Sioux Falls, SD

The Real Estate Associates, Ltd. is a locally owned and operated firm. While our new office was established in 2003, we have a long real estate history. Most of our agents have been active in the industry for over 20 years - back before FAX machines, personal computers, online services and cell phones. That certainly dates us! In the 1980's, a Purchase Agreement was the size of an 8 x 10 piece of paper, was one page long and so obviously did not include much of the language they do today. There were no Seller Property Disclosure Statements, Lead Based Paint Disclosures or even home inspections! Times have changed. And they have changed for the better of everyone.

What is a Seller Property Disclosure Statement? This lenghty form is required by law to be filled out by a Seller when they market their home for sale. Sellers are required to disclose to a potential buyer any known property defects. Also included in the disclosure are questions regarding taking title, financial instruments against the property, liens and/or judgments, pending litigations, foreclosure, structural issues: water penetration, etc., working and non working features of the property and hazardous conditions to name a few. While this may seem like a time consuming waste of time, or a good time to 'forget' about certain 'issues' that may deter a buyer's decision to purchase the home, this is in fact a form that will protect a seller as well as the buyer. Disclosure is first and foremost. Disclose, disclose, disclose. When a seller discloses a known defect, it is as advantagous to him as it is to the buyer.

What exactly IS a Home Inpection and who pays for it? As part of the Purchase Agreement, a buyer has a right to have the home he has offered to purchase inspected. Inspections are paid for by the buyer and should be done by a professional. Inspections include structural, mechanical, hazardous conditions, pest and/or whatever else may be agreed to in the contract. Once an offer has been accepted, the buyer will have a given number of days by which to have all his inspections completed. If there are concerns resulting from the inspections, the buyer can ask the seller to make repairs or to pay to have these repairs done. Keep in mind that this is all a part of Seller and Buyer negotiations. Your REALTOR® knows how to address, resolve and negotiate any issues that can and will arise as the result of an inspection. In the event the buyer and seller are not able to come to terms after the inspection and as long as it is done within the given number of days as determined in the contract, the buyer is not obligated to purchase the property and the contract can be deemed null and void in it's entirety. A seller is then required to disclose prior unknown defects in the property disclosure statement. For example: if a Radon test Buyer/Seller Info is performed and the results are high and the buyer and seller cannot come to terms regarding the cost to have the home mitigated, the buyer may not be obligated to purchase the property. Now the seller knows that the radon levels in his home are high and he must disclose this fact on the Seller Property Disclosure Statement. If you have questions about the disclosure, be sure to ask your REALTOR!

What is a closing and where are they done? The closing is the day the seller transfers the property to the buyer. In most cases, closings are done at a title company Buyer/Seller Info. After signing various forms and documents, the buyer gets the keys and gets to move into his new home. Your REALTOR® will attend the closing and is responsible for making sure everything is set up and on track to close without a hitch. Not all closings go smoothly, but the goal is to make the transfer as smooth as possible. Thanks to a great deal of work from the title companies, most all closings are very successful. Closings are a day to celebrate!

What does is cost to close on my property? Most sellers first question is regarding the REALTOR® commission. All commissions are negotiable between the seller and the Broker. If you have questions about commissions, be sure to ask. No commission is paid unless a property closes. All the marketing expenses, advertising costs and time involved in the marketing of the property are at the expense of the seller's REALTOR® and/or the real estate agents Broker. Once a property closes, commissions are dispersed. Additional costs to the seller typically include sales tax on the commission, any agreed closing costs paid on behalf of the buyer (discount points. etc.), document preparation fees and transfer fees charged by the title company and the courthouse, title insurance costs and real estate taxes due and payable the day of closing. Your REALTOR® will prepare an estimated closing statement at the time your property is listed which will give you a very good idea of what to expect in closing expenses.

What real estate taxes do I have to pay when I sell my house? Real Estate taxes in South Dakota are paid one year in arrears. For example: in 2008 we are paying taxes for 2007. This means that at closing, any 2007 taxes that have not been paid are due, as well as the prorated amount of taxes for the current year. If you close on your house on June 15, 2008, you will owe 5 months and 15 days of taxes for 2008. Be sure to ask your REALTOR® about this if you have any questions!

Your REALTOR® has an abundance of real estate knowledge that he is happy to share with you. So whether you are a buyer or a seller, be sure to ask about anything that you do not understand. A real estate transaction is legal and binding. Knowledge is king!

For a complete and detailed explanation of buyer and seller terms, please click Buyer/Seller Info. We have provided you with a glossary of real estate terms that will aid in furthering your knowledge regarding your real estate experience.

We look forward to serving your real estate needs and thank you for visiting our website, Please click Our Agents and feel free to call any of our Associates for all your real estate needs and questions.