Selling a house is way more complicated than it seems to be. You have to take care of every in and out for ensuring a profitable deal. Of course, you’ll decide the price to sell your home but, still, you may fall in the pitfall of hidden costs and lose a handsome amount of money. Therefore, before you proceed to put your home for sale, you must be familiar with basic home selling issues and legal ramifications.
Here is a detailed list of hidden costs of selling a home in NY…
Pay Off Mortgage
If you have had taken a mortgage loan for buying a home then, it is crucial for you to pay it off prior thinking of selling the property. Legally, you can’t sell your home without paying your pending mortgage payments. The buyer might sue you for a fraud deal in future. To avoid such complications, we suggest you first complete your loan and then only think of the other way around.
There are so many cases filed against homeowners in NY who didn’t settle the property charges and sold the home linearly. However, the law states that you can’t enforce the buyer to pay the property taxes on your behalf. Once you sell your house then only he/she would be responsible for paying property taxes. Similar to the mortgage loan, you must clear out any outstanding property taxes.
Deed Transfer Tax
Since you want to sell the property in NY, you will be subjected to deed transfer tax or realty transfer fee. Most people get confused and consider it as property tax. Whereas, it is altogether a different entity that the government levies upon the seller as a part of the home selling process. When the buyer and seller agree on a fair market value of the home, they need to contribute some percentage of it to the government. Its value varies according to the states. For instance, you’re selling the home at $500,000. The government may ask you to pay 1% of the total amount. In another state, they may ask for a 2% share.
Estoppel Letter for HOA
If you are a member of Homeowner’s Association (HOA) then, you will require an estoppel letter or certificate from their end mentioning you’ve cleared all the pending dues or payments. The letter should include the name of the homeowner, their address, a brief description of the property, and the date of clearance of pending fee along with the authorized signature of HOA board member. Here, both the seller as well as the buyer is liable to pay the default fee. Therefore, speak to the buyer before finalizing the price of your property.
Home Inspection Charges
Sometimes, what happens is, people, ask for too much money while selling the property and end up disappointed. The reason is quite simple – Nobody will pay according to your expectations. Parameters like your neighborhood, condition of your house, and amenities it hold play a pivotal role in determining the fair market value of the property. Therefore, for deciding a fair market value of your house, you should hire a home inspector.
Attorney Counsel Fees
If you don’t have much knowledge about what legalities needs to be done while selling a home, it becomes imperative to contact an attorney counselor. They can help you understand the legal matters involved in selling a house in NY in details. Don’t be stressed about the fees because it is a plus point for you. An experienced attorney will ensure your documents are processed in the correct way. Furthermore, you can impart the perspicacity to your friends and relatives whenever they face a similar situation in the future.
Home Preparation Costs
In most cases, home sellers expect that the buyers would pay for the repairing and maintenance costs. To be honest, there’s nothing wrong in that. But, when it comes to negotiating the price of the home for sale, homeowners demand a high amount. This practice is not right. Homeowners should understand that the closing costs are directly proportional to the home selling price. So, as a home seller, if you’re asking for basic repairs, you’ll have to deduct its prices from the final market value of your home.
All the above-discussed points fall under the closing costs. One needs to go through the entire process for closing a fair deal. However, if you feel that this procedure is exhausting and byzantine, you can simply contact an experienced real estate agent in NY. From handling the paperwork to listing your property for sale to closing the deal with 100% profitability, they assist you through and through.
Real Estate Company in NY
There are thousands of real estate companies in NY who claim to close the deal within a few days. Howbeit, that’s just an advertising gimmick. Don’t fall in the honey trap of fraudster real estate firms and choose a reliable and trustworthy real estate company like ‘Elite Properties’. After serving in New York for almost a decade, ‘Elite Properties’ is counted among the top-notch real estate facilitators in New York. Transparency is the main feature that drives their business. Therefore, you can approach their team for a hassle-free home selling experience in NYC.
The Bottom Line
A crystal-clear communication with the buyer and maintaining a fair practice in terms of fulfilling necessary legalities is the key to getting a favorable home selling deal. Furthermore, the guidance of an experienced real estate company such as ‘Elite Properties’ can also prove fruitful. Take your time and decide your plan of action. We wish you all the success.
Are you planning to buy a home for the first time? Well, that’s undoubtedly a smart financial move. However, you may have to face certain challenges such as finding the right location or financing your purchase during the initial phase. So, before you take a step ahead in achieving your American dream of homeownership, you should gain some practical knowledge of investing in real estate. It will help you get a bird’s eye view of the current market situation, ensure you won’t end in smoke, and make your abode journey easier.
Considerations Before You Take the Plunge
Here are some basic yet important questions you need to answer before proceeding. They will positively help you navigate in the right direction.
