahead of closing is essential. Otherwise, the closing could be delayed or canceled altogether, leading your sale or purchase to fall through. If you have a desired sale/purchase timeline, this could easily ruin it.

2. Clear the Title

When you buy a home, you “take title” to the property, establishing legal ownership. This is a process confirmed by public land records in your town. Your mortgage lender will require a title search to ensure the title is clear. In most cases, you’ll need to purchase title insurance to protect you from legal claims to the house.

The reason for clearing the title is that distant relatives, an ex, or another family member can later claim that they actually own the home and the seller had no right to sell it. Clearing the title will ensure that this doesn’t happen, which will directly save you money and potential future headaches!

Homebuyers are entitled to choose a title company to handle this process. They can get recommendations from their real estate agents, mortgage lenders, or friends. Before making any commitments, ensure that you review the reputation and licensure of each company online.

3. Review Your Documents

Always read and review closing disclosures, contracts, and other documentation before closing. Even if your real estate agent gave you all of the information you need, it doesn’t hurt to look through everything once more before making your final moves. 

4. Get Homeowner’s Insurance

You’re going to need homeowner’s insurance anyway, and your lender will likely require it for final approval. Get on top of this as soon as possible, along with any other insurance policies you may need. These may include title insurance, mortgage insurance, and others.

This could cause unnecessary delays in the closing process, so shop for the policies that fit your needs and open them as soon as possible.

5. Conduct a Final Walkthrough

Your final walkthrough should take place around 24 hours before your closing. Investigate your new home and ensure that everything is as stated and that nothing has changed since you last viewed it. If there were contingencies on the status of the home, use this time to verify that your concerns have been addressed. 

This is also a good time to ensure that the sellers have officially vacated the premises, have not left any messes behind, and that you will be ready to move in after closing.

Remember, neglecting any of these can cause a sale to fall through, which is more common than you may think. 3.9% of sale contracts, which is about 1 in 20, fall through before closing!

6. Get the Final Mortgage Approved

By this point, you’ve probably been pre-approved for a loan. Now, it’s time to finalize that approval with the underwriting process.

Underwriters are like mortgage investigators. Their job is to verify all of your claims on your application and ensure that you’ve represented yourself and your family truthfully. This will likely involve a credit check, home appraisal, and verification of your financial portfolio.

This process typically happens right before closing. Try to avoid anything that will harm your credit score in the short term around this time, including opening new accounts. Hard inquiries won’t last for long on your credit score, but they could temporarily harm it, which could be devastating timing right before underwriting!

7. Prepare For Closing Costs

If you’re a first-time homebuyer, you may not know all of the closing costs that come with closing on a home. It’s best to prepare for these in advance, especially after the down payment. Common closing costs include:

• Title or attorney fees
• Pre-paid property taxes
• Mortgage insurance
• Lender fees
• Property-related fees

Typically, these costs add up to around 2% to 5% of the home’s value. Having these costs prepared in advance will ensure that you won’t meet any unexpected financial trouble. You can use a closing cost calculator for a better idea but always aim to save on the higher side, just in case.

8. Consult With Your Agent

Your real estate agent is your primary resource for your decision to purchase or sell your home. After finishing this checklist, consult with them before closing and ensure that you are getting a good deal. Feel free to ask questions or voice your concerns about the sale/purchase and ask for their professional opinion.

If you have any qualms, your agent should understand and respect that. They’re there to help you get the best deal possible, so keep shopping around.

However, not all of us want to go through an agent and spend thousands of extra dollars. If you want to sell your home fast and get a cash offer with a fair appraisal, learn how to close fast!

Day-Of Closing Checklist

As the closing date closes in, there are items you’ll need to bring with you. If you don’t have them, it could delay the closing process. Here’s your final closing on a house checklist!

Photo ID

Your lender will need to make copies of your photo ID to open your mortgage loan. If you have a cosigner, like a spouse, they will also need to bring their photo IDs.

Cashier’s Check

Sellers and buyers will need to pay a cashier’s check in the amount specified by their lenders. This is known as your “cash to close,” which is the total amount needed to close (or open) your mortgage loan.

