Bring It On Home

Buyers and sellers develop a natural sense of excitement as a transaction's closing date nears. While most aspects should run smoothly, it's wise to be prepared for unexpected delays. Anticipating potential problems before they develop could save untold time and stress.

One pitfall might be the title search. The title is simply legal proof of a property's ownership, but issues such as death, divorce, and liens can cloud the final result. Meet with an attorney to determine and resolve any problems.

Financing can also present snags. If the buyers can't qualify for a loan, the deal falls through. Buyers should begin their mortgage education well in advance of their home search, and sellers should ask a price in line with the home's appraised value. If the appraisal is much lower than the contract price, the lender will likely reject the loan application.

The best situation for buyers (and sellers) is to have a loan pre-approval in hand. It starts with the loan officer performing a review of the buyer's credit, income, and asset v. liability status. A letter of pre-approval should indicate exactly how much home a buyer can afford, and should put sellers more at ease with pre-qualified buyers.

There are myriad aspects to closing the deal, so go over each item thoroughly with your real estate representative and develop your plan of action!

Don't Compare...Compete!

As you prepare to list your home, you'll need to determine how to set your asking price. You may come across the term Comparative Market Analysis, which is used as a tool for gauging the perceived value of your home. However, as a seller, you should think of that informal appraisal more as a COMPETITIVE Market Analysis.

Why? Because comparisons can be very subjective, and while buyers may "compare" several homes, sellers must "compete" against other properties. No matter how unique you believe your home to be, it doesn't really matter how it compares to others until you have priced it to compete successfully against them.

In today's real estate market, past sales may not necessarily reflect the present reality. Similar listings compete by asking the lowest price for the perceived value, with price and value representing different sides of the same coin.

When you speak with a real estate agent, he or she will explain how your home must challenge the competition with savvy marketing, spotless presentation, and aggressive pricing. That is how to attract the interest of other agents and buyers.

Remember, it is the prospective buyers who will be making the comparisons. It's your responsibility as a seller to compete for their best offer in a challenging marketplace. Ask your representative today for a Competitive Market Analysis to get the ball rolling.