Market overview
Property in the USA is fast becoming one of the most popular markets in the world. The country’s sheer size provides a wide range of opportunities. New York property is highly desirable for wealthy investors thanks to the array of high-end properties and thriving city economy. Detroit, North Dakota and other heavily-populated cities promise strong rental yields for buy-to-let investors.
Florida, though, is by far the most coveted. The Sunshine State, as it is known, bring in tourists all year round with attractions such as Walt Disney World and gorgeous beaches. Together, they create a housing market that suits both buyers seeking a suntan and returns-driven investors. As a result, Florida dominates buyer demand, accounting for 25 per cent of US property activity on TheMoveChannel.com.
The Selling Process
Market your home
The real estate agents market in the States is highly competitive, all promising to do the best for you and your property. It is worth to do some thorough research before choosing the right real estate agent to represent you. It also becoming easier to sell your property without an agent, but only go down this route if you are willing to dedicate a fair chunk of time to it.
Hire legal representation
Even if you have the best realtor in town, when selling a property in the States, having a lawyer on your side will make the process go as smooth as possible.
Home appraisal
Real estate appraisals provide valuable information for the buyer and the seller. An appraiser is an expert professional who is qualified to use their opinion, judgment and experience to perform a thorough and detailed examination of your home. This examination will lead them to a valuation of your home, taking into account specific criteria including the location, proximity to desirable schools and condition of your home as well as recent sales prices of similar properties. The cost of an appraisal depends on the price of the home.
Disclosure
As a vendor you are legally obligated to disclosure certain material information about your property to a prospective buyer. A real estate transfer disclosure is a document highlighting in detail the possessions in and attached to the house that is required to be filled out by the seller. Items that can be found in the disclosure form vary but generally include a description of items in the kitchen; notice of the safety features in the houses; any external devices.
The Offer
When the prospective buyer initially makes an offer, it is considered informal and he is in no way legally bound to it. You may then choose to accept it or reject it. An offer is usually made verbally through the buyer’s agent. At this point, the buyer also pays a small sum known as “Earnest Money”, which gives the buyer sole bargaining rights for a specified period of time. The money is usually held by the realtor and is added to the down payment if the sale goes through.
The Inspection
The buyer’s next step is to determine whether the physical condition of the property will be acceptable. Depending on the type of financing he chooses, there should be either two or three separate inspections.
The Contract
Once the offer is accepted and the contract is signed, both buyer and vendor are legally bound to comply with every aspect. The contract will provide the ‘blueprint’ for the final sale including all the relevant details of the sale. It will be signed by the buyer, at which point the buyer is then usually be required to present a deposit of 10% of the purchase price. The contract plus the deposit will then be forwarded to the seller for signature. This money will be held in the seller’s attorney’s escrow account (i.e. held in trust) until closing. It is important to note that until all parties have signed the contract, and it has been delivered, the seller can still entertain and accept other offers.
The Closing
Closing (or settlement, as it known in some parts of the US) is the final step in executing a real estate transaction. The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred to the buyer. In most jurisdictions ownership is officially transferred when the contract is registered at the cadastre, or in most US states, at the office of the County Recorder of the county in which the property is located.
Average selling prices
1 Bed Apartments
£371,422
2 Bed Apartments
£624,174
3 Bed Apartments
£737,377
2 Bed Homes
£123,585
3 Bed Homes
£167,647
4 Bed Homes
£301,124
Selling checklist
Things to include in your disclosure:
Description of items in the kitchen Notice of safety features in the house Any external devices, such as a TV antenna Amenities, including a pool or spa Heating devices and water supplies Major defects that exist and the presence of environmental hazards Walls or fences shared with adjoining landowners Zoning violations Citations or lawsuits against the property
Photos: Cyndie, Images_of_Money, AJC1 / Diana Parkhouse
