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.

Back in the old days, most deals were sealed with the contractor’s word and a handshake. Back then contractors seemed to be fairly honest and hardworking with the customer’s satisfaction in mind. In today’s world, where there are contractors out there who take advantage of what customers they can, or just simply fraudulent contractors wanting the money up front and then never seeing them again. The significance of having all agreements in writing is so important, the verbal contract has become obsolete. There are too many contractors out there that hear one thing while the customer is explaining something completely different.

All agreements should be drawn up in the form of a contract and signed by both parties, the contractor and the customer. Without a contract, if any defaults are declared, like work unfinished, work done poorly or not at all, nothing can be presented in the court of law besides he said/she said. The contractors words and the customers words mean nothing unless it is all in a written contract.

As the customer, you can visualize exactly what you want your kitchen to look like, but contractors can not read minds and share your visualization. You as the customer must get together with the contractors and list the details in writing of what work should be done. From listing what items will stay and what items will go, to listing who will be responsible to hauling away the debris. Always be as specific as possible in the written contract, listing all the details of how you want the work to be done and what should be the outcome.

Before entering into any contract for home improvements or home repair, there are two steps that should be completed: Scope and Specs. Scope out the work in writing and a write detailed list of specifications. These two should be recorded in detail prior to speaking with a contractor. This will help the customer get a better idea about the amount of work involved in a particular home improvement or home repair project.

As the customer approaches the contractor with these recorded details in hand, it will be easier to show the contractor what they need or expect more quickly. This will also be an easy starting point to discuss the project at hand and so that the project can become more visible to the contractor. For any home improvement or home repair projects that may be complicated, most contractors may have comments or questions as they look over the proposal. Working together, the proposal may have to be edited or re-written as the terms, conditions and procedures may need to be negotiated before the contract is complete and ready for both parties to sign.

Keep in mind that there are no free estimates or any kind of free labor for that matter. Many companies or independent contractors may advertise free estimates or free labor as a way to attract business. There are no freebies, only estimates and labor fees that are not billed directly as such. Most of the so called free estimates and labor have fees worked into the costs of other work that is done. This way the customer is none the wiser.

Each time a home improvement project or a home repair project is under contract, most customers end up paying a portion of the overhead of the company or person doing the work. That overhead involves everything from the time the contractor spends looking at other possible projects in the house to preparing the actual estimate. Most estimates have some additional amount added in to cover any contingencies, if and when they occur. The better organized and knowledgeable the customer is about the project, the less likely it will be for those contingencies to come up.

Customers should refrain from asking the contractor about the hidden fee’s or contingencies that are figured into the total cost of the contract. This isn’t something that a customer can ask the contractor directly and expect an honest response, but the customer may choose to save a fair amount of money while completing any home improvement or home repair project by spending a little time on it first.

The art of negotiation is the procedure of communicating back and forth in order to come to a mutual agreement. Negotiation is done when two parties have different expectations and must come to a mutual agreement before a contract can be signed. The most experienced negotiators will bring an attitude of high expectations to the negotiation table. They work hard to solve the problems and are easy on the people. It’s more effective to remain cooperative and efficient in order to preserve a civil relationship between the buyer and the seller, so they can work together to solve any problems and to complete the transaction as painlessly as possible.

When negotiating a contract over buying a home you want to get the lowest possible price and close on the house within a reasonable amount of time so you can move in.

1. Let the seller know what you need or expect in a clear and reasonable manner. Sometimes a buyer may submit a letter to a seller depicting why the property is not worth the asking price and pointing out the faults. This is a sure way to start the negotiations off with a defensive seller. It would be best to anchor a reasonable price, while continuing to remain polite and respectful of the sellers’ home.

2. Be prepared to solve any repair, title, survey or loan problems fairly; so there are no future problems to be addressed at closing.

3. Never respond to offers emotionally. This combative style of negotiating can turn the seller angry or defensive and can escalate into negative comments, table pounding and threats to walk out on the offer.

4. Keep your cool. Never argue. Arguing can sometimes make the seller want to work against you instead of working with you.

5. Do not be too quick to respond. Do not ignore or respond to the sellers’ arguments or statements immediately. Make it known that you are listening carefully and considerately, but do not reject or accept any offers until you have had time to carefully consider them.