What Kind of Property Will Meet Your Needs?
Buying a home for the first time can be a test of your patience and forbearance. Don’t get us wrong, but finding a home that meets your needs is actually not a cinch. Its better you start the journey by making a list of all the features/amenities you expect in your dream home. Let’s say your goal is to have a spacious home located in the central area of the NY with a small backyard. Then, you can either opt for brownstones or townhouses. If you want a cost-effective property with low maintenance, walk-up housing, which is the most common housing in New York, would serve your purpose. You have to figure out things according to your preferences and standard of living.
Do you qualify for the Mortgage You Expect?
During the home buying process, it’s crucial for you to know how much mortgage you qualify for. You may plan to buy a home with a net worth of $450,000. However, the lender may not provide more than $250,000. Why? The lender will analyze certain factors such as your total income, job security, and outstanding debts prior to assigning you the capital. They’ll directly say a no if your debt-to-income ratio depicts that you’ll not be able to afford the mortgage payments. So, it’s a wise step to calculate your credit before applying for the mortgage loan.
Do You Have a Trusted Source Who’ll Guide You throughout the Process?
As we mentioned earlier, buying a home can be a daunting task. A trusted source can prove to be a boon for a first-time house buyer because no matter how much groundwork you do, there will always be something where you’ll feel the need of seeking professional help. A real estate agent can provide you a number of options that match your expectations and are within your reach in terms of price range. In addition to that, they can also help you get a loan, complete the paperwork legalities, and streamline the process. Therefore, you must contact an experienced real estate agent in NY to make your transition a hassle-free one.
Home Buying Process
Here are the five significant steps that can demystify the entire home buying procedure.
Pick the Right Type of House
Contradictory to common mindset, there are a plethora of affordable real estate properties for sale in NYC. Make sure to do thorough research of such properties, online as well as by paying a personal visit. At first, check out the houses on the internet by exploring the property listing pages of top real estate companies in NY. This way, you’ll get the description of available houses including their high-quality images. Once you’re done, choose the top 10 or top 5 houses of your choice and contact the real estate agent for further details. Sort out the best property and move on to the next step for fulfilling your desire.
Explore Your Secure Financing Options
Assistance programs that offer low down payment and discounted interest rates for first-time buyers are available across different states of NY. Therefore, you must discuss regarding the different types of mortgages with your real estate agent. Investing your time in exploring the secure financial options may seem like a mentally draining process but, it will surely pay off in the long run.
Make an Offer
Many people get confused during the negotiation and end up frustrated. To avoid such situations, talk turkey to the real estate agent and decide a final price that you can offer for the property. Your real estate agency will then proceed and keep your proposal to the seller.
Consider Doing a Home Inspection
Once the seller agrees to your proposal, consider doing a home inspection by personally visiting the house. You can also hire a professional home inspector to save yourself from any kind of pitfalls. If you find something major that needs to be repaired, ask your seller to either do the needful or deduct the price from the final offer.
Close the Deal
You’ll need to sign a ton of legal papers while closing the deal. Carefully read the ‘legal jargon papers’ and if everything falls into place, go ahead and sign the agreement to seal the deal.
Mistakes to Avoid as First-Time Buyer
Buying a home for the first time is indeed very special. Even the slightest mistake while buying a home can result in failure. So verify the following things first and then take a decision.
Looking for Home First and Loan Afterwards
This is the most common mistake that first-time buyers do and regret later. As a first-time home buyer, you need to keep in mind that the property might fall into foreclosure or short sales if you fail to repay the loan within the specified period. So instead of daydreaming about the home, face the practical world by visiting a lender’s office first.
Not Paying Attention during Home Inspection
All that glitters is not gold. Therefore, paying undivided attention during the home inspection is necessary. Make sure you access everything including the drainage system, roofing, plumbing, and electrical wiring.
Don’t fall in the honey trap of fraud sellers who offer you unbelievable deals. The modus operandi of fraudsters is to take advantage of your ignorance. Stay cautious and understand all the clauses while you sign the agreement. The best way to avoid real estate frauds is to seek professional help. It will significantly minimize real estate related risks.
The Bottom Line
In a nutshell, the more informed you are beforehand, the less stressful you’ll feel during the decision-making process. Do follow these tips sincerely and we’re sure you’ll get your dream house in New York soon!
There are times when it becomes difficult to take any decision especially when it comes to real estate affairs. Deciding whether to buy remodeled house, or a new one is definitely a time-consuming and challenging task for a first-time buyer as both have their pros and cons. Since buying a real estate property is a long-term commitment; you shouldn’t take it lightly and gain apt information regarding the laws, finance, and practical aspects before proceeding.
