El Paso United, Realtors
GEORGE
JABALI Residential & Commercial
Real Estate E-Mail:
[email protected]
Member: Greater El Paso Association of
Realtors, MLS, National & Texas Association of Realtors, Commercial
Investment Division
*Licensed by the Texas Real Estate Commission * TREC Approved Real
Estate Instructor * Degreed in Residential Real Estate
The
The 10 Deadly Sins Of
Buying a replacement home before selling the old one.
The
temptation may be great to buy a replacement home first. That way you’ll know where
you are going, and how much you’ll be paying. And you won’t have to worry about
being left out in the cold with nowhere to go if your home sells quickly.
However,
the financial risks of buying first are great. It’s far better to sell your
current home first and endure the inconvenience of moving to an interim rental
- which rarely happens - than it is to ennd up owning and paying for two homes
when you only want one.
Basing the list price of your home on the price you would like to
get rather than on market value.
Market
value determines the price of your home - not wishful thinking. A buyer won’t
pay more for your home just because you think you need more money in order to
purchase your next home. Find out the market value of your current home by having
a local real estate agent prepare a comparative market analysis or by getting
an appraisal from a local appraisal firm. This will tell you the value of your
home based on comparable sales information. With this information, you can
determine an accurate list price for the current market value.
After
you know what your home is likely to sell for, ask your agent to prepare a
seller's net sheet. It will tell you approximately how much cash you will receive
from the sale. Then visit a mortgage broker or loan agent to get pre-qualified
for a mortgage. This will let you know what price home you can afford to buy.
Failing to get a "termite" report (or other indicated
reports) before listing a home for sale.
Sellers
are often required to pay for eliminating wood pest (also known as
"termite") infestation when they sell their home. They may also be
asked to correct other defects. Sellers who know the condition of their home
before they sell are in a better position to negotiate a firm sale because they
can disclose existing reports on the property to buyers before they make an
offer.
Putting a home on the market before it is spruced up.
Buyers
and real estate agents remember what they see. Their first impressions are
lasting ones. If a property looks a mess when it hits the market, that is how
agents will remember it.
Most
people lack the vision to imagine what the home will look like when it's fixed
up. It's usually better to delay marketing a home until it's spruced up for
sale. Most buyers use agents to purchase homes and agents are most excited
about showing and selling homes that are in mint condition.
Refusing to reduce a listing price that is too high for the market.
It’s
hard to be objective about the value of your home. This is why it's important
to get a professional opinion before setting a list price. Over-priced listings
often take a long time to sell. Then they often sell for less than they would
have if they were priced right to begin with. It’s natural to want to get the
most money possible when you sell. Competitive pricing is the way to achieve
that result. If you find that your list price is too high for the market,
reduce your price sooner rather than later. The longer it sits on the market
unsold, the lower the ultimate selling price is likely to be.
Refusing to counter a low offer.
Sellers
want to sell high; buyers like to buy low. A low offer from well-qualified
buyers is better than no offer at all. A high offer from unqualified buyers
only leads to disappointment. The price buyers offer is not the most important
part of their offer - if they are willing to negotiate.
Insisting on being present when the home is shown to prospective
buyers.
One
way to discourage buyers from buying your home is to be home during showings.
For buyers to decide to buy a home, they first must discover, and discuss, all
of it’s flaws. Buyers are reluctant to say anything negative about a home in
the seller's presence. It's best to leave your home when it's shown to
prospective buyers.
Listing with a contingency to find a replacement home.
This
is like saying that your home might be for sale. Serious buyers make offers on
homes that are definitely for sale. Otherwise, buyers could wait in vain for
unrealistic sellers to find an acceptable replacement home.
Sellers
often want a contingency to find a replacement home so that they don't have to
move twice. To avoid having to move to an interim rental, list your home with a
provision that you may need to remain in possession and rent back the property
for a period of time after closing. At least, the buyers know they have bought
a home, even if they can't move in right away.
Setting up a complicated showing procedure that discourages
showings.
A
home that can't be shown, can't be sold. The easier it is to show a home, the
more often it will be shown, and the quicker it will be sold. There is usually
a direct correlation: the more showings a home receives, the less time it takes
to sell.
Refusing to do anything get your house ready to sell.
The
way most people live in their homes is usually very different from the way a
home should look when it goes on the market. In order for someone to want to
buy home, they must be able to envision themselves living there. Most sellers
have to declutter and clear their homes - at the very least.
Often
there's quite a bit more work that needs to be done before home is ready to
sell. In order get the highest price possible when you sell a car, it's wise to
have detailed to look its shiny best. The same concept applies to selling
houses. Buyers pay a premium for homes that are in move-in condition.
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