Proof of Insurance

For buyers, you will need proof of insurance to open your mortgage loan. Most lenders will need to verify your insurance, credit score, and other aspects before opening your loan officially, even if you were pre-approved.

Documentation

Bring a copy of your contract with the seller, the home inspection report, and any additional paperwork requested by the lender. Feel free to contact your lender ahead of time and ask if they need anything specific, and try to keep everything in one place to ensure you don’t forget anything!

Use This Closing Check List Wisely

Now that you have your definitive house closing checklist, you can have a smooth transition into your next chapter in life. Closing on a house is a big deal, especially for the first time! Yes, there is a lot to do, but it doesn’t have to be stressful if you know what you’re doing.

The post Closing On a Home Checklist: The List For Sellers appeared first on iBuyer Blog.

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It might shock you to know that 95% of new homeowners discover issues with their homes after they’ve closed the deal. That’s why a home inspection before buying is so important. While they aren’t mandatory for your home, they can save you a lot of problems down the line. This is especially true if you want to sell your home.

But knowing what should be done after an inspection isn’t always clear. Understanding what’s a legal requirement and what isn’t is confusing. Knowing the right path to take after a home inspection will increase the value of your home and save you money in the long run.

One way or another, if you’re thinking about selling you should have a home inspection. If you’d like to learn more about what fixes are mandatory after a home inspection, keep reading.

What Areas of the Home Do Home Inspections Cover? 

Before knowing what happens after a home inspection, you should be aware of what an inspector will look for during one. A dedicated home inspector should look at every area of your home. This includes interior and exterior parts.

Inside your house, your home inspector will start with the floors, walls, and ceilings. They will search for cracks, loose flooring, dampness, and even mold. This is to make sure the structure of your house is secure. 

Along with this, a home inspector will check your heating and ventilation systems. These systems are important parts of your home not only for comfort. They have the potential to cause safety hazards if they are not properly maintained. That’s why your home inspector must look at them carefully. 

Outside, your home inspector will want to look at your roof. However, they will only go on to it if it is safe to do so. They may ask to return at a safer time with proper equipment to inspect it if they think this is necessary. 

A home inspector will assess Your doors and windows both inside and outside your home. Your inspector will want to make sure these home components can function safely and open and close without difficulty. Your doorframes will also be inspected to ensure they are secure. 

Overall, most home inspections only take between 2-4 hours. However, they may take longer if you have a particularly large or old house. It is a good idea to have someone who knows your home will be present during the inspection if you cannot be. 

Your inspector doesn’t want you to worry, and they don’t want to get you in any trouble. They simply want to make sure your home is as safe as possible before selling. 

What Are the Most Common Home Inspection Repairs?

One of the most common repairs a buyer will request are fixes to the house foundation. This is an important repair, as foundation issues are not always easy to spot until they have become a serious problem. If a home inspector finds foundation problems, you should repair them quickly. 

Another common issue that often appears during home inspections is HVAC problems. Buyers will not want to move into a home that has issues in these areas, especially because HVAC problems can be harmful to health. A seller should repair these problems if they are found during a home inspection. 

Electrical faults, such as damaged wiring, are also commonly found during home inspections. This is particularly true of older houses. Old buildings may not have had their electrical systems updated for a long time.

Issues that are considered dangerous are the most commonly requested repairs. While the interior and exterior cosmetic issues will be noted, a buyer is more likely to want their safety concerns alleviated before purchasing your home. 

One non-safety repair that may reveal itself during a home inspection is plumbing issues. If your home experiences blocked pipes frequently your inspector will make note of this. This is not a problem new buyers want to deal with, and so it is in your best interest to make this repair before trying to sell your home. 

How Do I Read My Home Inspection Report?

A home inspection report might seem complicated. There is often a lot of detail to get through to figure out what needs the most attention in your home. But reading through it is important.

The first part of the report you should focus on is the summary. This will provide you with an overview of the most pressing issues in your home. You’ll find any potential health and safety concerns outlined here. These are usually also discussed in more detail throughout the report. 

