Steps to Expect When Selling Your Home Selling your home is not on anyone's top 10 list of fun things to do.
It's time to sell, so here is a simple game plan of what you can expect during the process. First time sellers, listen up, because now it's your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you're stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes less stressful. They are experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you've made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale, then Prepare to Move.
Prepare to Sell It is now time to look through the eyes of the buyer, transferring your home of memories into a dream house for someone else. Decide whether you want to hire an agent to handle the sale, then do whatever necessary to get your home in it's best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector. Inspections usually cost between $300 to $400. If major damages are discovered, your decision to sell or at least the price at which you sell may be altered.
Most states now require sellers and their agents to disclose issues that may affect a buyer's decision to purchase your home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and cosmetic improvements that will enhance your home's salability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your house is on the market, especially if an odor exits throughout the home.
Set the Price Your home's value is ultimately what a buyer is willing to pay at any given time. It's dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price If you plan to work with a listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the current market and your home's salable assets as well. Comparative Market Analysis A comparative market analysis should take into account repairs, improvements, and annual costs (such as property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to analyze how accurate the CMA estimate is. One Step Further If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable sales in addition to other information to make their determinations. The appraisal will cost between $250 to $500 dollars. Accept an Offer In most cases, you will wait anywhere from 30 to 60 days for an offer, depending on the market and location of your home. This can be an emotional process, especially if offers come in far below your list price, or your home has been on the market for several months. This is why obtaining an experienced agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from emotionally reacting.
Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share with your agent, as the number may change during the time your home is on the market.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process helps avoid confusion and potential legal problems down the road. In most states, land transitions and their details need to be in writing to be valid.
The majority of the time, you'll want to counteroffer. Someone purchasing a home will almost always start out on the low side, so take this into consideration. Using an agent during this process will be an advantage, as they are use to this process. Close the Sale You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible for keeping your property in the same condition as when the buyer saw it last. The closing date should be clearly specified in your sales contract, which should include deadlines for the buyer to sign off on contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active market, your sale might go through without any concessions on your part.
Preventive measure: Make sure that your sales contract is specific in its inspection contingency and doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.
Preventive measure: Give the appraiser the most recent comparable sales from your neighborhood, and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.
Preventive measure: Check your title before you sell and make sure it is clear.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)
Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also, be sure the sales contract allows you to keep the security deposit.
Prepare to Move Once you've sold your home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If you made a profit on your home sale, it may be wise to make a minimal down payment on your next home, and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors, professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your utilities are switched off at your previous address and switched on at your new address around the closing date.
For more information on this or on what is happening in today's market go to www.HodgkinsandOHara.com or call us at 315-671-5478.
Steps to Expect When Selling Your House Selling your home is not on anyone's top 10 list of fun things to do.
It's time to sell, so here is a simple game plan of what you can expect during the process. First time sellers, listen up, because now it's your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you're stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes less stressful. They are experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you've made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale, then Prepare to Move.
Prepare to Sell It is now time to look through the eyes of the buyer, transferring your home of memories into a dream house for someone else. Decide whether you want to hire an agent to handle the sale, then do whatever necessary to get your home in it's best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector. Inspections usually cost between $300 to $400. If major damages are discovered, your decision to sell or at least the price at which you sell may be altered.
Most states now require sellers and their agents to disclose issues that may affect a buyer's decision to purchase your home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and cosmetic improvements that will enhance your home's salability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your house is on the market, especially if an odor exits throughout the home.
Set the Price Your home's value is ultimately what a buyer is willing to pay at any given time. It's dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price If you plan to work with a listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the current market and your home's salable assets as well. Comparative Market Analysis A comparative market analysis should take into account repairs, improvements, and annual costs (such as property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to analyze how accurate the CMA estimate is. One Step Further If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable sales in addition to other information to make their determinations. The appraisal will cost between $250 to $500 dollars. Accept an Offer In most cases, you will wait anywhere from 30 to 60 days for an offer, depending on the market and location of your home. This can be an emotional process, especially if offers come in far below your list price, or your home has been on the market for several months. This is why obtaining an experienced agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from emotionally reacting.
Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share with your agent, as the number may change during the time your home is on the market.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process helps avoid confusion and potential legal problems down the road. In most states, land transitions and their details need to be in writing to be valid.
The majority of the time, you'll want to counteroffer. Someone purchasing a home will almost always start out on the low side, so take this into consideration. Using an agent during this process will be an advantage, as they are use to this process. Close the Sale You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible for keeping your property in the same condition as when the buyer saw it last. The closing date should be clearly specified in your sales contract, which should include deadlines for the buyer to sign off on contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active market, your sale might go through without any concessions on your part.
Preventive measure: Make sure that your sales contract is specific in its inspection contingency and doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.
Preventive measure: Give the appraiser the most recent comparable sales from your neighborhood, and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.
Preventive measure: Check your title before you sell and make sure it is clear.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)
Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also, be sure the sales contract allows you to keep the security deposit.
Prepare to Move Once you've sold your home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If you made a profit on your home sale, it may be wise to make a minimal down payment on your next home, and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors, professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your utilities are switched off at your previous address and switched on at your new address around the closing date.
For more information on this or on what is happening in todays market, go to www.HodgkinsandOHara.com or call us at 315-671-5478.
Steps to Expect When Selling Your House Selling your home is not on anyone's top 10 list of fun things to do.
It's time to sell, so here is a simple game plan of what you can expect during the process. First time sellers, listen up, because now it's your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you're stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes less stressful. They are experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you've made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale, then Prepare to Move.
Prepare to Sell It is now time to look through the eyes of the buyer, transferring your home of memories into a dream house for someone else. Decide whether you want to hire an agent to handle the sale, then do whatever necessary to get your home in it's best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector. Inspections usually cost between $300 to $400. If major damages are discovered, your decision to sell or at least the price at which you sell may be altered.
Most states now require sellers and their agents to disclose issues that may affect a buyer's decision to purchase your home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and cosmetic improvements that will enhance your home's salability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your house is on the market, especially if an odor exits throughout the home.
Set the Price Your home's value is ultimately what a buyer is willing to pay at any given time. It's dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price If you plan to work with a listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the current market and your home's salable assets as well. Comparative Market Analysis A comparative market analysis should take into account repairs, improvements, and annual costs (such as property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to analyze how accurate the CMA estimate is. One Step Further If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable sales in addition to other information to make their determinations. The appraisal will cost between $250 to $500 dollars. Accept an Offer In most cases, you will wait anywhere from 30 to 60 days for an offer, depending on the market and location of your home. This can be an emotional process, especially if offers come in far below your list price, or your home has been on the market for several months. This is why obtaining an experienced agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from emotionally reacting.
Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share with your agent, as the number may change during the time your home is on the market.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process helps avoid confusion and potential legal problems down the road. In most states, land transitions and their details need to be in writing to be valid.
The majority of the time, you'll want to counteroffer. Someone purchasing a home will almost always start out on the low side, so take this into consideration. Using an agent during this process will be an advantage, as they are use to this process. Close the Sale You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible for keeping your property in the same condition as when the buyer saw it last. The closing date should be clearly specified in your sales contract, which should include deadlines for the buyer to sign off on contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active market, your sale might go through without any concessions on your part.
Preventive measure: Make sure that your sales contract is specific in its inspection contingency and doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.
Preventive measure: Give the appraiser the most recent comparable sales from your neighborhood, and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.
Preventive measure: Check your title before you sell and make sure it is clear.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)
Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also, be sure the sales contract allows you to keep the security deposit.
Prepare to Move Once you've sold your home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If you made a profit on your home sale, it may be wise to make a minimal down payment on your next home, and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors, professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your utilities are switched off at your previous address and switched on at your new address around the closing date.
