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Tammy Wase
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.
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Link to
Mortgage Calculator |
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