A recent study shows that sellers tend to overestimate the value of their homes by about 8%.
In negotiating a contract, once buyer and seller agree upon a price, the next real hurdle is the appraisal. Realtors finally exhale once that comes in since appraisals are so subjective. What happens if an appraisal comes in lower than the contract price?
Well the buyer's mortgage company won't lend more on the property than what the appraisal says the home is worth. There are basically three options - The seller could lower the price to mirror the appraisal, the buyer and seller can meet somewhere in the middle and the buyer could bring more money to the table, or the deal falls apart because the seller won’t budge on their price because they believe the house is worth more and darn it all they’re gonna get it or they just aren’t going to sell.
Even now, It's a busy time in real estate. If the sellers aren’t reasonable they will miss this winter season to sell their house. A bird in the hand…
Also, the first offer that a seller receives is often the highest offer. The first 14 days is the time frame when you are going to see the most interest and activity. Not many showings and no offers means the market is saying the property is priced too high. Today's home buyers are quite savy and do a lot of research before they even pick up the phone, text, or email to request a showing.
What is so important in those first 14 days of your house being listed?
* Make sure the house is priced competitively. Hire a successful, experienced, full time Realtor to list and sell your home. When your Realtor shows you the numbers and let's you know what the market is currently doing in the neighborhood that the property is located, make sure to price your home competitively. A property that is listed too high helps sell the homes around it. Buyers will bypass your house and run to the properties that are reasonably priced and in good condition.
* Professional pictures are so important. If your property doesn't show well online, buyers will be so less likely to make an appointment to see it. It needs to sing.
* Declutter, organize. If it appears that you must not have room for your items, there must be too little storage. Buyers will go look for a home with larger closets, more storage.
* Do what you can to make your home look and smell appealing. Doggy and kitty odors, items that have been left undone makes a buyer wonder what else is wrong, just below the surface. You may even want to consider hiring your own home inspector ($300-$500) to address issues before you go under contract and the buyer gets spooked by what comes up in the home inspection report.
* Don't let your listing go stale. The longer it sits there, the less attention it will get. Consider agreeing with your Realtor and doing a price adjustment. How many payments do you want to make before the house is sold?
* If the buyer requests a few items to be done to move forward with the purchase and you have an As Is Contract...it would be nice to "give a little" in good faith. This makes for a happy buyer closing on the property. You may wish you had agreed to a few items if they decide to cancel the contract. It's so important to remove the negative emotions as much as possible so that the buyer gets what they want, as well as you get what you want....
Just a few things to consider that are really important when you are looking for what you want the end result -- selling your property to a happy home buyer who closes on the house, and you with the money you were looking for in order to fund your next venture and step in life.
Please let me know how I can help you with your real estate needs in Tampa,
Coldwell Banker Residential Real Estate - North Tampa Office
cell phone - 813-624-3332