Our Real Estate Blog
A home seller must consider the initial asking price of his or her residence closely. Because if a home seller sets an unrealistic initial asking price, he or she risks alienating potential buyers.
Now, let's take a look at three tips to help you set a realistic initial asking price for your house.
1. Review the Local Housing Market
The local housing market may favor buyers or sellers. Fortunately, if you analyze the local housing sector, you can differentiate a buyer's market from a seller's market – or vice-versa – and price your house accordingly.
In a buyer's market, there is an abundance of quality residences and a shortage of buyers. And if you're operating in a buyer's market, you may need to price your house aggressively to stir up interest in it.
Comparatively, in a seller's market, there is a shortage of quality residences and an abundance of buyers. In a seller's market, you may be able to generate lots of interest in your house, even if you set an above-average price for it.
Regardless of whether you're operating in a buyer's or seller's market, you should assess housing sector data. Find out how your residence stacks up against available houses in your city or town that are similar to your own. Then, you may be better equipped than ever before to set a competitive initial asking price for your home.
2. Conduct a Home Inspection and Appraisal
By performing a home inspection, you can receive comprehensive insights into your house's condition. Following an inspection, you can prioritize home repairs. Plus, you can use an inspection report to help you determine how to price your residence.
In addition, you can conduct a home appraisal prior to listing your residence. Thanks to an appraisal, you can receive a property valuation. And as a result, you can use this property valuation to price your house appropriately.
3. Consult with a Real Estate Agent
A real estate agent understands the ins and outs of the housing market. Thus, he or she can help you establish the right price for your house.
Ultimately, a real estate agent is unafraid to be honest with a house seller. He or she will teach a seller about the housing market and provide unbiased recommendations about how to price a residence. Best of all, a real estate agent will promote a house to prospective buyers and ensure a seller can get the best price for his or her home.
Let's not forget about the assistance that a real estate agent can provide during a negotiation, either. A real estate agent is happy to negotiate with a buyer on your behalf. As such, a real estate agent can help you optimize your house sale earnings.
For a home seller who wants to determine the right price for his or her house, it helps to prepare as much as possible. If you take advantage of the aforementioned tips, you can establish a competitive initial asking price for your home and boost the likelihood of enjoying a fast, profitable house selling experience.
Contingencies on a contract to buy a home are there to protect both the buyer and the seller. The contingencies give the buyer the right to back out of the contract if any of these contingencies aren’t met. There are many reasons that buyers back out of deals including financial issues and problems with the home. Below, you’ll find a break down of some of the most common contingencies and what they mean for you as a buyer or a seller.
Most home contracts come with what’s called a financing contingency. This gives you the ability to walk away from a deal if the financing falls through when trying to buy a home. Usually this is due to a credit reason or some other financial reason. You can’t rely on financial cracks to help you to back out of a deal on a home. Lenders will only deny a loan for real financial reasons. There’s no way to ask a lender to lie for you so you can get out of buying a home! This is why you need to make your decision about a home purchase wisely.
This gives the buyer the right to have an inspection on the home within a certain time frame which is usually 5-7 days. If something is really off with the inspection that you as a buyer don’t feel comfortable with, you have the right to back out of a deal without repercussions. While seller disclosures are important, the seller can’t disclose what they don’t know about. That’s why the home inspection is so important. The seller’s disclosure cannot protect you from hidden damages that may cost half of a home’s worth to repair.
If homes are selling fast and you want some secure way to back out of a deal you should consider an appraisal contingency. If the home you want to purchase doesn’t appraise at a price high enough to meet your mortgage requirements, you have a legal way to back out of the deal. For example, if you put down 20 percent of the purchase price of a home and the home doesn't appraise for the value of that purchase price, you’d need to come up with the remainder of the money in cash. An appraisal contingency protects you from having to face this. You’ll still need to have a home inspection done on the home to search for any problems, but an appraisal contingency protects you from any problems with financing and your own disposable amount of cash that could arise due to a home appraising low.
While contingencies aren’t necessary as a homebuyer, they’re highly recommended. Without contingencies, you could be left with a number of expenses such as damages that are extremely costly to fix.
Listing a home is a key step during the property selling journey. And if you fail to plan accordingly, you risk creating a home listing that misses the mark with prospective buyers.
Ultimately, there are several things you need to consider before you craft a home listing, and these include:
1. Your Home's Features
As a home seller, your goal is to stir up significant interest in your residence. Fortunately, an effective home listing can help you do just that, particularly if you use your house listing to highlight your residence's features to buyers.
Think about what makes your home unique. Then, you can incorporate information about your home's distinct features into your house listing.
Furthermore, you may want to include high-resolution images of your home in your listing. That way, you can show buyers exactly what your home has to offer and help them make an informed decision about whether to pursue your residence.
2. Your Initial Home Asking Price
How you price your home can have far-flung effects on your house selling experience. In fact, if you set an initial asking price that exceeds a buyer's budget, you may struggle to generate interest in your residence.
As you put together a home listing, evaluate your house's age and condition. You may want to conduct a home appraisal as well. Because if you conduct a home appraisal, you can receive a property valuation that you can use to set a competitive initial asking price for your house.
