1. When should I sell my house?

2. How do I set the selling price for my house?

3. Will I owe taxes when I sell my house?

4. Can I finance the sale for the buyer?

5. What is the difference between a REALTOR and a real estate agent?

6. Why use a REALTOR?

7. What is the MLS?

8. What is the difference between a Buyer’s Agent and a Seller’s Agent?

9. How do I choose a REALTOR?

10. What’s the difference between a condo and a townhome?

11. Do I need a lawyer if I have a REALTOR?

12. What is the difference between an appraisal and a home inspection?


1. When should I sell my house?

Too many people sell their house at the wrong time, or are in too much of a hurry. Basically, you want to sell when you’re ready and there’s the largest potential pool of buyers – causing prices to go up. This occurs in the following situations:

- Mortgage interest rates are low.

- The economic climate of your region is healthy and people feel confident about the future.

- There are not many homes on the market in your neighborhood.

- There’s a jump in house buying activity, as often occurs in the spring.

- Your area is considered especially attractive – because of the schools, low crime rate, weather, proximity to a major city, or the Ocean or Rivers for outdoor activity or other factors such as employment opportunities.

Of course, if you have to move immediately – because of financial reasons, an expanding family, a job move, a divorce or an imperative health concern – and you don’t have any of the advantages listed above, then it’s imperative to find the BEST Seller’s agent in town.

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2. 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 (“comps”).

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.

To get a ballpark figure on your own, use websites such as www.Realtor.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. That’s a great place to start, but remember, only a Local REALTOR can interpret that information, by doing a professional CMA, they will know if there were any concessions by the Seller, for example if the Seller paid any or all of the Buyer’s closing cost or agreed to special terms or even bought the buyers new appliances.

Observing the asking prices of houses still on the market can ONLY provide guidance. However, you’ll need to adjust these prices for local market conditions.

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3. Will I owe taxes when I sell my house?

Thanks to the Taxpayer Relief Act of 1997, many home sellers no longer owe taxes on the gain they make when they sell their house. Married taxpayers who file jointly now get to keep, tax free, up to $500,000 in profit on the sale of their home, as long as they lived in it for two of the prior five years. Single folks and married taxpayers who file separately get to keep up to $250,000.

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4. Can I finance the sale for the buyer?

If your home is paid for you can agree to loan part or the entire sales price to a homebuyer. You may want to do this if you want to spread out your income from the sale over a number of years or if the home buyer can’t borrow enough money from a bank or commercial lender. This can be carried out in one of two ways.

The first possibility is for you to take back a mortgage on the house. The buyer signs both a promissory note (promising to repay the loan) and either a mortgage or a deed of trust (allowing you to foreclose if the buyer fails to pay). In return, you sign a deed transferring title to the buyer. The buyer holds title and can sell the house or refinance. But the buyer must keep sending you the agreed-upon payments.

The second and less popular possibility is for you to keep title to the property for as long as it takes the buyer to pay off the loan. The contract you and the buyer would sign is known by various names, including “contract for deed,” “contract of sale,” “land sale contract,” or “installment sales contract.” It works like this: The contract states that you, the seller, will keep title to the property until the buyer pays off the loan. (The buyer normally pays the loan off in a series of regular payments, similar to a standard mortgage.) After the buyer pays off the entire loan, you sign a deed transferring title to the buyer. Because you keep the title over the life of the loan, the buyer cannot sell or refinance the property until all payments are made and the title is transferred.

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5. What is the difference between a REALTOR and a real estate agent?

“Real estate agent” is a general term that refers to a variety of real estate professionals, including salespeople and property management professionals. In North Carolina, real estate license laws require that any of these real estate professionals hold a real estate license. The term “REALTOR®” refers exclusively to real estate professionals who are members of the National Association of REALTORS® (NAR), the largest real estate trade organization in the United States. Why is this small distinction important? All REALTORS® must adhere to a strict code of ethics designed to protect the interests of consumers and to elevate the standards of the industry. While all real estate professionals must adhere to applicable laws, REALTORS® voluntarily agree to hold themselves to a higher standard.

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6. Why use a REALTOR?

Based on an article from RealTimes, the online news service of the National Association of Realtors, here are answers to the question: What can a REALTOR bring to the sale of your home?