For more information on this or on what is happening in todays market go to www.HodgkinsandOHara.com or call us at 315-671-5478
Steps to Expect When Selling Your House Selling your home is not on anyone's top 10 list of fun things to do.
It's time to sell, so here is a simple game plan of what you can expect during the process. First time sellers, listen up, because now it's your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you're stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes less stressful. They are experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you've made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale, then Prepare to Move.
Prepare to Sell It is now time to look through the eyes of the buyer, transferring your home of memories into a dream house for someone else. Decide whether you want to hire an agent to handle the sale, then do whatever necessary to get your home in it's best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector. Inspections usually cost between $300 to $400. If major damages are discovered, your decision to sell or at least the price at which you sell may be altered.
Most states now require sellers and their agents to disclose issues that may affect a buyer's decision to purchase your home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and cosmetic improvements that will enhance your home's salability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your house is on the market, especially if an odor exits throughout the home.
Set the Price Your home's value is ultimately what a buyer is willing to pay at any given time. It's dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price If you plan to work with a listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the current market and your home's salable assets as well. Comparative Market Analysis A comparative market analysis should take into account repairs, improvements, and annual costs (such as property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to analyze how accurate the CMA estimate is. One Step Further If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable sales in addition to other information to make their determinations. The appraisal will cost between $250 to $500 dollars. Accept an Offer In most cases, you will wait anywhere from 30 to 60 days for an offer, depending on the market and location of your home. This can be an emotional process, especially if offers come in far below your list price, or your home has been on the market for several months. This is why obtaining an experienced agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from emotionally reacting.
Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share with your agent, as the number may change during the time your home is on the market.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process helps avoid confusion and potential legal problems down the road. In most states, land transitions and their details need to be in writing to be valid.
The majority of the time, you'll want to counteroffer. Someone purchasing a home will almost always start out on the low side, so take this into consideration. Using an agent during this process will be an advantage, as they are use to this process. Close the Sale You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible for keeping your property in the same condition as when the buyer saw it last. The closing date should be clearly specified in your sales contract, which should include deadlines for the buyer to sign off on contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active market, your sale might go through without any concessions on your part.
Preventive measure: Make sure that your sales contract is specific in its inspection contingency and doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.
Preventive measure: Give the appraiser the most recent comparable sales from your neighborhood, and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.
Preventive measure: Check your title before you sell and make sure it is clear.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)
Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also, be sure the sales contract allows you to keep the security deposit.
Prepare to Move Once you've sold your home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If you made a profit on your home sale, it may be wise to make a minimal down payment on your next home, and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors, professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your utilities are switched off at your previous address and switched on at your new address around the closing date.
For more information on this or market statistics go to www.HodgkinsandOHara.com or call us at 315-671-5478.
Steps to Expect When Selling Your Home Selling your home is not on anyone's top 10 list of fun things to do.
It's time to sell, so here is a simple game plan of what you can expect during the process. First time sellers, listen up, because now it's your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you're stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes less stressful. They are experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you've made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale, then Prepare to Move.
Prepare to Sell It is now time to look through the eyes of the buyer, transferring your home of memories into a dream house for someone else. Decide whether you want to hire an agent to handle the sale, then do whatever necessary to get your home in it's best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector. Inspections usually cost between $300 to $400. If major damages are discovered, your decision to sell or at least the price at which you sell may be altered.
Most states now require sellers and their agents to disclose issues that may affect a buyer's decision to purchase your home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and cosmetic improvements that will enhance your home's salability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your house is on the market, especially if an odor exits throughout the home.