After you’ve read through the summary, you should focus on where the inspector has determined your most expensive repairs are. These are usually issues like repairing roof damage or replacing door and window frames. These are the areas you can expect a buyer to want you to repair, and so you should use the report to calculate what this may cost you. 

Finally, you should make note of any cosmetic repair recommendations or less expensive repairs. While these are important, your buyer may be happy to repair these parts themselves. Your estate agent will offer you advice on what less significant repairs you should consider making to add value to your home. 

Who Does the Cost of the Repairs Fall On?

This will depend on the kind of repairs needed for your home. Most of the time, the cost of repairs will fall to the current owner of the house. Based on your home inspection maintenance report, these repairs could be safety concerns or cosmetic issues.

However, as a seller, you don’t want to spend too much money fixing up your house before purchasing. This decreases the amount of profit you make. It is common for buyers and sellers to negotiate repairs with the help of a real estate agent. It is common for buyers and sellers to negotiate repairs with the help of a real estate agent. 

Buyers will usually request that all safety repairs are paid for by the seller. This includes mold, faulty electrical wiring, and certain HVAC issues. If the seller agrees to this, they may ask that the buyer pays for any cosmetic issues themselves. These include lifting carpets, changing wallpaper, and even swapping out door and window frames. 

Do I Need to Let My Real Estate Agent Know?

Yes, both the buyer and the seller should let their respective real estate agents know that a home inspection is taking place. You should also show them the finalized report after the inspection is over. 

For a seller, a real estate agent is their best asset in terms of negotiation. If a buyer makes a repair request that is too expensive, unreasonable, or even not outlined on the home inspector’s report, a real estate agent can handle this for the seller. They may advise the seller to offer the buyer a slightly lower price for the home if the requested repairs are not made.

A real estate agent will also be able to clarify what repairs are necessary. These may be repairs that are required by the buyer’s lending body or repairs that the state has outlined as necessary. On other occasions, they may simply be repairs that the seller should agree to out of a duty of care for the new homeowner. 

Do I Have to Make the Repairs Outlined by the Inspector?

Some state laws require certain repairs outlined on a home inspection to be made. Generally, these are safety issues that risk damage to the structure of the house.

If a buyer is getting financing for their new home, then the repairs outlined in the inspector report may be required. Again, these repairs are generally safety issues. Mortgage providers consider these repairs carefully. If they are not taken care of before a sale is agreed upon, the buyer may have to spend more money than they can afford to make these repairs. 

The kinds of mandatory fixes after a home inspection exist to keep new buyers safe in their new house. It also reduces the chance of any legal issues following a sale agreement, as any problems within the home itself will have already been discovered. 

What Fixes Are Nonessential?

Some home inspection fixes are simply guidelines, and not necessarily required. These won’t be required by the company supplying the buyer with a mortgage, or by state law. 

Most nonessential repairs are aesthetic issues. For example, old carpets detract from the look of a room due to discoloring or worn fabric. While this may be off-putting for a buyer, a seller is not required to make this repair because it is not considered dangerous. 

There are other kinds of nonessential repairs. Countertops that are rotting due to damp or worn wood are not essential repairs. However, these are very off-putting for a buyer and could detract from the price of your home. 

The best way to know if repairs are essential or not is to ask both your home inspector and your real estate agent. They will be able to advise you on what you must repair, and what isn’t necessary. They’ll also let you know what you should repair to increase the value of your home. 

A home inspector won’t try to fool you. They will only report what they believe is a fault in your home that the buyer should know about. Following the advice on a home inspector’s report is the best way to know what you should offer to repair for your buyer. 

What Happens Between Buyer and Seller Following a Home Inspection?

After a home inspection is over, the buyer will be sent a copy of the report. This report will detail anything the inspector has found that they believe should be repaired. It will also contain details of potential hazards.

The buyer will discuss the report with a real estate agent. The estate agent will advise them of what repairs will need to be made to make the house safe. 

The buyer will then send requests to the seller outlining what they would like to have repaired. The seller then has several choices. They can agree to make all the requested repairs, agree to make some of them, or refuse to make any of them. 

There is usually room for negotiation between the buyer and the seller. However, as a seller, you should know that if you refuse to make any repairs it may result in the buyer backing out of the agreement. 