- Increased appeal in the marketplace. Home sellers don’t fully realize that clearly seeing a home through the eyes of a buyer dramatically increases the chances of the home selling quickly and at a higher price. Only a REALTOR’s experience can guide a seller to properly show a home to its best advantage.

- The right listing price. A real estate agent knows the marketplace and your neighborhood and is fully qualified to prepare a detailed market analysis. Plus, a broker knows the competition and what to expect from buyers.

- The Multiple Listing Service. Your home is listed for all real estate agents to see and sell! Today many real estate websites offer a MLS search engine, including Looking4RealEstate.org. This allows consumers to search the public data base of the MLS. This takes your property to the internet and beyond!

- A referral network. A REALTOR is in constant touch with a wide array of professionals and consumers, all of whom might send the right buyer to your door.

- A professional yard sign. A sign can funnel buyers’ calls right to the qualified real estate professional with the answers they need.

- A flexible flyer. A flyer about your home can be distributed many different ways, to potential buyers as well as other brokers.

- Financing expertise. There are many ways in which to finance a home today, and a broker is prepared to discuss the options most advantageous for you, the seller.

- Tours. Your broker can arrange tours of your home for top producing sales agents who would benefit from seeing your home first-hand.

- Open houses arranged by your broker for the public and other real estate professionals.

- A direct mailer. This can be launched with “Just Listed” cards to your neighbors and nearby move-up and rental neighborhoods.

- Classified ads. Ads might also be taken out for your home. Writing and placing these is an art in itself.

- Ongoing information. Your broker will tell you about marketing conditions and the competition on a regular basis. This can keep you up-to-date with the market so you are prepared to make decisions.

- Finding “quality” buyers. Your broker can help buyers find the best financing alternatives and quickly pre-qualify and pre-approve them for mortgages, giving sellers a high degree of security toward closing.

- Sales skills. A real estate agent who knows his/her business and the local area is invaluable in taking action to show the buyer the neighborhood, competing properties, the special features of your home, the facts about the school system, shopping, etc.

- Negotiation skills. Your real estate agent will negotiate the purchase agreement and, in doing so, represent your best interests. There may be situations in which dual agency applies.

- Multiple offer expertise. If more than one buyer makes an offer on your home, it takes an immense amount of know-how and integrity to handle the deal properly.

- Organization of closing details. From following up with the buyer’s mortgage application, to ordering appraisals and inspections, to reviewing the settlement figures for accuracy... your real estate agent does it all.

- Availability. Throughout the transaction, your broker is your partner. Last-minute contingencies concerning the contract or anything else not complete before closing, can smoothly be managed by your broker.

- Closure. Your broker will be at your side at the closing table, prepared for any eventuality and ready to shake your hand with congratulations.

- Loyalty. Your broker won’t forget you or your needs, and will be ready to again be of service to you or anyone you know.

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7. What is the MLS?

MLS stands for Multiple Listing Service. Whenever an agent lists (offers for sale) a house, they are required to put information about that house into the MLS. This allows all other MLS member agents to view and show that property. Working together in this way allows sellers to show their homes to many more interested sellers and allows buyers access to many more available homes.

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8. What is the difference between a Buyer’s Agent and a Seller’s Agent?

The North Carolina Real Estate Commission requires all real estate professionals, when working in the sale or purchase of a home, to disclose ‘agency’. In layman’s terms, this means that the real estate professional you are working with must tell you whether he or she is working on behalf of the buyer or on behalf of the seller.

Look at this scenario: Buyer A is driving down Any Street, NC and sees a wonderful two story home, with a wrap around porch-the house of her dreams. To get more information she calls the number of the agent on the real estate company sign. Agent1 answers the phone and tells Buyer A the price and other basic information about the home. Liking what she hears, Buyer A tell Agent1 that the home is in her price range and that she wants to buy the house ASAP even if it means she has to pay more.

What Buyer A didn’t realize is that the person listed on the real estate company’s sign in front of the house was actually a SELLER’S AGENT or the agent who’s job is to help the seller sell their home as quickly and at the best price possible. In fact, it is Agent1’s duty to tell their client, the SELLER everything that Buyer A said about wanting to move in quickly. Clearly, this puts Buyer A at a distinct disadvantage when she puts in an offer for the home.

