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Tuesday, January 26, 2010

Insider Real Estate Secrets Revealed


In this issue (#9) of "Insider Real Estate Secrets Revealed",
we'll discuss two topics that are important to both buyers and
sellers.  The first article talks about legal issues, and 3
common issues that can cause legal problems during the purchase
or sale of your home.

For those trading up to a new home, surely the most stressful
issue is what happens if you don't sell the old home before you
must purchase the new one, or worse, what if the old home sells
before you've purchased?  In this nasty "Catch 22", you end up
owing financial obligations on two houses, or you end up
homeless!  The second article in this issue talks more about this
problem and what you can do to prevent it, including an
innovative program offered by some agents that actually
guarantees the sale of your old home.

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3 LEGAL MISTAKES TO AVOID WHEN BUYING OR SELLING A HOME

When you're buying or selling a home, there are many important
legal issues, large and small, that you should be aware of. To
begin with, residential real estate is not an uncomplicated
process.  When such a major investment is transferred from one
party to another, even the subtle legal details need to be taken
care of. If not they can turn into major problems if not handled
correctly.

It is essential to be as informed as possible in order to
properly protect yourself in the process of buying or selling a
home.  There are several issues that will certainly cost you if
you are not properly informed.  In this report, we identify 3 of
the most common of these issues.

Because there are many legal issues to consider, your first step
is to consider choosing reputable and experienced professionals
to represent your interests.  When selecting your real estate
agent, ensure you find someone who has extensive experience with
the process. They should also refer you to a local real estate
lawyer who can ensure your interests are protected.

Following are 3 common examples of legal clauses that can work to
your disadvantage if not worded correctly:

1. Survey Clause.
Homebuyers have the right to have a survey clause added to the
real estate contract on the home they wish to purchase.  When
this home is yours, you should be aware of the implications of
this clause.

Your current survey may no longer be up-to-date if you have had a
swimming pool built, or an addition added, since the survey was
drawn up.  If your survey is not up-to-date by these standards,
the buyer may request an updated survey.  The homeseller may be
required to bear the cost to have a new survey prepared.  The
cost for this process typically runs anywhere from $700 to
$1,000.  This is $700-$1,000 less that you will net for your
home.

An experienced real estate agent should provide you with a survey
and it is up to the buyer to decide if the survey is acceptable.

Your agent should be able to advise you appropriately when
dealing with this issue, but if you or your agent are unsure, you
have the right to consult your lawyer before you sign the offer.
Don't be afraid to take this important step, as thousands of
dollars could be riding on the decisions you make at this point.

2. Home Inspection Clause.
Some real estate transactions have fallen through because of the
wording of the inspection clause.  This clause previously stated
that the buyer has the right to rescind their offer if they were
dissatisfied with the outcome of a home inspection.  In some
cases, this was used unfairly against the seller when a minor
repair issue would give a buyer a legal loophole to their change
of heart.

Meanwhile, the seller lost both time and money because of this
technicality.  First, they may have declined other offers (offers
which may now be lost forever) in favor of the one which has now
fallen through, and missed the opportunity for other offers which
might have come through during the current negotiations.
Secondly, their home may have been unfairly labeled as a "problem
house" which could cost them in terms of the dollar amount of
subsequent offers.  And thirdly, they then found themselves back
on the market, incurring the inconvenience and additional
carrying costs of having to market their property for a longer
period of time.

This clause should read that the seller has the option to fix any
items that the home inspection flags.  This wording protects both
the buyer and the seller.  The buyer is assured that the home
they are buying meets objective structural standards, and the
seller is protected against the whim of a buyer who changes
his/her mind.

Not all contracts will be written in this way.  Make sure you are
working with a lawyer experienced in real estate matters to
ensure your interests are protected.

3. Swimming Pool Clause.
If the home you are buying or selling has a swimming pool, there
should be a specific legal clause which addresses this costly
item.  Some contracts are written to provide a warranty to the
pool to survive closing. The broadness of this wording protects
buyers, but is not necessarily in the best interest of sellers
who might instead request that the clause be worded to indicate
that, at the time of closing, they believe the pool to be in good
working condition.

The existence of a pool in any home negotiation is certainly
reason enough to ensure that you seek advice from a real estate
professional and obtain legal counsel so that your interests are
represented properly.


To sum up, by being aware of these and other legal issues, and by
seeking advice from an experienced real estate professional and
obtaining legal counsel, you can protect yourself against
unnecessary cost and potential hardship.

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HOW TO AVOID GETTING STUCK WITH TWO HOMES:
The Real Estate Catch 22

We've all heard the old saying about being caught between a rock
and a hard place.  Well, unfortunately, that's where most
homeowners find themselves when they decide to move from one home
to another.

You see, if you buy before selling, you could run the risk of
owning two homes.  Or, just as bad, if you sell first, you could
end up homeless.  That's what is known as the Real Estate Catch
22, and for thousands of homeowners, it's an extremely stressful
position they find themselves in.

This financial and emotional tightrope is one many homeowners
feel they have to walk alone.  However, you should seek out
agents offering specialized programs that can eliminate the
stress and worry associated with selling and buying another home.


THE DILEMMA

The biggest dilemma when considering purchasing another home is
deciding whether to buy first or sell first.  Either way is risky
because you could end up owning two homes or no home at all.
Let's face it, the real estate market has become a tough
environment for buyers and sellers alike. The fact is that it's
more difficult to get homes sold today and therefore it's
essential that real estate agents look for new and innovative
ways to meet the demands of the market.


THE SOLUTION

A new and innovative program that some agents offer actually
guarantees the sale of your home and takes away all of the worry
and stress associated with selling and buying another home.

HERE'S HOW IT WORKS:
1. Your agent will prepare a total market analysis including a
computerized print-out of all comparable home sales and listings
in your area.
2. With this information you and your agent can determine a
market value for your home.
3. This establishes your guaranteed price and list price which
you will receive up front (in writing) before your home is
marketed.
4. You are doubly protected because you know that your home will
sell for the guaranteed price. However if you receive an offer
from an outside buyer for more than the guarantee price you get
the higher offer.
5. You can confidently look for your next home and immediately
place a firm cash offer (not a conditional one) when you find a
home you like because you know the minimum that your home will
sell for and when you can expect to receive the money from it's
sale.

This service eliminates the emotional roller coaster ride of
whether to buy first or sell first so you can avoid the risk of
getting stuck with two homes or no home at all.


One More Thing...

Remember, not all agents are alike and you should consider only
those that can offer you the most innovative marketing plan
available to ensure that your needs are completely and properly
met.

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NEXT ISSUE:
- BEST FINANCING: A 3-Point Plan
- How to Sell a House That Didn't Sell

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Gabriel Purcarus
Adresz Elite
3295 Souvenir
Laval, QC, H7W 1A9
Phone: 514-998-7927
Fax:  450-472-7910
Website:  ImmoGrandMontreal.com
Email:  Info@ImmoGrandMontreal.com