Friday, 26 April 2013






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.


v  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.


v  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.


v  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.


v  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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