Simply Junior

Congratulations! You have a contract to sell your house. You are looking at that sales price and thinking what a large number it is. However, that sales price is not the amount you will be taking home from the closing. What will be deducted from that price?

1. Real estate agent fee – before you put your property up for sale, you will probably have retained the services of a real estate agent who will help you sell your house. You will have signed a contract with the real estate agent which lists the fee that the agent will charge.

2. Attorney fee – a seller in certain parts of the country will retain a lawyer to represent him in the sale of real estate. In other states, the real estate broker and title company will perform some of the functions of an attorney that are not considered practicing law, i.e., completing a pre-printed Contract of Sale and preparing for and attending the closing. An attorney protects the seller’s interests at every step of the transaction. Attorneys fees generally range from $750 to $950.

3. Grantor transfer fee – Some of the states require the seller to pay a transfer fee on every property he/she sells, whether or not it is a personal residence. The fee is based on the sales price of the property and the rate may goes up at various sales prices.

4. Mortgage and related fees – If you have a mortgage on your property, the amount of the mortgage (plus any unpaid interest plus any late fees) will be deducted from your sales price. Prior to the closing, you will request a payoff statement from your lender that will set forth the amount that is necessary to pay the entire mortgage. If your mortgage lender has been escrowing money for the payment of your real estate taxes and homeowner’s insurance, they may deduct the escrow account funds from the total amount due. Other lenders send you a refund check after they have received the check for the payoff of the mortgage. The settlement agent may charge you a fee for obtaining the Discharge (or Satisfaction) of Mortgage. This fee is approximately $75.00; there may be an additional charge for overnight mail to send the check paying off the mortgage to the lender and record the Discharge of Mortgage.

5. Home inspection repairs – the buyer will typically retain a home inspector to look through your entire house (roof to foundation) to find any structural problems or problems with the heating, cooling and electrical systems. The home inspector will send a written report to the buyer’s attorney or real estate agent who will forward a copy to your attorney or real estate agent with a request that you make certain repairs. Certain repairs must be made only because if this buyer raises it as an issue, every buyer will raise it as an issue. These types of repairs include problems with the roof, termites, mold, boiler, water heater and abandoned oil tanks. How much will these repairs cost? Your real estate agent will help you find expert contractors who will give you an estimate as to how much it will cost to make the repairs. Your attorney or real estate agent will negotiate on your behalf which repairs you will do or whether you will give the buyer a credit against the balance of the purchase price due at closing.

6. Real estate taxes/sewer fees – you have paid your real estate taxes when they became due, perhaps quarterly, semi-annually, or once a year. When you sell your house, the buyer reimburses you for the taxes you prepaid, calculated from the closing date to the date on which the next tax payment is due. Occasionally, the closing is scheduled for a date before the taxes have been paid. If you haven’t paid the taxes by the closing date, the buyer pays the taxes and you reimburse the buyer. Some towns charge a separate sewer fee that is also subject to reimbursement by the buyer or the seller, depending on when the sewer fee is due and whether it was paid before the closing.

7. Homeowner association fees – this fee is charged when the property is a condominium or in a planned community. The fee that has been already paid by the seller is allocated between the seller and the buyer according to the closing date. If the seller has not paid the homeowner association fee before the closing date, the seller will owe the buyer for a portion of the fee.

Unfortunately, the closing expenses always seem to be higher than what a seller expects. Your attorney or real estate agent will be able to guide you through the process so that you will not be totally surprised.

Remember that buying or selling commercial real estate is significantly different from buying residential real estate. That is why you need the help of licensed commercial real estate brokers to get the best deals.

What commercial real estate brokers can do for you

Licensed commercial real estate brokers are trained to assist you to market your commercial real estate property to the right audience. Your retail, office, industrial or multi-family property will receive publicity that will attract only the best buyers and investors.

Most commercial real estate brokers make use of multiple listing service and extensive multimedia networks to make sure that your property reaches interested buyers. When you leave everything in the hands of commercial real estate brokers, your property will find it is way to newspapers and relevant Internet sites in no time.

