(1) If you want your home to sell quickly, then price it just under the market. Sellers are always optimistic about the value and price of their home. The problem is that buyers are not in most cases. The longer your home remains on the market, the lesser the chance that you will receive a fair vaue. So set a price just under market value so that you position your property to sell quickly and draw the most interest.
(2) Understanding that the pre-approval letter is just the start of a long journey and process. Also, this letter is not an open invitation to spend money and open new lines of credit as you want to start purchasing items for your new home-to-be. A large number of buyers are denied mortgage loans or pay higher interest rates because they do not understand the entire process. Just before closing, the lender will re-examine your financial situation to make sure that you still meet all of their guidelines. Never apply for new loans or start using credit cards more often than normal until you have actually closed on the home.
(3) Selling your home will probably take longer than you think. Having and understanding a realistic timeline will help eliminate the stress that can be caused by unrealistic expectations. An educated seller understands that the entire process can take 4-6 months from the time you are getting your home ready to go on the market to closing. Obviously, one important factor is your particular market pricing and the availability of homes for sale.
(4) The difference between a pre-qualification letter and a pre-approval letter. Not all buyers are able to buy a home and just because they have a pre-qualification letter does not guarantee they can purchase a home. That is because in a pre-qualification, the lenders do not verify all of the buyer’s information. On the other hand, if the prospective buyer has a pre-approval letter, then there has been third-party verification by the lender. The lender is stating that the buyer can reasonably expect to borrow a certain amount for a home purchase provided all the information that was provided by the buyer checks out. Remember, serious and smart buyers will have gone thru the pre-approval process which includes application for the loan, bank verification of financial information and a lender’s promise to loan a specific amount at a specific interest rate.
(5) Sellers should always put themselves in the shoes of prospective buyers and ask themselves “What would I want done to this home before I would buy it?” When a buyer walks into your home, it has to to look good, feel good and smell good as first impressions are everything and very hard to overcome if they are not positive.
(6) Real estate agents don’t make as much as you think when they represent you in the sale of your home or the purchase of a home. The standard 6% commission is split equally between the buying and selling agents and then split again with their brokers. Add to that expenses for transportation, marketing, etc. and most consumers would be surprised at what the final compensation received by a real estate agent is for the professional market analysis and representation that an experienced agent provides their clients.
Over the years, real estate agents have learned many things such as why some houses sell and why some do not. Why some promising buyers make it to the closing table and why many never get there. How do you get a better deal on a mortgage. I hope that these 6 tips from real estate agents will better prepare you for the next time you are considering buying or selling a home. Source: MSN Real Estate
Steve Lester is a REALTOR living in Allen, Texas.