Download House Selling for Dummies (ISBN - 0470170468) PDF

TitleHouse Selling for Dummies (ISBN - 0470170468)
TagsFor Dummies
LanguageEnglish
File Size6.6 MB
Total Pages386
Table of Contents
                            House Selling For Dummies, 3rd Edition
	About the Author
	Dedication
	Authors’ Acknowledgments
	Contents at a Glance
	Table of Contents
	Introduction
		The Eric Tyson/Ray Brown Difference
		Conventions Used in This Book
		Foolish Assumptions
		How This Book Is Organized
		Icons Used in This Book
		Where to Go from Here
	Part I The Selling Decision
		Chapter 1 Deciding to Sell
			Figuring Out if You Really Need to Sell
			Knowing the Health of Your Housing Market
		Chapter 2 Selling and Your Personal Finances
			Trading Up
			Making Retirement Housing Decisions
			Tax Facts Sellers and Landlords Ought to Know
		Chapter 3 Exploring the Economics of Selling
			Estimating Proceeds of Sale
			Assessing the Financial Feasibility of a Move
		Chapter 4 Confronting Financing Issues
			Financing Decisions When Trading Up
			The Trials and Tribulations of Seller Financing
	Part II Tactical Considerations
		Chapter 5 Timing Is Everything
			Timing the Sale of Your House
			The Seller’s Quandary: Timing the Purchase of Your Home
			Consolidating Your Sale and Purchase
		Chapter 6 For Sale By Owner
			Eyeing the Potential FSBO Advantages
			Focusing on Potential FSBO Disadvantages
			Increasing Your Chances of Success
		Chapter 7 Your Real Estate Team
			Teaming Up — a Winning Concept
			Landing the Perfect Listing Agent
			Bringing in the Broker
			Handling House Inspectors
			The Officiating Escrow Officer
			Finding Financial and Tax Advisors
			Locating a Good Lawyer
		Chapter  8 Listing Contracts and Commissions
			Understanding Listing Contracts
			Considering the Types of Listings
			Examining Broker Compensation
			Preparing Seller Disclosure Statements
	Part III Getting Top Dollar When You Sell
		Chapter 9 Preparing Your House for Sale
			Handling Presale Preparation
			Think Again: Avoiding Major Improvements
		Chapter 10 Determining Your House’s Value
			Defining Cost, Price, and Value
			Determining Fair Market Value (FMV)
			Using a Comparable Market Analysis
			Bidding Wars
		Chapter 11 Price It Right and Buyers Will Come
			Getting a Grasp on Pricing Methods
			Identifying Incentives and Gimmicks
			Overpricing Your House
	Part IV The Brass Tacks of Getting Your House Sold
		Chapter 12 Marketing Your House
			Advertising That Works
			Arranging Open Houses
			Showing Your Property
		Chapter 13 Harnessing Your Computer for House Selling
			Knowing the Internet’s Limitations: The Net Alone Can’t Sell Your House
			Relying on Software and the Web to Determine Whether to Sell
		Chapter 14 Negotiating Strategies for Sellers
			Mastering Your Feelings
			Following Some Basic Rules
			Surviving the Bargaining Process
			Negotiating from a Position of Strength
			Negotiating from a Position of Weakness
			Distinguishing Real Buyers from Fakes
		Chapter 15 It Ain’t Over ‘til the Check Clears
			Entering the Neutral Territory of an Escrow
			Letting Go of Your House
			Surviving Seller’s Remorse or ( Gasp) the Double Whammy
		Chapter 16 Income Tax Filings after the Sale
			Profits from a House Sale
			Tax Filings Required after the Sale
	Part V The Part of Tens
		Chapter 17 Ten Things to Do After You Sell
			Keep Copies of the Closing and Settlement Papers
			Keep Proof of Improvements and Prior Purchases
			Stash Your Cash in a Good Money Market Fund
			Double-check the Tax Rules for Excluding Tax on Profits
			Cast a Broad Net When You Consider Your Next Home
			Remember That Renting Can Be a Fine Strategy
			Reevaluate Your Personal Finances When Things Change
			Don’t Simply Rehire Your Listing Agent When You Repurchase
			Think through Your Next Down Payment
			Remember to Send Change of Address Notices
		Chapter 18 Ten Tips for Selling Rental Real Estate
			Don’t Inadvertently Convert Your House into Income Property
			Exercise Extra Care When You Sell Rental Property
			Know How to Defer Your Investment Property Profits
			Understand Your Local Market to Time Your Sale
			Understand Opportunities for Adding Value
			Maximize Your Property’s Income
			Minimize Your Property’s Expenses
			Utilize Agents with Investment Property Experience
			Visit Comparables and Review the Valuation Analysis
			Work with Rental-Property-Experienced Tax and Legal Advisors
		Chapter 19 Ten Questions Home Buyers May Ask and How to Answer ’ Em
			What Do You Like Best and Least about Living Here?
			Why Are You Selling This Lovely House?
			How Much Did You Pay for This House?
			How Did You Establish the Asking Price?
			Have You Received Inspection Reports?
			May I See Your Written Defect Disclosure Statement?
			Are There Any Neighborhood Changes that May Affect the Home’s Desirability?
			How Many Times in the Last Year Have You Called the Police and Why?
			What Problems Have You Had with the House?
			What Are the Local Public Schools Like?
	Part VI Appendixes
		Appendix A: Sample Real Estate Purchase Contract
		Appendix B: Example of a Good Inspection Report
		Appendix C: Glossary
	Index
                        
