As you begin to age, so are your parents and you may be considering your parents in their own stage of life. With age, your parents may come to a time when they are less capable of taking care of their affairs and property in an appropriate way. In some cases, they may be unable to cover or afford certain expenses and in turn may have to sell their home. The Power of Attorney Sell Property option would be the most useful in this case. In addition to not only selling the property with this option, it will also help to assist your parents with any legal matters of marketing the house. This option will help your parents to avoid any suffering or predicaments involving their house.
Power of Attorney Sell Property
The Power of Attorney Sell Property option gives you the authority in selling your parent’s house. It’s important that you consult with your parents while they are still mentally capable of consenting. If their mental capabilities are already compromised, acquiring a power of attorney will be difficult to obtain. Therefore, your parents must be interested in appointing you as their power of attorney.
If your parents are not mentally capable of making this decision, then additional professional help will be required. If your parents are deemed mentally incompetent, a lawyer will assist in drafting a power of attorney. However, it is important that you and your parents decide together on a power of attorney while they are still at an age of healthy mental capacity.
While your consulting your parents, you may find that they will permit you to make major decisions regarding their home. Older adults do NOT need any added stressors or strain that could compromise their health and aging process. As the power of attorney, your parents’ responsibilities and decision making will lay in your hands. Your parents are trusting you to take on the task of selling their house in the proper and most effective manner.
Selling your Parent’s House
Once your parent’s have decided to make you their power of attorney, it will allow you to make the correct and necessary decisions. One of these decisions is to sell the house within legal boundaries. You will be the person responsible for signing the papers for them. Most people are not familiar with the Power of Attorney Sell option and they may be having a difficult time selling their homes. Chances are that their house will be sold after the death of their parents. This option will give you the authority to make binding and legal decisions on their behalf involving the house.
Selling It Yourself
As the power of attorney, you can decide to sell the house on your own. This decision could put your parents at ease knowing their child is selling the house for them. Going through a realtor would be expensive and could leave your parents feeling uncomfortable. A relator would be scheduling tours of the home at any given time or day and this could also make your parents feel uneasy. However, with you they would trust you to bring buyers in their home. Selling the house on your own may be very stressful on you but make your parents happy. Keep the suggestions below in mind while selling the house on your own.
Dedicate your time and effort in selling the house, as the power of attorney, you are responsible for selling the house on your own.
In addition to scheduling showings, it is your task to inform people that the house is on the market. You can utilize online advertisements, make fliers and posters. This will help to attract people and inform the neighborhood of the sale.
Using websites, fliers, posters or even local papers can put you at ease. However, doing so imposes several problems, such as unannounced strangers. This will surely cause stress and strain on your parents as they age.
Determining the right price for the house is your responsibility. It is important that you research and understand the appropriate price range for the house.
Understanding the difference between the 2 routes of sale you have traditional and cash offer.
Avoiding the Headaches of a Traditional Sale
If you have purchased a home in the past you know the home buying process can be a roller coaster. Selling a home the traditional way can be a roller coaster on steroids. There are plenty of issues that you face when going with a traditional sale for your parents house.
Finding a realtor
Repairs and Appraisal
Lender Required Repairs
Losing Money on the Deal
Finding a realtor
Finding the right realtor can be a struggle for some. It’s important that you find a realtor with a good reputation and strong market knowledge for your area. Your realtor will assist in making suggestions on listing price, improvements or repairs to the home, and help you with the sale of your home from start to finish.
Repairs
Majority of homes that are ready for sale are in need of repair. These may not be major repairs but can still cost you money, bring about headaches, and waste your time. Common repairs we see are paint, tile, carpet, but be prepared for bigger repairs like roof, foundation, and the possibility of mold.
Lender Required Repairs and Appraisal
Having an offer made on a house does not mean that the home is anywhere near sold yet. You face 3 obstacles at this point which include the buyer pulling out, the lender requiring repairs, and your home having to appraise for the sale price.
At anytime during the purchase process your buyer can pull out. An offer does not guarantee a sale. Your buyer may also make demands or concessions which you are not willing to do. This will leave them with the ability to walk away from the deal.
Lenders can also spot a potential issue with your house and force you to pay for a repair before the deal can be closed. Even if your buyer is willing to move forward the lender will not lend on the home unless this is done. Typical situations for this include electrical, foundation, roof. All of which are large dollar repairs. If you are unwilling to make the repairs the lender will not lend on the deal and the buyer will move on to a new house.
The lender also requires an appraisal on the property. If the appraisal does not match the sale price you will not be able to sell for the price that you want and are held to the appraisal price. This means that you may end up losing money on the deal.
Typical realtor fees start between 6% to 9% off of the sale price. This means the price you set on the home is not going to be what you walk away with. If you are forced to make any repairs on the property you lose even more. Check out this scenario below
Your parents have owned their home 10 years. The homes value is 170k and they owe 130k on it. Your realtor has you list the home at 170k. You have a buyer who is interested in your home. They are requesting that you replace the carpet in the living room and bedrooms. This costs 5,000. After inspection, the lender comes back and says that you have to have the roof replaced on the home. The cost of this is 15k.
Sale Price 170,000
Fees 15,300
Repairs 5,000
Lender Required Repairs 15,000
You walk away with 134,700
Selling Your Parents House With Ease
As you can tell from the example above there numbers get really tight really quick. This is why a cash sale might be of benefit to you when selling your parents home. With a cash offer on your property the buyer is willing to take your home AS IS. This means that you do not have to pay for any repairs or deal with the headache that comes from them. Your buyer will also handle all closing costs and fees which means more money in your pocket. When you use a power of attorney to sell your parents house in a cash sale you really simplify the process and may end up walking away with more money than a traditional sale.
That’s why here, at Keller Home Solutions, we specialize in closing on houses quickly so that you can sit back and relax while the money comes your way. Forget about wasting your time and involvement on selling the house by yourself. Don’t worry about the condition of the home or even what needs to be repaired. It’s our commitment and pleasure to help assist you in making an easy house sale. We handle everything for you in a friendly and efficient manner. We will buy your house as it is! We hope that you consider selling your house with ease through Keller Home Solutions. If you have any questions about the process or want to receive a fair cash offer on your home, please do not hesitate to contact us for further information.