If you’re considering selling your home with out the use of a realtor, then you need to understand that there are conditions backed by laws of the state and federal government governing the sale of your home. By following the rules and regulations you will save yourself money, time and later possible unpleasant legal ramifications. All of these conditions must be investigated and settled before you attempt to advertise your home for sale. Ideally make sure you understand first the full responsibility of selling your home independently before you place your home on the open market, and realize that this is the first step in the process of home selling.

Most states in the US require that if you’re selling your home whether through a real estate agent or as a FSBO (For Sale by Owner) you must give to a potential home buyer a Seller Disclosure of Property Conditions form. This form discloses information about your property that would affect the living conditions or the resale able value of the home. Disclosure of property conditions includes any past or current problems with the property. Check out the different categories of property disclosure, and make sure that you list the necessary information required under each one. This list may or may not include issues that you would need to be concerned about, so make sure to check with your state and local agencies for complete information.

House Systems – Includes areas such as plumbing, electrical, appliances, doors and windows, security system, pool, sprinklers, sump pumps, cooling and heating.

Foundations/Structures/ Basements – Includes leaking and repair issues and drainage problems surrounding the house.

Roof – Includes age, leaking and repair issues, second and new roof installation, time frame of roof repairs, and when or how often the roof leaks.

Land/Drainage – Includes soil permeability issues such as drainage or flooding problems, or are there any other water sources such as a lake, spring or creek.

Boundaries – Includes survey issues such as boundaries of property line, markage of known property lines by what means, such as moveable property stakes as rocks or trees. The allowable property easements for your area, as well as any other obstructions to property such as encroachments by other property owners.

Water – Includes source of water and water pressure issues, and purification systems and tests conducted on water quality.

Sewer System – Includes how property is serviced for sewage waste, such as septic, public utilities or cess pool. Dates of inspection and known sewer problems.

Construction/Remolding - Includes information on any new buildings or remolding to existing structure, and the necessary building permits.

Homeowner’s Association – Includes information of any homeowner’s association rules and guidelines.

Miscellaneous – Includes many areas to numerous to list, but some areas of information encompasses testing for radon gases, termite damage, abandoned under ground storage areas such as septic tanks or cisterns. Issues such as warranties, legal actions, or weather related damage such as tornadoes.

Just as important as you’re state and local laws is the federal laws that regulate selling your home. Two issues of primary importance are disclosing lead paint and the conformity to the fair housing laws. According to federal law you must disclose if your home was built or remodeled before 1978. This law was passed and is now enforced by the EPA (Environmental Protection Agency) because of test results that show that lead based paints can cause detrimental affects on human health, especially in babies and small children. Lagging mental function and stunted growth can occur if sufficient amounts of lead based paints are consumed or particles inhaled. Disclosure of test results and the opportunity to test is federal law. Also, fair housing laws require adherence to the selling of your house, although if selling as FSBO the regulations are a bit more lax. The Fair Housing Act, under the Civil Rights Act of 1968, requires that sellers may not discriminate when selling a property. Discrimination is not allowed based on race, color, national origin, religion, sex, familiar or handicapped status.

Another area to consider before you advertise your house for sale is how to weed out the lookers among the potential serious buyers for your home. Many FSBOs can request that buyers become pre-approved by a financial institution before a bid will be accepted. During the home tour you can set parameters too by inquiring on the buyer’s ability to quickly obtain financing. You might not want to wait while they must sell their house first in order to buy your house in a timely manner.

Sticky decisions concerning the contract should fully spell out the conditions of the sale, such as any deposits that are required and the ability of the buyer to have their deposit returned. Protection is provided to both when a contract is clearly written for both parties, as for example the ability of you to keep any monies from a buyer that backs out because of an unjust cause. Always make sure to consult an attorney when writing up your contract to sell your home. Remember too that laws fluctuate from state to state and being prepared is the best defense against an unsold home.

You want to either sell or buy a new home, but you are unsure of what realtor to go with in the process. Understanding the role of a realtor and how they relate to you if you’re a seller or buyer is extremely important. For the first time home buyer or seller you need to be aware of a few facts, and clear out the cobwebs of confusion on the responsibilities and duties of a realtor.