Also, spend some time reviewing the prices of available houses that are similar to your own in your city or town. This housing market data can help you see how your residence stacks up against the competition so you can price your house appropriately.
3. Your Home Selling Timeline
Your home only gets one chance to make a positive first impression on buyers, and a listing enables you to make the most of this opportunity. If you need to sell your house as quickly as possible, you should do everything you can to ensure your listing garners buyers' attention.
Generally, you should avoid jargon in your home listing. Use clear, concise terms and ensure the listing is easy to read.
Before you finalize your home listing, you may want to consult with a real estate agent, too. A real estate agent is happy to review your home listing and offer recommendations to help you improve it. Plus, a real estate agent can promote your residence to potential buyers and ensure you can enjoy a quick, profitable house selling experience.
For those who want to achieve the best-possible results during the home selling journey, it usually is a good idea to create an effective house listing. If you consider the aforementioned factors, you can boost the likelihood of crafting a home listing that captures buyers' interest. And as a result, you could accomplish your desired home selling results in no time at all.
A home appraisal often helps a property seller determine how to price his or her residence. As such, an appraisal is important. And with a great appraisal, a seller may boost the likelihood of earning top dollar for his or her house.
Ultimately, there are many reasons to trust the final results of a house appraisal, and these reasons include:
1. A home appraisal is conducted by a property expert.
An expert home appraiser will allocate significant time and resources to complete his or her report. This professional also will perform a home analysis as part of his or her assessment. That way, a home appraiser can provide an accurate property valuation.
As you consider home appraisers, you may want to search for professionals with comprehensive experience. By doing so, you can find a home appraiser who knows the ins and outs of evaluating properties.
2. A home appraisal is based on your home's condition and real estate market data.
Although many home sellers believe an appraisal's property valuation is based solely on the age and condition of a house, other factors come into play. In fact, a home appraiser generally evaluates the current state of the housing market, the prices of comparable houses that recently sold and other real estate market data to determine the optimal property valuation.
Of course, it typically is a good idea to perform myriad property upgrades before an appraisal is completed. This may help you improve your chances of receiving the best-possible property valuation.
3. A home appraisal provides home selling insights you may struggle to obtain elsewhere.
A home seller won't have to wait too long to receive an appraisal report, as a home appraiser usually can provide this report over the course of a few days. Meanwhile, the report includes a property valuation and other home insights that a seller may be unable to obtain elsewhere. And as a result, the report may prove to be exceedingly valuable, particularly for a seller who wants to maximize the value of his or her house.
When it comes to conducting a home appraisal, you may want to consult with a real estate agent. This housing market professional can explain how a home appraisal works and answer any concerns or questions that you may have. Plus, a real estate agent may be able to put you in touch with the top-rated home appraisers in your city or town.
Let's not forget about the assistance that a real estate agent can provide throughout the house selling journey, either. A real estate agent will help you list your home and promote it to prospective buyers. And if you receive an offer to purchase your residence, a real estate agent can offer a recommendation about how to proceed with this homebuying proposal.
Ready to add your residence to the real estate market? Perform a house appraisal, and you can move one step closer to establishing a competitive initial asking price for your home.
For those who intend to list a house, it helps to establish realistic expectations. That way, you'll have a good idea about what to expect during the home selling journey.
Now, let's take a look at three tips to help you manage your expectations as you attempt to sell your house.
1. Understand the Housing Market
You may own a great home, but even a top-notch residence may be difficult to sell based on the current housing market's conditions. If you allocate time and resources to study the real estate market, however, you can differentiate a buyer's market from a seller's market. Then, you can map out your home selling journey accordingly.
In a buyer's market, there may be an abundance of houses and a shortage of buyers. Therefore, sellers may need to price their houses competitively to stir up interest from buyers.
Comparatively, in a seller's market, there likely is an abundance of buyers and a shortage of first-rate houses. This means a seller probably won't have to wait long to receive offers to purchase after he or she lists a high-quality residence.
To distinguish a buyer's market from a seller's one, you should look at the prices of recently sold houses in your area and find out how long these properties were listed before they sold. This information enables you to review the level of interest in properties in your city or town and can help you determine whether you're preparing to enter a buyer's or seller's market.
2. Know Your Home's Strengths and Weaknesses
You may believe your home is flawless, but buyers may quickly identify problems with your house. Fortunately, a seller who conducts a house inspection can address any potential issues before listing his or her residence. Home inspection results may help a seller establish realistic pricing expectations for his or her house too.
During a house inspection, a property expert will examine a residence both inside and out. This property expert next will provide a homeowner with an inspection report that details his or her findings. With an inspection report in hand, a homeowner can correct underlying house issues before he or she adds a residence to the real estate market.
3. Collaborate with a Real Estate Agent
A real estate agent understands the opportunities and challenges of the home selling journey. As such, he or she will help you set expectations for this journey, as well as help you make the most of available home selling opportunities and resolve property selling challenges.
Typically, a real estate agent will meet with you and find out what you want to accomplish by selling your home. He or she next will craft a personalized home selling strategy for you, promote your residence to potential buyers and do everything possible to help you maximize your home sale earnings.
Manage your expectations as you proceed along the home selling journey. By doing so, you can limit the risk of encountering home selling problems and boost the likelihood of a successful property selling experience.