How Does Selling a House As-Is Work?
By Josephine Nesbit When selling a house as-is, you need to be aware of what’s involved with this type of sale and how much you could potentially lose. Preparing a home for sale can be stressful – especially if you’ve been putting off necessary repairs. Instead of taking on that burden, selling a house as-is can be an attractive option for sellers looking to alleviate the responsibilities and costs associated with selling a house. What Does Selling a House As-Is Mean? Selling a house “as is” essentially means selling a home in its current condition. “When buyers purchase a home as-is, they are doing so knowing that they cannot request the seller to make any repairs based on what is found during the inspection process,” says Beatrice de Jong, a real estate broker in Los Angeles. Selling a house as-is can also mean a lot of things to different people. Does it mean the house needs some cosmetic repairs or does the entire roof need to be replaced? For some, it may seem like a bargain, but it could mean hidden issues that could cost thousands of dollars to repair, even with sellers required to meet minimum state and federal disclosure standards. For as-is sellers, it could mean a lower selling price and fewer interested buyers. “Keep in mind, when selling a home, first impressions matter. The condition of your home will (impact) how much money you will be able to walk away with,” de Jong says. How Much Do You Lose Selling a House As-Is? The amount a seller could potentially lose on an as-is sale has a lot to do with the location, the condition of the house and the current state of the market. “I’m seeing properties that are in need of tons of work selling at premiums just because of the environment we’re in,” says Jeb Smith, broker associate with Real Broker in Huntington Beach, California. “If we’re talking about now versus other markets, it’s a different answer.” Smith explains that when the market was balanced or in favor of buyers, properties in need of some work could sell at 15% to 20% below market value. Not only can selling as-is take a chunk out of the sales price, but it could also mean that the house sits on the market for a longer period of time. Carrying costs, like mortgage payments, homeowners association fees, utilities and more, could cut into a seller’s profits. Selling to investors could also impact the final offer. “If an investor wants to fix it up and flip it, they need to get that property at a price that allows them to do the upgrades and still make a certain profit on that property,” Smith says. Investors have their own risk tolerance and profit margins, which may impact how much they offer. Selling a House As-Is Homeowners planning to sell their house as-is still have the upper hand in this seller’s market. “I wouldn’t say every single transaction, but a good majority of properties are selling as-is because sellers have control at the moment,” Smith says. “They have the leverage, therefore they’re dictating the process in which properties sell.” Surging demand and lack of options have put sellers in a position of power. In August 2024, existing home sales totaled 3.86 million homes on a seasonally adjusted annual rate. In 2021, during the home-buying boom, 6.12 million homes were sold. Even though home sales have slowed, many markets remain competitive and housing inventory remains tight. It’s still a seller’s market, although prices have started to adjust. “You don’t have to do a lot to sell your property as-is in this market. Now, when the market turns, which eventually it will at some point, it’ll either be more balanced or geared toward buyers. That’s when sellers have to focus on what’s going to set them apart from the house down the street that either doesn’t need any work or the sellers are willing to do repairs,” Smith says. Who Is More Likely to Buy a House As-Is? Any buyer is capable of purchasing a home as-is and for a variety of reasons. “Many first-time buyers looking to break into the market on a budget often will purchase homes as-is,” says de Jong. “Being able to buy a home in need of cosmetic fixes enables buyers to get into the real estate market and remodel a house in their style.” There are also investors, house flippers and companies that purchase homes as-is. For example, de Jong notes that Opendoor, a large real estate company known for making cash offers on homes, will make an assessment on a home to verify its condition. If repairs are needed, the company may ask for a credit and deduct the costs from the net proceeds. The state of the housing market also makes selling a house as-is much easier than it would be in a more balanced market. “Buyers looking to get in the door or purchase a home to renovate are more likely to scoop up homes selling as-is,” de Jong says. Cons to Selling a House As-Is Some buyers could see an “as-is” home sale as a potential red flag. Buyers may feel more comfortable offering a higher price on a different house, knowing that they can ask for repairs during the inspection. Selling a house as-is could also result in a lower sale price. Sellers could be leaving money on the table by allowing buyers to make lowball offers over minimal cosmetic defects. Another big disadvantage is that some mortgage loans may require repairs before the lender will approve the loan. “Buyers with Federal Housing Administration mortgage loans typically have repairs required from their bank, and not having the option to ask the seller to chip in on the costs can be a deal-breaker for those buyers,” says de Jong.
