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How do I set the selling price for my house?
The key thing to setting a price is determining how much your property is
actually worth on the market -- called "appraising" a house's
value. Because no two houses are alike, it's impossible to predict with
absolute certainty what a buyer will pay for yours. However, the best
indicator is recent sales prices of similar properties in your
neighborhood.
Real estate agents have access to local sales data and can give you a good
estimate of what your house should sell for. Many real estate agents will
offer this service free, in hopes that you will list your house with them.
Or use websites such as www.domania.com. By entering your address, you'll
be able to pull up sales prices for recently sold homes of the same size
as yours in your neighborhood.
Other options include hiring a professional real estate appraiser and
visiting public record offices, such as your county clerk or recorder's
office. Go to open houses, check newspaper real estate classified ads, and
go to online listings such as www.realtor.com.
What is meant by "Title?"
"Title" is the foundation of ownership
property. It means that you have a legal right to possess that property
and to use it within the restrictions imposed by authorities or
limitations on its use-superimposed on the basic right to possession by
previous owners.
What is Title Insurance?
The legal answer is "the application of
insurance principles to hazards inherent in real estate titles."
Do I need Title Insurance?
Most definitely! Title insurance is a means of
protecting yourself from financial loss in the event that problems develop
regarding the rights to ownership of your property. There may be hidden
title defects that even the most careful title search will not reveal. In
addition to protection from financial loss, title insurance pays the cost
of defending against any covered claim.
Do I need a real estate agent or attorney to sell my
house?
Except for a few states where you are required to
hire a real estate attorney to do your closing, you do not have to hire an
agent or attorney to help you. Beware, however, doing it yourself is a lot
of work. You might consider hiring an agent to help you out in specific
ways, such as advertising your home in the local multiple listing service
(MLS) and handling some of the paperwork.
When is the best time to sell?
In addition to supply and demand, and other economic
factors, the time of year you choose to sell can make a difference both in
the amount of time it takes you to sell your home and in the ultimate
selling price. Generally, the real estate market picks up as early as
February, with the strongest selling season usually lasting through May
and June. With the onset of summer, the market slows. July is often the
slowest month for real estate sales due to a strong spring market putting
possible upward pressure on interest rates. Also, many prospective home
buyers and their agents take vacations during mid-summer. Following the
summer slowdown, real estate sales activity tends to pick up for a second,
although less vigorous, season which usually lasts into November when the
market slows again as buyers and sellers turn their attention to the
holidays.
But the lender already requires Title Insurance,
won't that protect me?
Not necessarily. There are two types of Title
Insurance. Your lender likely will require that you purchase a Lender's
Policy. This policy only insures that the financial institution has a
valid, enforceable lien on the property. Most lenders require this type of
insurance, and typically require the borrower to pay for it.
An Owner's Policy on the other hand is designed to
protect you from title defects that existed prior to the issue date of
your policy. Title troubles, such as improper estate proceedings or
pending legal action, could put your equity at serious risk. If a valid
claim is filed, in addition to financial loss up to the face amount of the
policy, your owner's title policy covers the full cost of any legal
defense of your title.
What is meant by a title defect?
Anything in the entire ownership of a piece of real
estate which may encumber the owner's right to the "peaceful
enjoyment" of the property or which may cause the owner to lose any
portion of the property.
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