Set the Price Your home's value is ultimately what a buyer is willing to pay at any given time. It's dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price If you plan to work with a listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the current market and your home's salable assets as well. Comparative Market Analysis A comparative market analysis should take into account repairs, improvements, and annual costs (such as property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to analyze how accurate the CMA estimate is. One Step Further If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable sales in addition to other information to make their determinations. The appraisal will cost between $250 to $500 dollars. Accept an Offer In most cases, you will wait anywhere from 30 to 60 days for an offer, depending on the market and location of your home. This can be an emotional process, especially if offers come in far below your list price, or your home has been on the market for several months. This is why obtaining an experienced agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from emotionally reacting.
Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share with your agent, as the number may change during the time your home is on the market.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process helps avoid confusion and potential legal problems down the road. In most states, land transitions and their details need to be in writing to be valid.
The majority of the time, you'll want to counteroffer. Someone purchasing a home will almost always start out on the low side, so take this into consideration. Using an agent during this process will be an advantage, as they are use to this process. Close the Sale You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible for keeping your property in the same condition as when the buyer saw it last. The closing date should be clearly specified in your sales contract, which should include deadlines for the buyer to sign off on contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer, or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active market, your sale might go through without any concessions on your part.
Preventive measure: Make sure that your sales contract is specific in its inspection contingency and doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.
Preventive measure: Give the appraiser the most recent comparable sales from your neighborhood, and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property, delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.
Preventive measure: Check your title before you sell and make sure it is clear.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)
Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also, be sure the sales contract allows you to keep the security deposit.
Prepare to Move Once you've sold your home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If you made a profit on your home sale, it may be wise to make a minimal down payment on your next home, and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors, professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your utilities are switched off at your previous address and switched on at your new address around the closing date.
For more informatin on this or to see what is happening in todays market go to www.HodgkinsandOHara.com or call us at 315-671-5478.
OK, so you've decided it's time to sell your home. There are many reasons for wanting to sell a home. Maybe the company your spouse works for is relocating, or your spouse got that well-deserved promotion, but in order to get the promotion, he needs to move to another part of the state or the country. Perhaps your kids have grown and moved away, and you find that the house you bought ten or fifteen years ago when your kids were young is now too big for just you and your spouse. Or, maybe you're a young couple who needs to sell your smaller home and buy a larger one to accommodate your growing family's needs. The reasons for selling a home are endless.
So what now? Do you try to advertise the home yourself or should you go through a Realtor? The most common reason people give for selling their home themselves is because they are either unwilling or unable to pay a real estate agent a commission for selling their home for them. Whatever your reasons for selling your home alone, you first need to understand a few things.
You are about to do something that a good many people think they can do, but give up trying after just a few weeks. Most people give up because they don't realize from the beginning the extent and complexity of the task ahead.
Here are several sobering statistics of which you should be aware:
The vast majority of For-Sale-By-Owners (over 67%) will list with a real estate broker within the first 6-8 weeks.
Over 12% of For-Sale-By-Owners will never sell at all.
Less than 8% of all For-Sale-By-Owners will sell their houses without outside help, in most cases this means a real estate agent's help.
Whether you are selling your home yourself or are teaming up with a real estate professional, a home-selling experience should go quickly, smoothly and profitability. If you think you might want to try selling your house yourself, take a moment to look realistically at what's involved. Ask yourself the following questions:
1. Can I afford the time it could take to sell my house with only a sign in the yard and an ad in the local paper? Consider that most buyers learn about a house through an agent, not the newspaper.
2. Am I able to stay home to take calls and conduct tours? This is very important and a sure way to lose possible buyers if you're not at home when they call.
3. Do I know how to screen inquiries so as not to waste precious time showing my house to unqualified buyers? Most agents pre-qualify a buyer before showing a home.
4. Do I know what to do before putting a house on the market?
5. Am I familiar with disclosure laws or local inspection regulations?
6. Am I familiar with the necessary legal and financial knowledge to answer buyer's questions, negotiate a contract and close a sale? The reason a listing agent is brought into the picture for someone selling their home is to be assured that their home is being marketed correctly in magazine ads, newspapers, and real estate listings.
