These are issues that you will need to think about and Hyde Realty can help you
with. If there not thought of in advance you could jeopardize a sale or slow
down a closing:
- Giving your broker an honest representation of your home. By supplying correct
information and disclosing all knowledge in relation to the property.
- Obtaining proper Certificate of Occupancy and or other permits for the dwelling
including any recent constructed additions of alterations.
- Proper identification of any hazardous materials, such as Asbestos, in the
- Proper identification of any underground storage tanks, such as abandoned
oil tanks on the property.
- Professional coordination of the attorneys, financing companies, surveyors,
engineers, exterminators etc, to assure swift and accurate communication from
first acceptance of a sale to the closing of title.
Clearing Up Title Problems:
Once a contract has been signed or immediately before hand, make sure the title
to your house is clear. A lender will not close on a mortgage until the title
A common problem is no Certificate of Occupancy for an improvement such as
a deck. To correct a CO problem, a building permit for the improvement must
be filled with the municipality and the building inspector must check the work.
If the improvement was not built in compliance with the current codes, it may
have to be altered or removed. If the improvement stays and a CO is obtained
the home’s assessed value and property taxes will be higher. This could
break a deal if it was on a fine line to begin with.
These matters must be cleared otherwise searches and CO’s could stall
closing for weeks. A good broker should have a handle on many of these concerns
before they advise you to enter into a contract.
The taxable profit on a home sale is determined by subtracting the original
purchase price plus cost of improvements – called the cost basis – from
the selling price. Sellers often overlook certain things that can be included
in the cost basis. For instance, some closing costs, such as title insurance,
the mortgage recording tax, appraisal fees, application fees, attorney fees
and broker commissions can be included. Often over looked improvements include
alarm systems, automatic garage door openers, carpeting staying with the
house, air conditioners and general landscaping.
To make life easier when selling, owners should keep a file of bills and canceled
checks for expenses and improvements beginning the day they move into the house.
Taxes owed on any profit can be deferred if a replacement residence is purchased
and occupied up to two years after selling the present home. The cost of the
replacement home must equal or be larger than the selling price of the present
home after deducting from the latter’s and any broker’s commission
and fix up expenses related to the sale.
Selling a home in today’s buyers market is not easy, but still can be
profitable and relatively less annoying than it might otherwise be. The key
is putting confidence in the right broker to represent your interests.