While we comprehend the appeal of investing in a new property, buying a renovated house might just be the wise decision you’ll make. To make your real estate journey a hassle-free experience, here’s an important question you need to ask yourself.
Does Remodeled House in NY Make Sense for Your Needs?
If we keep aside the real estate technicalities, one major issue that might arise during the decision-making process is budget: Is it convenient to buy a remodeled house as a first-time buyer? The answer to this question will depend on your financial planning and family’s needs. At first, you need to contact an experienced real estate agent and discuss all your concerns in details. The real estate agent will show you the renovated house for sale according to your needs and if you feel satisfied with the features of the remodeled home; you can go one step ahead and do an analysis of the remodeled house price with respect to its current condition and location. To find out remodeling house estimated costs, consider visiting the neighbors. You can inquire regarding the newly remodeled houses for rent as well as sale in the locality. It will give you a rough idea in reference to the house prices in that area. In addition to that, just speak to your real estate expert about the additional hidden costs and precise tax rate which you will need to pay for buying remodeled home. This step-by-step procedure will definitely help you overcome the decision-making dilemma.
Advantages of Having Remodeled House
It’s always good to take calculated risks while investing in real estate. We are sharing the top benefits of investing in a move-in-ready property to help you take a crystal clear decision.
The prices of real estate properties in NY are on an unswerving high. However, remodeled houses are considerably cheaper than the newly built ones. According to our recent survey, the investment in new real-estate property could cost you 20% to 30% more in comparison with a remodeled home in NY. So, as a first-time buyer buying a remodeled home can be a smart financial move.
Existing homes are generally near to downtown areas, more often in a centralized location, unlike new homes which are mostly build in exurbia. So, you won’t have to face any problem with commuting and have easy access to local markets, hospitals, banks, educational institutions, and your workplace. Another advantage that you get with a remodeled home is an established neighborhood. Having a decent neighborhood is imperative as moving to a house is a long-term commitment. Apart from that, it is necessary from the point of view of safety and security too. So, that’s a huge advantage which shouldn’t be overlooked.
Upgrade to Larger Space
Remodeled homes are much spacious than the houses that we see in metropolitan cities today. In addition to that, you can also add a second story to increase the house per square footage. However, the rationale for a remodeled property in NY may vary from locality to locality. Be sure to research regarding the codes and laws in the locality where you intend to buy a remodeled house. Choosing an experienced real estate salesperson could play a vital role in such cases. They can help you with the most authentic information about your neighborhood. Once you are aware of the local zoning laws, it becomes easier for you to take a decision.
Less Paperwork and Legalities
Legal paperwork and documentation is a crucial part of selling and buying a real estate property. In the case of a remodeled house, you won’t have to re-do the entire documentation work. You’ll just need to change the personal details on original documents and pay the required transfer and re-registration fees. Furthermore, mortgage frauds are much evident in New York City nowadays. Many unscrupulous house owners who’ve had purchased a new property but failed to pay the mortgage loan may sell you their foreclosed or distressed property. However, when you buy a remodeled house, such risk won’t be there. But as a first-time buyer, you should scrutinize the documents properly to avoid such scams.
Retain Repairing Costs
Renovated homes can easily stand the litmus test of time aesthetically as well as structurally for a long period. Even if something needs to be fixed, you don’t have to worry about the repair credit. It would entirely fall in the realm of responsibility of seller for a substantial amount of time. It could be between 10 to 20 years. Just make sure to discuss the ‘home warranty’ clause with the seller prior to signing the home agreement. However, the renovation process consumes a noticeable amount of time, and the probability of getting a remodeled house in NYC as per your convenience isn’t always facile. There might be several elements which you would like to implement in the remodeled home before stepping in. For example, the old stone foundations, sinks, or chimneys might require tuck pointing, and for that, you will have to keep patience until the home which you aim to buy gets completely ready. On an average, the renovation process might take several weeks or even months. You can hire ‘we buy houses for cash’ company in NY to avoid such complications and have a hassle-free transition. In addition to that, they can also help if you have an unused property which you want to renovate and sell fast.
As per our current data & statistics, nearly 60% to 70% remodeled homes in NY are yet to be sold. To reap a rewarding experience, you can take guidance from a reputed ‘we buy houses for cash’ company in NY. You can visit their website and check the property listing of available remodeled homes along with a detailed description and images. Once you like a property, you can contact the company’s representative for a detailed quotation. Don’t hesitate to negotiate the price and choose the best one which meets your need.
All the above-mentioned advantages give a leading edge to the renovated house in the new-versus-renovated home battle. We suggest you settle upon a trust-worthy real estate company and do a realistic assessment of the renovated home for sale and if the scenario is that the remodeled house is available in the much lesser price range, you can buy remodeled home in NY straight away.