6. Have any unclear portions of the proposals clarified completely.

7. Never discuss personal issues that involve the seller or buyer, such as an urgency to move in or a financial status.

8. Let trust increase the buyers leverage by: listening and understanding what the seller has to say; convey an appreciation or admiration for the sellers home decorating and gardens; and respond to counter offers within a reasonable time frame.

9. Find a common ground with the seller. This can be a very powerful tool used to the buyers’ advantage in the event of multiple offers. Sometimes a seller may select a buyers’ contract for personal reasons, like if the buyers’ family reminded the sellers of themselves when they bought a home with their young children, or just by sharing the same religion.

10. Understanding your leverage as the buyer. The more the buyer can find out about the seller’s needs, the better chance the buyer has to find solutions in negotiation. The buyer must be able to appeal to the seller’s concerns. For instance, if the house has been on the market for over 300 days, the seller will have a lot more leverage than they would have with a brand new listing. If the sellers time frame is forthcoming, then the buyer can meet it with some leverage, unless the seller’s have multiple offers.

Most buyers usually offer less than the listed price of the house. So, how much under the listed price should you offer? That all depends if the house is listed in a strong seller’s market and the market analyses of the recent sales in the neighborhood from where the house is being sold. The buyer should do their homework before submitting an offer so low, they might risk offending the seller and have their offer rejected immediately.

If there are multiple offers on one property, disclosure is favored among all parties. However, the seller or agent representing them will make the final decision as to how the offers will be handled. The seller may disclose the terms of one offer to stimulate another buyer to submit a better offer. Normally the procedure for multiple offers is to notify each party of the multiple offers that have been received. Each of the parties is then given an opportunity to amend their offer and submit it within a certain amount of time. After all offers are on the table, the seller is once again free to review the amended offers and select a buyer to negotiate with. Sellers are in no way obligated to accept the first offer that comes in. Any offer selected may be countered, negotiated, or accepted as is.

American veterans currently serve and have served their country for modest pay and limited financial security. In some cases, a prolonged period outside of the private workforce, or injuries incurred while serving in the U.S. armed forces have resulted in diminished employment and earning potential, leaving some veterans unable to afford a home under regular mortgage and home loan circumstances. That is part of the reason why the United States Department of Veterans Affairs provides guaranteed home loans to help American veterans pay for a home of their own.

VA home loans encompass several advantages over traditional loans, and are available to retired and active duty service personnel, some members of the Selected Reserve, and spouses who fall into certain categories such as the un-remarried wives and husbands of Armed Service personnel who perished from service-related injuries or conditions, or who have been missing in action or a prisoner of war for more than 90 days. The following guidelines may help you determine whether your service makes you eligible for a VA guaranteed loan:

Active duty – eligibility begins after 90 days of continuous active service, or after 181 days of continuous active non-wartime service.

Selected Reserve – reservists or National Guard personnel with a minimum of six years service, or those who have been honourably discharged due to disability, and who have been retired, who now serve on a different Ready Reserve, or who remain in the Selected Reserve are all eligible to apply for a VA loan.

Certain service does not meet the requirement for VA financing, including World War I service and active duty for training in the Reserves or National Guard. Individuals who do not qualify for a VA loan may, however, find themselves eligible for a Housing and Urban Development /Federal Housing Administration veterans’ loan. Contact your regional VA office for more details.

Eligibility for a VA loan is made by Veterans Affairs. Qualified individuals will receive a certificate which they can use when applying for a VA loan. Certificates can be obtained from any VA Eligibility Center upon submission of VA Form 26-1880 and suitable proof of service and discharge conditions. A copy, or Certificate in Lieu of Lost or Destroyed Discharge papers is available to veterans who can prove their military service but who may no longer have their original discharge documentation. This certificate can be helpful in obtaining a VA loan.

