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Tammy Wase
ABR, GRI, CRS
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Pricing Your Home |
The first
step is to be sure you establish a good price for your home. Improper
pricing is the most common mistake that costs home sellers thousands of
dollars.
Here is what to consider:
If the price is too high- it will sit unsold and become stigmatized as
"shop-worn." On the other hand, price it too low and you may give away
thousands in profit to a total stranger. Either way you lose. Finding
the appropriate price sets the right stage for the entire selling
process. A great benefit to you is to get in the right frame of mind for
the sale.
Be objective and remember that selling your home is a business
transaction, and you need to put your personal feelings and attachments
to your home completely out of the equation. This is critical! Keep in
mind that potential buyers are not looking to buy your home - they are
looking to find a house that they can make into their home.
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Presenting your Home |
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No matter how
attractive and polished your house may be, buyers will be comparing its
price with everything else on the market. Your best guide is a record of
what buyers have been willing to pay in the past few months for
properties comparable to yours in your area. I will produce a thorough
comparative market analysis (CMA) with the data of all comparables in
your area. Based on these results, we will have a good idea of what the
market value of your house is. The ultimate decision regarding how much
to ask, however, is strictly yours. But I strongly encourage you to not
fall into the temptation of overpricing the property- as this will only
cost you thousands of dollars in the long run.
REALTORSŪ don't establish value, the market does. I mention this because
many real estate agents may come in here and try to buy your listing by
saying they can get you more for your home. These attempts are done in
hopes of securing the listing and coming back at a later date with a
price reduction request- after all- you're already under contract.
Remember, Realtors don't establish value- the market does.
Analyzing market conditions. A comparative market analysis also known as
a competitive market analysis, a market or a CMA- differs from a formal
appraisal in several ways. The biggest difference is that an appraisal
is based on past sales only while CMA's may take currently available
properties and those pending a sale into consideration. Another major
difference is that while an appraisal can cost you several hundred
dollars, we will be more than happy to furnish a CMA to you at no cost
or obligation. For the most part, a CMA is probably enough to let you
set the proper price.
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Qualifying The Buyer |
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Once an
interested buyer is located, they need to be qualified in the following
terms: financial ability, buyer wants and buyer needs. This is not
something you will be responsible for - it will be up to the mortgage
lenders and the buyer's REALTORŪ. I, in the meantime, need to be on top
of every detail for your sake. Anytime there is a call or contact, many
details need to be discovered. Has their loan commitment come through?
What conditions are on it? Has the appraisal been done? Are there any
repairs needed, etc.
Remember- this may be only one of 30 deals the lender has this month-
but the only buyer you have. It is my duty to make sure there is an open
line of communication at all times to ensure that everything is done.
You must also watch out for contingencies that could cost you time off
the market. If a buyer wants to close the sale contingent on selling his
or her current house, include a kick-out clause that allows you to back
out of the deal within 72 hours (or better yet 24 hours) if you receive
an offer that does not contain contingencies. |
Link to Mortgage Calculator |
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