Making
Your Home Sale as Smooth and Hassle-Free as Possible
In 2005, the real
estate market has gotten off to an amazing start. We are currently experiencing
record-low inventories and I’m sure you know of friends or neighbors
who put their property on the market and it sold immediately - perhaps
with multiple offers. To put this in perspective, let us share a few
statistics with you. In April ’03, we had almost 7,600 homes For
Sale through the MLS. Then in April of 2006 we had 4,800 homes on the
market. As of the day this article was written, in all of Orange and
Seminole counties there are less than 2,100 properties For Sale. This
number represents every condo, house and villa, in all price ranges.
Consequently it
is very difficult for a prospective Buyer to get an offer accepted and
Sellers are inundated with showings and offers. All of this sounds like
a Seller’s dream since right now, a blind man with a bucket over
his head can sell his house by putting a sign in the yard.
In today’s
market the price is only part of the picture. A number of significant
factors come into play including: the amount of the down payment, appraisal
(a real biggie), seller’s disclosure, earnest money, liability
issues, repair limits, title issues and the timeliness of the sale.
How these are negotiated and handled throughout the transaction can
make the difference between smooth sailing and a nightmarish voyage
in the sale of your home.
Here are some tips
to help make your home selling process as smooth and hassle-free as
possible:
Understand
Why You Are Selling Your Home
Your motivation
to sell is the determining factor as to how you will approach the
process. It affects everything from what you set your asking price
at to how much time, money and effort you're willing to invest in
order to prepare your home for sale. For example, if your goal is
for a quick sale, this would determine one approach. If you want to
maximize your profit, the sales process might take longer thus determining
a different approach.
Thinking through
your goals and communicating them with your Realtor will help keep
both of you focused on what your are trying to accomplish and will
enable your Realtor to best consult with you on the way to reach those
goals that will be to your greatest benefit.
Enlist
the Most Qualified Help
According to the
National Association of Realtors, nearly two-thirds of the people
surveyed who sell their own homes say they wouldn't do it again themselves.
Primary reasons included setting a price, marketing handicaps, liability
concerns, and time constraints.
Hiring the Realtor
can give you the peace of mind knowing that your sale is handled by
an experienced professional who will be your advocate, consultant,
and ‘go-to’ person for everything that needs to be done
to get to a successful closing.
All Realtors are
not the same! You can learn a lot about an agent by letting him talk
to you about how he helps his/her clients and how he/she does business.
Within a few minutes, you will probably be able to determine if this
agent’s style is in line with yours.
Ask as many questions
as you can up front. Finding a good agent will save you huge amounts
of time, effort, and frustration. A professional Realtor works as
a consultant, knows the market and has information on past sales,
current listings, a marketing plan, and will provide their background
and references. He will also take care of the details involved in
the paperwork for your transaction and facilitate the communication
between you, the buyer, the buyer’s agent, the lender, and the
title company to ensure that your transaction proceeds as smoothly
as possible to a successful closing.
Be sure you choose
someone that you trust and feel confident that they will do a good
job on your behalf.
Invite
the Honest Opinions of Others
Relying solely
on your own judgment can come back to bite you. Don't be shy about
seeking the honest opinions of experts such as Realtors, appraisers,
and interior decorators. You need to be objective about your home's
good points as well as bad. Fortunately, your Realtor will be forthright
about discussing what should be done to make your home more marketable.
Your Realtor will
also be invaluable in bringing his expert knowledge to the table in
the arena of negotiations. Invite their consultants’ opinions
to help you determine the best options during each stage of your transaction.
Get Your Home ‘Sparkling’ Clean and Fix Everything,
Even If It Seems Insignificant
Scrub, scour,
tidy up, straighten, get rid of the clutter, declare war on dust,
repair squeaks, the light switch that doesn't work, and the tiny crack
in the bathroom mirror because these can be deal-killers and you'll
never know what turns buyers off. Remember, you're not just competing
with other resale homes, but brand-new ones as well.
Be
a Smart Seller - Disclose Everything
In Florida, sellers
are legally required to disclose all known defects to their buyers
in writing. The more thoroughly and accurately you fill out the ‘Seller’s
Disclosure’ document, the more your liability is reduced. This
will help head off any complaints from your buyers about your home’s
condition during the transaction and lessen the likelihood of lawsuits
later on.
