How can I get the most money out of the sale of my home?

 

Price your home correctly right from the start. Overpriced homes take longer to sell and often end up selling for less than market value.  

Many Sellers believe the myth that they can "always reduce the price later on." Unfortunately, a home listing gets the most attention from Buyers when it first comes on the market. Buyers and their agents pay attention to "hot sheets" of newly listed properties. Price reductions can also give the impression that "there must be something wrong with that property" and turn Buyers off even more. That's why it is essential to obtain a CMA and listen to your real estate agent's advice on how to price your home right from the start.

Overpricing your home will actually cost you more money than listing it at the correct market value!  While you wait for a miracle Buyer to offer more than your home is worth, you continue making mortgage payments and deal with  the expenses and hassles of trying to keep a home spotless during showings.

How can I make my home more appealing to buyers?

 

Due to the amount of homes for sale Buyers can afford to be particular.  Buyers want homes in great condition.

For great tips on getting your home ready for sale, read:

Why Didn't My Home Sell?

and browse our Home Staging Articles.

Is a pre-approved buyer better than a pre-qualified one?

 

A pre-qualified buyer has a letter from a mortgage lender stating an approximate loan amount that the buyer should be able to afford. This estimate is based on basic income and expense data is no guarantee that they will actually be able to obtain financing in this amount.

When a buyer is pre-approved they have already submitted a loan application and most of the necessary paperwork to obtain a mortgage. Their loan is essentially approved, subject to them locating a property that appraises for the loan amount.  Unless they lose their job or incur a dramatic change in finances, they should be able to complete the sale.

Therefore, a pre-approved buyer is a much stronger buyer than a buyer who is only pre-qualified.

Should I list my property with the real estate agent who tells me the highest listing price?

 

No, request a comparative market analysis of your property. Your listing price should be based on hard data not an agent telling you what you want to hear.

You must carefully review sales of comparable properties with a real estate agent who is familar with market conditions in your area to determine a realistic listing price.

What is a contingency in a sales contract?

 

Sales contracts often contain contingency clauses, which are provisions that allow a contract to be cancelled in certain situations.

Typical contigencies may include:

• Mortgage contingency - Allows for contract cancellation if the buyer is unable to obtain financing within a specified timeframe.

• Inspection contingency - Buyer may cancel contract if unsatisfactory results are found during a general home inspection or termite inspection.

• Contact is subject to Buyer selling their current home.

What is a seller obligated to disclose to potential buyers?

 

The seller and their real estate agent must disclose all facts materially affecting the value or desirability of the property.  During the sale of residential properties, the seller must provide the buyer with a Real Estate Transfer Disclosure Statement, which documents the existence and condition of all known physical attributes of their property. 

Why shouldn't I just sell by owner?

 

Some home sellers try the FSBO (for sale by owner) approach in an attempt to save the cost and commission of hiring an agent.

The biggest disadvantages to this approach are:

• Limited access to market data, making it more likely that you will overprice or underprice your home.
• Lack of access to the resources experienced real estate agents have such as a market knowledge, customer base, marketing materials, and financial and legal expertise in the selling process.
• Many  buyers simply do not want to buy a home from an individual who is not being represented by a professional. Buyers are concerned that they do not know all they need to know about real estate facts and they have doubts that the seller does either. Since a home is the largest purcahse most people make in their lifetimes, the buyer does not want to make what might be costly mistakes because they did not have representation.
• A seller who is trying to sell a home by themselves is simply not able to tap into all the Internet and social media tools that can help get a home sold. Since 90+% of all buyers find homes on the Internet before they ever go and see them in person, to not be taking advantage of all the Internet and social media opportunities to get a home sold means many people who might see the home virtually will not have that opportunity.