Joe Ruben

Sell Even Faster: Bring These Documents to Home Buyers to Speed up the Closing

June 26, 2019 by Joe Ruben

In 2016, 4% of home sales fell through after the sale was pending but before the sale closed.

Considering all of the work that goes into a home sale before the close, failing to close a deal is disheartening, to say the least. But there are steps you can take to help the home buyers along in the process.

Having all your paperwork in order at the time of closing will help close the deal faster. As such, you should be prepared with all the forms for selling a house before your closing meeting.

But what exactly are those closing documents? We’ll explain a bit about the more important ones below.

Residential Sales Contract With Home Buyers

Of all the paperwork in your home sale, the most important is the residential sales contract. Although this piece of paperwork is what initiates closing, it’s worth talking about.

The sales contract contains all the information related to the sale. That includes:

the purchase price
the date of purchase
the down payment amount
the date of possession
conditions (i.e. home inspection,financing)

When your purchase offer has been accepted and both you and the home buyers sign the residential sales contract, the contract is legally binding and you’ll enter into the closing phase of your home sale. The closing date is usually 30 to 60 days after the contract has been signed.

In this phase of the sale, your home sale is considered “pending”. During this time you’ll exchange things like the home inspection report and appraisal report. Then, you’ll need to prepare your documents for the closing meeting.

Closing Documents

To finalize your home sale, there will be a closing meeting. This meeting is hosted at a neutral third-party office. Whether the meeting takes place at an escrow company, a title company, or a mortgage lender will depend on the state in which you live.

If you have a sales agent, you may not be required to attend the closing meeting. However, the buyer and the agent are required to attend. There may also be a title company representative, real estate attorney, and loan officer present.

There are five important documents involved at the closing meeting. We’ll explain each in more detail below.

Closing Statement

The seller’s closing statement summarizes the amount of money you’ll receive from the home buyers. This number assesses and itemizes taxes, closing costs, and any other transaction fees. It lists all the fees and credits and tells you exactly how much you’re owed upon closing.

This document is the responsibility of the closing agent or title company. But to speed up the process during the closing meeting, you can ask for an advanced copy. Ask your agent to obtain a copy for you both to review and ensure the information is accurate.

Most Recent Property Tax Receipts

Your tax statement or property tax receipts will help you calculate the amount of taxes owed on your home at the time of the sale. The estate tax schedule of your geographic location will determine whether taxes are owed when you sell your home.

If the tax schedule in your municipality collects tax based on the following year, and your home is sold halfway through the year, you may be entitled to a refund. On the other hand, if the tax schedule in your municipality collects taxes based on the previous year, then you may owe taxes. You have to pay the taxes owed on your home to the point of the sale.

Make sure you have your property tax receipts and a good understanding of the municipal tax schedule where you live. This will help you figure out the taxes to be credited or charged on your closing statement.

1099-S Tax Form

In some cases, you may need to complete a 1099-S Tax Form for the IRS. This tax form indicates that you don’t qualify for a capital gains tax exclusion. The form tells the IRS you owe taxes on the sale of your home when it’s time to do your annual income taxes.

Title Search

The title search confirms the legal ownership of a property. It involves an examination of public records to find out what claims, if any, are on the property. The title search has to be finished before the title on the property can be given to the home buyers.

The title search must show that the seller is the owner of the property. As such, they have the sole right to sell the property to the home buyers. If there are any legal issues, such as a house lien, those will need to be dealt with prior to closing.

The Deed

Although the two are often confused, the deed is quite different from the title. Whereas the title search is a legal concept that defines ownership and, the deed is the physical document that transfers ownership to the home buyers.

The deed will have the names and information of both the seller and the home buyers. It will also have a detailed description of the property being sold. Once the deed is transferred to the home buyers, they legally own the property.

Sell Your Home Faster (And For Cash)

The process of selling your home is a long one that involves a lot of paperwork. After you sign the sales contract with the home buyers, you should start preparing the closing documents.

