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Below is a collection of the most common questions sellers have throughout the transaction process. We have assembled these for your convenience. If you have additional questions please feel free to
contact us. |
(Click on links below for more information)
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| 1. How will I
determine my list or asking price? |
| Your agent can provide you with a Comparative Market Analysis (CMA) to help you determine your list or asking price. This CMA will show you what similar properties are currently available for sale (or those "unproven") in addition to similar properties that have recently sold (the "proven" market ones). Based on these comparables and current market conditions, your agent will then be able to provide a suggested list price range. If you are interested in what your property may be worth, click
here to receive a free Comparative Market Analysis (CMA). |
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| 2. Should I get my
home inspected prior to putting it on the market? |
| A buyer will typically pay for any inspections after you
have an agreed-upon contract. However, it can sometimes be a good idea to get
an inspection and address any problems before even putting the property on the
market. This will prevent you from having to address and fix any surprise
problems that may pop up after you have a contract. |
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| 3. How can I increase
my chances of getting higher offers? |
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Research has shown that sellers who properly stage their homes for sale will
get higher offers than those who don't. Properly staging your home for
sale involves cleaning, repairing, un-cluttering, increasing curb appeal, and
creating an atmosphere that will allow a prospective buyer to develop an
emotional attachment to your property. Click here
for more information on properly staging your home and property. |
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| 4. When I get an
offer, should I counter it? |
| Your agent will certainly advise you on what to do in
this situation, but it will basically be your decision to make. When you
"counter offer" you are essentially rejecting the buyer's original terms and
conditions and now offering to sell your property at different terms and
conditions. At this point, the prospective buyers may or may not agree with
these proposed terms. Fully discuss with your agent all of your options and the
possible outcomes, so you will be fully comfortable with your decision. |
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| 5. Why isn't my
property selling? |
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Very little activity on a property is usually a good indication that
the price may need to be adjusted. A property is only worth what a ready,
willing, and able buyer will pay for it. After a month or so, if very few
buyers are looking at your property or no offers are being made, the market is
saying that your property is probably priced too high. An adjustment should be
considered at this point. However, slow activity could also be a temporary
fluctuation in the market or an indicator of a specific issue that needs
to be addressed with your property. Your agent should give you
recommendations on what to do at this point. |
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| 6. Typically, how
much are settlement or closing costs? |
| In the state of Maryland, other than the commission or
marketing fee, the seller will typically pay one half of any recordation tax
and state/local transfer taxes. The seller's portion of those taxes is
approximately 1% of the agreed-upon purchase price. In addition, the seller
should expect to pay an additional $200 for miscellaneous items needed for
closing or settlement. |
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| 7. What is the
Maryland Nonresident Witholding Tax and how is it computed? |
Effective October 1, 2003, Maryland enacted legislation that required
nonresident individuals or entities that sold or transferred real property in
Maryland to make a withholding payment before the deed or other instrument of
transfer could be recorded. The state of Maryland had discovered that many
nonresident sellers simply did not realize or had forgotten altogether that
they were required to file a Maryland Tax Return when they transferred
property.
In the case of a nonresident individual the withholding payment is 7.5%.
For a nonresident entity the withholding payment is 8.25%. The
withholding payment is computed as follows - the amount withheld at closing
will be the percentage multiplied by the total sales price less any
mortgage or lien balances less the total selling expenses (commission
plus any other costs) - that number is then multiplied by 7.5% or 8.25%,
depending on the situation, and withheld from the seller at closing. After
closing, you may be entitled to a refund or you may owe additional taxes. Your
accountant will be able to help you file the correct forms.
It's important to remember that this is a withholding - similar to having taxes
withheld from a paycheck. It is not a new or extra tax for being a nonresident.
It is simply a way for the state to make sure they get taxes that are owed
to them.
Click here to learn more about the Maryland Nonresident Withholding
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| 8. What is a Section
1031 Tax Deferred Exchange and how does it work? |
A Section 1031 Tax Deferred Exchange (also known as a Starker Exchange or Like
Kind Exchange) allows a taxpayer to defer or postpone the payment of the
capital gains tax on the sale of investment property by rolling the gain into
the purchase of a new investment property. Section 1031 of the Internal Revenue
Code is a powerful investment tool used to legitimately and safely defer taxes.
Qualified properties can be raw land, rentals, commercial buildings, and homes
other than your primary residence. Because of the type of property at Deep
Creek Lake and Garrett County, many sellers in this market have utilized this
tax code to their advantage. The features of this type of exchange are as
follows:
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the replacement property must be identified within 45 days of the initial
settlement.
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you must close on the replacement property within 180 days of the initial
settlement.
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a Qualified Intermediary must be utilized throughout the process to hold the
funds.
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the replacement property must be of equal or greater value than the property
you sold.
These are just a few highlights. For more information and details on 1031
Exchanges please consult a 1031 expert or your accountant.
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