More home buyers are being asked to pay a developer a fee—called a private transfer fee—at closing even if the home has transferred ownership several times since the developer initially sold it.
Help buyers understand—and possibly negotiate away—private transfer fees by sharing free information from “Private Transfer Fees Affect Home Pricing & Marketability” from the November “Home Ownership Matters” theme now available at the REALTOR® Content Resource. Here’s just some of the information:
The issue. A private transfer fee, also known as a reconveyance fee, is generally added as a covenant to the deed on each new home a developer sells. So every time the property is sold, often for as long a period as 99 years, new buyers have to pay the developer a fee equal to a set percentage of the sales price until the covenant runs out.
What opponents say. A home with private transfer fees may be harder to sell, or the owners may have to lower the sales price since their house will be more expensive than a comparable home when you factor in the price of the private transfer fee.
With new enhancements to the REALTOR® Content Resource, you can now share “Home Ownership Matters” and other articles with consumers via Facebook, Twitter, and email directly from the REALTOR® Content Resource. You can also search more easily for content by themes (formerly “Collections”) or keywords.
The REALTOR® Content Resource, brought to you by the NATIONAL ASSOCIATION OF REALTORS®, is a member resource that entitles you to download free home ownership content from HouseLogic to your marketing materials.
HouseLogic is the NATIONAL ASSOCIATION OF REALTORS’® comprehensive consumer website geared to helping home owners make smart decisions to enhance, maintain, and protect the value of their home.
By G. M. Filisko, contributing writer, HouseLogic
In today’s market, cleaning a house about to be listed isn’t enough to cop a higher sales price. To boost your listing’s appeal, share the free “Pricing and Prep that Sells Your Home” article package from the REALTOR® Content Resource.
Just two of the tips you’ll find there:
1. Have a home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Advise clients to make repairs before putting the home on the market. In some states, you may have to disclose what the inspection turns up.
2. Get replacement estimates. If your home inspection uncovers necessary repairs your client can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for appliances you expect to remain with the house. Continue reading »