What Buyer A needs is an agent of her own, or an agent whose sole job is to protect Buyer A and make sure she gets her dream house at the best price possible.

North Carolina law does allow for one agent to act on behalf of both the Buyer and the Seller, called a DUAL AGENT. But most people prefer to know that there is an agent looking out specifically for their best interests.

The North Carolina Real Estate Commission produces a brochure entitled: “Working with Real Estate Agents”. This details agency in North Carolina, specifically the differences between Buyer’s and Seller’s Agents.

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9. How do I choose a REALTOR?

There are many wonderful REALTORS® available to assist you in the sale or purchase of your home, so locating a REALTOR® is not difficult. But how do you find the right REALTOR® for you?

Word of mouth or personal referrals are an excellent start to finding a great match. Try asking a friend or a co-worker for a REALTOR® they would suggest.

Also, the internet is an excellent way to search and find out information about a REALTOR®. In today’s market internet services and tools are an important part of any buyer’s search or seller’s sale of a home. Surfing the web is a great way to find a REALTOR® whose internet services will enhance your real estate transaction.

The best way to find a great REALTOR® is to actually sit down and meet with the REALTOR® one on one.

This is the only way to see how comfortable you feel with the person you are trusting to guide you through what can be one of the biggest financial decisions of your life. Knowing that you can communicate openly and honestly with your REALTOR® helps ensure that your experience will go as smoothly as possible.

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10. What’s the difference between a condo and a townhome?

A person who owns a condo owns the inside of their unit. A person who owns a townhome owns the complete unit, including exterior surfaces and the land on which the unit sits.

Another way to think of this is to say that someone who owns a condo owns “the paint, but not the walls”. So the walls and the structure of which the condo is made is not actually owned by the unit owner.

In a townhome, a unit owner owns everything, but shares some aspects of the structure such as shared walls and the roof or crawlspace.

Any common areas, such as pools, sidewalks, parking lots, etc. are managed by the development’s HOA or Home Owners Association.

What are HOA dues? What does HOA mean? HOA stands for HOME OWNERS ASSOCIATION. If you are purchasing or are living in a home with an HOA, more than likely you will be required to pay HOA dues.

HOA dues are funds collected by the Home Owners Association to help pay for different community costs that should be shared by community members.

For those living in a condo or townhome HOA dues pay for the management of ‘common areas’, like parking lots or sidewalks. Also, condo and townhome HOA dues will cover common areas insurance premiums and property taxes.

For those living in a detached home in a neighborhood with a Home Owners Association, any HOA dues are determined on the functions the HOA. For example, if a HOA only manages a large sign at an entrance to a neighborhood, the HOA should be relatively low. However, if your HOA manages a neighborhood pool or playground, you can expect to pay a bit more.

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11. Do I need a lawyer if I have a REALTOR?

Your REALTOR’S® job is to help guide you through the home buying and/or selling process. In other words, the REALTOR controls the process and the client controls the decisions.

Your lawyer’s job is to protect your legal interests in the property you would like to purchase. This can include items such as making sure there are no liens on the property, creating deeds, and recording your new ownership in the proper government offices.

Like your REALTOR®, you want to choose a lawyer whom you can trust and communicate with openly. The lawyer will act as your closing agent. Ask your REALTOR for suggestions, the price varies by attorney and it is part of the closing costs.

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12. What is the difference between an appraisal and a home inspection?

An appraisal is when a licensed appraiser reviews a house in order to provide the buyer an unbiased opinion on the “value” of the house. The appraiser gives a dollar amount that he or she feels the house should sell for, in the current market.

A home inspection is when a licensed home inspector inspects a home, looking for any problems and gathering information about the quality of the house and all of its systems. Inspectors usually give a report to share all of his or her findings. This report is then used by the buyer to see if they would like the seller to make repairs.

The costs of both the appraisal and the home inspection are charged to the buyer, as the information that both give are generally for the buyer’s knowledge. A buyer cannot arrange for an appraisal or home inspection until they are under contract with the seller. These services can vary greatly in price to the buyer, again ask your REALTOR for suggestions. Since they work with so many of these professionals, their input could save you money and provide you with the best service.

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