Selling Your House with a Lease Option

It’s a buyer’s market, and selling your home can be tough. For one reason or another, many buyers aren’t quite ready to make the leap into purchasing a home. That’s why so many sellers today are renting their homes to individuals who then have the option to buy the home when their lease is up. Selling your home with a lease option is a great way to ease the buyer in and earn a little extra cash in the process.

Here are some tips that can help you navigate the process of selling your home with a lease option:

1) Make sure it’s right for you. While lease options can be beneficial to some, they are not for everyone. Remember that the person who is leasing your home is not required to purchase it once the lease is up, so you may need to start the process over again when it is. You’ll also want to make sure that you’ll be able to keep up with making repairs to the home while it’s being leased, as that will still be your responsibility. If you need the money from your home sale right away, then a straight sale might be a better option.

2) Do a background check. Because you will be responsible for the condition of the house while it’s being leased, make sure you pick the perfect tenants who will make your job as landlord as easy as possible. Find someone with a steady monthly income and good references from past landlords or employers. You can also feel free to have your tenant pre-qualified for a mortgage. Remember that the ultimate goal is to have the tenant buy your home, so it doesn’t hurt to see where they stand right away.

3) Make the contract. Before you get started on the contract, you’ll want to write up a disclosure form for your tenant that will describe any problems with the home that you know of before the tenant moves in. The contract that you and the tenant will sign can be best attained from your local attorney or real estate agent. The contract should include the purchase price of the home, the amount of option money you will collect (typically 2-4 percent of the purchase price), how much of the tenant’s monthly payment is going to be credited toward the option and how long the lease term will be.

4) Get the right insurance. Make a call to your insurance agent so that you can update your policy whenever needed. You may need a dwelling policy now that you won’t be the owner and occupant of your home, and you should also make sure that your tenant has the appropriate renter’s insurance.

5) Sell your home. The ultimate goal is to sell your home to your lessee. Before or at the end of the lease term, your tenant may decide to exercise the leasing option that was agreed upon in your contract. Any option money paid toward the house will go toward the home’s down payment. This can be anywhere between 0-100 percent of the monthly payment, depending on what you stated in your contract. In many cases, the tenant will find that subtracting this amount from the total needed will decrease the overall cost of the down payment and make it easier for him or her to get a loan for the house.

While the real estate market in Chester County is certainly picking up steam, there are still many home sellers who are turning to lease options to ultimately get deals done. If you’re considering this option, work with an experienced real estate agent to make sure you have all of your bases covered. 

Chester County: Attractive to Homebuyers

Located in beautiful southeast Pennsylvania, Chester County is home to many communities that make up the Main Line western Philadelphia suburbs. Rich in history and character, Chester County is known for its friendly neighbors and exciting attractions. This makes it a great place for people looking to buy real estate.

Education: Chester County puts a large emphasis on education, and in doing so offers several public, charter and independent schools for pre-school, elementary school, middle school and high school. The county is also home to a well-established library system and seven colleges and universities. Whether you’re looking for a highly rated school system for your children or a top-quality college education for yourself, Chester County has everything you need to succeed.

French Creek State Park 

Indoor & outdoor recreation: Work out at the Y or go for a horseback ride at Spring Creek farm. No matter what you like to do for fun, Chester County will keep you busy. It’s also home to several state and county parks, including White Clay Creek Preserve and French Creek State Park. Enjoy fishing, hiking and biking outdoors, or have indoor fun bowling or seeing a movie.

Dining: From Lasorda’s Restaurant and Pizzeria to Jashimalyan Exotic Indian Cuisine, you’ll find the full spectrum of foods from around the world. For fun with the kids, check out Maggie Moo’s ice cream. Looking for a drink? The Whip and Beaver Creek are just two of the most popular taverns in the area.

Shopping: To give you what you need when you need it, Chester County has a huge array of shopping centers and stores. Visit the Wine and Beer Emporium, or stop at Plato’s Closet for some clothes shopping. Enjoy a Sam’s Club membership or check off items on your grocery list at any of the many stores Chester County has to offer. For convenience and class, this is the place to shop.

Festivals: Chester County is home to some of the best festivals in the country. From the West Chester annual May Festival to the Turks Head Music Festival, there’s always something to enjoy. In June, you can have a good time at the Brandywine Hospital Strawberry Festival, which offers games, rides, music and more. Enjoy fine dining at the Chester County Restaurant Festival, in which over 60 of the county’s best restaurants show their stuff by offering up food, beer and wine, together with some great live musical acts. With its wide array of festivals, Chester County has something going on all summer long.

Chester County truly exemplifies the best of what suburban Philadelphia has to offer. If you happen to be in the market for a home, it’s wonderful area to check out.

