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SELLING A HOME -
Deciding On Listing Price (continued)
4. Also decide on the “strategy” you feel will be best for both attracting interested buyers, as well as negotiating with an interested buyer. In other words, do you feel that having a higher listing price is smart so you have the flexibility to offer a large discount to listing price during negotiations, if necessary? Or do you feel that having a lower listing price to attract more potential buyers, and planning on sticking close to your listing price during negotiations is wiser?
5. If you are working with a realtor, your realtor will suggest what they feel is an appropriate listing price. In fact, before you select a particular realtor, make sure you get information and opinions on potential listing price from all the realtors you meet with.
a. Remember, even after you select a specific realtor, and get their recommendations on listing price, what price to list your house at is your decision, not the realtor’s. A realtor’s suggestion on listing price is important information to consider when establishing a listing price, but it is only advice, not a recommendation you must follow.
b. Keep in mind, a realtor’s main interest is usually just to make a deal happen, so they can collect a commission. If they can convince you to list at a lower price, they have a better chance to make a sale and collect a commission, before their listing runs out. So, whether or not you are working with a realtor, when setting your listing price consider the price data you have on recent sales in the neighborhood, the realtor’s advice (if you have a realtor), whether houses are “moving” in that neighborhood, whether dollars or expediting the sale is more important and, finally, your own “gut” feeling. But, in any case, leave your pride in your house “at the door” when making this decision. Try to be realistic based on the information you have.
If you have decided to sell your home because you are having trouble meeting your house payments, and it appears that you will not be able to sell the home for as much as you owe on your mortgage, you might want to see if you qualify for what is called a “short sale.” Essentially, a short sale is where your primary mortgage lender agrees to allow you to sell your home for a price that is less than the balance owed on the mortgage, and forgive any mortgage balance that is in excess of the sales price. If the lender can be convinced that you will forfeit on your mortgage obligations in any case, and that the current market value of your home is less than the mortgage balance, they may agree to a short sale at a specified price, and forgive the excess mortgage balance that you owe. Getting approval for a short sale can be a complicated process and has various implications, so consider the following:
1. Verify the current market value of the home to determine just how much loan forgiveness you may require.
2. If you are considering requesting a short sale by your lender make sure you can prove financial hardship to your lender.
3. Receiving lender approval for a short sale is often a lengthy process, so start discussions with your lender as early as possible to see if they will consider a short sale, and determine the process required to receive approval. In some instances, discussions should commence before you receive an offer for purchase. Other mortgage holders may not want to discuss the possibility of a short sale until you have a firm purchase offer in hand. Ask your lender.
4. Make sure you understand all credit and tax implications of a short sale.
Short sales will hurt your credit rating, but the negative impact usually is not
as damaging or long-
5. Make sure a potential buyer understands that the contemplated transaction is a short sale and that they may need to be patient. Often, short sales will take a lengthy amount of time to receive final approval from a lender. However, if approval is received, many lenders will require closing to happen fairly rapidly, requiring the buyer to be prepared to move quickly to close the purchase in order not to lose the “deal.”
Improving Your Home’s Salability
Your home will sell at a higher price, and more quickly, if you take a few simple
steps to make sure your home is presented in the best possible light. Consider the
sale of your home a courtship, where you want to attract a suitor by making yourself
look as nice as possible. The better you look, the more attention you will receive,
and the more likely you will “close the deal.” Many people underestimate the importance
of how others view their home, particularly interested buyers. Any investment in
making your home look as good as possible is worth it many times over. Some sellers
even pay for a “pre-
1. Here are some thoughts on how to improve the exterior appearance of your home, often at minimal effort and cost. Also, look under the “Outdoor Maintenance” heading of the “Household” section for more tips on maintaining your home’s exterior.
a. Take a good look at the exterior walls and windows. If the walls are cracked or there is caulking missing or deteriorated, make sure repairs are made.
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