One of the BIGGEST COMPLAINTS I hear from For Sale By Owners is that they HATE trying to DE-CLUTTER their home. We all have too much stuff but some houses look like the Hoarders live there. Buyers don’t want to see your stuff in the house. They want to imagine their stuff there.
Is it better to paint every room the bland universal gray and replace the flooring with something equally benign before you put your house on the market or should you just cut the price and let potential buyers decorate for themselves?
When it comes to buying or selling a house, EVERYTHING is up for negotiation: sales price, closing costs, closing date, repairs, contingencies, who gets possession of personal property, and more. The key to getting what you want out of a real estate transaction is in picking your battles wisely, knowing in advance how far you’re willing to bend, and being an excellent negotiator.
The final step in the home mortgage processing is underwriting. This the step where a mortgage underwriter digs deep into your financials (income, taxes, savings, etc.) to make sure you can afford to borrow the money you have been preapproved for. Many deals fall apart in underwriting. Here are a few tips that’ll help you pass underwriting with flying colors.
Many home sellers think that all they have to do to sell their home is list it on Zillow and wait for the buyers to come. They’re often shocked to ultimately learn that it doesn’t quite work that way. Putting your home on Zillow doesn’t put your home on the market anymore than listing your name in a phone book. You have to actively market your home to attract buyers. Just putting it on Zillow doesn’t cut it.
When you apply for a home loan you may be faced with having to pay PMI: Private Mortgage Insurance, which is basically an insurance policy the lender requires that insures that they will get paid. If you have less than 20% to put down, PMI may be in part of your monthly payment whether you like it or not.
Getting preapproved by a mortgage lender is like shopping for the home of your dreams with a check in your back pocket. You know you can afford the house you want because the mortgage lender has preapproved the funds. Being preapproved also gives you leverage when it comes time to negotiate the sales price. A preapproved buyer will always carry more weight than a buyer who has simply been prequalified or hasn’t talked to a lender at all.
Before you start shopping for your next home you should take the time to get “prequalified” by a lender. Prequalification is the way that you learn how much home you can afford. That doesn’t mean you should but that much house, but it is a good place to start.
There are typically three (or four or five) hard lessons that every real estate buyer and seller will eventually learn during a real estate transaction. It doesn’t matter if this is their first transaction or their tenth, the lessons are always the same.