Transfer Taxes: What You Need to Know
If you’re thinking about buying or selling your home, make sure you know about transfer taxes. These taxes are part of your cost when your home is sold and the title goes from one individual (you, the seller) to another individual (the new homebuyer).
The state or city charges transfer taxes to complete a sale and title transfer. Your property’s assessed value and classification determine the total cost of your these taxes.
Chicago follows the Real Property Transfer Tax law. This law states that the transfer tax costs $5.25 per $500 of the transfer price. Three dollars and 50 cents of the $5.25 goes to the city, while the other $1.50 provides financial assistance to the Chicago Transit Authority (CTA). In Chicago, the buyer is responsible for paying $3.75 and the seller is responsible for $1.50.
Certain circumstances may lead to exemptions or credits on transfer taxes. Check out the city’s website to see if you fall into one of these categories.
You will pay these taxes during the closing of the property’s sale, so make sure to figure in the price when buying or selling a home! Make sure to talk to your REALTOR® if you have any questions or concerns about your transfer taxes.
How to Ramp Up Your Curbside Appeal
Are you thinking of putting your home on the market? If so, ask yourself two questions from a buyer’s perspective. First: what would stop you from making an offer? Second: what makes this home stand out from a curbside view?
There are many important steps to preparing your home to sell. Curbside appeal projects provide sellers like you with the highest return on investment. Therefore, we recommend focusing on these 5 projects to ramp up those beautiful, exterior home aesthetics!
Update Your Curb Appeal
The National Association of REALTORS® “Remodeling Impact Report” suggests that landscaping projects often bring in higher sales prices. Homes that improved their landscaping or added a deck or patio, saw returns of investments above 100%.
We recommend starting with:
- Applying a fresh coat of paint to the front door.
- Trimming your bushes and other greenery.
- Re-mulching those garden beds.
- Replacing worn-down stone walkways and pathways.
- Removing any dead plants or trees.
- Aerating the lawn (if you have one).
- Pressure washing the exterior of your home, driveway and sidewalk.
In the end, any of these curbside appeal upgrades will help attract the eye of your home’s future residents!
FSBO vs. REALTOR®: How Should You Sell Your Home?
You’re ready to make the next move in your life to a new home, which brings up the task of selling your current house. You may be debating whether to sell the house on your own, For-Sale-By-Owner (FSBO), or to use a REALTOR®. You might think your best option is to sell it on your own, however, we argue that you might want to think twice about that decision. These are the top benefits and reasons you should use a REALTOR® to sell your home.
#1: REALTORS® Will Sell You Home For a Higher Price
Many sellers who choose the FSBO route believe they will be saving money in the long run by avoiding paying commission to a REALTOR®. According to the Nation Association of REALTORS’®(NAR) 2017 Profile of Homebuyers and Sellers, those who used a REALTOR® sold their home for between $60,000 to $90,000 more than FSBO. Even with commission costs, which are typically five to six percent of the home’s listing price, you will still be selling your home for more!
#2: REALTORS® Have the Time and Tools to Market Your Property
With a full-time job, family and other responsibilities, finding time for yourself can be hard, let alone finding the extra time to list and market your home. REALTORS® have the time (it’s their job!) and the resources (including dedicated property websites, built-in social media audiences, open house hosting experience and a broad network) to effectively spread the word on your home. Their expertise comes in handy for those who are unsure where to start when purchasing a home.
#3: Your Home Will Sell Faster When Working with a REALTOR®
Because of their access to time and tools to sell your home, using a REALTOR® will allow your home to sell faster. The NAR report found that most homes sold by REALTORS® were purchased 20 days faster than FSBO. If you’re on a timeline and need to sell quickly, getting these days back could mean a lot.
#4: REALTORS® Have Potential Buyers At Their Fingertips
How many people do you know who are looking to buy a home? REALTORS® have a full arsenal of potential homebuyers at their fingertips, from previous and current clients to those in their database and more. They have the ability to reach more people faster than an FSBO.
If you’re ready to get started with a REALTOR® to sell your home today, click here to begin your search.
5 Home Repairs To Make When You’re Ready To Sell
When you’re ready to sell, the goal is to work smarter, not harder, without overspending. The key is to pinpoint the most important home repairs, thus making the best possible return. Here’s our list of the top 5 home repair tips to consider when you’re ready to sell!
1. Fix Damaged Flooring
The first home repairs to consider are updating any damaged or outdated flooring to create a seamless feel throughout your home. Expect to spend about $3,000 on the project — and recoup 100% of the cost, according to the National Association of REALTORS® Remodeling Impact Report.
2. Repair Any Damanged Windows And Doors
Windows and doors need to do more than just look pretty, they also need to be functional! When buyers are touring your home, they will likely open and close windows and doors to ensure they work properly. Fix any creaking doors or cracked and squeaky windows prior to putting your home on the market.
3. Paint The Walls
Did you know that painting your walls is one of the lowest-cost home improvements? It also has the highest rate of return! Touch up your home with a fresh coat of neutral-colored paint. This will instantly give your home a fresh, updated feel.
4. Revive An Outdated Kitchen
Kitchen repairs can be very expensive, so the key is to make low-cost, high-impact repairs. Updating the hardware, installing new countertops or painting wood cabinets could do the trick.
5. Resuscitate A Dying Lawn
Your lawn is the first thing a potential buyer will see, so make a good impression! Nothing turns a potential buyer away faster than a lawn full of overgrown grass, brown patches or weeds. Consider hiring a lawn care service to get your lawn looking fresh, repair any patchy areas and pull any weeds.