Keep
Emotions in Check During Negotiations
If you are like
most people, you have some emotional as well as monetary investment
in your home. After all, it has been your castle. Remember that distancing
yourself from these emotions during the negotiations and adopting
a more businesslike manner will help you keep your ultimate goals
for your home sale in mind. You’ll be able to weigh your options
more clearly and listen to the counsel that your Realtor offers for
your benefit. You'll definitely have an advantage over those who get
caught up emotionally in the situation.
This is an area
where your realtor should shine. A good Realtor will shield you from
the buyer(s) and their agent and be a buffer, sounding board, and
problem solver should you get upset with the negotiations.
Finding Out the Motivations and Purchasing Power of Your Potential
Buyers
Your Realtor will
help you find out as much information as possible about buyer(s) who
make offers on your home. The better you know your buyers the better
you can use the negotiation process to your advantage. This allows
you and your Realtor to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property
for the least amount of money. Knowing what motivates them enables
you to negotiate more effectively. Quite often, when buyers would
"like" to close is when they need to close. Knowledge of
their deadlines for completing negotiations again creates a negotiating
advantage for you.
Your Realtor will
also be of help in obtaining the buyer’s mortgage pre-qualification
or pre-approval information from their lender or their Realtor so
that you can learn if the buyer is financially qualified to purchase
your home.
Deadlines
Create A Serious Disadvantage
Avoid trying to
sell by a certain date. This adds unnecessary pressure and is a serious
disadvantage in negotiations.
Using
a Low Offer to Your Advantage
If you receive
an offer you feel is too low, evaluate it as objectively as possible
with your Realtor. He will give you guidance as to if the offer is
indeed unreasonable, and give you options as to how to respond. While
sometimes it is to your advantage to counter a low offer to continue
the negotiations, there are also circumstances that your Realtor will
discuss with you when it is better just to reject the offer outright.
If the buyer really
wants your home, they may come back with a price and terms that are
much more appealing to you. Having a real estate consultant’s
guidance, experience, and objectivity will help give you more peace
of mind during the negotiation process. He will also prepare counteroffers
at your direction and suggest clauses and terms that will protect
your interests.
Ensure That the Contract is Complete
To avoid problems
your Realtor will go over your contract ensure that all terms, costs
and responsibilities are spelled out. It should include such items
as the date it was made, names of parties involved, address of property
being sold, purchase price, where deposit monies will be held, date
for loan approval, date and place of closing, type of deed, including
any contingencies that remain to be settled and what personal property
is included (or not) in the sale.
Be
Responsive to Contract Deadlines
Once your home
is under contract, be attentive to the steps that the real estate
contract requires you to take, and complete them in a timely manner.
Your Realtor and his/her team will keep you informed of what you need
to do. These steps include:
- Signing and
initialing addendums and memorandums to the contract in a timely
manner.
- Responding
promptly when your Realtor lets you know what time(s) the buyer
is requesting to conduct the home and/or termite inspections.
- Ensuring that
any necessary repairs that the contract requires are made in the
time allotted. Make sure that the repairs are completed by qualified
individuals.
- Giving copies
of all receipts and paperwork related to the repairs to your Realtor.
Your Realtor and
his/her team will keep you informed about what you need to do at each
step of the process so that you know what you need to do, and how
long you have to do it. Being responsible to meet the obligations
of the contract in a timely manner will enable your transaction to
progress as smoothly as possible to the closing. Failing to fulfill
the terms of the contract in the time frames that are specified can
put you at risk of losing the sale, and can open you up to lawsuits
by the buyer for failure to perform on the contract.
Get
Sound Advice About Any Changes to the Contract
Your Realtor will
help you evaluate whether it is wise to agree to any requests to amend
the contract. For example, if the buyer requests a move-in prior to
closing or asks for you to pay for a portion of their closing costs
in lieu of you having to make any repairs to the home, your Realtor
will advise you as to whether these requests open you up for more
liability, or could be negotiated to the benefit of both parties.
After 21
years’ experience in real estate, David and the rest of The Hard
Working Nice Guy’s Team are convinced that our services are needed
now more than ever. We have been able to obtain results for our Sellers
that they didn’t believe possible and, in the process, have created
successful transactions where our services cost the Seller nothing.
Any
Questions?
If
you have any questions about this article, or would like to set up
a time to speak with Len Hardison or David Gallup, please email
us or call our office at 800.458.6863 x353. We'd be glad to help you.
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