Tackle Forex crisis, maritime workers urge the federal government
Maritime operators have urged the Federal Government to address the issue of fluctuating exchange rates to boost importation as the country marks its 64th anniversary today. The operators who spoke in Lagos on Monday, however, admitted that the maritime sector had recorded significant growth in the past few years. The Youth Leader of the Tincan Island Chapter of the Association of Nigerian Licensed Customs Agents, Sikiru Remilekun, stated that despite the recorded growth, fiscal policies still pose a big challenge to the sector. “The maritime sector, especially in import and export, has experienced significant growth over the past few years. However, the major challenge remains the fiscal policies on the fluctuating dollar,” Remilekun said. He mentioned that setting the exchange rate for cargo clearance at less than N1,000/$ would cause the sector to grow by over 200 percent. “The policy has slowed down the inflow and outflow in the port business, which we have been urging the government to address by pegging the dollar rate to less than N1,000. I believe this will play a significant role and ensure a growth of about 200 percent.” “However, another challenge is the lack of capacity building and excessive bureaucracy and payments, which are affecting the maritime sector,” he stated. Also speaking, a ship captain, and South-West Director of the Merchant Seafarers Association of Nigeria, Williams Ogunshakin, called on the government to assist MARPOL in the area of cleaning the waterways by creating something similar to the Lagos Waste Management Authority in the waterways across the country. “The only way we need to assist MARPOL is to create a kind of Lagos Waste Management Authority in the waterways of the country. Let us stop dirt from coming into the waterways,” he said. According to him, most of the accidents are caused by rags and used items that were dumped carelessly into water bodies. He maintained that MARPOL could be assisted with either a policy or any other way. “They have been able to control and minimize accidents on our waterways. They also need to do more in the area of accident prevention, let us do more. Let us operate with zero tolerance for accidents. “In the past six years, maritime security has been terrible, when we are sailing we are no longer at rest. But due to the effort of our stakeholders and in conjunction with the military we are now getting a recipe in our coast and that is an improvement,” he stated.
The Rights Of Nigerian Tenants By Law
Strife between landlords and tenants is regrettably common in Nigeria. Indeed, fostering a harmonious relationship between tenants and landlords is a true blessing in today’s society. To steer clear of avoidable tenancy issues, it is crucial to assert and understand the fundamental rights you are entitled to as a tenant in Nigeria. It is difficult to protect a right that is unknown, so it is important for tenants to be aware of certain rights. Below are some of the rights provided by the law Your Rights “Right to exclusive possession: As a lawful tenant, the law states that the place is solely yours for the duration of the tenancy. You have the right to exclusively use the premises, excluding even the landlord. This means that the landlord needs your permission to enter the house or apartment, and anyone who enters the premises without your consent is guilty of trespass. Right to a duly signed Payment Receipt: You have the right to receive a payment receipt from the landlord when you pay rent. The receipt should include the amount paid, the location of the property, and the duration of the tenancy. In Lagos, failure to issue a receipt is an offence under the Lagos Tenancy Law, and landlords who don’t issue receipts may face a penalty of N100,000. Make sure you ask for your receipt – it’s your right! Notice to Quit before eviction: Tenants are entitled to receive notice before being evicted from a building, and the notice period varies based on the type of tenancy agreement. Weekly tenants are entitled to a week’s notice, monthly tenants are entitled to two weeks’ notice, and yearly tenants are entitled to 6 months’ notice. In Lagos, if you have a fixed tenancy, the landlord does not have to serve you a notice to quit once the tenancy expires because the Lagos Tenancy Law presumes that you are aware of when your tenancy is due to expire, and so no notice is required. Right to seven days’ Notice to Recover Possession: As part of your rights as a tenant, you are entitled to a seven days’ notice to recover possession in addition to the notice to quit. This crucial notice is issued by the landlord only after a valid notice to quit has expired. It is a critical step in the eviction process, and without it, the landlord cannot take legal action for eviction. Break Clause: If there is a break clause in the tenancy agreement, your landlord can give you notice after this. However, your landlord doesn’t have a guaranteed right to possession during the first six months of the tenancy. A break clause is a provision in a tenancy agreement that allows both the tenant and the landlord to end the tenancy agreement early during the fixed term. Essentially, either party can “break” the tenancy before the fixed end date, if the correct procedures and minimum protection contained in the relevant law are followed.
