Real Estate · Selling

Three Possible Prices

There are many factors that affect how you’ll price your home when you’re ready to sell.  In spite of market conditions, interest rates, and so on, every transaction is unique.  So, you should seek the assistance of an agent and prepare yourself and your home well in advance of placing the For Sale sign out front.

Sometimes a home will have three different possible prices: the price the sellers want to net, the price the buyers would like to offer, and the final sales price agreed upon by both parties.  Your home’s ultimate value is determined by other local sale prices, which are often a product of supply and demand.

The asking price or the offered price are not the whole story, however.  While an offer of $500,000 doesn’t seem to appear as good as an offer of $510,000, pay close attention to the terms attached to that higher offer.  If the buyers also want you to offset closing costs and deduct for a decorating allowance, the “clean” offer of $500,000 might actually put more money in your pocket.

It’s wise to seek representation and assistance with pricing, marketing, negotiation and closing.  Put a real estate agent with local experience to work for you.  Once armed with the facts relating to terms and conditions of local sales, you can move forward with confidence in your listing.

Real Estate · Selling

Paperwork and Personality

As you prepare to sell your home, you must begin by making a choice: to seek the services of a professional or to proceed without representation.  You realize that your home is probably your biggest financial investment, with a value that could be hundreds of thousands of dollars.

Now imagine if you had a legal problem involving that kind of money – would you prepare and present your own case to the judge without an attorney?  Not surprisingly, managing legal issues is just one of the top reasons that most sellers seek the representation of a qualified real estate professional.

On the paperwork side, there are offers to purchase, sales agreements, inspection reports, title investigations, and more, all leading up to the final closing.  On the personal side, there is the experience and skill required to successfully negotiate between parties, as well as to anticipate and resolve the myriad issues that can arise from listing to offer to sale.

Considering the size of your investment, why would you put any of your stake at risk by forgoing the assistance and advice of an experienced professional?  Maximize your returns with a minimum of hassle and cost.  You wouldn’t go to court without an attorney, and you wouldn’t operate without a surgeon.  It’s easy to see that some things are just too important to handle without an expert.

Note: This article was originally published on this site on January 12, 2016. It has been updated reflect the current home market.

Inspections · Real Estate · Selling

Offer "Peace of Mind"

Do you want to add to the appeal of your home when selling? Aside from basic mechanical or cosmetic repairs your home may need before you list, there’s one other easy and inexpensive way to make buyers feel good about purchasing your home. It’s called a “home warranty,” and for years it’s been a popular marketing tool, especially for older homes.

We all understand that appliances and home systems like heating and air eventually wear out and break down with age. By offering a home warranty to buyers, they are actually receiving “peace of mind,” since the warranty will cover repairs to appliances and other systems for the first year of new ownership.

You also increase the likelihood of a better offer, since buyers won’t try to subtract the cost of expected repairs. They will know they are covered by the home warranty if anything should go wrong. To file a claim, the buyers call a single toll-free number to arrange repairs for any item covered in the policy. Home warranties are so practical that buyers often continue their coverage past the first year.

When selling your home, ask your agent about the different home warranties available, various coverage plans, and their cost. You’ll find that this minimal investment could pay off handsomely in a full price offer from confident buyers! Sound good?

Note: This article was originally published on this site on September 29, 2015. It has been updated reflect the current home market.

Buying · Real Estate · Selling

How Much is Enough

My word is my bond!  That expression held great meaning to land buyers and sellers in the “olden” days.  Most real estate sales were made with a handshake, and a verbal promise to complete the transaction at some future date.

Later, as a show of their good intentions, buyers would give sellers a sum known as “earnest money” to be held until the sale was consummated.  This deposit had more ceremonial significance than monetary assurance of a completed sale.

Today, earnest money deposits are a part of most every real estate transaction.  The amount used as a deposit is negotiable between buyers and sellers, with no minimum or maximum required by law.

