5 Key Tips to Sell Your Home in a Cool Market
1. NEVER REJECT A PURCHASE OFFER – even if it's a lowball offer. Don't get me wrong, I'm not advising you to become a pushover. But please COUNTER OFFER EVERY OFFER, and don't take the lower offer personally. Remember, there is no sin in saving money and buyers – perhaps even you, when you buy your next home - might be inclined to test the waters with a lower offer, while maintaining every intention to INCREASE THE OFFER if necessary. Even if your real estate agent advises you to counter a lower offer with one close to your asking price, counter all offers and NEVER REJECT ONE OUT RIGHT!
2. FOR SALE BY OWNER (FSBO). Are you considering going sans agent and taking a stab at the FSBO route instead? While many people decide to sell their home on their own to save on real estate transaction fees, it may not be the most beneficial option in a slow real estate market. In most cases, buyers looking at FSBO properties offer far less on these homes than those represented by a full-service Realtor. According to a report from National Association of Realtors (NAR), the typical FSBO seller nets 16 percent less than those working with a qualified real estate professional – a figure that greatly exceeds most agent's professional services fee or commission. While there have been exceptions to the rule, in today's market it's better to play it safe and work with a real estate professional who may have more marketing resources to help sell your home.
3. GET YOUR HOME SOLD FIRST, then start looking for a new one. Unfortunately in today's market, many home sellers are finding their asking price significantly lower than what they originally projected. If you purchase your new home first, you are completing the move process in reverse. Purchasing another property without knowing exactly how much you'll be netting on your former home, can put you into a tight financial corner. Those buying before they sell their former home, often find themselves lowering the sales price by an even greater amount to avoid losing the new home on a home sale contingency contract. I always advise my clients to SELL FIRST, then NEGOTIATE POST-CLOSING POSSESSION on your old home. Once you've completed the sell, then you should be ready to make a serious go at buying your new dream home.
4. AMOUNT OF EQUITY IN YOUR HOME. If your projected home equity is low, and you have little additional savings for a new home, you might not be able to gather enough of a down payment for a new home mortgage loan. It's important here to be true to yourself, and trust the candid advice of your real estate and lending professionals. Don't try to bite off more than you can chew. This should be an important lesson learned from the thousands of struggling home owners who currently owe more on their mortgages than their homes are worth.
5. DON'T MAKE COSTLY, UNNECESSARY IMPROVEMENTS ON YOUR OLD HOME. Over-improving a home for sale can get very costly, very quickly! While you might feel the need to paint the whole house, purchase new appliances, get new carpet or update a bathroom, my experience over the years suggests most of these late-improvement investments have a negligible impact on the ultimate sales price of the home! This doesn't mean that you shouldn't invest in home repairs. Items such as a defective hot water heater or a leaky roof are basic repair must-dos. But in most cases, costly presale home improvements or extensive decorating is truly not necessary to sell. Why would you invest $10,000 in improvements, and get only $2,000 back in incremental sales price? In most cases, KEEP YOUR WALLET IN YOUR POCKET, when it comes to fancy upgrades. Prioritize and determine what are needed repairs and what would fall under as a luxury upgrade.
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