FOREX TRADING
Understanding Forex Trading: Risks, Benefits, and Disclaimers Introduction Forex trading, or foreign exchange trading, involves buying and selling currencies to profit from fluctuations in exchange rates. It’s a global market that’s open 24 hours a day, five days a week, and is known for its high liquidity and volatility. While forex trading offers substantial opportunities, it also comes with significant risks. Understanding these can help you make informed decisions and manage your investments effectively. Benefits of Forex Trading Risks of Forex Trading Disclaimers Conclusion Forex market can be an exciting and potentially profitable endeavor, but it requires a thorough understanding of the market, careful risk management and ongoing education. By recognizing both the benefits and risks and adhering to prudent trading practices, you can better navigate the complexities of forex trading and make informed decisions. Unlock Your Forex Trading Potential Today! Are you ready to dive into the exciting world of forex trading and take control of your financial future? Don’t miss out on the opportunity to explore the dynamic forex market with the best tools and resources available. Click the link below to access the exclusive offers and start your forex trading journey with confidence. Discover top-rated brokers, valuable educational resources, and innovative trading platforms tailored to meet your needs. Empower yourself with the knowledge and tools to make informed trading decisions. Your path to forex trading success starts here!: https://one.exnesstrack.net/a/c_3hnydgdzd9
New interest rate may worsen bad loans – OPS
The Organised Private Sector has expressed concerns that the interest rate hike by the Monetary Policy Committee of the Central Bank of Nigeria may worsen non-performing loans in various Deposit Money Banks. On Tuesday, the MPC voted for the fifth time this year to increase the monetary policy rate, which measures the benchmark interest rate, to 27.25 percent. The baseline interest rate in an economy is known as the monetary policy rate (MPR), upon which every other interest rate within the economy is based. The Governor of the central bank, Olayemi Cardoso, made this announcement at a press briefing following the 297th Monetary Policy Committee meeting in Abuja. “He said that the committee members unanimously decided to further tighten monetary policy.” This new rate, a move that stunned the financial markets, is an increase of 50 basis points from 26.75 per cent announced by the apex bank in July 2024. The new rate represents an 8.5 percent increase in interest rates under the current leadership, which assumed office a year ago. This continues the series of interest rate hikes that started in May 2022 with the implementation of a hawkish monetary policy. Cardoso stated, “The committee unanimously decided to tighten policy further and therefore made the following decision: raise the MPR to 27.25 percent.” The Monetary Policy Committee (MPC) has made some bold moves to strengthen the financial landscape. They have maintained the asymmetric corridor around the Monetary Policy Rate (MPR) at +500 to -100 basis points and significantly raised the Cash Reserve Ratio for deposit money banks to 50%, marking a substantial 500 basis point increase. In addition, there has been a notable 200 basis point increase for merchant banks, raising the ratio to 16% from the previous 14%. Notably, the committee has held firm on the liquidity ratio at 30%. These decisive actions are aimed at fortifying the financial sector and fostering stability. According to the CBN, the decision to raise interest rates was premised on recent events in the economy regarding inflation and the stability of the foreign exchange market. He mentioned the threats of food inflation, flooding in many parts of the country, and rising petrol and energy prices as reasons why further monetary policy tightening should be executed. Financial experts had predicted that the CBN would either maintain or reduce interest rates after two consecutive months of decreasing headline inflation. Nigeria’s inflation rate slowed to 33.4% in July from 34.19% in June 2024 and further eased to 32.2% in August. However, there are fears that Nigeria’s inflation will increase after the two-month deceleration on the back of petrol scarcity and subsequent increase in petrol prices by the NNPCL. Last month, the NNPCL informed Nigerians of the increase in petrol pump price from N617 per litre to N897 with transport prices increasing as well. Continuing, the governor of the Central Bank of Nigeria stated that the bank has observed a correlation between the monthly disbursement from the Federation Account Allocation Committee and liquidity in the banking system. He mentioned that this correlation impacts the exchange rates. Hence, the bank will start monitoring future disbursements by the FAAC to assess their impact on prices. He said, “The MPC noted the continued growth in money supply, recognizing the need to curtail excess liquidity in the system as well as address foreign exchange demand pressures.” “”Members expressed concern about the increasing fiscal deficit, but they acknowledged the fiscal authorities’ efforts to avoid using Ways and Means financing. Additionally, members noted a strong correlation between FAAC releases, liquidity levels in the banking system, and their impact on exchange rates.” Cardoso stated that the central bank is working closely to ensure there is sufficient cash in most bank ATMs to address the issue of cash insufficiency. According to the CBN governor, banks do not have any excuse not to dispense cash. He also revealed that N1.4tn will be distributed in the next three months to aid cash flow within the banking system. “Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system,” he said. OPS reacts Dr. Femi Egbesola, the National President of the Association of Small Business Owners of Nigeria, expressed his disappointment at the upcoming increase, especially considering that manufacturers and businesses in the real sector are still struggling with high operating costs and various other challenges.