Although these listings will help to sell your home, they do more than that. This type of advertising creates phone calls, which in turn becomes clients. This cycle helps build a pool of homebuyers looking for property, all represented by a selling agent. As you start to multiply this by all the agents and all the companies who advertise homes, you will find a large pool of homebuyers at any given time, all represented by selling agents.
Because your home is listed in the Multiple Listing Service, or MLS, these agents are aware that your home is for sale.
Agents then match up clients with homes on the market, one of which might be yours. This is when agents start showing homes to buyers, and before you know it, you get a contract.
So remember that ads create buyers - they don't sell homes.
You can pretty much be guaranteed that the person who ends up buying your home has seen it advertised in a flyer, newspaper listing, or the MLS. Even though you know there are pools of buyers out there, it is still important that your agent list your home to keep that building.
Because listings are often created to make an agent look more impressive, don't make the mistake of basing your choice for an agent on the number of listings they have, but what you can determine if how hard they work and the level of their buyer pool.
Even with all the advertisement media, word of mouth is still the best type of advertisement there is. Friends, family, and neighbors will always be your best bet forgetting word out about your house.
Another tool your agent should use is hosting an open house. In this situation, your house is advertised as having an open house, usually on a Saturday or Sunday, when most people are available to look at homes. Your agent will be at your home all day greeting visitors who have come to walk through to see if they are interested in your home. There might be cookies and coffee served, and the agent will provide a guest book to keep track of names as another method of networking and building the buyer's pool.
If someone does visit your home during an open house, even if they aren't interested, they may know of someone else who would be - again, another way for word of mouth advertising to work for you.
Finally, open houses can be used at the beginning of your home going on the market as way of introduction and then again after your home has been listed for awhile to hopefully start movement if showings have been slow.
No matter what type of advertisement is used, make sure your agent keeps it fresh and noticeable. The more your home is advertised, the more people will know it's for sale, which increases the chance of it being sold quickly.
"No matter what I do, I just can't sell my home," you exclaim!
Actually, most homes can be sold in today's market in a reasonable amount of time, generally within two or three months, and most sellers are getting close to their asking prices.
There are nine steps in selling a home. If you're having a problem selling your home, review the following to try and determine where the problem lies:
* STEP 1 - ANALYSIS: The critical element is to correctly predict the price your home will bring in current market conditions. When you get the expected value of your home wrong, you're in for trouble from the start. The typical problem is that a home is priced too high for the market. This is the case for the majority of homes currently for sale. It is either the fault of the agent, the seller or both. You decide.
* STEP 2 - MULTIPLE LISTING SERVICE WORDS AND PRICE: The data entered into the Multiple Listing Service computer will affect the number of times your home's information appears in other agents' computer searches of properties to consider. It will also determine whether your home will be shown to a prospective buyer. Carefully review the words and the price.
* STEP 3 - TRAFFIC: A home needs at least three or four showings weekly in order to confirm that it is "in tune" with the market. If few agents call to show your home, the problem is certainly in steps 1 or 2 above.
* STEP 4 - REMEMBERING: It is important that the buyer is able to remember your home. The brochure he or she has picked up in your home will help. It is critical at this stage for the buyer to rank your home among the best of the 30, 40 or 50 he or she has seen and to keep it under active consideration. Be sure your home's brochure is well prepared.
*STEP 5 - RETURN FOR A SECOND VISIT: If the buyer decides to return for a second visit, either he or she has forgotten some detail or, more likely, your home is on his or her "short list." It is most important to alert your agent promptly and to put your home's best foot forward at such a critical time.
* STEP 6 - THE OFFER: When you receive a written offer, your home is almost sold: At this point most buyers have decided your home is the one. But be careful: Many will have a second choice, and a good buyer-broker will not forget to mention this when the contract is presented.