There is, however, a strong message attached to the amount of money tendered by buyers.  As the saying goes, “Money talks!”  If sellers are presented with two identical offers on their home, one with a $10,000 deposit, and the other with $500, which do you think they are most likely to accept?  Sellers believe the higher deposit indicates buyers who are more qualified to complete the purchase.

Having said that, understand that earnest money is just one factor to be considered when buying or selling a home.  The amount of the deposit is relative, and depends on the unique nature of each property.  Detailed information about earnest money deposits is available from the real estate agent you choose.

Inspections · Real Estate · Selling

Inspection Misconception

Inspections are a part of most residential real estate transactions, but because they are so common, their role is often taken for granted or misunderstood.  There are some important points you should think about before ordering an inspection on a home you’ve offered to purchase.

Remember that a home inspection is not a witch-hunt!  It’s not a tool for finding flaws to allow you to renegotiate your offer.  An inspection is an educational exercise that allows buyers and sellers to better understand the home’s condition.  An inspection can alleviate the buyer’s anxiety while also providing a basis for repair suggestions.

Don’t think that you won’t need an inspection for new construction!  Nobody wants any surprises when purchasing an older home, but imagine what could happen in a brand new one that hasn’t even been lived in yet!  If you’re considering the purchase of a home under construction, ask about “phase inspections,” which are completed at various stages in construction for your peace of mind.

Finally, don’t assume that inspections are exclusively the responsibility of the buyer.  Many sellers have benefited from pre-listing inspections that identify potential problems before the home is listed and the defects are discovered.  Both sides can use the inspection to make smart decisions and feel more confident about the transaction.  If you’re still uncertain, contact a local real estate professional with your questions.

Note: This article was originally published on this site on September 29, 2016. It has been updated reflect the current home market.

Credit · Financing · Real Estate · Selling

Saved By The Net

You’re ready to list, but are you ready to sell? Let’s say that on the first day your home is for sale, your agent shows it to prospective buyers. They love it, and sign a purchase offer on the spot. You were asking $750,000, and they offered $720,000. Because they are relocating, they need an answer right away, by 6:00 pm. What do you say?

You don’t say, “We just can’t give you an answer that soon.” These buyers are motivated and prepared to buy your home, with a written offer and earnest money deposit.

So how do you make up your mind so quickly? You must simply decide what your rock bottom price is before your home is even shown. Be prepared to negotiate on-the-spot by first asking your agent for a “Net” sheet based on your asking price.

The sheet will show what expenses must be paid out of the gross sales price, i.e. closing costs, brokerage fee, the payoff on your existing mortgage, etc.—resulting in the “net” proceeds that you will receive at closing.

Next, ask the agent to figure other net sheets based on receiving 95% or even 90% of the asking price. This helps you determine the absolute lowest offer you can accept. Once you know that figure, keep it to yourself and be prepared for all possibilities!

Note:
This article was originally published on this site on April 23, 2012. It has been updated reflect the current home market.

Real Estate · Selling

Start Moving Yesterday

Let’s say you’ve just decided to list your home for sale. You know there’s a lot to plan, but when do you start preparing to move? In a word, NOW! Stay focused and don’t panic!

The main aspect guiding your planning will be whether you’re moving a long distance or just locally. Either way, begin hoarding boxes, packing tape, moving blankets, packing peanuts – and big black markers to indicate contents and locations on every single box.

In many cases, you’ll want to consider a professional mover, and your listing agent can make some excellent recommendations. However, be sure your choice is licensed and bonded, and that their employees have workman’s comp insurance. Always get an estimate in writing, from more than one company, and inquire about their equipment, training and experience. References should always be available upon request.

Well in advance of The Big Day, hold a moving sale to reduce the amount you have to pay for your move. Items that don’t sell can often be donated to charitable organizations, or taken to the landfill as a last resort.

When you’re finally “outta there,” make sure you’ve brought enough cash for your travel, your medications and supplements, and your children’s favorite toys, games and entertainment. It could be a few days before you have access to your belongings, so plan ahead and be prepared!

Note:
This article was originally published on this site on June 8, 2012. It has been updated reflect the current home market.