Depending on what state you live in realtors may be committed to act only as the seller or buyer agent. Many times however a realtor may take on a dual role of representing both the seller and buyer, or known as a dual agent. In other words they have a duty to sell the home for the best possible price for the seller, and at the same time are committed to get the best asking price for a buyer. This can be a little nerve racking for many people, but the best defense is being in the know about the legal and moral responsibilities associated with a realtor’s dual agency representation, and how you can feel confident about working with them.

The legalities of the fact for realtors are that in most states they are required to share the knowledge of which party they work for. Most of the time realtors work for the individuals that are selling a home. If you are unclear make sure to ask, so to ease any nervous jitters on your part. Always assume that any realtor is working for a firm that represents both a seller and a buyer, and if you are a buyer, make sure to hold close any information that may affect any deals that are offered for your purchase of a house. Buyer’s agents have a loyalty to the buyer only. This is verified by a signing of a contractual agreement between both the agent and the buyer. The buyer should be aware that agents are held to a legal and moral obligation to not disclose any personal facts not only to the home seller, but to the realtor’s agent. Material disclosure is permissible though about the property, such as any known pest infestations, or problems with the structure itself. A dual agency for a realtor is usually assumed for them if they represent a buyer; make sure to check into the realtor’s status for your own peace of mind. However, contract protection is afforded for anyone that is interested in purchasing a property through an agent that represents a seller’s interest by signing a contract to represent both.

If you are in the market to buy a home you need to expect a reasonable amount of service from any real estate agent that represents you. The goal should be to fully represent your best interests. You need to be informed clearly from your agent if they will require you to sign an exclusive clause contract. This legally binding contract will require you to work with that agent only. Always search for an agent that will allow you to have other realtors working on your behalf. All buyers agents should work diligently to help you sell your home by providing comparisons studies of the in your area, and to handle any inspections, or working with a lender and the loan application process. He or she should be more than willing to consider and respect your wishes when planning an open house for either other realtors or the general public. Agents should always be courteous about general appointment times to meet with you, and should always leave a cell phone in case of unexpected issues surrounding the sale of your home. Your buyer’s agent should clearly explain all aspects of the contract to you. Issues such as contract compensation and their exact fees for selling your home, along with things such as how long you must list your home with them should be covered in a written contract.

Over all the experience of either buying or selling a home should be one that is pleasant for both the seller and buyer. Selling and buying is a serious decision that can affect your financial and emotional well being for years to come – consequences of how informed you are will be long lasting, many years after you have walked away from the bargaining table.  

The United States Department of Housing and Urban Development (HUD) drafted and enacted the Real Estate Settlement Procedures Act (RESPA) more than 30 years ago as a consumer protection statute designed to help home buyers navigate their way through the sometimes complicated business of real estate. Specifically, RESPA addresses the issue of home buying closing costs and settlement procedures.

Under the terms of RESPA, home buyers are entitled to receive certain disclosures during the course of a real estate transaction. The law also prohibits kickbacks and referral fees that unnecessarily inflate the cost of settlement services and therefore falsely driving up the cost buying a home. RESPA provisions apply to loans secured with a mortgage on residential properties designed to house one to four families. Examples of the types of loans covered by RESPA include:

Purchase loans

Assumptions

Refinancing loans or measures

Property improvement loans

Lines of credit based on equity

An office within HUD, called ‘RESPA and Interstate Land Sales’ enforces the RESPA statute. Buyers may contact the office directly if they think the terms of closing and settlement in their house deal do not respect RESPA provisions.

RESPA stipulates that certain disclosures be made at particular times during the real estate transaction process. When a buyer goes to apply for a mortgage loan, his or her broker or lender must provide – either at the time of the application or by mail within three days – a Special Information Booklet, a Good Faith Estimate (GFE) of potential settlement fees, and a Mortgage Servicing Disclosure Statement.

The Special Information is required for home purchases only, and contains details about different kinds of real estate settlement services. The GFE outlines the type and amount of settlement costs the buyer will likely encounter when his or her house deal closes, as well as whether the broker or lender requires the buyer to use a particular settlement services vendor. The figures in the GFE are estimates, but they should be relatively close to the actual settlement costs at closing. Finally, the Mortgage Servicing Disclosure Statement reveals whether the broker or lender will handle the buyer’s loan or whether it will be transferred to another lender. The Mortgage Servicing Disclosure Statement should also have a section dedicated to options the buyer may employ to resolve any complaints.

