Home Selling: Build Your Plan of Action

1. Analyze why you are selling – If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle.

2. Prepare your home for the buyer – Maximize the strengths of your property and fix up its weaknesses. You want the buyer to walk away from your home with a lasting good impression.

3. Find a good real estate agent that understands your needs – Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer.

4. BRelated imagee prepared for negotiation – Learn and understand your buyer’s situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through.

5. Negotiate for the best price and the best terms – Learn how to counter offer to get maximum value from every offer.

6. Make sure the contract is accurate and complete – Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home’s defects. Insist the buyers get a professional inspection. This will protect both you and the buyer.

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Home Seller Tips: Ask Yourself, Why Are You Selling?

 

If you know exactly why you are selling then it is easier for you to follow the right plan of action for getting what you want.

If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your priorities. It does not mean that you won’t or cannot get the highest price, but it means that the price is not the deciding factor. A buyer who can give you a quick closing time will appeal much more to you than a buyer who can offer you more money but the negotiation and closing time drag on.

Image result for home offersIt’s always good to know how low you will go in terms of selling price. This will help to eliminate some of the offers that you find simply offensive or ridiculous. Even though you should consider all offers seriously and take into consideration the terms of each offer, sometimes, if you know the bottom line and are strict about it, you can save yourself time.

Once you know what your limits and reasons are, discuss them with your agent so that they can help you set your goals realistically. If you decide to list your home on your own, make sure you do research on the current market, and you get the proper advice you need in terms of legal issues, etc. The key is to be realistic and know what your goals are so they can be met.

3 Things Sellers will Love This Spring

For many home sellers, there’s no better time to list than the spring, and for good reason: This is peak home-buying season, folks! Buyers turn out in droves once warmer weather finally arrives, bringing people out of hibernation mode, and bidding wars abound as buyers look for ways to one-up their competition.

 

 

All the demand

While home sales decline in the winter (chalk it up to bad weather and holiday obligations), many home buyers blitz the housing market in spring, says Dossman. To meet that pent-up demand, many sellers list their homes at this time of year. It’s no surprise, then, that the lion’s share of real estate agents say March, April, and May are the best months to sell a home. With so many buyers competing for homes, sellers may be in a stronger position to spark bidding wars.

 

Selling in warmer weather

Open houses are often more successful during the spring than in the winter, says Dossman, since the nicer weather makes buyers more willing to emerge from the comfort of their homes to shop for houses. Another boon for home sellers: Daylight saving time gives buyers more time to look at houses, which means your property can potentially be seen by more people, says Dana Hill, vice president of Buyer’s Edge Realty in Bethesda, MD.

That said, “Sellers still need to do some prep work before holding an open house,” Dossman adds. To make sure your home is ready to be seen, do a thorough cleaning, remove such personal belongings as family photos and religious artwork, and trim your lawn for maximum curb appeal. Pro tip: Take a hike for a few hours during the open house. Buyers will feel more comfortable asking questions of your agent if you’re not hovering in the background.

 

The higher valuations

When your home’s value is assessed by a home buyer’s appraiser, the appraiser will look at data for comparable homes (or “comps”) that were recently sold in your neighborhood. The good news: With more homes selling in the on-season, the comparable data tend in your favor, Hill says. In other words, your house is more likely to pass the home appraisal, assuming that you’re selling it at around its fair market value.

 

 

5 Spring Home-Hunting Tips for Buyers

Spring is just around the corner and not only flowers are popping up everywhere, houses are also being prepared for the spring selling season.  Home owners typically sell during spring, and buyers are taking advantage of this huge opportunity to get the best home. There is competition among buyers who want to get the best pick.  In this adrenaline-driven situation, it pays to follow these 5 house hunting tips so you would will not be left behind.

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1. Canvass your dream house, the old-fashioned way. Close your laptop and go to open houses. Online listings are good sources of information, but nothing beats seeing the house with your own two eyes. It’s a great idea to go online, research the house you want and set up alerts so you know when a new house is being put in the market. However, if you really want to find your perfect house, you have to get up from your desk and get on your feet. The spring season means higher demands for houses, therefore buyers should always be in the position to decide quickly.

2. Research market trends. Housing trends are forever changing. What’s ok now might not be good tomorrow and what seems to worthless today could be worth a fortune in the coming years. As a buyer, you have to be informed of what’s happening in the current market as well as the past trends in the housing industry. This would give you a chance to compare and formulate marketing predictions that would help in your decision making. Take note that these trends have a huge impact on house prices so the more you know, the better chances for you to get a good price. Don’t forget to research both local and general markets.

3. Take advantage of low mortgage rates. Act now while mortgage rates are historically low. Having low interest rates allows you affordable payments for a long time. Mortgage rates are very unpredictable so you have to take action the minute it goes down.

