How to Sell Your Home in this Economy
THE MOST IMPORTANT FACTORS IN SELLING YOUR HOME: Price and Presentation
Studies show that homes priced properly from the beginning will sell faster and for more money than those that have been overpriced. Pricing your home higher than comparable listings may actually help sell your neighbor's home more quickly than your own. Prospective buyers will look at the competition and see it as "a good deal."
When looking at the competition, it is most important to note the houses that have just sold or are under contract. Comparable homes that failed to sell represent a price sellers believed they could get but the market wouldn't support. The market has rejected the house at the price for which it was offered.
Keep in mind that a home that is visually appealing and in good condition will attract more potential buyers.
Clean, Declutter, Make inexpensive cosmetic changes, Create curb appeal.
The All-Important Appraisal
When you receive an offer on your home, unless it's a cash offer, as part of the prospective buyer's mortgage application process, an appraisal of the home value will be requested. From the bank's perspective, it is imperative that the loan to value ratio be acceptable. This means that the home needs to appraise for as much as the accepted offer. Otherwise, the bank will refuse to lend the money to the buyer and the sale will fall apart. The concern is the house value will drop below the outstanding mortgage amount.
So, even if you're lucky enough to receive that high offer you've been dreaming of, the sale may still not go through. Unfortunately, this is becoming a more common scenario on Long Island in light of the losses the banks were forced to absorb in the foreclosure fiasco. Many sellers found, at the closing table, that the buyer's accepted offer had to be adjusted downward.
The sale price of the home has to match the appraisal amount!
Starting all over again with a new buyer is not the answer. This scenario may repeat itself with a new buyer and a new bank and it's even possible that the house will appraise for less the second time around.
A lot of wasted time and energy can be avoided with a home that is perfectly priced from the very start of the transaction. Your bottom line will be favorable impacted if you keep this in mind!
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ABOUT THE AUTHOR: Graduate REALTOR Institute
Jill Sackler, NYS Real Estate Broker Associate based on Long Island's South Shore
Specializing in Lifecycle Real Estate Transitions
©Jill Sackler 2010