Saturday, February 24, 2024

"The Investor's Realtor"

Cloud Realty, the most qualified and experienced Middle Tennessee Virtual Office, Investment Real Estate Focused Companies, has been focusing on helping Investors Find, Evaluate, Analysis, Buy and Sell Single Family Homes and Small Commercial Properties for over 40 years now (formerly known as The Morris Companies).

Here are a few things you should know "The Cloud":

  • The Cloud has facilitated the sale of over 3,000 SFR Homes as Investments across TN, individually one at a time to individual Small Investors since over the past 10 years.
  • We are and have been focused on SFR Homes as Investments since 1969.
  • We are Tennessee's #1 Leader is working with Small Investors Buying and Selling SFR Homes as Investments
  • The Cloud is the Most Experienced, Absolute Best Qualified company to help Source Opportunities and Analysis and Advise "Small Investors" who want to become "Big Investors".
  • The Cloud understands the special types of deals that it takes to make these sometimes "atypical" purchases work in all Investment Strategies (Rehabbing and Flip, and Buy and Hold, Buy Hold and Flip, etc) in the "real world" on Middle TN Investment Real Estate.
  • We enjoy helping and advising our Agent Partners in The Cloud in Creative Deals and Financing that make SFR Home Investment Transactions work.
  • The Cloud is owned and operated by Nashville 20 Year Investment RE Veteran, Phil Dildine, CCIM, who has personally transacted the sale and purchase of over 600 SFR Investment Homes and Small Commercial Income Producing Real Estate Properties.
  • The Cloud is Tennessee's #1 Small Investor Oriented Company and focuses primarily on this niche of Investment RE, while allowing our Agent Partners to also continue to practice "Traditional Owner Occupant" real estate listing and selling, as well as helping those Agent Partners that have an interest, and the skill set, to move into Commercial Real Estate to do so under the help and guidance of it's CCIM Certified "Head Coach and Team Owner", Phil Dildine.
  • Phil is the former 2011 President of The Middle TN CCIM Chapter (on Board of Directors for 5 years), and former 2011-2012 Commercial Committee Chairman for The Greater Nashville Area Board of Realtors, and current "Honorary Board Member" of the Nashville Chapter of IREM (the Institute of Real Estate Management).

Simply put... If you want to work with the very best and most experienced company in Tennessee in the "World of Middle TN Residential Investing"... You need to know "The Cloud". We've been helping Small Investors become Big Investors and helping, one investor at a time, increase their net worth and work towards financial freedom through investing in Middle Tennessee.

Call Phil Dildine at 615-476-6738, or write to This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.

First Time Home Seller

First Time Home Seller?

Selling your home can seem very  daunting: You haven't sold a home before, the market looks complex, and what worked for owners 10 or 20 years ago seems inappropriate in today’s market.

What steps should you take? This simple list will  get you started. 

  1. You Can Do It. Some 5.63 million existing homes were sold in 2007, more than 15,000 a day. Other owners have done it and so can you. 
  1. Define Your Goal. Do you want the highest sales price -- or the biggest check at closing? They're not necessarily the same. Imagine that two homes sell for $300,000, but one owner pays 2 points and agrees to replace the roof. The owner who sold without such costs got a bigger check at settlement. The bottom line: To have a successful sale you need to look at both price and terms -- you must have a strong negotiator in your corner. 
  1. Times Have Changed. Today's real estate marketplace is totally  different when compared with  5 years ago. Purchasers now use the Internet, receive seller disclosure forms, get home inspections, and are routinely represented by buyer agents.   The result is that buyers can be better prepared than in the past. 
  1. Sparkle, Shine and Curb Appeal. Think about  going to a supermarket and seeing dusty fruit or aisles filled with old shelving and cans. It doesn't happen because the grocery store knows how to present its goods. Sellers must do the same. Get rid of things you don't want to move, organize closets and storage areas, and clean everywhere.   Does your home look inviting and appealing from the street?  If not  - it is in your best interest to make sure that the outside is clean and well kept. Trim shrubs, paint your mail box and shutters and make sure the lawn is mowed. 
  1. Mechanics Count. Buyers expect everything to work. Home inspections are now entirely common and what buyers miss home inspectors will catch. Fix and paint things now and they won't be an issue in the future. 
  1. Stage your home. When buyers see your home, it's showtime. They want an environment where they can see themselves. De-clutter and hide knick knacks that will distract them from their dreams. Given them a show where everything is painted, arranged, and attractive, a home where the only issue is when to move in. 
  1. Know your  market. Real estate is local. Your broker can explain current market trends in your community, including what's selling, what isn't selling, and why. This information is critical to getting the optimal price and terms. 
  1. Know the competition. Your property will be competing with other homes in your area  for buyer attention. Ask your broker how to be competitive -- and how to have an edge. 
  1. Be realistic. Markets differ by neighborhood location and time. When interest rates are low and the local job base is growing, it's great to be a seller. But when times are slack and mortgage rates are rising, homes also sell. The trick is to be realistic, to get as much as market conditions will allow. 
  1. Have a plan. Real estate marketing involves far more than a sign in the yard and an ad in the paper.  Today’s successful brokers use a variety of methods to attract and qualify prospects, including the latest Internet and  Website communication  tools.

