Selling Your South Bay Home Understanding the Process
Even for Realtors, every home sale and every transaction is different with new challenges and new questions. Needless to say sellers are going to have questions and some have been asked almost every time. Here are just a few of the many questions that are frequently asked. If you have a question please feel free to contact me…even if you don’t think you are ready to sell.
If you are considering selling your home in the South Bay, These frequently asked questions may help.
- Is this the right time to sell my house?
- What if I owe more than the home is worth?
- >What is the most important factor in deciding to sell?
- How do I determine the sales potential of my home?
- What are the steps once I’ve decided to sell?
- How can I best work with my REALTOR?
- What should I do to get my home ready for showing?
- We’ve found a great house at a good price. Should we buy?
- What are the important factors when considering an offer?
- What can I do to help get potential buyers financed?
- Are there any special considerations when selling a condo?
There are several factors to consider when deciding whether to sell your home. There are times when you may need to sell, such as when your job location or lifestyle change, or you have serious money problems. You may have outgrown your current home or are now able to afford a better place and are ready to move up. When the economic forecast is good, you may want to sell and take advantage of the strong market. Additionally, if you have inherited a home, it wouldn’t make sense to continue making payments if it will be empty.
As the market has seen the values of homes drop, many homeowners find themselves owing more than the current value. If your circumstances dictate you needing to sell your home it is what’s called a short sale in which you’re asking the bank to forgive some of your current degt on the home. It can be a complicating and time consuming process but one that often is the best solution.
Be certain! If you are not sure you want to sell, you won’t put forth the required effort or negotiate in good faith. Beyond being a waste of time, in certain instances a buyer can force you to honor a signed contract even if you change your mind. Save yourself the trouble.
The basic influencing factors include location, appearance of house and neighborhood, size, condition, view, percentage of owners to renters in your neighborhood (owners tend to have a pride in ownership), and crime rate. Contact us if you would like an in depth analysis of the value of your home in todays market.
First, choose a REALTOR¨ and ask for a comparative market analysis. This will help you determine a fair asking price–high enough so you get what your home is worth and realistic enough so you interest buyers. Secondly, look into the current mortgage interest rates. It will affect what potential buyers can afford, and what you can afford if you move up. Also, consider the time of year. The most popular time of year for families to move is in the summer, when children are out of school and the holidays are a long way off. Early spring is usually the best time to list and receive the maximum exposure. Fix up the overall appearance of your home, with an eye for the little, easy things like cobwebs in the corner. More on this below.
Ask about and understand what marketing steps he or she will take and when they will occur. Define your expectations of the transaction and communicate them. Disclose problems, keep your house in good condition and let the REALTOR® take the lead with buyers. Keep your house clean, the yard neat, and be ready at any time. Let your REALTOR¨® show the house, but if you are at home during a showing, look neat and stay inconspicuous. You probably have less experience, may make buyers uncomfortable, and may want to avoid hearing any negative comments buyers may have. Finally, you must allow inspections, fix anything necessary, and show up at the closing.
Start by taking a look from the street. This is the first impression potential buyers will get. Remember what you liked when you first saw the house. Have you improved on it or let anything go? Next, walk slowly through the interior. Eliminate odors, especially pet and smoke. Clean the windows and pull back the drapes to maximize light, bright rooms.
You have three basic options. You can wait until you sell your current home. With this option you risk losing the new home to another buyer, but you may find one later you like even more. Secondly, you may add a contingency clause to your offer, stating that you must sell your current house before closing on the new one. Third, if you are having trouble selling your current house, you may consider renting it out or refinancing
it for cash to help you buy. The problems associated with this third option include finding and managing tenants, trying to sell the house with tenants, and closing costs and higher mortgage payments with a refinance.
Consider all of the following: price, terms, clauses, personal property requested, and the amount and who holds the earnest money.
You may offer to pay points, which will reduce the rate and interest on the loan. If the buyers have adequate income but are a little short on cash, you may pay the non-recurring closing costs at the settlement. Another option, which should never be taken without fully understanding the risks, is to hold a second mortgage for buyers who cannot qualify for the full amount.