Once negotiations have been sorted out, closing the agreement can move forward. An appraisal will take place to know what the value of the property is. 

So, What Should Be Done After An Inspection?

The answer is up to you.

What should be done after an inspection depends on your home and what it needs. It also comes down to what the buyer wants. You should always bear in mind that if you don’t fulfill the buyer’s repair requests, they may change their mind about buying your home. 

A home inspection will not only improve your home’s appearance but also make it as safe as possible for a new buyer. That’s why you should listen to the advice of your inspector. Trust them to guide you on the right path to getting your home sold for the best price. 

The post What Do You Need To Do After a Home Inspection? appeared first on iBuyer Blog.

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Buying and selling a home are the biggest financial deals most people make in their lives. You’re working with hundreds of thousands of dollars. With such a big quantity of money, there’s bound to be a hiccup or two in the process along the way.

What do you do, though, when you think you’ve done everything perfectly, and the entire deal still falls apart? What are your next moves if a loan fell through the day before closing the deal? 

By the time you’ve finished reading this article, you will understand the reasons for closing day issues as well as what to do when your mortgage falls through. 

Why the Loan Fell Through Day Before Closing

It’s important to note that loans do not typically fall through on the closing date. If a mortgage loan is going to fall through, it will happen far before this critical date. With that said, no deal is secure until every paper is signed by all parties. 

Most often, a loan will fall through because of an issue with mortgage approval. For the buying party to put an offer on a home, they need a lender to pre-approve their loan. This is a preliminary step where the lender takes a cursory look at the loan application and puts a temporary stamp of approval on it. 

Most buyers will have the pre-approval process completed before they begin house hunting so they know how much of a house they can afford. Furthermore, most sellers require a pre-approval letter before they’ll even move forward with the negotiation process. 

Pre-approval, however, is not the same as approval. It makes approval likely but not a full-on guarantee. 

When a seller accepts the buyer’s offer, then the approval process begins. The buyer will apply for a mortgage, and the approval depends on the inspection and appraisal of the property. 

Thus, even if a buyer has had a loan pre-approved, it may not be approved in the end, and the deal will fall through. 

Here are a few common problems that could cause a home closing day problem. 

Financing Problems

If a lender pre-approves you for a loan, a seller should curb their credit-based spending for a bit. When they have a big purchase on credit between the pre-approval and approval time, a lender may choose to not approve the loan. 

The borrower will look much riskier with a big credit purchase on their record. Plus, big credit purchases and requests for more credit affect your credit score.

The same principle applies if a borrower applies for more credit after receiving pre-approval. The buyer simply looks like they’re needing more money for other purchases. This implies they may not be able to pay their mortgage regularly because they’re looking for credit in other places. 

If a buyer cannot avoid a big credit purchase, they should have cash on hand to cover the down payment that their lender won’t cover. 

A buyer could also apply for a loan with a different lender. This will take time, though. 

Appraisal Problems

Sometimes the seller will list a property for more than what it’s worth. The appraiser ultimately determines the financial value of the property. 

If a home is worth less than what a borrower wants to borrow for it, the bank will not approve a loan. 

Thus, if the appraisal comes back low, a buyer can ask the seller to lower the price of the home. However, if there are other buyers in the mix who can afford to buy the property and really want it, a buyer can offer to pay more upfront to offset the difference between the mortgage and the buying price.

It also helps to understand the markets in the region. This will assist with proper home pricing.  

Problems With a Title

Experts estimate that approximately 13% of home sales are delayed because of problems with titles. There are a variety of reasons a title may not be clean. Here are a few of the most common issues with a title: 

• Debts to contractors
• Outstanding taxes
• Bankruptcies
• Child support liens
• Not being the rightful owner

The title is the term used to indicate who legally owns the property as well as who has the legal right to use and sell the property. Thus, if multiple parties have a hold on a title, the title isn’t clean and the seller cannot sell the property. 

When a borrower attempts to borrow money, the lender will conduct a title search on the home. If the lender finds a title with issues, they will not lend money to anyone to buy the property. 