If the buyer decides to go ahead with the transaction after securing appropriate financing, the next RESPA-required disclosure is an Affiliated Business Arrangement disclosure (AfBA), which is used if a settlement service vendor or provider refers the buyer to another provider that is affiliated with the original service provider. The affiliation can be part or full ownership of any other beneficial interest. The AfBA disclosure must be made before or at the time the referral is made, and it must give a full description of the relationship that exists between the two companies as well as a reasonable estimate of the fees of the second settlement service provider. In most cases, the buyer is not obligated to accept the services offered by the second service provider, but he or she may choose to do so.

One day before the settlement (or closing) date, the borrower may see the HUD-1 Settlement form, which details all settlement charges imposed on borrowers and sellers. All parties receive a complete copy of this form, showing all of the actual settlement costs, at the time of settlement, or in the mail shortly thereafter.

Another disclosure that is made at the time of settlement is the Initial Escrow Statement, which lists the estimates of charges that are expected to be paid from the escrow account during the first year of the loan. Charges may include taxes and insurance premiums. After the first year, loan servicers must provide borrowers with an updated annual escrow, which lists all deposits and payments, as well as any relevant shortages or surpluses related to the account.

If, at some point after the settlement occurs, the loan servicer reassigns the loan to another servicer, the borrower must be notified 15 days in advance by means of a Servicing Transfer Statement.

While RESPA does not set out particular penalties for non-disclosure of the above mentioned items, kickbacks and referral fees that violate Section 8 of the law are subject to fines of up to $10,000 and imprisonment for up to one year.

Settlement or closing fees cost Americans about $55 billion each year. HUD has initiated a RESPA reform process that the department hopes will simplify the costs involved with buying a home to better reflect the Bush administration’s goal of helping to build an ‘ownership society’ in which all Americans can own their own home. The reform process has not been completed, and for now, the rules remain as they have been for the past three decades.

A new twist exists to selling your home as a FSBO (For Sale by Owner), and it’s no surprise either – the internet. Just as intriguing is your option of the plethora of websites that are now popping up all over the internet, the “we list site”. Devilishly enterprising individuals have created internet websites that offer a FSBO the opportunity to look totally professional when selling their home. The popularity of such sites is in response to the rising costs of housing, and the associated realtors fees and commissions incurred when selling a home. It’s the new wave of home selling without the benefit of a realtor, and there are unexpected costs, and associated risks when attempting to sell your home as a FSBO.

Because of the advent of the internet people that are wanting to sell their homes no longer have to settle for sticking a homemade sign in their front yard, and just running a local ad in a newspaper. For a fee mass marketing gurus provide internet instructions to FSBOs a semi instructional guide for the steps necessary to sell their homes. There are many services that you can garner from using an online website to sell your home, but remember that you as the seller must be aware of the risk of taking advice from any internet website. Often times there are other issues that you might not be aware of when ordering their services too, such as unexpected costs associated with the listing of your home, or even different levels of membership packages. Here is a typical outline that many websites promote for their online services but sellers beware.

Payment For Services – Different types of packages are available, and cost varies. Remember to read the fine print. Payment is usually accepted via a credit card.

Picture Submittal Service – Limitations exist on the amount of pictures that you will be able to submit. Additional fees are required if you feel that more are required to show off your home to its best potential. Also, if your not to handy with a camera, or don’t have the requested type of camera for the picture, a submittal fee is charged if you need them to take the pictures for you.

Yard Sign Service – In many packages a professional looking yard sign is available, but for an extra rental fee. Understand too that any unintentional damage to the sign will cost you for replacement. If ordering more than one sign to place at other areas to advertise your home there is extra cost associated with it too. Sites that advertise their service also state that they are not responsible for any damage to any buried services, such as electrical, gas or telephone lines due to the placement of their signs. It’s your responsibility to find the existing lines and finical liability.

Paper Advertisements of Flyers/Brochures Service – Basic print advertisements in a pre – designed format is an additional cost. You will need to be able to print quality advertisements from home on high grad stock or glossy paper, or incur the cost of having them professionally printed.

Print Purchase and Counter Offer Form Service – These forms are available for you to print with an additional fee.