The closing documents include the closing statement, the title search, as well as the deed. But you’ll also need to prepare tax documents and ensure those are credited or charged on the closing statement. Having these items ready will help you sell your house faster.

And for the fastest kind of home sale, think about selling your home for cash. Contact us to learn more about how it works.

The Best Time to Sell a House May Not Be When You Think!

June 25, 2019 by Joe Ruben

When’s the best time to sell a house? If you’re like most people, you may think it’s the spring and summer, when inventory tends to be higher and the warmer weather brings more potential home buyers to open houses.

But with the housing market expected to weaken through 2020, that may not be the case. Unexpected events can also arise and force you to put a house up for sale any time of the year.

As with many things in life, timing is everything when selling your home to get top dollar for it. Here are some tips on when to list your home to increase your chances at receiving a fair offer for it.

Your Home is Ready to Show

If your home needs minor repairs or you’re planning to renovate the kitchen, bathroom, or another area you may want to hold off selling it until everything is taken care of.

Upgrades and cosmetic fixes not only add to your home’s value (thus justifying a higher list price), they also help your home display well in photographs and in person. Even minor work such as power washing the exterior, trimming weeds and bushes, and applying fresh paint can boost curb appeal. Eliminating clutter will help show your home in the best possible light as well.

The Market is in Your Favor

Like the economy, the real estate market fluctuates every few years. Putting your home up for sale while the market favors sellers is a wise move, because anything can change in a few months.

When inventory is limited, you’re most likely to receive competing bids for your home. The downside is it can be a bad time for you to find a new home with so many buyers vying for the same properties.

But just because a market is favoring buyers doesn’t mean your home won’t sell. It all depends on what are of the country your live in and what the local economy and job outlook there is like.

Your Finances Are Healthy

Moving isn’t exactly cheap. Most people like to have a new home purchased and waiting for them before they move out of the current one. This requires having enough money to pay for the new home and cover moving expenses, closing costs, and staging if necessary.

That’s why if you’ve been on the fence about selling your home and you’re financially viable with secure employment, now may be a good time to switch addresses. This includes being debt-free and having enough money set aside in a nest egg to cover unforeseeable repairs.

The timing is even better if interest rates are low, as once they begin to creep up you’ll face higher mortgage payments.

You Have Equity

Buying a home is an investment and hopefully one where your return is greater than what you paid for the home. You don’t want to sell yet if you don’t have equity in your current residence. Enough of your mortgage should be paid off so that you make some money through the sale.

You Need to Relocate

Sometimes our dream job is one that requires us to move out of state or across the country. Or perhaps you need to move to care for a sick loved one or are getting a divorce.

Whatever the case may be, sometimes we’re forced to move when life throws us a curve ball, or we’re faced with an opportunity that may never come again such as meeting the love of our life or finding a better job. In these situations, the time of year you put your home up for sale becomes irrelevant.

You’re Ready to Downsize

Maybe you’re an empty nester or widow who now finds you have too much living space to maintain. If downsizing into a smaller home can reduce your expenses and stress, that’s a sign you may want to sell your current home.

Keep in mind that in any of these circumstances, you also want to be emotionally ready to sell. This means being willing to vacate your home at a moment’s notice, working with a real-estate agent, and keeping your home clean and presentable. Selling a home can sometimes feel like a full-time job, so don’t do it unless it feels right to you.

Is the Best Time to Sell a House During the Warmer Months?

To be honest, the theory that homes tend to sell faster during the spring and summer doesn’t really have evidence to back it up. If you live in an area such as Arizona or Florida where the climate is pleasant during the winter, then your home is going to attract buyers any time of the year. Some buyers also like to make offers during the winter months because they’re facing less competition.

There are many factors that affect how long it takes to sell a home. Your location, the home’s condition, and listing price can play a part in getting an acceptable offer.

You may want to wait to sell your home until everything has fallen into place and you just know in your gut that it’s the right time to make a move. Selling a home is an important life milestone that shouldn’t be treated lightly.