Each Veterans Affairs home loan supplies an amount of money that it guarantees lenders against loss on loans made to veterans. The maximum entitlement amount is currently $36,000 (or up to $60,000 for certain larger loans), but that figure is always subject to legislative changes. Contact your local VA office regarding loan figures and eligibility before agreeing to a particular loan. This entitlement amount is a one-time allotment unless a prior VA loan has been paid in full and the property it was used to obtain has been sold. The entitlement may also be restored if a qualified buyer agrees to assume the outstanding loan balance and substitute his or her own entitlement (same amount used on the original loan). If only part of the entitlement has been used to secure a loan, the remaining balance may be used for a second loan. This ‘remaining entitlement’ option may be particularly useful for veterans who secured a loan using their entitlement when the maximum amount was lower than its present value: in this case, a veteran may use the difference between what he or she was eligible for then and the new maximum to help secure another loan.

When trying to determine which property to buy or fix, veterans should consider that most lenders require the total of the guaranteed entitlement and any cash down payment the veteran is able to make to equal about one quarter of the total sale price of the property in question. This limitation may help veterans decide what they can afford to spend to buy a home, mobile home, townhouse, or VA-approved condominium, to build or repair a home, to refinance an existing home loan, or to purchase a domestic lot for a home.

Finally, VA guaranteed home loans are not administered by Veterans Affairs. Rather, veterans obtain the loans by applying to regularly lending facilities and supplying the necessary proof that they qualify for a VA guarantee.

Real Estate Appraisals are a necessary step in the home buying process. There is a lot of confusion out there regarding the truth about appraisals. Some people are confused about their purpose and often think of them as home inspections. Some people think that a low appraisal for their home is the kiss of death. People should take the time to learn the facts about real estate appraisals. The more people learn beforehand, the better prepared they will be to tackle this crucial step.

Your home loan approval is contingent upon the results of the real estate appraisal. It is as simple as no appraisal…no loan. Since very few people have the ability to pay for a house with cash, the appraisal is going to be necessary. A loan is never going to go through without an appraisal. The purpose of the appraisal is to establish the home’s market value. The sales price will be based on the market value.

The main goal of the appraiser is to protect the lender. Lenders don’t want to be stuck with property that is not worth its price tag, so the appraisal must be completed before the lender will approve the loan. The information contained in appraisal is invaluable to the lender. The lender will study the details of the appraisal before reaching a final decision. It makes sense. If they are going to be funding the transaction, they should be aware of the property’s value.

The lender will often dictate the choice of appraiser. It might have one in house or through a contract with an independent appraiser. If you go with your own choice for appraiser, they may be subject to final approval from the lender.

Residential properties are normally appraised using either the sales comparison approach or the cost approach. When using the sales comparison approach, an appraiser compares the property to similar properties that have sold in the area and bases the market value on the comparables or comps. The cost approach is based on the costs to build, which means it is more appropriate for new properties.

The actual appraisal reports are very detailed. They contain information about the subject property along with comparisons of a few similar properties. There is an evaluation of the overall house market within the area. The appraiser will then list any issues that he or she feels might diminish the property’s value. The next component is a list of any serious problems like bad roofs or weak foundations. The appraiser then gives an estimate of the sales time for the house. Finally, the report will indicate the type of property.

It is important to note that the real estate appraisal is not the same thing as an inspection. The appraiser might make note of any problems they see, but they are not responsible for declaring if your home is in good condition or not. They are only responsible for assessing the property and determining the market value for the lender. A home inspection is a different process altogether.

Real estate appraisals only include the home, the land, and any improvements to the land. It does not cover any personal property that might be sold with the house. The buyers should purchase those items separately.

Everyone fears the possibility of a low appraisal. It happens all of the time, usually during closing. There are some things you can do to remedy this common but stressful situation. The buyer can make a larger down payment. If this is not feasible, the seller and buyer can negotiate the price some more. Additionally, the appraisal can always be disputed.

What all goes into an appraisal? Appraisers are looking at the condition and size of the house, its proximity to good schools, and the size of the lot. Appraisers do not look at dirty dishes or overflowing laundry baskets. They do care about chipped paint, broken windows, and appliances that don’t work.

Appraisals are not being conducted by just anyone off the street. Real estate appraisers are trained professionals licensed by the state in which they work. They are qualified for the work they do by completing state certification requirements like exams and continuing education courses. This line of work demands strong critical thinking skills and the ability to interact with different groups of people.