Document Text Contents
Page 1

by Eric Tyson and Ray Brown
Authors of Home Buying For Dummies

House Selling
FOR

DUMmIES


3RD EDITION

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Page 193

Need-based pricing isn’t FMV
Whenever the residential real estate market gets soft and squishy like a rotten
tomato, many would-be sellers feel that FMV isn’t fair at all. “Why doesn’t our
house sell?” they ask. “Why can’t we get our asking price? It’s not fair.”

Don’t confuse “fair” with equitable or favorable. Despite its amiable name,
FMV is brutally impartial and sometimes even cruel. Need is not an integral
component of FMV. FMV doesn’t give a hoot about any of the following:

� How much money you need because you overpaid for your house when
you bought it

� How much money you need to replace the money you spent fixing up your
house after you bought it

� How much money you need to pay off your mortgage or home-equity loan

� How much money you need from the sale to buy your next home

Here’s why need doesn’t determine FMV. Suppose that two identical houses
located right next door to one another are listed for sale at the same time.
One house was purchased by Marcia for $30,000 in 1970. You made a $60,000
cash down payment when you bought the other house for $300,000 two years
ago. As luck would have it, property values declined a year after you bought
your house.

You clearly need more money from the sale than Marcia. After all, you paid
ten times as much for your house. What’s more, Marcia paid off her loan five
years ago. You, on the other hand, owe the bank big bucks on your mortgage.

Because the houses are identical in size, age, condition, and location, they
have the same FMV. Under the circumstances, the fact that they both sold for
$285,000 isn’t surprising. Marcia got a nice nest egg for her retirement. You
barely cleared enough from the deal to pay off your mortgage and other
expenses of sale. Fair? Marcia thinks so. You don’t.

FMV is utterly unbiased. It’s the amount your house is worth in the market
today — not the amount you or the buyers would like it to be.

Median prices aren’t FMV
Organizations such as the National Association of Realtors, the Chamber of
Commerce, and private research firms gather data on house sales activity in
a specific geographic region, such as a city, county, or state. They use this

167Chapter 10: Determining Your House’s Value

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Page 194

information to prepare reports on housing topics, such as the average cost
of houses in an area and the increase or decline in regional house sales on a
yearly or monthly basis.

One of the most widely quoted housing statistics is the median sale price, which
is simply the midpoint in a range of all house sales in an area during a speci-
fied reporting period, such as a month or a year. Half the sales during the
reporting period are above the median, and half fall below it.

The median-priced house, in other words, is the one exactly in the middle of
the prices of all the houses that sold during the specified reporting period.
Figure 10-1 demonstrates what we mean.

$265,000

$251,000

$239,000

$227,000

$220,000

$207,000

$196,000

$187,000

$170,000

Median sale price

Figure 10-1:
The median

sale price
is smack

dab in the
middle.

168 Part III: Getting Top Dollar When You Sell

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