Posted by Eric Scroggin on Friday, August 27, 2021 at 5:28 PMBy Eric Scroggin / August 27, 2021Comment
We get this question from time to time, and I always tell my clients the same thing: Yes. Basically, if you aren't sure, disclose it. Disclose, disclose, disclose.
For one, it's the right thing to do. Really, that's enough said.
But other than that, it's unlikely that you'll get away with not disclosing something. When the buyers apply for homeowner's insurance, that insurance company will pull a report that is very much like a Car Fax, showing any claims made against that property in the past. If something is on that report that isn't on the seller's disclosure, much of the trust needed for a successful transaction will be eroded.
However, even if undisclosed damage stays hidden throughout the entire transaction, the buyers are going to literally live in this home, so they will soon become intimately familiar with every nook and cranny, and there are very few damages that leave no trace. If something is uncovered that should have been disclosed and wasn't, the sellers will likely be sued, and possibly even prosecuted. It's not worth it.
If you're filling out a seller's disclosure and you're thinking, "should I really disclose that?" The answer is yes. Yes, you should.
Posted by Eric Scroggin on Monday, April 23, 2018 at 3:00 PMBy Eric Scroggin / April 23, 2018Comment
When most families decide to sell their home, their first step in the process is contacting an agent, though seldom without first sparing a thought to listing without one. In 2016 and 2017, for-sale-by-owners (FSBO’s) accounted for 8% and 7% of home sales, respectively. Though only a small piece of the proverbial pie, when you factor in the ~5.5 million existing-home sales in the U.S. each year between 2015 and 2018, that 7-8% begins to look fairly significant—roughly 300k to 400k homes per year. I understand their decision to list their homes without an agent. Sellers decide to take this road less traveled for a variety of distinct reasons, and for me to dismiss them as without merit (as many agents will do) would be both condescending and, frankly, wrong. However, I’d like to address a few of the more popular motives specifically, in hopes that I might persuade you to make what I consider to be the wiser choice.
Reason #1: Listing without an agent can save you thousands of dollars. A listing agent typically charges a commission of 6%, with 3% of this commission going to the buyer’s agent. Even when listing without an agent the buyer’s agent commission is practically unavoidable, so listing as an FSBO can only save you, realistically, around 3% overall. On a $200,000 home this comes to $6,000! If you are rolling the funds from the sale of your home into the purchase of your next home, you can expect to pay that $6,000 off over the next 30 years, which lands closer to $10,000 at typical interest rates. This is an amount that no fiscally conscientious seller can afford to scoff at, obviously. But are these savings realized?
Posted by Eric Scroggin on Wednesday, January 18, 2017 at 8:00 AMBy Eric Scroggin / January 18, 2017Comment
A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close.
It’s no surprise that listing a home for sale during the spring saw the largest return, as the spring is traditionally the busiest month for real estate. What is surprising, though, is that listing during the winter came in second!
“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”
The study goes on to say that:
“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”
If you are debating listing your home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now!
The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 –...