STEPS IN SELING YOUR HOME
PERSONAL COUNSELING
How long does it take to get a contract on my home? It could take a day or longer, depending on your MOTIVATION, PRICE, TERMS, CONDITION, and LOCATION.
MOTIVATION
Your motivation sets the tone for price, terms and condition. Motivation will determine if you will do any improvements to enhance your property if needed. Your Motivation could be as simple as wanting to move to a bigger home with more bedrooms, a job transfer, or other personal reasons. Depending on your motivation, I may recommend a different price to address your needs.
FAIR MARKET VALUE (Price) FOR YOUR HOME
The fair market value of your home reflects historical values or comparable sales that have occurred within the last six to nine months, as well as competing properties for sale that are similar (Supply and Demand). Pricing of your home may be affected by economic and political conditions, mortgage rates and costs to obtain those rates, seasonality, your motivation, terms of sale, property condition, and location. Appraisers are mostly concerned about the historical information. It is up to me to extrapolate the other components affecting value and determine how they affect the price of your home. The historical prices of homes sold are then compared to market price demand and supply and then establish a pricing range depending on the location of your home. Appraisers MUST confirm that your historical values are in sync with the market value and they match the purchase price on the purchaser's contract. Realtors do not establish the ultimate price of what a home will sell for, it’s determined by the market demand and supply. Realtor’s primary function is to suggest a realistic price for your home and implement the marketing plan to achieve a sale of your home.
Purchasers will ask the same questions you asked when you purchased your home;
· What features attracted me to this home?
· How did the seller’s asking price enter into my decision making process?
· Did I compare the price of this home to others on the market at the time and did you have a comparative market analysis of the home you purchased?
Your future purchasers will do these things even if you did not!
To get the most money for your home, price it realistically in the beginning when exposed to the market initially. Time has proven that the longer a home stays on the market, the less it will sell for. Informed buyers today are savvy and know the value of a home before making an offer. They will recognize the realistic value of your home and offer accordingly. You will receive less money for your home if you overprice it, than if you price it at market value in the first place. In declining or accelerated markets, price it according to projected values in the next 90 days.
Overpriced homes will experience the following:
· Minimize offers
· Lower agent response and minimal showings on the home
· Limit qualified Purchasers
· Limit financing and potential appraisal challenges weeks later
· Waste advertising dollars
· Nets less for the Sellers
It is very important to price your home at a competitive market value from the beginning. The market is competitive, so even over-pricing by a few thousand dollars could mean that your home will not sell. Interestingly, your first offer is usually your best offer. Our primary purpose is to sell your home, not the price. All the exposure in the world will not sell an overpriced home. An agent’s enthusiasm for a high price that “you must have” will not sell a home. The market is not always kind, but the market is never wrong.
TERMS OF THE SALE
Terms mean that you offer your home for sale to the purchasers with either a conventional loan or Cash. Owner assisted financing, or other terms acceptable to you in which the purchasers can finance your home.
Conventional financing is most common for purchases in Denver metro. As a seller, the type of financing offered is the equivalent of “cash” to you but with a catch. The Purchasers lender has the cash and various steps are necessary for the Purchaser to complete prior to you receiving the cash. That’s why it’s so important to check that the purchaser is prior to accepting the offer, or making the contract conditional upon obtaining additional qualifying information before consummating the contract.
CONDITION AND PRICE
Condition is one of the most important components in selling your home. When you were looking to purchase a home, what was your opinion of a home in need of repair? Were the repair costs doubled in your mind? Was it worth the inconvenience of repairing? Could you see beyond the cosmetics? What outstanding features did you remember about the home? What impression did you get of the sellers? Did it make you think the sellers were not motivated to sell? We can continue the questions, but you probably understand the importance of proper condition. We will advise you on any improvements needed to enhance the condition of your home.
Price may off set a deficient condition, but you are generally better off doing the improvements before marketing your home.
LOCATION, LOCATION, LOCATION
Location is an intangible element that is determined by the demand or lack thereof from the purchasers in the market place. You as a seller know how the value of your location will affect the pricing of your home. If you are moving because of location, do not expect the purchaser to glaze over the concern of your home location. Price and patience will conquer location.
HOW LONG WILL IT TAKE TO SELL MY HOME
When to sell a home is a personal decision that may determine when and how your home will sell. Under normal circumstances, it takes a prospective purchaser who needs new financing approximately 4 to 6 weeks for loan approval. The time that it takes to get loan approval normally determines how long it will be before closing. Considering your personal timing, the closing usually takes place within 6 weeks after contract acceptance.
As mentioned in the beginning of this section, selling your home could take a day or longer depending on the components affecting the sale of your home.
AN OFFER ON YOUR HOME
Once an acceptable offer is received and accepted, the closing and loan approval dates on the contract will indicate when your home should close. After we review the contract and we examine the merits of the offer, you may accept the contract as submitted, counter the contract, or reject the contract. If you wish to make a counterproposal, we will then deliver the counter to the Selling agent. The purchaser can accept, modify, or reject the contract. Until all parties agree in writing by signing a contract or counterproposal to the contract, the property will still be marketed. Verbal acceptances are not binding to the parties. Once the contract is accepted in writing, the purchaser will perform the inspections of the physical condition of the property and any other inspections as per contract. We may still market the property for sale by "taking back-ups" until all contingencies are removed from the contract. We require the purchaser to supply a lender letter stating the likely ability of the purchasers to qualify for the subject loan. If the purchasers just started their loan, of course the information is subject to verification by the lender. A pre-qualified purchaser to purchase your home is our goal!
WHAT WILL I NET FROM THE SALE
You may be wondering how much you will net from the sale of your home. Part of our service is to figure the approximate amount of net equity that you will receive at closing. You will get a Title Company check or cashier's check (your choice) at closing made payable to those named on the deed.
Please visit our exclusive "Seller Closing Guide" section of our web site for detailed information once your home is under contract. Additinionally, please sign up for our ECU-Center and we will assign you a password to access to communicate our processing with you!
HIRE ROY LOPEZ AS YOUR REAL ESTATE CONSULTANT FOR LIFE, TODAY!
Cell 303-888-7800 or direct line 303-967-2681, or e-mail roy@roylopez.com