Selling your home with or without a realtor is not an easy task. The process usually starts with a checklist of what needs to be done to the property. After completing any necessary upgrades or repairs on the home you may begin to plan your marketing strategy.

Regardless of how you plan to market your home, there may still be questions that need to be addressed before selling.

At Buy My House Now we strive to answer these questions in an effort to alleviate some of the stress that goes with selling your home.

Below are some common questions sellers have that we’ve provided the answers to.

Selling your house with a Federal Housing Administration loan:

An FHA loan can apply to both sellers and buyers. Sellers who have FHA-backed mortgages who wish to sell their homes have an additional tool to use versus those who do not have FHA assistance. This tool is loan assumption. This means prospective buyers may be allowed to assume the seller’s loan as long as the lender decides they’re qualified.

Remember, FHA itself does not fund mortgages. The Federal Housing Administration insures any loans that a private lender provides for a buyer in exchange for a mortgage on a home that is to be purchased.

Selling a house with unpermitted work:

Occasionally homeowners will upgrade their property without attaining the proper permits. While this may seem like a good idea at the time, when you sell your home this can produce problems. If this is the case for your property there are several solutions available.

  1. Retroactive Permits: Review city records and find out if a permit was required for the upgrades you completed on your home. If so, you can request a retroactive permit from the city. This may include paying additional fees and fines.
  2. Selling Your Home “As Is”: If you are selling your home as is then you do not have to alert the city of your unpermitted upgrades. Make sure to share this information with prospective buyers so you can avoid any further delays in the sale of your home.

Note: Buy My House Now purchases Arizona homes As-Is and under any condition, regardless of city permits.

Selling your home with tenants:

In many situations, a tenant can make or break your sale. If you’re a homeowner who is looking to sell a property with a tenant still living within it, you have several options available. The easiest option would be to wait until their rental agreement is done. Tenants who are angry or unhappy can create problems if you’re trying to show the home. Your second option is to sell with your tenants still living on the property. If you have a good relationship with your tenant, this process should be fairly straight forward. Make sure to communicate with them and try to put yourself in their shoes. No one wants to be told they have one week to find a new place to live.

Note: Buy My House may purchase your home with a tenant still living inside of it. Contact our team for a consultation if this is your situation.

Selling a house with foundational problems or mold:

  1. Foundational Issues:  While you can choose to fix any foundational issues at your own discretion if you decide to sell you need to disclose any issues to potential buyers. If you are OK with taking a slight loss and selling as-is that is always an option. If you don’t want to sell as is, shop around and get multiple estimates. Or you include the costs of the repairs in the price of your home. Be aware, you may come across issues with a buyer’s lender approving their mortgage if your home has significant foundational issues.
  2. Mold: Where there is moisture, mold can grow. Ideally, you should begin addressing potential mold problems before you ever put your house on the market. If there is mold in the home it needs to be disclosed to potential buyers. Mold can lead to significant health risks and respiratory concerns. If you’re unwilling to spend the money to repair or remove the mold, selling as-is will be your next logical step. Make sure to keep any paperwork concerning the mold as well as documentation of any attempts to remove it.

Selling your home to family members:

If you’re thinking about selling your home to a family member, below market value, then you need to be aware of the tax implications. The annual gift tax exclusion amount is $14,000 per year per donor ($28,000 for a married couple who are U.S. citizens). It is scheduled to stay at $14,000 per year per donee ($28,000 for married couples). When you are selling a house to your family the process will be similar to a traditional real estate sale, except there will be no commission fees and escrow conditions may be different, if you’ve even decided to work with an escrow account.

If your house is worth $350,000 and you sell it to a family member for $200,000, you just made a gift of $150,000. Of course, you can use your $14,000 annual gift exclusion to assist with this. For income tax purposes, you subtract your tax basis in the home from the $200,000 sale price to calculate your gain or loss. A loss is nondeductible.