We Can Help You Sell Your Home Fast

Usually the best time to your sell a house is when you know it’s time. But sometimes, as mentioned above, you may have to sell your home right now—and quickly.

Five Boro Home Buyers pays cash for homes in the New York City area. If you can’t afford to wait to sell your home for whatever reason, contact us for a fair cash offer.

8 Tips for Finding the Right Companies that Buy Houses for Cash

June 24, 2019 by Joe Ruben

Selling a house takes time. And it costs money. The average home sale costs the sellers more than $10,000!

Sure, you’ll make some money, but what can you do when you need to get out of your house fast? Not everyone has time to wait for their home to sell through the traditional real estate agent setup.

That’s when you should start looking for companies that buy houses for cash. They’ll pay you upfront and close on the house quickly.

But how can you find a company you can trust? What should you look for?

We’ve got you covered. Here are a few tips to help you find a reputable company to work with.

1. Speak with Friends

Lots of people sell their homes for cash, especially if they need to get out of the house quickly. And that means lots of people have worked with companies in the past. So, ask around.

Speak with friends who have sold their homes recently. Ask your coworkers for recommendations. You can even ask your attorney for suggestions.

Word of mouth is key and if someone else had a good experience with a company, you probably will, too.

2. Read the Reviews

Every cash home buying company will have reviews online. And it’s worth checking them out.

See what their reputation is like on the internet. Remember, internet reviews are anonymous and people often feel more inclined to say exactly what they’re feeling. This can give you insight into how the company operates.

If the reviews are good, the company is worth working with. If they’re bad or several people report the company as a scam, steer clear.

3. Check Their Profile at the BBB

General internet reviews are a great place to start, but once you have a list of companies you’re interested in, do a bit of digging on the Better Business Bureau’s website.

There, you’ll find additional reviews from verified customers. And you’ll be able to check the history of complaints filed against the company. Ideally, look for companies with A ratings.

4. Ask for References

It’s normal to interview more than one company when trying to get the best offer on your house. And that’s the perfect time to ask for references.

Reputable companies have previous clients that are more than happy to discuss their experiences with you. But you need to ask for those references and follow up with them.

If their past clients recommend them and had no concerns during the selling process, you’ll be in good hands.

5. Make Sure a Cash Sale is What You Want

Before you start working with a company, you want to make sure that a cash home sale is what you want. Otherwise, any company is going to feel like a bad fit.

Think about what you’re looking to accomplish. Are you hoping to get the most you can out of your home sale or are you needing to sell as fast as possible?

Cash sales may not be the right fit for every seller. And that’s okay.

6. Beware Pushy Tactics

Selling a house for cash does mean you’ll likely get a lower-than-market offer for your house. Why? Because the company is paying you in cash and sparing you the expense of working with a realtor.

But if the sales team is overly pushy and tries to get you to agree to a deal without giving you time to think about it, walk away. This is a surefire sign of a disreputable company.

Good cash home buying companies want you to make the best decision for your needs. This means they’ll be understanding if you need to think about the offer or want to discuss it with your family.

No homeowner should feel pressured out of their home, no matter what the circumstances are.

7. Look for Surprise Fees

Just as reputable companies won’t use pushy sales tactics, they won’t charge you any fees you’re not fully expecting.

If a company requires an application fee before they look at your home or asks you to pay a commission on top of other processing fees, walk away. These companies are out to nickel and dime you out of the money you deserve.

Trustworthy companies will always be upfront about any fees you have to pay (if you pay any at all). They’ll always give you an offer for your property for free. And you should never feel forced to accept that offer.

And you should never have to pay for the closing costs or any repairs during a cash sale. Your home should sell as-is and the cash house buying company should cover all closing costs and filing fees.

8. Go Over the Deal

Reputable companies want you to make sure you’re doing the right thing and that you’re comfortable with the situation. Go over the offer in detail with everyone involved. You can even take the written offer to an attorney and have them inspect it.

The most important thing is that the company offers you the chance to think about the deal before taking it. And you’ll know immediately if the company is one you should avoid—they’ll refuse to give you time to think.