* STEP 7 - AGREEMENT: Assuming you have a serious buyer and you have avoided an emotional conflagration, you will come to an agreement. What is said during negotiations is often less important than how it is said. What is not said can be critical.
* STEP 8 - REMOVAL OF CONTINGENCIES: Although you can hit a bump or two at this stage, they normally are not fatal. Possible problems that can surface very late in the game are a low appraisal or lack of loan approval. While these are serious problems indeed, especially in the week or two before settlement, they can usually be resolved with the help of experienced agents.
* STEP 9 - FINAL INSPECTION AND SETTLEMENT: When you get to the settlement table, the only issue remaining is usually the result of the buyer's final inspection. Any findings are customarily minor. At this point significant problems are unthinkable, so relax and keep signing.
So there you have it. There's no excuse for not selling your home. You and your agent should be able to pinpoint and resolve any problem. Save time and fix the problem today.
If you would like more information about selling your home go to www.HodgkinsAndOHara.com or call us at 315-671-3021.
If you're considering buying a home, you may have a number of things on your mind: finding a house that suits your budget; locating a house in the right school district; deciding on the right floor plan. While all of these things are important, the single most critical decision you have to make when home-shopping is which Realtor you will choose. It's true, you could go it alone, but without proper representation, you'll be at a distinct disadvantage, not only in negotiating a deal, but also in finding the right house.
For your sake and the sake of your family, it's best if you work with an agent. An agent can help you locate properties for sale in the neighborhood you desire. He or she can also provide valuable advice during the "looking stage"; your agent is likely to notice things that you don't and therefore could end up saving you a great deal of money. In addition, since chances are the seller will be represented by an agent, you'll want an agent there to look out for your best interests.
Once you make the decision to retain an agent, the next decision you'll have to make is whom to choose. This is not as easy as it might appear. You'll want to do more than just flip through a phone book to find a name. You'll need to do some homework to make sure you select an agent who's right for you.
Given this fact, there are a number of questions you should ask when agent-shopping. Some agents work as "Exclusive Buyer Agents." These are agents who represent buyers and buyers alone. They do not list properties; therefore there is no danger of a conflict of interest. However, you can retain an agent who also sells property, although you might want to ask whether the agent will be showing you properties that his company is also selling. It's best to know these things in advance, so there are no misunderstandings down the road.
Find out how long the agent has been in the field. A more experienced agent is likely to give you better service and greater attention to detail. Also, ask how much of the agent's work involves representing buyers. This will give you a clue about whether the agent is likely to ask the right questions throughout the buying process.
Ask for references, specifically, the names and phone numbers of about a half-dozen buyers the agent has represented in the last six months. If the agent is readily willing to give you this information, it shows his or her confidence and provides some indication of trustworthiness. Once you have the contact numbers in hand, be sure to follow up by making calls. You can find out whether the agent was responsive, helpful, and knowledgeable. And who would know better than the clients he or she has represented?
Also, ask the agent if he or she will have information about "For Sale By Owner" properties. You'll want to ensure that you get a chance to view a wide variety of properties so that you can make an intelligent decision about which home is right for you.
In addition, ask the agent about credentials. Has the agent had specific training related to the unique needs of buyers? Does he or she hold special accreditation? Any agent who is not willing to share this information with you is probably not worth dealing with.
Also, make sure you settle financial matters with the agent before you look at your first house. Find out whether he or she will receive a commission on the purchase of a house, or whether he or she works on an hourly basis. Obtaining answers to such questions now will eliminate headaches in the future.
Another important question is whether the agent has a list of lenders, home inspectors, and contractors that he or she likes to work with. It will certainly save you time, and probably money, if you can rely on your agent to supply this information rather than trying to hunt it down yourself. The answer to this question will also give you an idea as to whether the agent is knowledgeable about the community.
If you would like more information about choosing the right agent for the job of find your next home or selling your current one, go to www.HodgkinsAndOHara.com or call us at 315-671-3021.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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