Sellers need to pay off their loans, debts, and taxes that could show up as a title defect before they list the property. 

Inspection Problems

Lenders require an official inspector to walk through and evaluate a home before they’ll approve a loan. Home inspections reveal problems that sellers may have neglected to explain to a buyer. So if a home inspection reveals a glaring problem, the lender may deny the loan approval. 

Sometimes the lender will just delay the process until the seller remedies the problem. For example, a lender may require the seller to fix a roof or a plumbing issue. Then once the seller has completed the repairs, the lender will approve the loan. 

Walkthrough Surprises

Approximately a week before a buyer and seller close on the property, the buyer will do a walkthrough of the home. If the buyer notices a problem, like a missing appliance, they can delay closing. 

To avoid this problem, the buyer and seller need to have a clear agreement on what is and what is not included in the property. The buyer and seller should also have an agree-on walkthrough checklist. 

Missing Disclosure Form

The closing disclosure form is the paperwork that outlines the buyer’s loan terms and other closing costs involved with the deal. The lender or title company will send the disclosure form to the buyer at least three days before closing and no later. This should give the buyer time to review the disclosure form. 

If the lender or title company sends the disclosure form later than three days before the closing date, then the buyer can delay the process. The buyer must have the disclosure form in their possession three days prior to the closing date. 

Paperwork Errors

Small errors in paperwork can delay closing dates. Wrong addresses, misspelled names, and extra fees thrown on the paperwork will delay the closing. Thus, a seller should preview all the paperwork carefully before the closing day to check for these small errors. 

Cold Feet

Sometimes a buyer or a seller will get cold feet. They may have remorse because the home is either very expensive or they have a sentimental feeling about the property. 

It’s natural for a buyer or seller to feel a little apprehension at the closing date. After all, this is one of the biggest financial deals they’ll ever make. 

What To Do When If the Mortgage Fell Through on Closing Day

Ultimately, no buyer or seller can control the financial behavior of the other party. So if your buyer decides to take out a massive boat loan after they’ve begun the buying process on a home, the seller can’t fix that problem. 

There are a few things both buyers and sellers can do, though, if the mortgage falls through on the closing day. 

Only Work With Pre-Approved Customers

First, a seller should only work with someone who has a pre-approved loan. This pre-approval indicates the buyer’s financial health and responsibility, and it increases the likelihood that this deal will go through. 

Take Earnest Money

If you’re nervous about losing money on a sale, don’t be afraid to require earnest money. You can even choose to raise earnest money. Earnest money is the amount of money a buyer must pay the seller ahead of time. 

This is a non-refundable deposit to the buyer. It guarantees the buyer receives something even if the deal falls through. 

Double Check Your Interests

If you’re hesitant about selling your home, don’t list it. Make sure you truly want to move before your list your home, and make sure you have a place to stay should your home sell quickly. 

A local real estate agent will understand your local market and have a clear recommendation on what to list your home for and how long you should expect it to be on the market. So prepare yourself for these two things before you list the home. 

Once you sign a purchase agreement, legally, you cannot back out of the closing. 

If the mortgage falls through, you can find yourself a new buyer, wait for your current buyer to come back with a different offer, or sell the home to a buyer who will pay you cash for it. 

Stay Calm, Have a Plan

You won’t quickly forget when your buyer’s home loan fell through the day before closing. However, you can have a plan in case this does happen. 

First, prevent such a happening by having all of your paperwork in order and by having a clear title. Then, work with your realtor to find the most secure buyer. 

Then you’ll have the memory of shaking the new buyer’s hand on closing day and finishing up one of the biggest deals you’ll make in your lifetime. 

Do you need to sell your home? If so, get started here. Take time to learn more about us and how our solutions work.

The post Mortgage Fell Through: Home Closing Day Problems appeared first on iBuyer Blog.

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Mean neighbors. Nobody wants to deal with them and almost everybody dreads it when they find out that they are surrounded by this type of neighbor. 

Neighbor problems tend to have a big impact on not only the morale of homeowners but also what they consider important for the next house that they may want to buy. In this survey, 73% of people said that they disliked at least one of their neighbors. 