4. Build your team. Everything is fast-paced today with the market on hype due to spring season. As a buyer, you have to make sure that everyone you are working with is ready to go so you’ll have a smooth and fast transaction. Your home buying team should include a knowledgeable real estate agent, lender, lawyer and inspector. To save time, make sure you get pre-approved first so you can quickly submit your bid once you find the right home.

5. Prepare deal-breakers. In a bidding war, you will come across other buyers who are also well prepared. In order to win, you have to sweeten your offer to entice the seller to choose you. How do you do that? You can offer a higher down payment or even forego some contingencies (consult with your team first).

However, the most important advice is BE PREPARED. When that perfect house or opportunity comes up, make sure that you are ready to grab it.

Why You Should Sell Your Home in 2019

Few people are predicting that 2019 will be a record-breaking year for home prices.

Relatively speaking, 2019 might seem to be the best time for you to put your house on the market especially if you’re on the fence about selling this year or next.

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Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.

If you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game.
Here are four reasons to sell your house in 2019:
  • New buyers are still entering the market.
  • Interest rates are still on the lower end.
  • You have high equity.
  • Selling now will be better than waiting till 2020.

New Buyers Are Still Entering the Market

With available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. According to Trulia, more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months. Already, millennials make up the largest share of homebuyers at 36 percent, according to the National Association of Realtors, which released the number in March 2018.The bottom line: While houses may sit on the market for a few more days on average compared with 2017 when the market was white-hot, buyers remain active and it’s still possible to profit from your home sale.

Interest Rates Are Still Low-ish

Mortgage interest rates have been on a bit of a bumpy road over the last few months. Interest rates for a 30-year, fixed-rate mortgage reached their highest level in over seven years in November 2018, when they hit 4.94 percent, according to Freddie Mac. As of the end of February 2019, however, interest rates are down slightly to 4.35 percent, which is much lower than the historic high of more than 18 percent in 1981.
It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase.
A sudden leap in mortgage interest rates is unlikely in 2019, though rates are predicted to continue to climb.
If you’re looking to get the lowest interest rate possible on your next house, try to make a deal sooner rather than later.

 

You Have High Equity

Homeowners who bought during the recession or shortly after benefited from historically low interest rates and, up until around 2015, lower home prices that were still in recovery mode. If you fall into that category, your home equity has risen with nearly every mortgage payment, each renovation you made to the house and all the other houses on the block that sold for a higher price.
The higher your equity in your home, the more you net from the sale, which can easily go toward the down payment on your next house. The larger your down payment, the better you look to lenders and the lower your interest rate will be, and the less likely you’ll need to increase monthly payments with private mortgage insurance.

Selling in 2019 vs. 2020

If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. In a survey of 100 U.S. real estate experts and economists by real estate information company Zillow, released in May, almost half expect the next recession to occur in 2020. Another 14 percent believe the recession will hold out until 2021, while 24 percent of panelists expect the recession earlier – sometime in 2019.
Whether you believe the recession is imminent or a long way off, current real estate patterns indicate a sudden upswing in activity or prices is unlikely in the near future. Real estate markets tend to operate on a cycle of their own, the length of which varies by market but can be between 10 and 16 years total and flow from a seller’s market to a buyer’s market with a period of balance in between.

Tips for Finding the Right Seller

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The best seller is one who is highly motivated. A highly motivated seller is more likely to sell at a price that is less than his or her house is actually worth. And it matters that you find out why. Learning the reason why can help you get the price you want and help the seller get what they want: a timely sale.

When given the opportunity to meet with sellers, ask them why they are selling. The reason could be anything, such as a job change to a new location or financial problems. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale – and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.

There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:

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  • they stall on having the home appraised or inspected
  • they are unable to clear up liens against their property
  • they do not own 100% of their property
  • they push back the move-out date
  • they do not have a replacement property or back up plan
  • etc.

It is impossible to find the perfect seller. But it is possible to find out which sellers are legit and which ones aren’t.

Making a Good First Impression

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If you want buyers to be interested in your home, you need to show it in its best light. A good first impression can influence a buyer both emotionally and visually, thus prompting them to make an offer. In addition, what the buyer first sees is what they think of when they consider the asking price.

A bad first impression can dissuade a potential buyer. Don’t show your property until it’s all fixed up. You do not want to give buyers the chance to use the negative first impression they have as means of negotiation.

Ask around for the opinions others have of your home. Real estate agents who see houses everyday can give solid advice on what needs to be done. Consider what architects or landscape designers have to say. What you need are objective opinions, and it’s sometimes hard to separate the personal and emotional ties you have for the home from the property itself.

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Typically, there are some general fix ups that need to be done both outside and on the inside. As a seller, you should consider the following:

  • Landscaping – Has the front yard been maintained? Are areas of the house visible to the street in good condition?
  • Cleaning or Redoing the driveway – Is your driveway cluttered with toys, tools, trash etc.?
  • Painting – Does both the exterior and the interior look like they have been well taken care of?
  • Carpeting – Does the carpet have stains? Or does the carpet look old and dirty?