Assuming you’ve bought or sold a home before, you’ve almost certainly dealt with a real estate agent in some capacity. I can say that as a professional in the real estate industry, there are plenty of tips I’ve picked up along the way that I only wish buyers and sellers could understand. Here are a few of them:
Price your Home to Sell it Quickly
As a seller, you’re likely to be more inclined to view your home favorably than someone interested in buying it- after all, it’s yours! While this is an understandable trait of sellers, it’s important to price your house in such a way so that it’s marketable. I’ve lost track of the number of sellers that overpriced their homes and thus had difficulty selling them, and you definitely don’t want to find yourself in that position.
A Pre-Approval Letter is Just the Beginning
I’ve come across a number of potential buyers that started to run up their credit cards, opening new lines of credit to buy things for their (potential) new home. Before closing, however, a lender will re-examine your financial situation, and if your numbers have changed since the pre-approval letter, you might get clocked with a higher interest rate (or even lose the loan). With this in mind, don’t get a new loan or start using your credit cards more heavily until after you’ve closed on the house.
Selling Can Take Awhile
The timeline involved in selling your home can be longer than one might initially imagine. The timeline involves getting your home in shape, the time that it sits on the market, negotiating an offer, and preparing to close. A smart smeller will allow for a minimum of 4-6 months to sell, and that’s assuming you have a home that’s priced right in a good market with one firm offer that makes it to the closing table.
Not all Buyers can Buy
Prospective buyers can and should offer a prequalification letter to sellers, as it further validates them as potential buyers, but in a prequalification, lenders don’t usually verify buyers’ information. Smart buyers get preapproved, meaning they’ve applied for the loan but the bank has verified their financial information and promises to loan a specific amount. Your agent, whoever they are, should be sure to call the bank that offered the letter to confirm that the potential buyer has the capacity to buy in the first place.
Make Sure it Smells Good
When it comes to the home-selling process, little details can make a world of difference. Sellers have a tendency to procrastinate on these little details, such as everything from cleaned carpets to making sure the home smells good. I wish more sellers took care of these little details, as it makes everyone’s lives easier.
We’re Not Rich
Of the commission that brokers take from home sales, a good percentage is cut away to the other broker in the transaction, along with marketplace fees and taxes. Unless your agent is handling both sides of the transaction, assume they’re receiving about 1/4th of the commission- this might help ease your concerns about the cost of hiring one in the first place (which, without a doubt, you should do!).
Source: Bankrate