If you are a home seller, you are probably going to be reluctant to give away a lot of information about bad neighbors. When it comes to legally dealing with bad neighbors, them being annoying is rarely enough to do anything. Of course, there are certain things that a seller’s real estate agent would have to disclose about a neighbor. 

So, what does a real estate agent have to disclose? And what information should you reveal about your neighbors to a potential buyer? 

This is your guide on how to deal with bad neighbors as a home seller. 

The Really Bad Neighbors 

There are certain neighbors that you are just not going to be able to avoid getting around as a seller. Usually, these are the neighbors that get caught up in legal issues. 

One of the biggest issues that can come up with a neighbor is if they are a registered sex offender. This is because, in the United States, sex offenders have to not only report where they are living but the whole neighborhood becomes aware of their presence. 

That information is easily attainable from certain websites including an official registry, offender maps, and even certain apps. 

Another example of a neighbor that is in trouble with the law is if they are involved in certain illegal activities. This can be anything from dealing drugs to stealing from other neighbors to even operating a meth lab from their own homes. 

A potential buyer is likely to hear about a situation like the above, particularly if that person’s crime involved a house that was in the neighborhood. 

If that happens to be the case with your neighbors, make it clear that the person is in jail if you know that they are not currently around and you get asked about it. If that neighbor is still in the picture, try to emphasize that they keep to themselves if that happens to be the case. 

It can be tricky dealing with neighbors that have public legal records because it is much harder to dance around those issues. Unfortunately, the best you can do is diffuse any potential concerns and hope buyers are not scarred from those neighbors. 

Property Line Neighbors 

The next type of neighbor that you may deal with is one that shares a property line with you. You may be that home seller that has had lengthy battles with someone who either disrespects your property line or makes a big fuss over every little thing that you have over the property line. 

Truthfully, both scenarios can be annoying to deal with from your neighbor but there is an easy solution to this. 

You may be tempted to hide information from a buyer but there is a direct way of dealing with this. If the neighbor is the one that has a problem with you and the property line, talk to them before selling the home and try to fix any minor issues that came from this. 

The issues can simply be a tree branch that is extending too far or putting your garbage bins partially on their property. If you can solve these quickly, you can eliminate that concern for the buyer and simply tell them where to place the garbage bins. 

However, if the neighbor is the one disrespecting the property line, that can be a bit tricky. In that situation, try to gauge as best you can how the buyer feels about longer trees in the backyard and the amount of space they have between them and the next house. 

After that, you can disclose what the official property line is and see their reaction to it. This may make the buyer see more possibilities with the home and they may be more willing to take legal action to use every inch of their assigned property. 

The Loud Neighbors 

Next, you may be facing neighbors that are on the louder side. These can be the types that blast their music through open windows, sit on their front porches late at night and scream, or those who have regular parties. 

Now, this does not have to be a bad thing. One tip as a seller here is to try and see what types of people the buyers are like. It is very possible that they are the partying type and they may not mind walking down the block to drink with new friends. 

However, you may run into families that are light sleepers. This can cause problems for kids trying to sleep on a school night or parents that are trying to get a good night’s sleep before going to work early the next morning. 

If you run into the latter, there are a few things that you can do to try to navigate this situation. The first thing that you can do is to try and limit their exposure to day visits and perhaps introduce buyers to the neighbors while everyone is a little quieter and laid back. 

The second thing that you can do is address the situation head-on. You can give buyers a little heads up that certain neighbors can get a little loud at night. 

With these bad neighbors, what to do legally? The answer is to call the police about a noise complaint. If this happens often enough, it should likely get those neighbors to back off and comply with the noise regulations. 

Using a Homeowner’s Association 

To truly neutralize a bad neighbor, one of the strongest things that you can have on your side is a Homeowner’s Association. In the United States, over 370,000 neighborhoods have them. Considering that there are only 50 states in the country, this means that the odds of you having one are pretty good. 

Those that are unfamiliar with this group are probably wondering what they do. Well, this is the group that is in charge of coming up with rules that everyone in their jurisdiction has to follow. 