The Best Companies That Buy Houses for Cash Aren’t Hard to Find

There are hundreds of companies that buy houses for cash. But not all of them are trustworthy, fair, and worth your time. Use these tips to weed out the bad from the good and get rid of your unwanted property fast.

If you’re ready to sell, whether the house is in good condition or needs a bit of TLC, don’t wait. Contact us today and let our experienced New York real estate pros get you a fair cash offer for your home.

Close with Confidence: The Most Important Real Estate Terms for New York Home Sellers

June 16, 2019 by Joe Ruben

Selling a home can be a trying time. First, you must prepare your home for the market which includes a long list of to-do items like cleaning and fixing minor or major issues. Then, you have to list your home which is a whole new world of real estate terms and big numbers.

That’s why you need to know real estate terminology before you list your home for sale. It could actually help you make the right decisions as you prepare for this extreme life event.

Whether you’re thinking about selling your home or you’ve already listed it, we’re here to help. Keep reading for a comprehensive list of all the important real estate terms that sellers should know.

Real Estate Terms Sellers Need to Know

Real estate jargon is a complicated language with a lot of terms and definitions. Not knowing what something means when your real estate agent or buyer or even banker is speaking to you can cost you time and money in the long run. It can also cause you to be taken advantage of if you’re not careful.

Take a look at these terms and make yourself familiar with them so that you can have educated discussions with all involved throughout the process of selling your home.

Listing Agent

If you’ve already listed your home, you may be familiar with this term. The listing agent represents the seller to home buyer’s and buyer’s agents.

Real Estate Agent

Sometimes also known as a realtor. Realtors must be members of the National Association of Realtors. Real estate agents and realtors can represent buyers and sellers as long as they hold current licensing.

Real Estate Broker

Real estate brokers generally work over other agents. They have passed a state broker’s exam and met a minimum number of qualifications to earn this title and responsibility.

Buyer’s Agent

You may have had a buyer’s agent when you bought your home. This agent represents the buyer during the sale process and transaction.

Loan Officer

A loan officer assists buyers with the purchase of a home. They generally work for mortgage brokers or banking institutions.

Commission

Real estate agents and loan officers earn their living off commission. This is the premium charged, typically a percentage of the sale of a home, for services provided.

For Sale By Owner (FSBO)

If you are interested in selling your home without representation, you may list it yourself. You will be solely responsible for advertising the home. This is an easy way to avoid paying commission.

Owner Financing

May also be known as seller financing. This definition is just like it sounds – the buyer finances the home directly through the seller thereby bypassing conventional mortgage lenders and financial institutions.

Multiple Listing Service (MLS)

One of the most important real estate terms to know when trying to sell a house is MLS. The multiple listing service is a nationwide listing site where agents and sellers can list details of their property for sale so that buyers can find them.

Staging

Many sellers find it beneficial to stage their homes according to trends in decor and design in order to appeal to buyers’ interests. You can hire a home stager or do it yourself.

Pre-Qualification

In realtor terms, a pre-qualification simply means that a buyer has the credentials to purchase a home.

Pre-Approval

A pre-approval indicates that the buyer has the financing to purchase the home.

Appraisal

When selling your home, you must have it appraised in order to evaluate the market value. The appraiser will determine this value by comparing your home to other homes in the neighborhood.

Equity

Once your home is appraised, you will know how much equity is in the home. This is the amount of worth minus the difference in what you owe on the home. In other words, it is the profit you will receive for selling the home if you receive full asking price.

Inspection

Each home for sale must have several inspections before a mortgage company will approve the purchase. This may include structural inspections, pest inspections, and others upon request of the buyer.

Contingency

Contingencies are certain stipulations in a real estate contract that must be met prior to the final sale of the home. These are generally provided by both buyer and seller.

Counteroffer

Once a buyer offers you an amount on your home, you should always come back with a counteroffer. This should be a lower amount than what the buyer proposed but within your comfort range.

