Most sellers are unrealistic about the true market value of their home. Most buyers are unrealistic about how much home they can actually afford. Until both sides bring their expectations down to earth, it’s impossible to do a deal.
When you buy a home, you’re likely to run into a number of real estate terms. Let’s look at one. Down Payment. A down payment is made by the buyer at the beginning of a home purchase to show commitment to the transaction. It’s usually a percentage of the total price of the home, and paid through a wire transfer. This payment is immediately applied to the buyer’s equity position in the property.
Lots of deals are torpedoed by inspections that reveal problems with the house. Buyers want everything fixed, no matter how minor. Sellers don’t want to spend a dime on a house they’re leaving behind. What’s the solution? I’m a big believer in heading off trouble before it begins.
Some people think inspectors appraise property and appraisers inspect property. Nothing could be further from the truth. Appraisers work for the buyer’s lender to come up with an appraised value of a property to make sure the lender isn’t lending more than the property is worth. Inspectors inspect properties looking for defects that the seller will ultimately have to pay for. Neither works on behalf of the seller, which is why so many deals go down the drain after a bad inspection or low appraisal.
One of the reasons many For Sale By Owner properties don’t sell is because most FSBO’s take LOUSY pictures. People shop for houses online and if your photos suck, people will think your house sucks, simple as that. Use a professional photographer to take your pics or enlist the help of an agent who can get it done for you.
When you’re selling your home on your own you have to do it all: price the property correctly; clean, repair and declutter; take pictures and videos; effectively market the house to buyers, and finally, master the fine art of negotiation. Things typically get tense when it comes down to price. And if you suck at negotiation, do not — I repeat — do not try to sell your home yourself. You will always come out on the short end of the deal.
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.
One of the biggest complaints I hear from For Sale By Owners is that they hate to show their house to strangers. “They call at all hours of the day and night and want to walk through… I have to watch them like a hawk so they don’t steal something… I have better things to do than show the house to a bunch of lookie-loos…” Showing your house to strangers is part of the process — and one of the reasons most FSBO’s eventually call someone like me.
Most For Sale By Owners have no idea how to accurately price their home to sell quickly in a highly competitive market. Some pull the price out of their ear, some listen to their friends and neighbors, while others let Zillow figure out a price for them. All those methods are wrong, and here’s why…
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.