How to Sell Your Home
There are many encouraging signs in the housing market as of April 2013 and I have had a lot of homeowners tell me they are going to sell their homes this spring. Still, it isn’t exactly a seller’s market, yet. I tell them there are proven methods that you must use to keep a deal from falling through, especially at the last minute. Successful realtors in all markets utilize these.
Financing setbacks, poor appraisals, title issues, home inspection problems and even buyer’s remorse because a better house has just gone on the market can interfere with a seller’s capability or willingness to close.
Here are my proven processes:
- Learn everything you can, as soon as possible about the buyer’s financing situation. Accept a contract only from a buyer who has been preapproved for a mortgage. Financing issues derailed a contract 42% of the time last year. Usually, the buyer’s agent will be planning to share this info with you. Nevertheless, preapproval does not prevent a lender from rejecting a buyer’s mortgage application later on in the process, so NEVER stop investigating.
- Have your realtor communicate frequently, daily in some cases) with the buyer’s agent to make sure that the loan is on track not only to close but also to close on time. Lenders are demanding much more rigorous documentation, and if purchasers are not organized, or if they procrastinate when extra paperwork is needed, the closing could be delayed. To help keep things on course, make certain your contract consists of specific deadlines for buyers.Occasionally purchasers miscalculate the amount of money they'll require at closing. A seller will usually be willing to help with some of those expenses.
- Consider only cash offers.A purchaser who does not require financing is much more of a certainty than one who does. This is obvious. Nevertheless, cash offers are usually lower, so sellers have to weigh their choices cautiously. A purchaser with a low down payment who's also asking the seller for modifications and help with closing costs will usually be more willing to offer closer to the asking price.
- Prepare for a poor appraisal.Hope for the best, but prepare for the worst. Realtors in every state will tell you that low appraisals have killed countless contracts in recent years. Realtors say appraisers - who're hired by lenders to evaluate the worth of the house - are overly careful in their valuations, even as home prices are increasing in most areas. To prevent appraisal issues, price your house consistent with comparable homes THAT HAVE SOLD in your area. iT MAKES NO DIFFERENCE TO AN APPRAISER WHAT ASKING PRICES ARE, ONLY WHAT SOLD PRICES ARE. If the prices of sold realty are too low, it may not be time to sell your home. Sellers can challenge a low appraisal however they seldom win unless the appraiser made an obvious error, and most appraisers will fight tooth and nail to defend their position.
- Tackle inspection issues early. Similarly, rather than waiting for an inspection to turn up problems, sellers ought to get one prior to listing (and then keep a copy in an area where prospects can read it during a showing). That way, they are able to make required repairs prior to the purchaser requesting them - or worse case get apprehensive and kill the deal.
- Commit to a tight timeline. As a seller, the clock is ALWAYS TICKING.Demand that purchasers to move quickly on issues like the home inspection and paperwork. Realtors on both sides should have a sense of urgency.
- If a deal is going to collapse, it's much better for it to collapse sooner instead of later so the house can go back on the market. A longer process also provides a buyer more time to get buyers remorse or discover another home search and discover another home that better suits their needs. Sometimes buyers will take a look at closing documents and paperwork and realize they’re spending more than they ought to. But when the buyer is searching for reasons to get out of a deal, it might be much better to grant their wishes than waste more time. Usually, if someone wants out of a contract, they will find a way out.