Selling in a Buyer's Market

 Selling in a Buyer's Market

There's no doubt that a buyer's market can be challenging for sellers.  But  it does not mean that sellers cannot enter the market - or that they cannot  receive  a fair price for their homes.  Home sales in a buyer's market may take longer.  But a little creativity can go a long way toward help sellers move homes, without having to significantly drop the price. 

Your Professional  Real Estate Team at the Morris Companies, LLC offer the following suggestions for sellers who want to speed the process: 

Price Your Home According to the Current Market. Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home.

Be Realistic About Appreciation. Since the housing market began to slow significantly in late 2007, home prices have fallen all over the country.  Yet understanding trends in your specific market is critical - as not all areas have experienced the same drops.  Some regions of the country have remained more steady relative to prices, and are even back to experiencing modest appreciations.  And if you bought your home many years ago, the gains you made in the decades before the downturn may still be far more than recent drops. So speak with your real estate professional to get a realistic view on how your home has gained or lost, relative to its value and potential price.

Make Your Home More Marketable. When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller. 

Full Home Inspection. If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each. 

Offer a "Seller's Contribution." A seller can sweeten the deal by offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can help your home to stand out from the crowd. For example:

· Offer to buy down the interest rate on the buyer's mortgage.

· Offer to pay a portion of the closing costs.

· Provide a Home Warranty.

· Many condos and houses across the country belong to homeowners' associations that require annual dues. Paying the first year's fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.



Steps to Selling Your Home

Selling Your Home

  1. Establish a relationship with a listing agent
    Your listing agent will guide you through the process of selling your home. They can help you determine the price, provide suggestions on how to get your home in its best condition, assist with the marketing, help find buyers, and guide you through the paperwork.
  1. Determine the price
    Pricing your home well from the very beginning is critical to selling your home. Your agent will provide you with information about the market and comparable sold properties  in your neighborhood so that you can make an educated decision on pricing your home.
  1. Make your home available for viewing.
  1. Negotiate Offers
    When a prospective buyer decides on your home, they will make an offer on your home outlining their price and terms. Your  Morris Companies, LLC  agent will explain the terms of the contract to you. You have the option of either accepting  or countering that offer. You will then negotiate until you and the buyer agree on all of the terms. Your agent will guide you through this process and act as a liaison with the buyer’s agent.
  1. Make the property available for Inspections
    Once you accept a buyers offer, the buyer will likely set up a Home Inspection, and a Termite Inspection and any  other specialty inspections that they elect to do.
  1. Settlement

Seller Closing Costs

Seller Closing Costs

Closing costs  for the seller are seemingly endless and can add up to a whole lot of cash.

And that cash can really cut into the profit a seller is expecting to pocket from the sale of his or her home.

A buyer's closing costs might typically range from 2 to 5 percent of the sales price, or $2,000 to $7,000  depending on the purchase price of the home.

But a seller's closing costs often go way beyond that, simply because most sellers use a full-service agent to sell their home, which can add an additional 4 to 7 percent to the closing costs.

Whether you're a buyer or a seller, your list of closing costs can add up to 20 items, or more.

In some cases, some companies will reduce their costs if you ask them.

Here's what you can expect to pay as a home seller:

Broker's commission. If you're using a full-service brokerage firm, expect to pay anywhere from  5 to 7 percent of the sales price. If you're using a discount broker, or if you've sold by-owner, your cost may range from a few hundred dollars to 5 percent of the sales price. 

