What Happens When You Sell Your Home

By
Real Estate Agent with Waterfront Homes, Oceanside Condos,Investment Properties, Probate, REO. Covering Broward County 3149072

what happens when you sell your homeSelling you home can be a stressful experience if you aren’t prepared. Be aware of what kind of pitfalls to expect and the process will go much smoother. Some of these pitfalls are avoidable. Unfortunately some are not. Here are a few things to be aware of before you sell.

1. Your neighbors will be curious.  It’s possible you have neighbors you don’t care for and you would prefer them not to know anything about your business. It’s impossible to hide things from your neighbors and properly market your home at the same time. Those neighbors you don’t like can be a good source of potential buyers. Be as open as possible, and just remember you’re leaving and won’t have to see them again if you don’t want to.

2. An agent will over estimate the value of your home.  Home valuation is more art than science. If you ask three different agents for an opinion of your home’s value, you will get three different answers. Many home sellers are tempted to go with the agent who gives the highest valuation. Most agents know this and in order to get a listing they give an overly optimistic value. Heck, they can always ask for a price reduction later.

This isn’t always in the best interest of the home seller.  Before you go with that high value, ask direct questions about how he or she came up with that number. A good question to ask is “Which of the sold comparables you used most closely matches our home, and why?”

3. You don’t realize you own more stuff than you need. Before you sell, have a garage sale or donate items you don’t use any more. Homes with packed closets and clutter in general aren’t as attractive to potential buyers. When you do sell, the moving process will be easier and less expensive.

4. Once you find a buyer you will have 30 to 45 days to get out.  Rarely do buyers have the patience to wait longer than that. In this current market we are in there is a lot less to choose from. You can end up making offers and get outbid on multiple occasions before you successfully purchase a new home. So, unless you are going to rent, it is a better idea to buy your new home first. This of course presents the possibility of owning two homes at the same time. Can you swing that?

6. The check you get at closing may not be as big as you thought. There is nothing worse than a surprise at the closing table. What gets deducted from the proceeds of the sale of your home? Mortgage(s), liens, assessments, commissions, taxes, legal fees, etc. Stay on top of this. Before accepting an offer ask your agent for a “Net Sheet” of your estimated proceeds. They won’t be able to know exactly what you will net at closing, but  they should at least cover what they know, like their fees and closing costs. Once a lien search is completed the closing agent should be able to provide a preliminary closing statement also known as a HUD Statement. It should more closely reflect what you will get at closing. If your condo has an assessment that you are making payments on, make sure you understand what you are liable for when you sell. Sometimes the assessment must be paid in full by the seller and sometimes the new owner takes over the payments.

6. Your home may not be in as good shape as you think. Even the most well maintained homes can have some hidden defects. I had a closing almost get delayed at the last minute because the buyers insurer didn’t like the type of breakers in the electrical panel.  No insurance means no financing. No financing means no sale. We were able to work things out, but there was panic on both sides for a couple of days. It’s not a bad idea to have your home inspected by a professional before you sell. This will prevent surprises and can help keep the buyers honest if they do an inspection and come asking for repair credits.

7. Real estate closings are often delayed.  Real estate transactions are complicated and getting more so everyday it seems. Especially if there is financing involved. Typically you, as a seller, are supposed to be moved out before you go to the closing table. Think about what happens if the buyers can’t close on time? Hope for the best and prepare for the worst. Have a plan B.

By Tom Day

Other Posts of Interest

The Best Time For Selling Real Estate in Florida

Low Ball Offers and How to Handle Them

What is My Home Worth?

 

You can reach me at 954-548-3723

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Winston Heverly 02/27/2014 03:00 AM
Topic:
Home Selling
Location:
Florida Broward County
Tags:
fort lauderdale real estate
selling your home

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Rainmaker
1,317,476
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a great post and all these points are important for a seller to consider.

Nov 26, 2013 10:26 AM #3
Rainer
295,142
Andrea HoffDomin
Florida Dream Homes Realty - Fort Lauderdale, FL
- in Real Estate always on your side!

Great post and good hints because I am just prepare for the sale of my home. The most common issues are already addressed and the best thing of all - all renovations are done with permits and no defects on the title therefore our sale should be a piece of cake.

Happy Thanksgiving.