Top Five Reasons to Hire a Real Estate Agent

With the way online marketing is rapidly evolving, some home sellers wonder if hiring a real estate professional is really worth it. While the Internet can be helpful, there are several important services that real estate agents can offer that websites simply cannot. These include the following:

1) Real-world experience: Because they have the education and experience necessary to market your home, real estate agents handle the details and give you more time to concentrate on other aspects of selling your home. Preparing a home for sale is no simple task. Not only do you need to think about advertising, but you also need to be concerned with getting it ready for showings, which can take a great deal of time. Real estate agents have the skills to market your home effectively and take some of the weight off of your shoulders.

2) Buyer and neighborhood knowledge: Your real estate agent knows exactly who will want to buy your home and how to market your neighborhood to them. You will receive quite a few inquiries about your house over the duration of its time on the market, and it’s your real estate agent’s job to act as a buffer so that only serious potential buyers get a chance to look at it. Your agent will look up information on local schools, crime, attractions and other features, and bring them to the buyer’s attention in order to get you the highest price possible for your home.

3) Guidance on price: As the seller, you are responsible for choosing how much money you’d like to get for your home. However, real estate agents have up-to-date knowledge of marketing and real estate trends that will be helpful when selecting the proper price. Consulting with a real estate agent will help you determine the appropriate amount you can expect to get from your home based on current trends.

4) Networking and negotiating: Real estate agents know who’s who in the business, and can help you connect with professionals in other field. Agents are also great at negotiating with potential buyers because of their previous experience and their lack of emotional connection with the home.

5) Closing questions and paperwork: You’ll get plenty of paperwork to fill out in the process of selling your home, and your real estate agent will know just what to do with it so that you don’t need to stress out. Once you’ve found a buyer and are ready to close, your agent will also answer any questions regarding the closing that you might have.

Simply put, buying or selling a home, whether in Chester County or elsewhere, can be a complicated process. However, by working with a qualified, professional real estate agent, you can ensure that the process goes as smoothly as possible.

What Young Professional Homebuyers Look For in a Property

When selling a home, one of the biggest markets you can reach out to is young professionals, many of whom are searching for their first homeownership experience. While the economy still recovers, couples and individuals in their early and mid-twenties are taking advantage of the opportunity to buy their first homes at a low price while they can.

While the prospect of selling a home in Chester County, PA to buyers that are in their twenties opens up a whole new realm of possibilities, it should be noted that different things need to be taken into consideration when selling to this age group.

Many young homebuyers lead the busy lives of newly-weds, college students or first-time career starters. Due to the busy schedule that many individuals in this age category are bogged down with, they are less likely to be interested in houses that require significant renovations. Young buyers are typically wrapped up in the excitement of owning a home and don’t want to worry about making a ton of repairs, so make sure that your house is as move-in friendly as possible if you’re looking to sell property in Chester County.

The only factor more important than the move-in readiness of the home is its location. Young buyers are likely to want suburban Philadelphia real estate that is close to school, work and a social scene. Obviously, you can’t change the location of your home, but you can communicate to buyers some businesses or amenities near your property that might interest them. This might include restaurants, bars, golf courses or shopping.

When it comes down to it, young homebuyers want the same thing that everyone wants in a home. They want a good location, few renovations and a home that they can fall in love with. The difference in generations is that young people are primarily concerned with their busy social and work lives rather than on their home lives. Buyers at this age may not be interested in a home with a large bedroom or a home that is child friendly, because they might not be thinking about expanding their family yet. Rather, they will want features that will support the single life or the newly-wed life.

If you would like to learn more about how you can best sell your home in suburban Philadelphia, work with a qualified real estate agent. These professionals will give you the tools and resources you need to find success. 

How Good Landscaping Can Help You Sell Your Home

The first thing that potential buyers see when they come to look at your home is your front yard and exterior. First impressions are extremely important when selling a home in Chester County, and a disheveled-looking place can be an instant turnoff for homebuyers. That’s why it’s important that your house has what is commonly referred to as “curb appeal.”

Although it’s often the last thing owners think of when preparing their home for sale, curb appeal can actually add 10 to 15 percent to the value of a property. That really adds up!

There are a few things to keep in mind when addressing the landscaping on your suburban Philadelphia home for sale.

The Lawn: Dead grass can look brown and unattractive. A bright and inviting lawn will make potential buyers excited to see the inside of your home. Make sure to keep the lawn trimmed and well-watered for that clean, green look. Many people who are looking forward to selling a home in Chester County, PA also take to planting flowers in the front yard to really make the house pop and stand out on the block.

Garden beds can also benefit from the addition of mulch, which will create an organized feeling for the overall landscape. Mulch is also an easy solution for people who don’t have time to wait for fresh flowers to grow. Pull out those weeds and give your lawn a fresh new look!

Trees and Shrubs: Though you may not think that it matters, the shape of your home and how clean it appears from the outside really makes a difference when you need to sell a home in Chester County. If you have a lot of trees in your yard, then you might want to consider trimming them. Although trees can be lovely and inviting, they can also cover up the positive features of your home’s exterior.

Large trees in front of a house can make the house look small, so let your house stand out and shape up those shrubs. Once your house is in clear sight, you’ll want it to be as clean and organized as possible. A new paint job or power washing will leave your home looking brand new.

