However, the pandemic shutdowns threw a wet blanket on the market at the time of year when the real estate market usually begins to heat up. However, with mortgage rates still near all-time lows , some real estate markets show signs of increased activity.
At the same time, banks are tightening lending guidelines. FICO score and down payment requirements have increased, and lenders are scrutinizing borrowers more thoroughly. You want to make the most money, but also attract buyers and sell your home quickly. This step is where a good agent is essential. Having your agent complete a comparative market analysis CMA will show you what similar properties in the area have sold for recently. Most real estate agents will perform a CMA for free; you can ask for and compare CMAs from multiple agents before you decide which agent to list your home with.
Perotti explained how the way he uses a CMA to price a home has changed over the years. Previously, the focus was on the final closing price of comparable home sales, or comps.
Now, because buyers can quickly and easily see what others homes are for sale, he bases listing prices more on the price of competing homes currently on the market, and he uses comps to support those numbers. If you list your home too low, you risk leaving money on the table. Come out of the gate too high and you might scare off buyers. The most successful sellers Perotti works with are not emotional in their decision.
Negotiate the best offer As a seller, the best way to negotiate for a better offer is to have multiple bidders on your property. As a seller you should pay attention to the contingencies that are included in the offer. Contingencies protect the buyer by allowing them to back out of the deal under specific circumstances and can include contingencies dependent on:.
Some of these contingencies are standard, and depending on the type of mortgage, cannot be waived, such as the appraisal contingency for a VA loan. So you can negotiate to limit the contingencies to what you feel comfortable with. Perotti always recommends homeowners get an inspection before listing because it can help preempt potential negotiation points for buyers.
Being able to make necessary repairs in advance can also expedite the closing process. That does not mean every house will sell or sell quickly. Price is still important, especially as some markets begin to overheat. The low number of listings has made the market more competitive, pushing prices higher at a fast clip. Nationally, prices are up about 7 percent from a year ago, and in the hottest markets they are up double digits. Still, a house can be overpriced, and today's savvy house hunters can smell an overpriced house a mile away.
If a listing is overpriced and sits on the market for too long, it gets stale. Potential buyers will see the time on market and click past your listing, often without even looking at it. That is why it is best to lower your asking price before your listing hits the stale stage. Barnett said she rarely had to drop prices in the last few years because the Dallas market was just that hot.
Find a Mortgage Lender. Before you start shopping for a new home, connect with a mortgage lender to find out if you can afford to buy a home, your realtor will likely recommend someone that they have previously worked with. Take a look at what the lender has to offer, review the costs, and how long it would take to close on a property you would like to purchase.
Get Preapproved. When you decide on the lender you would like to work with, make sure to review the costs and get preapproved for a loan. To prepare for this, you will need:. The Peak Corporate Network of independent, affiliated companies is staffed by experts with the unique skill set and field-tested experience to help you navigate the complexities of the real estate business, make the right decisions, and maximize the value of your property.
By drawing on the power of the Peak Corporate Network and its inclusive range of services, clients save time and maximize the value of their assets. For help navigating the hottest real estate trends contact us today!
First Name. Last Name. In these instances, weigh up your options and stay level-headed. Going in with an over-the-top offer could cost you more down the line. This may mean the sale falling through after your offer is accepted, a worst case scenario for everyone involved. Try to find out from the real estate agent whether other buyers are considering an offer, and what their circumstances are. If a seller is choosing between two or more buyers, bidding more money is one way to set yourself apart.
However, also consider what else you can bring to the table. For example, do you have a higher deposit? Or have you already got your mortgage agreement in principle, meaning you can get the purchase through quickly?
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