Nov 26, 2013 09:17 PM #4
Rainmaker
224,855
Mark Neighbor
A O Home Solutions - Sell House Georgia - Buy House Georgia - McDonough, GA
Sell House Fast In Georgia

Good article. Lots to remember and giving this or another list to the seller helps show you are on top of it and expect to sell the house.  A O Home Solutions

Nov 26, 2013 10:08 PM #5
Rainmaker
1,057,912
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Tom,  I love how you addressed this topic!  Every one of the items on you list can become a reality! I would add one point. Selling agents and appraisers may not think your home is worth as much as you and your listing agent believe it is worth.

Nov 26, 2013 10:40 PM #6
Ambassador
3,800,787
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224
Ton- congrats on the feature in the Daily Drop! Numbers 3 and 6 are really rude awakenings but they are always present when selling a house! Well done.
Nov 26, 2013 11:14 PM #7
Rainmaker
199,809
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

I love #1, keep your friends close and your enemies even closer! they may have a buyer who could put up with them

Nov 26, 2013 11:18 PM #8
Rainmaker
2,434,058
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The post indicates savvy at work...thank you

Nov 26, 2013 11:18 PM #9
Rainer
336,271
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Shady Canyon Specialist

I tell them home valuation is 80% mathematics and 20% opinion - so even Appraisers can differ widely.

Nov 27, 2013 12:07 AM #10
Rainmaker
369,863
Travis "the SOLD man" Parker; Associate Broker
Team Linda Simmons, Enterprise, AL 36330 - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Excellent list. I always STRESS the part about not getting what you think at the Closing table. I try to "over-estimate", so that 90% of the time they get more.....and are happy. But still, there's always a few...

Nov 27, 2013 12:08 AM #11
Rainmaker
431,962
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

Great post- and oh so true!!!  Happy Thanksgiving!!!

Nov 27, 2013 12:13 AM #12
Rainmaker
145,491
Laura Foreman
Referral Maker Real Estate CRM - Carlsbad, CA
Copywriter, Buffini & Company

Great post! Thanks for the great information!

Nov 27, 2013 12:59 AM #13
Rainmaker
1,431,110
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

A real estate transaction is more stressful than getting married.  At least with a wedding you know the date.

Nov 27, 2013 01:40 AM #14
Rainer
198,633
Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

This is good stuff, thanks!

Nov 27, 2013 01:53 AM #15
Rainmaker
395,043
Marnie Matarese
DWELL REAL ESTATE - Sarasota, FL
Showing you the best of Sarasota!

Tom, I just sent your post to two of my new listings owners.  Greatly informative and I could not have said it better myself.  Thanks for the post.

Nov 27, 2013 02:25 AM #16
Rainmaker
159,443
Tom Day
Waterfront Homes, Oceanside Condos,Investment Properties, Probate, REO. Covering Broward County - Pompano Beach, FL
RE/MAX in Motion Pompano Beach & Greater Ft Lauder

Thanks for all the nice comments everyone. Have a great Thanksgiving!

Nov 27, 2013 03:00 AM #17
Rainer
31,542
David Demangos
Keller Williams Realty Carmel Valley / Del Mar - San Diego, CA
REALTOR

Thank you for reminding us: "Your home may not be in as good shape as you think. Even the most well maintained homes can have some hidden defects". Sold my mother's home a few years ago and had an electrical panel "challenge" we didn't know about. Everything turned out smooth and the buyer was happy, but yes, it can cause delay or even a lost deal.

Nov 27, 2013 03:05 AM #18
Rainmaker
132,894
Mike Baltierra
Rise Realty - Eastvale, CA
Full Service at Your Service Realtor-Eastvale CA

I was just explaing this to my seller. Good stuff. Especially about the neighbors. They might have a buyer.

Nov 27, 2013 12:33 PM #19
Rainmaker
513,432
Elva Branson-Lee
Solid Source Realty GA - Atlanta, GA
CDPE - Atlanta Real Estate & Short Sale Agent

This is good information to share with sellers upfront. It is important to set expectations that include both the obvious and the not-so-obvious surprises that can happen.

Nov 28, 2013 08:02 AM #20
Ambassador
1,590,255
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Division Specialist

And I know you mentioned it but let us STRESS this one... YOU DO NEED TO MOVE BEFORE A CLOSING CAN TAKE PLACE.

It doesn't matter taht you need the money to move, but you must be out completely before the buyer can walk thru your home and then go and close on it. 

Nov 28, 2013 11:32 AM #21
Rainmaker
834,132
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team
Great post time. We agree, and we think your point should be shared with every seller out there.
Nov 30, 2013 05:08 AM #22
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Rainmaker
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Tom Day

RE/MAX in Motion Pompano Beach & Greater Ft Lauder
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