Lighting: While most home showings for suburban Philadelphia real estate happen during the day, potential buyers can certainly drive by for a quick look in the evening as well. Equipping your home with low-voltage lighting along the driveway or patio can create a certain inviting ambiance that passers-by will love.

While taking care of the landscape of your home will not guarantee you a sale, it is the first step toward getting buyers in the door to look at the rest of the house. A clean, colorful exterior will show buyers what they don’t want to miss on the interior and it will help you sell your property in Chester County.

To learn more about how you can effectively sell a home in suburban Philadelphia, contact Liz Saunders, Associate Broker with Coldwell Banker Preferred, direct at 484-914-4833 or the office at 610-429-4400. You can also send her an email.

Handling a Real Estate Short Sale

When times are tough, homeowners may be forced to make sacrifices and sell their property in Chester County. A “short sale” in suburban Philadelphia real estate is an agreement reached between the owner of a home and his or her moneylender, wherein the lender agrees to accept less money than what is owed on the house. An alternative to foreclosure, a short sale may be a good option to consider if you qualify for one.

The following are the common steps associated with a short sale situation:

Step 1: Contact the lender and send a letter of authorization

It may take time, but try to get a hold of a supervisor who can give you some direct answers regarding short sales when selling a home in Chester County. Once you have your facts straight, you can submit a letter of authorization to the lender. Lenders don’t want to get in trouble by disclosing your personal information, so the letter of authorization will get the ball rolling by permitting the lender to disclose information about you to the specific parties mentioned. Be sure to include your name, the date, the loan reference number and the property address in your letter.

Step 2: Create a preliminary net sheet and hardship letter

The preliminary net sheet displays an estimate of the sales price that is expected to be received, and all of the costs of the sale, including unpaid loan balances and late fees. Don’t worry if you aren’t sure how to calculate these costs—you can always work on this with a lawyer and/or closing agent. You will not need a short sale if the bottom line shows cash to the seller.

Once this is set up, it’s time to start work on your hardship letter. This list of facts explains to the lender how you got into your financial crisis. The lenders are human beings, too, and they can be more understanding than you think. Just make sure to be honest about your situation.

Step 3: Send in a proof of income

Just as you’ve been honest in your hardship letter, it’s important to tell the whole truth when disclosing information about your income and assets. Lenders cannot afford to lose more than they have to when it comes to suburban Philadelphia real estate, so they want to make sure that you’re really in need of the help you are asking for. Be sure to include in your proof of income anything of tangible value, including cash and other real estate, as well as any bank account balances you may have.

Step 4: Complete a purchase and listing agreement

Once you’ve found a buyer, the lender will expect a copy of the offer and of the listing agreement. Make sure that you are prepared for the lender to refuse to accommodate for certain things, such as home protection plans. If all goes well, you will be able to sell your property in Chester County and your short sale will be approved.

Short sales can be difficult, but with the help of a certified realtor, the process can be easier on you. If you have questions about this process, contact Liz Saunders, Associate Broker with Coldwell Banker Preferred, today at 1-888-914-4833, or send her an email.

Tips for Finding a House to Buy in Chester County, PA

The market for buying a home in Chester County, PA is large, and zeroing in on the perfect home for you might be a little overwhelming at first. Think of it this way—when you go shopping for groceries, you make a list of everything you need or want. The process for buying a home, at its core, works in the same way.

The following are some tips to help you find a home to buy in Chester County:

1. Know your budget. Finances are one of the most important factors that go into choosing suburban Philadelphia real estate. Too many individuals fall into the trap of going to a house showing, falling in love with a house and then finding out that it’s far beyond their price range. To avoid disappointment and wasted time, be sure to set a specific budget for yourself and only look at homes within that price range. Be sure to also take into consideration the cost of repairs for fixer-upper homes.

2. Know your lifestyle. Make a wish list of the things you need and want in your next home. Think about location and make sure that suburban Philadelphia real estate is the right fit for you. Do you need to live close to where you work? If you have children, do you need to live near a school? Also think about what type of home you want and what features you prefer. How many bedrooms and bathrooms do you need? Do you want a large backyard or attached garage? These are only a few examples of the questions you should be asking yourself before jumping into the home buying process.

3. Know your future. It’s important to know exactly when you plan to move into your new home and how long you intend on living there once it is purchased. Is this more of a starter home that you’ll be living in for a few years, or is this going to be a permanent residence? These factors will determine how important certain items on your wish list are and may have a heavier weight on your final decisions.

4. Know your realtor—and yourself. Be sure to choose a good realtor and get referrals from people who have had positive experiences in the past with buying or selling a home in Chester County, PA. Interview agents that specialize in buyer representation, and don’t settle for someone who you are not comfortable with. You should also seek out an agent with an ABR (Accredited Buyer Representative) designation. Remember, not all sales associates are realtors!

If you’re looking to buy a home in Chester County, work with an experienced real estate agent today. Realtor Liz Saunders has decades of experience in this market, and can help you find the perfect home for you. Contact her today or call 1-888-914-4833.