What Sellers Should Know_IMG

You must take control in an objective, and business-like manner.  Once you decide you sell your house, it no longer can be seen as a home but instead a commodity to be sold.

Understand that we as homeowners are the last to admit the market is no longer in our favor and we also think our home is the best in the neighborhood with the nicest lot and in the best location.

 Therefore, you need to seek out someone you can trust who will supply good advice backed up by fact so that you can make an educated decision.  With a few exceptions, that person should be a licensed professional Realtor. 

 Speaking of that let me first chat with those of you who are thinking about selling your home on your own.  Can this be done?  Absolutely, in certain situations.  However, the statistic that 93% of all FSBO’s sell with a Realtor is pretty telling and NAR says, “there are less sellers trying to sell their home on their own than there has been in the last 20 years” That doesn’t mean all sellers list their home with a Realtor but it does mean that even if you try to sell it on your own, a Realtor will be the one that brings you a buyer.  Why is this important?

Because the #1 reason for selling your home on your own is to save commission.  Therefore, if a Realtor brings you a buyer, they will expect to be paid.  Once you have agreed to pay them, the commission you are trying to save is diminished and you are now unrepresented while the buyer has someone representing them.

You also should know that buyers know that the #1 reason you are trying to sell your home on your own is to save commission.  Therefore, they will usually come in at a price significantly less than your asking price because they know you aren’t paying the Realtor fees. After thinking about what I have said, if you still want to do it on your own, take advantage of what I will share now about selling your home

 This won’t come as any surprise but hiring a professional, productive Realtor should be the first thing on your list as you think about selling your home. 

If you know one that you trust and are sure they know your market and will do a great job , Great!  If not, I recommend setting up interviews with three different agents. 

You will be surprised at the differences in the way a Realtor prices your home and their market strategies. 

Please don’t pick the agent just because they say your home is worth more than the others with whom you have spoken.  Their price could be because they don’t know how to effectively price a home or they could be telling you that price because they want the listing.  Once they have you listed, they will begin to suggest reducing the price.

Don’t make your decision on what the Realtor’s fees are either.  There is a lot to be said about this but let me give you one example.  By trying to save commission, you might have an agent who will not be able to negotiate the best price for you or won’t spend advertising dollars.  A better negotiator or one who spends money on better marketing may bring you a better price which means you make more money than you would have by trying to save the commission.

You must critically analyze the marketplace

It is so important for you as a seller to lead the market vs. chasing it down

There are many examples of sellers not taking an offer early on only to have their house listed now at the price they didn’t want to accept then.

Consider having your agent show you the homes that are your competition.

*It is imperative that your home is in the best condition possible especially if you are competing against new home construction.           

Once you do your market assessment, you may decide to not sell at all but rent your current home especially, If the rent payment would equal your mortgage payment.  That way you could buy something else using FHA or a minimum down payment mortgage instrument or even take a Home Equity line out to use for down payment..  For those of you 62 or older, you could also use a “new and improved” reverse mortgage product. 

Having all the information to make an educated decision is the key.  That is why I recommend finding an experience real estate professional who will make sure your best interests are served.  They can also recommend a local mortgage lender to help find the right loan product for you. 

If I can help answer any questions, please email me at michael@mrg7175.com or call me at 434-951-5155 ext 158

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