Joe Capote

January 6, 2011 • 2:20 pm 0

Real Estate Transfer Disclosure Statement Changes for 2011

As part of a traditional residential 1-4 unit sales transaction, it is the seller’s responsiblity to provide the Transfer Disclosure Statement, or TDS. The TDS (known as California Association of Realtors form TDS) is the seller’s disclosure to prospective buyers of what he/she knows and is aware of regarding the property being sold. Things that are disclosed on a TDS include:

Items that the subject property contains such as appliances, pools or spas, sprinklers and air conditioning among other things.
The sellers knowledge of any significant defects or malfunctions in the subject property, for example leaks, foundation or roof issues.
If the seller is aware of any other known material facts such as hazardous materials, structural issues or repairs, room additions, zoning violations and homeowners association information.

On January 1^sta new version of the Real Estate Transfer Disclosure Statement was mandated by the legislature. If the prior version of the RETDS was given to the buyer before January 1,2011, then it is fine to use it. Listings that are not in escrow prior to January 1 will require the new Real Estate Transfer Disclosure Statement. That means changing out and redoing any RETDS in listings that was not in escrow prior to January 1.

The changes to the new TDS:

Inclusion of the Smoke Detector Statement Compliance and Water Heater Statement of Compliance (new Section “D” on Page 2).
The addition of Carbon Monoxide Devices in Section “A” on Page 1 as well as the reference to carbon monoxide device at the end of Section “B” on page 2. (Reminder that Carbon Monoxide Devices become a mandatory installation as of July 1, 2011 for existing single-family dwelling units).

In transactions where the seller is a trust, a bank (REO) or the subject property is a commercial/multi-unit(5 or above) the TDS may not be required.

The Seller’s Supplemental Statutory and Contractual Disclosures (C.A.R form SSD) is often discussed since it is where the seller discloses knowledge of a death on the property within the past three years. This form will remain unchanged for the time being.

For more information regarding selling your home, visit me on the web at www.JosephCapote.com.

Filed under: Buyer's Blog, Realtor Trends, Seller's Blog, buyers, for sale by owner, home sellers

February 15, 2010 • 10:16 am 0

Tips for Pricing Your Home

Real estate markets vary and pricing your home for sale can be challenging. Incorrectly pricing your home may have negative results as it idles on the market. Here are a few tips to help you price your home correctly.

Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?
Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?
Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (www.appraisalinstitute.org) or ask your REALTOR® for some recommendations.
Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.
Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
Know what you’ll take. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.

I hope this helps! For more on pricing and selling your home, visit www.JosephCapote.com.

Filed under: Seller's Blog, for sale by owner, home sellers

February 8, 2010 • 10:10 am 0

Checklist: 17 Service Providers You’ll Need When You Sell

Planning on selling your home without a Realtor? Take this handy list of service providers you’ll need when you sell.

□                     Real estate attorney
□                     Appraiser
□                     Home inspector
□                     Mortgage loan officer
□                     Environmental specialist
□                     Lead paint inspector
□                     Radon inspector
□                     Tax adviser
□                     Sanitary systems expert
□                     Occupancy permit inspector
□                     Zoning inspector
□                     Survey company
□                     Flood plain inspector
□                     Termite inspector
□                     Title company
□                     Insurance consultant
□                     Moving company

For more on selling your home on your own, check out my Seller’s Center at http://www.JosephCapote.com
Used with permission from Kim Daugherty, Real Estate Checklists and Systems, http://www.realestatechecklists.com.

Filed under: Seller's Blog, for sale by owner

January 27, 2010 • 12:32 pm 0

Is Your Buyer Qualified?

Are you are a homeowner who’d like to sell you home own your own? Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer’s financial status before signing the contract. Ask the following:

1. Has the buyer been prequalified or preapproved (even better) for a mortgage? Such buyers will be in a much better position to obtain a mortgage promptly.

2. Does the buyer have enough money to make a downpayment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a downpayment and between 2 and 7 percent of the price to cover closing costs.

3. Is the buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).

4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.

5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.

Selling your home without a realtor? Visit my Seller’s Center for forms and checklists needed to sell your home.

Filed under: Seller's Blog, for sale by owner

September 4, 2009 • 11:10 pm 0

Forms You’ll Need to Sell Your Home

As a realtor, I come across lots of folks who want to sell their home without a Realtor, otherwise known as For Sale By Owner or FSBO’s. Back in the days before the internet, a newspaper ad and a generic ‘for sale’ sign represented the bulk of what a prospective seller had to work with in terms of marketing. Today, there are lots of avenues for a potential FSBO to use to market his/her property to the masses. While marketing is one aspect of real estate sales, a lot of potential FSBO candidates are always curious as to what forms they may need to sell there property. As always, I am glad to share these.

1. Property disclosure form. This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state.

2. Purchasers access to premises agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.

3. Sales contract. The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.

4. Sales contract contingency clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies — such as the buyer’s need to sell a home before purchasing yours.

5. Pre- and post-occupancy agreements. Unless you’re planning on moving out and the buyer moving in on the day of closing, you’ll need an agreement on the terms and costs of occupancy once the sale closes.

6. Lead-based paint disclosure pamphlet. If your home was built before 1978, you must provide the pamphlet to all sellers. You must also have buyers sign a statement indicating they received the pamphlet.

This is by no means all you’ll need, but it should get you started. If you need more information on selling your home, please visit my website at www.JosephCapote.com

Filed under: Seller's Blog, for sale by owner, fsbo, fsbo forms