Purchase Agreement

There’s always a lot of paperwork when it comes to selling a house. Including a purchase agreement. This agreement demonstrates the buyer’s intent to purchase your home.

Title

A home title is similar to a car title – it represents your rights to the property. Each time a home is sold, the title is transferred from seller to buyer which gives the buyer legal rights to the property.

Closing

The closing is the last stage of a sale transaction. You will meet with the buyer and any agents that have been involved as well as a title closer to sign all necessary documents which legally transfers the property from you to the buyer.

Final Thoughts

Knowing all of the proper real estate terms will benefit you throughout the process of selling your home. Keep this real estate glossary with you as you navigate buyers and agents so that you have something to reference when they start throwing around mortgage language. Not only will you feel more confident, but you’ll also come off as knowledgeable to those you’re dealing with.

If you have questions or want to sell your home fast, don’t hesitate to contact us. We buy homes for cash!

How Does a Breakup Affect the Home Selling Process?

June 13, 2019 by Joe Ruben

For many young couples, marriage is no longer essential before making big decisions like purchasing a home. However, purchasing a home with a significant other before you are legally married can present problems, especially after a breakup. On average, relationships between a millennial couple lasts for four years.

Unfortunately, four years isn’t exactly enough time to pay off a mortgage.

If you’re going through a breakup after buying a house with your significant other, you’ll probably want to sell your house fast. A quick Google search for “sell house for cash” might help a little, but there are some things you need to learn from the pros. We’ve gathered a list of things you need to consider when breaking off a relationship with a significant other when a home mortgage is involved.

Selling Your House for Cash After a Breakup

Depending on how you signed the paperwork for the home, one or both of you might be signed as responsible for paying down the home loan. In either event, the best option is usually to sell the home fast and to sell your house for cash. Here’s why.

It’s likely you were sharing expenses before. Utilities, internet, and the home mortgage are all going to add up. Unless you were counting on a breakup, you likely haven’t planned financially to be able to handle that extra burden. Additionally, if both of you are signed as owners on the home, you’ll both have partial equity in the home. This can become further complicated if one of you leaves and the other decides to take over the entire mortgage. While home equity can be negotiated, and you can buy out your ex from their equity, this is often a long process that ends up in bickering and more fighting.

When you sell your house for cash, it is easy to pay off the rest of the mortgage and then split the cash value of the home’s equity. Homes for cash is a great program for this as you don’t have to worry about closing fees and real estate agent costs. Fortunately, we buy houses for cash all the time and can help you out of sticky situations.

Let’s say you actually loved the home you had been living in. The good news is, if you were the sole signer or a co-signer on the home, you have probably been building good credit. With a good credit score, after your ex has been removed from the picture, you can often find another home that is just as nice (or nicer) for your new needs as a single person. In some cases, you might look for a home that has a few spare rooms that you can rent out to offset the mortgage cost.

What To Think About When You Sell

Here are a few other things you should keep in mind when selling your home for cash.

1. Take Care of all Utility Bills Beforehand

Often there is only one person listed on the utility bills, and utility companies require some sort of prior notice before discontinuing service. If you forget to handle utility bills in a timely manner, you may end up with several hundred dollars of extra charges, even after you sell the home.

2. Close-out Internet Contracts

Internet contracts are typically pretty easy to terminate, even if you to believe otherwise. Make sure you discontinue or pause your internet contract, telling the company you are in the process of a move. Moving is a legitimate reason to cancel an internet contract, and most internet companies will allow you to resume service at your new location at the same rate.

3. Take Care of Home Repairs

Taking care of all the little home repairs you have been putting off is important for getting the best home for cash valuation available. Do everything you can to fix leaky faucets, holes in walls, and other small issues.

Selling a house fast after a breakup is definitely a priority. At Five Boro Home Buyers, we understand that a quick, easy sale can make your life easier. So if you need to sell a house fast for cash, give us a call today.