Some of these rules can be minor things such as keeping up with lawn maintenance or making sure that garbage bins are collected within 24 hours. Other rules can be simply keeping up with dues that way the group can continue to offer certain services for houses in the neighborhood. 

Telling a buyer that there is a Homeowner’s Association in that neighborhood can be a great way to put their fears in check of a potentially bad neighbor. Also, they may have seen a neighbor of yours that made them concerned before finding out about said group. 

A Homeowner’s Association tends to hold every homeowner in it accountable and it can be the perfect driving force to drive a bad neighbor away. 

Talk to the Neighbors 

Finally, perhaps the simplest advice for dealing with bad neighbors is to simply talk to them. There may be something that you find annoying about a certain neighbor that a buyer could not care less about. 

Even better, a buyer may be willing to overlook a bad habit that a neighbor has if they get along as a person. This can be a great way to sell a buyer not only your home but the neighborhood. 

In this day and age, more and more neighborhoods are becoming strangers living next to each other rather than a true community. You or the buyer reaching out to certain neighbors can make them feel more connected to not only the neighborhood but their fellow neighbors as well. 

If a neighbor feels that connection, they are more likely to care about actions that impact the neighborhood and concerns of the community as well. Therefore, they would be more likely to listen to you if you brought up a concern about their behavior. 

Sell Your Home With Mean Neighbors 

You are likely going to deal with a large variety of mean neighbors. Some may be out of your control such as ones in the legal system while others like loud neighbors or ones on your property line may be more manageable. Try to get a Homeowner’s Association going or if that is not possible, try to have more open communication. 

Do you want to get an idea of what houses in your neighborhood are worth? Use our home valuation tool today to get started. 

The post Disclosure About Mean Neighbors When Selling appeared first on iBuyer Blog.

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Do you want to sell your home fast? If so, you may get lucky with a traditional sale, but cash sales are the quickest on average. Believe it or not, cash sales reached 30% of all home sales in 2021 for the first time in nearly a decade.

If you’ve never sold your home before and don’t know how cash sales work, don’t worry. We have you covered. So, if you’re thinking “I want to sell my house, where do I start,” then make sure to keep reading!

Set a Timeline For Selling

How quickly do you want to sell your house? If you have at least 90 days, then you should have no problem with finding a real estate agent and going the traditional route. However, you will have to consider the costs associated with this, as realtors will take up to 6% of your home’s value in commission.

If you want to sell quickly, you don’t have time to search through a sea of real estate agents and deal with buyers who are having trouble finalizing their mortgage loans. Paperwork and legal issues can get tied up for months, so it’s best to plan ahead for that.

Of course, if you want to sell faster, you’ll need to go for a cash sale. There are plenty of reasons why you may want to sell fast, especially for inherited homes, emergencies, or convenience.

Just understand that the traditional route is a commitment, even with a talented agent. You will need to answer phone calls, review paperwork, and pay more for a lot longer.

Get a Home Evaluation

Valuing your home is very important for a rough idea of pricing. If you’re going the traditional route and have time to wait, then it’s okay to price your home above the valuation to give more room for negotiations. However, this will likely take more time on the sale.

Get a Pre-Sale Home Inspection

Buyers will likely get their own inspections, but it’s a fairly inexpensive task you can do on your own to get ahead of the game. By hiring an inspector in advance, you’ll have an idea of what a buyer’s inspector will find. This will give you an opportunity to make necessary repairs to pass the inspection with flying colors.

Also, this will help avoid contingencies, bumps in the road, or contracts from falling through later on. Believe it or not, around 1 in 20 purchase contracts fall through before closing. It’s important to eliminate confusion or reasons for sales to fall through with a thorough inspection.

For as-is sales, you may not have to pay for an inspection. Instead, let buyers know that the sale is as-is and that they will be responsible for appraisals and inspections if they are interested. However, it may be faster to get an initial inspection yourself. 

Spend Money on Upgrades Wisely

Upgrades can be a boon to your sale or a major money sink. It all depends on what you spend. For example, if you can fix some minor things the inspector mentioned yourself, spend $20 on supplies, and save yourself from knocking off $1,000 from the price, then by all means!