Disclosure Property Forms – Usually there are no additional fees, but the standard disclosure form, and the federally mandated lead disclosure form are released only when services are paid for in advance. This does not include other attorney’s fees for the review of the forms to ensure complicity to the federal, state and local requirements.

Curb Box Advertisement Holder Service – For an additional fee a separate informational wooden sign may be rented, or a tube attached to your rented for sale sign. Again, any damage to the individual sign or tube will be your finical responsibility.

As you can see a careful evaluation is needed when considering using an internet website as a FSBO. Hidden cost can quickly eat up profits, and expose you to extensive law suits by unhappy buyers. Without the use of a realtor that is a trained professional you loose out on their insight and experience when trying to sell your home. Remember to read the fine print and carefully weigh your options.

Enhancing the look of your home from a street perspective is a great way to attract potential buyers. After all, the ‘curb appeal’ of your home is like a major plus for people driving through your neighbourhood or who see your house in a real estate for-sale photo. By putting in a little extra effort, you can improve your home’s curb appeal and increase your chances of an earlier sale at a higher price.

You probably live in the house you are trying to sell, and therefore you are familiar with its appearance – perhaps too familiar. Chances are, you don’t notice small cracks or peeling paint the same way someone seeing your home for the first time would. Starting from a position on the street, take a close look at your home. What stands out? What looks wrong? Does the tree in front need pruning? Perhaps a shutter needs to be repainted? Maybe the porch light fixture is broken. These are generally small tasks that don’t take a lot of time or money to repair, but that make – or detract—from the look of your home. It may help to take a photograph of your home from the street to see if that gives you a new perspective.

Here are some areas to consider when sprucing up your home for increased curb appeal and sale:

You will have more potential buyers in people can find your house. Your house number should be displayed in a prominent location and illuminated so that it is easy to read. This is extremely important in the evening and during the winter when daylight is limited. If your house is set back a fair distance from the street, consider installing your number on a gate, pillar or fence post that is easy to see.

The old adage that cleanliness is next to godliness applies to your house, too, particularly when you want to sell.  The exterior, including eavestroughs, should be neat, clean and in good repair. Downspouts should have extensions to take water away from the foundation to avoid pooling. Any settling of backfill around a house should be corrected to ensure that the grade at the foundation is higher than surrounding areas.

A lush green lawn enhances your home. It should be freshly cut, weeded, and edged. Flower beds should be weeded and cultivated, hedges trimmed, and garden debris removed. If your lawn isn't in good shape, time will be required to improve it, and professional help may be desirable. Any areas that require new grass should be sodded rather then re-seeded to ensure a finished appearance. If you are selling during the fall or winter, when your yard may not look its best, make sure that all dead material is removed from gardens and leaves are raked off the lawn. Store shovels and other equipment in a shed or other out-of-sight location.

Doors should be unmarred, clean, and repainted with care if necessary. The doorbell and door hardware should be in good repair. Potential purchasers who see a Realtor wrestling with a reluctant door lock may wonder what else is wrong with the house.

When a Realtor is opening the door of your home, a potential purchaser has plenty of time to look at the porch and entry. Accordingly, they should be clean and tidy. Do not allow flyers to accumulate, and if there is a doormat, it should be clean and in good condition. Decoration such as a tasteful wreath is fine, but don’t overwhelm your entry and door with frilly adornments.

Your garage should be a storage area for automobiles, not for miscellaneous articles. To make the best impression, it should be clean and tidy, with garden tools hung neatly off to one side or in a storage cabinet. If they can't be stored elsewhere, bicycles, the snow blower, and the lawn mower should be placed so as not to impede movement around the cars. Garbage containers should be empty and clean. Illumination should be bright, ideally with a 150 watt bulb, at least during the listing period.

The driveway should be degreased and sealed.

Walkways and patios should be clean and free of cracks, with litter removed (if your walkway or patio has unwanted grass or weeds they can be eliminated easily and in an environmentally friendly way with boiling water or a propane torch). In winter, the driveway, walks, and porch stoop should be cleared of snow and salted if necessary. Inside the front door should be an overshoe tray, and a carpeted area where overshoes can be removed.

Your home is an investment, and by taking a little time to put it in top form, you will get a higher return on that investment when you decide to sell.