Is it wise to sell

Discussion in 'Landlord & Rental Property Questions' started by dianethare, Nov 19, 2014.

  1. dianethare

    dianethare Senior Investor

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    Kindly clarify; what do you actually mean by mineral rights?...secondly how does one go about selling? as in the process? am sure one does include a lawyer, what else is required in the selling process? with so many swindlers out there, one needs to be cautious...right?
     
  2. dianethare

    dianethare Senior Investor

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    I like your line of thought in that regard crimsonghost747...i guess i'll keep at renting it and see how it goes, who knows, i might spruce it up and add value to it and never think of selling it afterall :)
     
  3. dianethare

    dianethare Senior Investor

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    I'll be honest here, i have a huge emotional attachment to the property, all the memories growing up there, but sometimes i get torn apart, to sell or not to sell?..i guess i'll find the best answer/option in that regard and i'll be settled within :)
     
  4. Strykstar

    Strykstar Well-Known Member

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    I cases of for example a parent handing a house to their two or more children, then I'd say that selling is the best option since they can't both live in the house, but if it's a single child then holding onto it would be the better option.
    You say you have a huge attachment to the house so why would you sell it?
    Unless you're in financial need of course, don't just sell it for some extra playing-around money.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Having mineral rights gives you the right to profit from things like oil and gas that might be underground. This has been very lucrative for many in some parts of the country. ;)

    Before showing the property or agreeing upon a price with a buyer, make sure you get a prequalification letter or verification of funds from a prospective buyer's bank or mortgage broker, which assures you that either 1) the buyer has cash available to buy the property at the asking price; or 2) if buying on credit, the buyer has the credit score, income, stability, etc to likely get final approval from one or more lenders in order to buy the property on credit.


    To sell, you can either list the property with a trusted real estate agent or put it up for sale on your own. It's a good idea to advertise it either way. A realtor will typically take a 6% or so commission but will do the work for you - showing the property, negotiating an agreed upon price between yourself and buyers, etc.

    Either way, once you and a buyer have agreed to a price and have signed a buyer / seller agreement (either through a realtor, local mortgage broker or bank, or attorney or notary), you'll need to go through a reputable real estate title company for the title search, which assures the buyer and any lenders involved that the current owners selling the property are in fact the true owners and that any other past owners no longer have an interest, and that any mortgages or liens, taxes, etc are current and will be paid off first with proceeds before the new owners take ownership and before you get your $ for the sale.

    The transaction also needs to be completed by a third party licensed real estate closer (notary or usually RE attorney or both, often the same person or firm who did the title work). The title work and closing are generally paid for by the buyer.

    The closing attorney will also file the closing paperwork with the local county or parish courthouse that the property is located in. Title insurance is also included, which protects the buyer in the event of any liens, mortgages, or ownerships popping up that were still unknown to the title / closing attorney(s) even after the title search was completed and filed and the $ and property changed hands.

    If the buyer is buying on credit, the lender will require an appraisal, which is also usually done at the buyer's expense. A smart buyer will also hire an inspector to inspect the property at their expense as well.

    One thing you might want to do before you list the property is pay an appraiser to have it appraised yourself, so that you have a good idea of what the property is actually worth. A lender will still require their own appraisal be done (at the buyer's expense), but this gives you something to work with yourself. You can either list the property above the value the first appraisal gave it and use that value as a reference point you won't allow yourself to be negotiated down to, or you can just be straightforward and list the property at appraised value and tell prospective buyers that the appraised value for the appraisal you had done is the value of the property as far as you're concerned, and that you won't go below it. You can even show each prospective buyer a copy of the appraisal to hammer your point home.

    As to which approach to take, I suppose that depends upon the property and the market. If the market is hot, you can probably list it quite a bit higher and sell it above market value. If the market is not so hot, you may have to list it at that appraised value and just not budge off of it.

    Residential appraisals in my area typically run $350-400. Commercial appraisals are more complicated and tend to cost thousands.
     
    Last edited: Dec 21, 2014
  6. SamClemensMT

    SamClemensMT Well-Known Member

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    That really depends on what where talking about. We live in a world that has changed so much in the last few decades. I can remember speaking with my grand mother about AT&T back in the 80's. Well, that's a stock you would dream of unloading once upon a time. Hind sight is 20-20 as they say. If you had unloaded your AT&T shares in the mid 90's you couldn't have been any smarter. Times change, and if the business in question isn't keeping up with the times, I have no qualms advising anyone to dump the shares quickly.
     
  7. dianethare

    dianethare Senior Investor

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    Thanks for the golden nuggets in the form of advice, i appreciate, looks like this is not something i should rush into without really thinking about it deeply and quite seriously. Thanks once again :)
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    No problem. Glad I could help.
     
  9. shilpa123

    shilpa123 Banned

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    I think it is unwise to sell the property that your parents have given to you with lots of care and love. I believe that you must always entrust and take lot of care of the property that was given to you. Selling the property will only disrespect the parents and elders.
     
  10. shilpa123

    shilpa123 Banned

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    I do not believe that one should sell the house they have constructed. It has been constructed with lots of hopes and dreams of a person and I believe that selling the house can be really awful in such situations. It is best to take care of the house for as long as possible.
     

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