Money Talks! This Is What Happens When Buyers Pay Cash for Homes

June 5, 2019 by Joe Ruben

When selling your home, most potential buyers will make an offer contingent on the mortgage financing they receive from a bank. However, some buyers may put a cash offer on your home if they have the funds to buy the property outright.

The share of buyers who offer cash for homes is substantial. And 32 percent of all residential sales in 2014 were cash.

While you still receive the money for your property, there are a few significant differences between selling for cash instead of a mortgage. Understanding the process behind a cash process can help you avoid any headaches or surprises during the sale.

What Are the Benefits of Accepting a Cash Offer For Your Home?

There are a few different reasons why someone would choose to pay cash for a house. The first and most obvious is that the buying process is much quicker. Since the buyer doesn’t need to secure financing and funding from a bank, the sale can close in a few days or weeks.

This doesn’t mean that you’re exchanging property for a briefcase though. You’ll want to make sure that you’re protected at all points of the sale, which is why you should be like 91 percent of all Americans and use a real estate agent. A real estate agent will make sure that you’re not getting low-balled and that the sale meets all legal requirements.

Also, most cash sales come from investors. This means that no one is going to be living in your home immediately, as the property is either fixed up or torn down and replaced. This means that a cash offer may save you time and effort, as you won’t have to make repairs or upgrades to the property before the sale closes.

Cash sales also mean that you can sometimes avoid the contingency clauses that come with mortgages and financing. These clauses allow the buyer to back out of an offer if their other house does not sell, if the inspection passes, and other “ifs.”

What Does the Cash For Homes Process Look Like?

When a buyer makes a cash offer on your home, they will contact your real estate agent. If you accept the offer, you will sign a contract stating your intention to sell your home to them.

They will then provide you and your agent with a letter or bank account statement that acts as proof of funds.

Title Search and Escrow

Then, you will have to choose a title search and escrow company. The title search will turn up any liens or other financial obligations that exist on your property that you need to pay before selling.

The escrow company will hold onto funds as the title search and other paperwork clears. They will also often issue the paperwork necessary to close the sale, though sometimes your real estate agent may do so.

To streamline the process, it’s a good idea to find a company that is able to do both the title search and fulfill the escrow requirements. This can save you time and close the sale faster, as there is no coordination necessary.

Inspections

A title search will usually take a few days. During this time, you should also have an inspector come in to examine your property to determine what, if any, repairs you need to complete before selling. However, if the buyer has expressed that they don’t need an inspection done, you can skip this step and save some money.

In some cases, you may not have to make the repairs but can instead choose to reduce the sale price of your home. This way, you are still effectively paying for the repairs but can close the sale faster if time is of the issue.

Closing the Sale

Once the title search has finished and you have made all necessary repairs, the sale can close. However, if your property does have liens on it, you will have to fulfill those financial obligations before completing the sale.

Depending on your financial situation, the closing process can involve a lot of paperwork but usually does not take very long.

You will have to complete a HUD-1 statement, which provides all of the financial information of the sale. You’ll need the information provided here for your taxes next year.

You will also need to sign the title and the title transfer documentation. If you still have a balance owing on the property, there will be a separate document that gives the escrow company permission to pay the owing balance with the proceeds of the sale.

A bill of sale will also include any agreements that you made with the buyer (like leaving appliances, skipping the inspection, or knocking the price down to avoid making the repairs yourself).

Once you sign all the documentation, the sale will close and the escrow company will pay off your mortgage and transfer you what remains – minus any costs or fees that they charge you.

With that, you’re done! You’ll have no further obligations to your old home and can use the proceeds to make a down payment on a new property.

Sell My Home for Cash

Selling your home for cash can benefit you substantially if time is of the essence for you. It’s also a good way to avoid the hoops and red tape that comes with accepting an offer from a buyer who is relying on financing for their funds.

If the benefits of accepting cash for homes fit your needs, and you are thinking about moving at any point soon, get in touch with us. We can help match you to cash buyers very quickly, reducing the amount of time that your home is on the market.

Call to Get Your Cash Offer Today

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