* He said, “This definitely will push up further the cost of doing business and ultimately, the cost of goods and services. The manufacturing sector may contract more as fund liquidity and profitability will surely reduce. “The banks or financial institutions may witness more bad debts as many lenders may find it difficult to live up to their loan obligations. This will result in banks being averse to lending to the real sector.” Egbesola pointed out that the economy may continue to deteriorate, leading companies in the real sector to reduce production, workforce, spending, and reliance on loans. He added, “We may begin to see more ailing or comatose businesses. “Our competitiveness in the national, continental and global business will be further challenged as Made-In-Nigeria products will be naturally more expensive than before amongst others. “It’s time the government becomes more intentional about promoting ease of doing business, supporting and practically intervening in the health, growth, scaling and sustainability of the SMEs and manufacturing sector.” More Reactions Dele Oye, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, expressed concern about the recent 27.25% monetary policy rate hike by the CBN.* He said, “This decision burdens businesses with higher loan costs, exacerbating their struggles and failing to curb inflation or stabilise the naira. “We urge the CBN to engage with stakeholders for a collaborative approach, considering alternatives like targeted sector support, deficit reduction, and promoting local production. “A reassessment of strategies is essential to ensure effective economic management and sustainable growth in Nigeria. Dialogue and innovative solutions are crucial for repositioning our economy.” The NACCIMA
FIRS To Introduce e-invoice platform
The Federal Inland Revenue Service (FIRS) involves industry leaders in tax discussions. On Wednesday, the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, delivered a compelling address on Nigeria’s recent tax reforms. Industry leaders engaged in a thought-provoking discussion, examining both the progress made and the potential drawbacks. Adedeji, represented by Oti Olaniyi, the Acting Director of the Medium Taxpayers Department, South, described the restructuring of FIRS as a shift towards customer-centricity, aimed at enhancing efficiency and responsiveness. The chairman of FIRS made this statement during the Organised Private Sector Stakeholders’ Engagement on Emerging Tax Matters, hosted by the Lagos Chamber of Commerce and Industry. Adedeji emphasized the agency’s groundbreaking transformation, highlighting the decentralization of operations, implementation of cutting-edge technology, and the streamlining of tax services. This included the introduction of the revolutionary ‘TaxPro Max’ platform, designed to simplify tax filing and bolster compliance through seamless e-filing, e-reporting, and other innovative digital solutions. FIRS is dedicated to delivering customer-focused services aimed at enhancing voluntary compliance and increasing revenue generation,” he stated. According to the FIRS boss, the agency’s new structure comprises three operational groups—small, medium, and large taxpayers—to better address the needs of various taxpayer segments. He stressed the need for the agency to expand the tax base, due to Nigeria’s heavy reliance on oil revenues. This is a way to encourage diversification into non-oil revenues to address infrastructure needs and boost the economy. The chairman of the FIRS restated the plan to introduce a simplified withholding tax system for small businesses and reduced rates for low-margin enterprises. This is aimed at reducing tax evasion and promoting compliance. He mentioned that additional changes included tax incentives, particularly for the gas sector, as part of the government’s efforts to boost investment and growth. Adedeji pointed out that incentives, such as zero VAT on compressed natural gas and liquefied petroleum gas, are intended to boost the sector and diversify Nigeria’s energy mix He urged businesses and citizens to collaborate in advancing Nigeria’s tax system, maintaining that transparency and innovation were key to ensuring long-term success. He stressed the importance of tax education and raising public awareness to foster a culture of compliance. The President of the LCCI, Gabriel Idahosa, passionately urged for heightened collaboration between the private sector and the government to effectively tackle Nigeria’s pressing fiscal challenges. He emphasized that Nigeria’s tax-to-GDP ratio is alarmingly low at 10.86 percent, significantly below the African average of 15-20 percent. He stressed the urgent need for comprehensive reforms and robust collaboration between public and private stakeholders to elevate the ratio to 18 percent within the next three years. Idahosa commended FIRS’ efforts to enhance tax administration with technology, including the ‘TaxProMax platform’. He also praised the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele. At the event, Dr. Chinyere Almona, the Director General of LCCI and a member of the Presidential Committee on Fiscal Policy and Tax Reforms, passionately emphasized that the delayed implementation of the new withholding tax regime was solely due to the prolonged wait for legislative approval. ““The tax law is being revised, but it has to go through a process of approval. It’s difficult to have things come out piecemeal, as it won’t benefit anyone to have reforms that are not integrated,” Almona remarked. She urged industry players to be patient as the approval process was ongoing.