However, if you need to hire a construction crew to come in and renovate your entire kitchen, you’re going to spend anywhere from $20,000 to $100,000. Will it add that amount to the home sale? Almost certainly not.

Some renovations and upgrades will have massive ROIs, especially if you can do them yourself. Increasing curb appeal can increase your home’s value by an average of 7%. You could easily do this by mowing the lawn, trimming the bushes, and repainting your front door can go a long way. 

On the other hand, large renovations are generally reserved for your enjoyment while you live there, and you will get a fair return on those costs when you sell the home. If you’re planning on selling soon, these aren’t worth the price unless absolutely necessary. Structural issues or contingencies on your contract will need to be addressed, but don’t go overboard beyond that!

For more information, check out our guide on increasing your home value and which myths to avoid sinking your money into. If you don’t want to put in the money for upgrades, don’t worry. You can always list the home “as-is” to avoid issues with the sale.

Market Your House Appropriately

Once your house is in the right shape for the sale, it’s time to market your home online. You just need to find the right platforms and techniques for your specific sale.

Traditional Home Marketing

If you want to go the traditional route, your real estate agent will likely handle this part for you. This will start with staging and photographing your home. From there, they will list it on appropriate platforms and schedule times to meet with interested viewers!

Some realtors will have other marketing strategies, and you may have specific requests! Make sure you consult with your agent ahead of time and coordinate a great marketing strategy to reach the widest audience.

Also, if there are any great selling points you have to add, let your agent know so they can put them in the listing. Examples include access to highways or amenities, proximity to local schools, helpful features, recent electrical upgrades, and more!

Fast-Sale Marketing

For marketing to cash-buyers, you may need to do some of this work yourself. The process is very similar, but you will need to upload your photos and sale to the right platforms and use the right messaging. It’s important to be clear about your timeline and asking price with potential buyers to weed out those who won’t be interested.

Stage your home as best as you can, using appropriate lighting tools and your best decorating skills. Try to clean up any clutter and remove anything unsightly if possible. If the house is empty, all you need to do is figure out the lighting and use your best camera!

When you post onto a seller platform, be very clear that this is a cash-only, as-is sale. Let viewers know your desired timeline, asking price, and contact information for the fastest turnaround.

Make Contact

Once you’ve found interested viewers, reach out to them. Now is a good time to set up a viewing if they’re interested. More importantly, make sure they read the listing and are aware if you are looking for cash offers, as-is sales, or anything else.

Request a Cash Offer

If you want to make a fast sale, request a cash offer. Eliminating the approval, underwriting, and finalizing steps with the bank will speed up the process substantially.

Contrary to popular belief, cash sales aren’t always less lucrative. With the traditional selling route, there are many expenses that eat away at the sale price, including:

• Realtor fees
• Attorney fees
• Buyer realtor price negotiations
• Inspection and appraisal fees
• Contingency repairs and upgrades

It doesn’t stop there. When the buyer has to pay 5% closing costs, 28-year-high interest rates, and a buyer realtor fee, they want a lower price on the house. It is still a “seller’s market”, so you’re likely to find a reasonable cash buyer that won’t come with all of these fees.

Receive a Preliminary Offer

If you reach out to a cash-buying company or investor, then you should receive a preliminary offer within 24 to 48 hours of making contact. This offer is contingent on the home appraisal and may change after the assessment. If the offer sounds acceptable, arrange a time for an appraisal!

Assess Your Home

Once the interested party is ready, they will assess your home for its condition, typically within the week. After this, you should receive a firm offer on the house. Again, if you want to increase your home value, put in the work before the appraisal for the best results.

Closing

After you receive the offer, closing begins. You and the buyer will simply need to sign a contract, you will need to clear the title, and payment will be disbursed. It’s as simple as that!

I Want to Sell My House Fast

I want to sell my house fast, I want to best price, and I want to do as little work as possible for the sale. If that sounds like you, then the best thing you can do is list your home for an as-is cash sale. To do this, you just need to follow these steps above, list your home, and let the offers roll in!

The post I Want To Sell My House. What Should I Do? appeared first on iBuyer Blog.

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