How To Sell Your Home Fast
It is no secret that selling a home in today’s market is very tough. Home buyers are having a harder time qualifying for mortgages. They also don’t have as much cash available as they might have before the recession started. There is an abundance of properties on the market in competition with each other. Many of these homes are homes that have been foreclosed on and a bank would be willing to take a loss on them rather than hold onto them.
As a seller, you should realize that the task is not as easy as it seems. There would always be setbacks that would prevent you from selling the asset faster than necessary. You do not need to become a savvy home seller to do the task with much ease. All you have to do is to have clear and effective strategies to do so. Here are some practical guidelines that would help you roll out and divest that home more quickly.
You want to reduce your monthly costs, so you are considering moving into a condo or a smaller house that will cost about $120,000. Suppose you wait four years to sell your existing home, and get $192,000 for it. That’s $32,000 more than if you sell it right now. But wait! The condo went up 20% as well, so at this point you’ll pay $144,000 for it. That’s $24,000 more, but then you made $32,000 more by waiting. On balance, it seems that you’ll be $8,000 further ahead if you wait. Unfortunately, it’s not that simple - more on why in a moment.
Now, if your intent is to buy a higher-priced home, the scenario is even more dramatic. Suppose you want to trade-up to a home that would cost $240,000 right now. You decide to wait, because even thought you could do it, you hate the idea of selling your current home at a loss. Four years later you sell it for $192,000 - but now the nicer home costs $288,000. You got $32,000 more by waiting to sell your home, but then you had to pay $48,000 more. You seem to be $16,000 further behind.
3. The overall assets of the neighborhood would also help boost prices and make buyers immediately close the deal. You may at times find it hard to get such information, but if there are available figures from the local government, the better. The home can also become instantly interesting if in the neighborhood there are community pools, parks and schools. These help inflate and bolster the valuation of the home for sale.
In the second scenario, you are paying $455 more per month (assuming the mortgage is 90% of the value in either case) once you buy the $240,000 house. This means that even though you pay $48,000 more, and get only $32,000 more by waiting, you also spent $22,000 less on payments during those four years. It seems like you are $6,000 further ahead now if you wait to sell.
The last crucial step in selling your home quickly is to price it right. Don’t trust your real estate agent alone. Check out the houses for sale in the neighborhood and see how much they are asking for those homes. A little research will help create a price that is attractive to potential buyers. You can also offer incentives such as a one year home warranty, or free monitored alarm service for a year to help entice buyers.
6. Have the papers and documents of the home for sale ready in case abrupt acquisition transactions transpire. The home would not be readily sold if the necessary documents and papers are not yet ready. Besides, buyers would not always be patient to wait for weeks or even months. Lastly, as you get to negotiations to finally sell the home, be reasonable, logical and extremely practical. You should know the exact and actual valuation of your home.
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