What to look for in commercial real estate brokers

More often than not, experience differentiates a good commercial real estate broker from a mediocre one. Choose brokers that have at least 5 years experience successfully selling commercial real estate properties. Such experienced professionals can bring a lot to the table – market intuition, thorough knowledge in research and development of real estate pitches and marketing ideas. Good commercial real estate brokers will not only help you sell your commercial real estate property, they will help you maximize the value of your asset before the sale, so that you can increase profit.

You should look for commercial real estate brokers who are available to assist you anytime, 24 hours a day, seven days a week. Some brokerage companies have very efficient web-based project management technologies that let you access your project whenever you want. Some also have round-the-clock phone support.

Minnesota has a large number of real estate agencies, catering to the needs of people interested in buying or selling real estate within the state. These agencies provide services such as advice regarding sale and purchase of residential or commercial properties, evaluation of properties for mortgage, comparative market analysis, document preparation, full residential appraisal and marketing services. Though most of the large agencies are based in the capital, Minneapolis, they usually offer their services in terms of assistance and guidance for sale and purchase of real estates throughout the state of Minnesota.

In real estate jargon, sellers and buyers are called “principals” and the real estate agents are referred to as “agents.” A real estate agent fills out a “Real Estate Contract.” Typically, real estate agents are not authorized to sign any documents relating to the transfer of ownership of a property. Real estate agents put themselves down on the contract as the agents for each principal so that they can collect their commissions after successfully concluding the transaction.

The use of a real estate broker is not a mandatory requirement for the sale of real estate or for getting a mortgage loan from a lender. However, if an agent represents both the buyer and the seller, the agent is considered a dual agent. There are special laws applicable to the transactions carried out by dual agents, in order to protect the interests of both the buyer and the seller. Additionally, some real estate agents coordinate various aspects of the closing of a sale such as provision of title service including title search or title insurance, formal appraisals of the property as required by lenders with the help of appropriate specialists.

Some real estate brokers network with loan officers who may help finance buyers in their purchase. Information about the various real estate agencies in Minnesota and their contact details are available on the internet or the local directory.

Working as a real estate broker is a rewarding career in Dubai, knowing the number of sales and purchase that take place. Property agents are in demand because the majority of investors, buyers and sellers are not fully aware of the dynamics of the market, since most of the investors are coming from other countries. Lack of knowledge regarding real estate laws and matters make them vulnerable against various types of frauds, except when they are represented by an experienced broker. In past, some fraudsters took advantage of the absence of any specific regulations controlling real estate agents. These swindlers managed to defraud both buyers and sellers. Thankfully, RERA took quick steps towards making and implementing regulatory measures to curb these fellows who were giving bad name to the entire market.

Starting a business in Dubai:

Before we move on to the guidelines for setting up a real estate business in Dubai, let’s have a brief look at the general procedures for starting any kind of business in Dubai. The first thing you need to do is to get familiarized with the region, for the reason that there are some pretty unique rules and regulations, ignoring them can be risky. For example you need to involve a UAE citizen as a partner, in fact the partner is supposed to own at least 51% of the interests, which allows them to be in charge most of the time. Certainly, a big put off for most entrepreneurs but that’s how it goes. Also, you must be having at least $10,000 dollars in your bank account before you are approved by the ministry of commerce.

Starting a real estate agency:

Along with the general requirements, you must meet specific requirements set by property regulatory authorities. First, you need to obtain a separate license for each and every service you are going to offer. For example, license for buying and selling, license for real estate leasing, license for property consultancy or a license for property management. Similarly, licenses are required in case of property inspection services, real estate exhibition, real estate mortgage broker, consultancy, and the likes.

Another requirement worth mentioning is the training provided by RERA, all property agents must pass this course before they can practice. Remember, only UAE or GCC nationals can apply for the ownership license for the brokerage after presenting the certificate of good conduct issued by CID. However, if you are not a UAE or GCC national, you can apply for the license to work as a real estate consultant if you’ve got at least 5 years of experience under your belt.