  1. Cost of the survey. Sellers in some states are responsible for giving the prospective buyer a plat of survey of the property. The price for a plat of survey can range from $150 to $600. 
  2. Recorded release of mortgage. Verifies that your mortgage has been completely paid off by the sale proceeds, usually $20 to $150. 
  3. Courier fee to pay off loan. Typically runs $25.00 to $75.00  or more. 
  4. Title insurance. In some states the seller must provide a policy of title insurance for the buyer. The cost of the policy depends on the sales price of the home and its cost can vary from a couple hundred dollars to several thousand dollars. Some title companies have added additional charges to the basic title charge. These fees go by the name of "update fees," "policy issuance fee" and the like. Some fees are as low as a couple of dollars and others up to $100. 
  5. Local city, town or village property transfer tax; county transfer tax, state transfer tax, state capital gains tax. Although the charges vary from municipality to municipality. In general, property transfer taxes can range from nothing to $10 per $1,000 of the sales price or more, or you may be assessed a flat fee. In some places, you have to pay a tax on the capital gains generated by the sale of your home. 
  6. Credit to the buyer of unpaid real estate taxes. Depending on how and when property taxes are billed in your state, it's possible that you will have to credit the buyer for real estate taxes that were for the time period you owned the home but will be billed after the closing date of the sale of your home. 
  7. Attorney's fees. If you choose to use an attorney, you'll either pay a flat fee starting around $350 or by the hour.
  8. FHA fees and costs. All FHA fees used to be the responsibility of the seller, but they are now negotiable. But if the buyer can't pay the fees, and the seller refuses to kick in a few bucks, the lender may not fund the loan.
  9. Condo/co-op move-out fee. A building charge that can range from nothing to more than $400. Some cooperative buildings can charge a percentage of the sales price to permit the sale of the coop. In some instances these fees can be as much as three percent of the sales price.
  10. Association transfer fees. Often required for condominium and townhouse buyers.   Sellers usually are stuck with some of these fees as well. Some of the fees are for processing the sales papers, move-out deposits, preparation of closing documents and even inspection fees. (These fees can range from a low of $25 to as high as $500 or more.)
  11. Paid utility bills. In many areas, local municipal officials will not let you close until you have proven that you are current on your utility bills. The charge for each copy of a paid utility bill, including water, sewer, garbage or electricity is $10 to $25.  Typically a seller can obtain these documents simply by calling  the utility company.
  12. Certificate of compliance with building and zoning codes. Your local municipality may charge for inspecting your home prior to the sale to insure that it meets up to date requirements. Such inspections can cost a nominal amount or run more than several hundred dollars plus the cost of fixing any items that are non-compliant. In addition, some municipalities charge a fee to verify the number of dwelling units permitted at a home being sold. The cost of such certificate can be nominal, but it may be a hassle to obtain the certificate. (Some municipalities won't charge for a certificate of compliance while others charge from $25 to $200 or more. But the bigger issue is when they find something wrong and then require you to fix it before they will allow you to sell the home.)
  13.   Home inspection fees. In some areas, local custom dictates that the seller pay for pest, radon and other inspections, which can range from $25 to $500 each. If there are problems with the home, you may have to fix the problems at a substantial cost. (While some home inspectors will bundle all of the services together and the buyer usually has to pay for the home inspection, other home inspectors will charge a basic fee of a couple of hundred dollars and then you can add on the cost of a pest, radon and other inspections.) Many home inspectors will charge based on the sales price for the home, while other home inspectors charge depending on the size and type of home. If you are a seller, you may find that using the services of one company to perform any home inspection needs you have to sell the home may be cheaper than hiring various companies to perform the various inspections required by your sales contract.
  14.  Home warranty. In California, most existing homes are sold with a home warranty, which guarantees to the buyer that all of the mechanical and electrical appliances are working on the day of closing and are guaranteed to work for the first year of ownership. The cost for a home warranty starts around $350-$500 and can increase as additional option items are added and the size and type of the home. Home warranties are becoming more popular in lots of states,  so don't be surprised if your buyer requests that you pay for one.
  15.  Association reserves. In some areas, the reserves held by condominium or homeowner. association are credited to the seller on the basis of the seller's percentage of ownership in the association. Fortunately, for the seller, this is one of the few instances of money coming back to the seller rather than a payment by the seller.
  16. Special assessments to associations. In many associations, if a special assessment has been levied, even if it can be paid over many years, the association will require that the assessment be paid in full at the closing.
  17. Other credits to the buyer. In some cases, sellers give credits to the buyer for things that don't work, or don't look nice, in their home. For example, if the buyer's inspector finds something wrong in the house, you may negotiate a credit to the buyer that will be paid at the closing. The cost of this will vary.
  18. Unpaid mortgage or home equity loan or line of credit. At closing, the seller must pay off any mortgage and home equity line of credits (HELOC) that are relating to the home being sold. The seller must remember that the prior months' statement for the mortgage or HELOC will not include the interest that is owed on the loan from the last payment date. Almost all mortgages are paid in arrears: you pay last month's interest in the current month. Therefore, if you made your most recent mortgage payments, you will still owe interest for the current month until the loan is paid off. 
Upside down loans. Although it seems unbelievable that anyone could be upside down on his or her mortgage (that is, owe more on the mortgage than the house is worth), many sellers each year will find themselves in this position. If you do manage to find a buyer, and the amount being paid for the home will not entirely pay off your mortgage, home equity loan or line of credit, you'll have to come to the table with cash in hand. If the lender "forgives" your loan, the IRS may see that as income to you, and you'll be taxed on the phantom income as if you actually earned it, at your marginal tax rate. Talk to your tax preparer for more details.