TIPS
BEFORE SELLING YOUR HOUSE
v
CHECK
THAT TITLE
You
will know an intelligent buyer from the rest of the crowd if he asks for a copy
of your title. Chances are, it is easier to sell a property if it has a CLEAN
title. Meaning, your title has no annotations of any liens or encumbrances,
such as, lis pendens (that the property is subject to any litigation),
mortgage, writs, affidavit of loss, and others.
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SELLER
MUST BE THE REGISTERED OWNER
Be
sure that the title is REGISTERED in your name, if you yourself will be the one
selling it. The cardinal rule in real estate sales is that the Vendor/Seller of
the property MUST be the REGISTERED owner of the title. If you are intending to sell the property
through another person, execute a SPECIAL POWER OF ATTORNEY authorizing another
person to sell the property in your behalf.
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UPDATE
YOUR PROPERTY’S LIABILITIES
Free
your property from tax liabilities. Update payments of your realty taxes.
Buyers will also check the most recent copy of your property’s tax declaration,
to check if it has incurred arrears. Association dues, water, electric, and
other bills covering the property must likewise be fully paid prior to sale.
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SEEK
PROFESSIONAL HELP
Although
a registered owner is free to sell his/her own property, one cannot be too
cautious with regard legalities. You may hire a “licensed” real estate broker
to help you in the sale. Licensed brokers all pay a bond, so you can be sure
that they are very meticulous in their dealings. Licensed brokers are different
from mere sales agents by a wide degree.
Licensed brokers have a broad and extensive knowledge about real estate,
such as, the nature of the property, comparative studies of properties, its
land use, property management, property assessments, transaction fees, taxes,
incidental expenses of sale, manner of sale, negotiations, loan applications,
authenticity of documents, processing of title, and others. It stands to reason
that professional skills do come with a price. It is no wonder why “licensed”
brokers can command even a broker’s commission of five percent (5%) of the
Total Contract Price, as professional fees.
v
ASSESS
THE NEIGHBORHOOD
Try
looking around your neighborhood for other properties for sale. That way, you
can have a rough idea how your property will fare well in the market compared
to other houses for sale with the same number of rooms, description and
location. Also, do not forget to ask around as to how much is the current fair
market value of the properties per
square meter near your area.
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BE
A RESPONSIBLE SELLER
In
selling a property, it is the rule that seller assumes the capital gains tax (considering
that proceeds of a sale is tantamount to income of a seller) and the
appropriate documentary stamp tax. Should you intend to hire a broker, the
broker’s commission shall also be on the account of the seller.
There
are other steps to consider once the sale has been consummated. But for
starters, it pays to know first the basics.
-
GINA A. MORALES
Certified
Real Estate Broker
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