FIRS To Introduce e-invoice platform
FIRS To Introduce e-invoice platform The Federal Inland Revenue Service has announced plans to implement an e-invoicing platform to advance Nigeria’s tax administration system. New Digital Platform The new digital platform, named FIRS e-Invoice, is set to streamline invoice management in alignment with the Tax Administration and Enforcement Act of 2007. The Executive Chairman of FIRS, Zacchaeus Adedji, made the announcement during the LCCI-FIRS Organised Private Sector Stakeholders Engagement held in Lagos on Wednesday. Adedeji emphasised the importance of e-invoicing for modernising and enhancing the efficiency of Nigeria’s tax system, stating “Our collective efforts will pave the way for a more prosperous and resilient Nigeria. As we advance, we encourage support for these initiatives through constructive feedback and collaboration.” PUNCH reported that the Federal Inland Revenue Service has assured businesses in the country of a friendly tax administration. Adedeji explained that the ongoing restructuring at the agency had led to the creation of a one-stop shop for taxpayers according to their turnover thresholds.
GBP: UK inflation remains in line with expectations – Commerzbank
Wednesday’s UK inflation figures did not come as any major surprise. CPI inflation was in line with the median of analyst estimates. The subcomponents did not surprise either. Nevertheless, the currency market took the release as an opportunity to trade the Pound Sterling (GBP) stronger, Commerzbank’s Head of FX and Commodity Research Ulrich Leuchtmann notes. Visible price movements in GBP are expected “The initial market reaction shows very clearly that the Pound Sterling (GBP) is currently benefiting particularly from the fact that the Bank of England (BoE) appears to be lagging behind. While the ECB has already cut its key rate twice and the Fed started with a big move, the market expects the BoE to make rather more leisurely interest rate cuts. That is what makes the pound so attractive.” “Of course, this would quickly come to an end if inflation in the United Kingdom were to fall very rapidly (as is expected for the euro area and the US). Therefore, UK inflation figures are always a cause for nervousness for those who hold long GBP positions.” “But the flip side of this previous nervousness is that if the figures do not give cause to question the BoE’s positive outlook on GBP, relief will prevail. Relief does not mean massive GBP strength, but it does mean visible price movements.”
Gold hovers close to new high of $2,600 after Fed meeting
Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US State Reserve (Fed) decision on interest rates the prior day. The yellow metal popped to a new record high of $2,600 on Wednesday before quickly falling back following the much-anticipated Fed meeting, at which they decided to implement a 50 basis point (0.50%) cut to the fed funds rate. This lowers the Fed’s base rate to a range of 4.75%-5.25% from 5.25%-5.50% previously. Gold peaks after Fed meets Gold hit a record high of $2,600 after the Fed went ahead with a 50 bps rate cut on Wednesday, although the yellow metal failed to sustain its new highs. Several analysts explained the lack of volatility (financial asset prices changed only modestly after the announcement) due to the Fed’s easing cycle having already been priced in by financial markets ahead of the event. Gold hit a record high of $2,600 s the easing cycle already priced in?” opined Thomas Mathews, Head of Markets, Asia Pacific for Capital Economics in a note on Thursday. “Markets barely reacted to the Fed’s 50 bps rate cut, on balance, and our base case is that further cuts won’t move the needle too much either.” Gold upside may have been capped by the basically clean bill of health assigned to the US economy by the Fed. Gross Domestic Product (GDP) growth forecasts were only slightly revised down to 2.0% in 2024 from 2.1% previously and is expected to remain at that level until the end of 2027.
