Home Selling in the ERA of COVID-19 & Beyond

Learn whether selling your home for “fast cash” in the current economy is a wise choice…

 

In the past few years and particularly since the COVID-19 era, the “home selling environment” has had many new entrants outside of traditional real estate companies and selling your home yourself.

 

Even so, is it a wise or good decision to select among the new entrants into the real estate market when it comes to selling your home?

 

In many areas of the country home buying companies from old entries (we buy ugly houses—Homevestors etc.) to new entries (Redfin, Zillow, Open Door, Real Estate Companies, Investorsalong with other players in the market) have been advertising in an aggressive manner to get you to sell your home in a hassle-free and less burdensome manner.

 

Are these new approaches to selling your home a wise or beneficial approach for you to take?

 

Like most things in life—it depends, however you want to ask and answer a number of questions upfront prior to selling your home—and particularly if you are considering selling your home using a company that is willing to purchase your home “as-is” for a stated price.

 

And with the warmer weather, spring season and new home buying season approaching, what about those who desire or need to sell?

 

In the following paragraphs TheWealthIncreaser.com will present a number of concerns that you should address if you are considering selling your home at this time or in the near future.

 

  • Purchase your home with the end in mind

When you initially purchase your home you want to have an idea of what you plan to do at the end of your home ownership.

 

Did you purchase the home that you are considering to sell with that approach in mind?

 

Did you ask the following questions prior to your home purchase?

 

Do I plan on selling, transferring to my heirs, renting for income, refinancing for income, selling for a gain or remaining in the home until I transition?

 

It is in your best interest to make a determination at the time that you purchase your home generally speaking—not years down the road when you possibly have to make a bad choice!

 

Having said all of that, we know that adversity or unwanted occurrences in life can throw even the best of planning into a spiraling nightmare where you are forced to make moves that you would rather not make.

 

Furthermore, you may not have been aware of your need to purchase your home with the end in mind—prior to your home purchase!

 

And with home prices rising in many areas of the country, even if you sell you still need a place to stay and it is important that you make the best decision that you can–as housing costs are on the increase–not decrease in most areas in the United States, and are also rising in other parts of the world.

 

Even so (on your next home purchase), it is in your best interest to purchase your home with the end in mind so that you at least have some control over where you can go in your future—and thereby reduce the likelihood of being pulled in directions that are not of your choosing.

 

  • Determine on your own what your home is worth

Most companies that offer to buy your home use computer generated estimates using factors in your area or zip code, such as sales data, taxes, trending data etcetera to determine an offer price.  Some will even ask you to complete a questionnaire and then determine their offer price based on how you answered the questionnaire and other available public data.

 

A computer can’t see inside of your home (they can see outside though) and know what improvements you have made and other features that are unique to your home.

 

Based on computer algorithms the data included may undervalue or overvalue your property!

 

Therefore, it is important that you determine the value using a local real estate agent in the area who can view the interior and exterior of your home and come up with an “as-is value” and “a value if needed repairs and/or upgrades are done” and your house is put on the market.

 

Some real estate companies also offer to purchase your home as-is or with offers that are often less than the true market value.

 

In other cases some companies will list your house and guarantee to buy at 80% or some other figure of listing price if the property does not sell in a given time frame.  Still others will offer to get you into a new house of your dream and purchase your home that you are trying to sell at a later date for a negotiated price.

 

Some companies will offer to purchase your home as-is and will even offer to allow you to stay there 30, 60, and even up to 90 days after closing!

 

Rarely are the prices offered by companies that have not seen the interior and/or exterior of your home the best decision for you to make as far as selling—even though in some cases it could be—depending on your market and your current financial predicament.

 

If you do the needed repairs and upgrade in a way that is relative to the current market conditions you can pocket the gains that may have went to “investors” or other “as is” purchasing companies–and in some markets the gains could be substantial.

 

Always keep in mind the fact that you will have to pay to live somewhere—and keep that at the forefront of your thought process as living expenses (including housing) are on the rise in most areas.

 

  • Choose the best option based on your unique circumstances

Are you now forced to sell your home or is time on your side?

 

These and other pressing questions will help in your decision making process as to how to sell your home!

 

Do you have an emergency fund that is properly funded?

 

Do you have little to no debt outside of your mortgage payment and do you have all areas of your finances addressed at this time?

 

Do you have the needed cash flow on a monthly basis that allows you to live at the level of comfort that you desire?  Have you reached your retirement number (or are you on a realistic path to reach that number) or is that number a mystery to you at this time?

 

If you answered in the affirmative to any of the above questions, it may be in your best interest to do the needed upkeep/repairs and put your home on the market using a real estate agent or sell your home yourself.

 

In many areas of the United States resale homes are in short supply and that could work to your benefit depending on your future goals and your local real estate market!

 

If you are forced to sell in a non-traditional manner—at least get offer prices from a number of companies and choose among the offers that are firm and offer you the best price and terms.

 

If you are in position to list your property with a real estate company, make sure your property is in selling condition if possible, and choose a reputable company and agent and get comparable home data based on realistic comparable sales data—and not just listings in the area.

 

Conclusion

The decision to sell your home and how you will sell your home is a personal decision, however you want to be informed about the process as the decision that you make can be a monumental one as far as helping you build and maintaining your wealth.  It is imperative that you put yourself in position to make a wise decision on the front end so that you can get a fair price for your home at the time of sale.

 

You don’t want to be pressured into making an unwise decision or forced to choose among bad alternatives.

 

No other person on earth cares as much about your future than you do.  It is therefore up to you to make wise decisions in your home selling transactions and all other financial transactions.  You may want avoid selling now and hold on to the equity in your home or pursue other options–depending on your goals.

 

Always realize that home prices can rise and fall and all markets are different when it comes to real estate.

 

And always remember that you will have a need for decent shelter at all times while you are here on planet earth and you want to plan for your housing needs in a manner that is best for you—not the real estate agent, real estate company, mortgage company, escrow company, investor, repair company or any other party to your home selling transaction—because in the end it is you who must make the right decision and live with that decision.

 

It is the desire of TheWealthIncreaser.com that you can now do so with more precision.

 

All the best toward your “home selling success” or “staying put” if you now decide to stay in your nest…

 

Looking to relocate…visit the Relocationcenter.com

Learn more about smart homes… 

 

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Negotiation & Home Ownership

Learn why you must negotiate effectively when buying and/or selling your home…

 More on Home Selling… 

It is important that you realize that there are buyer’s and seller’s markets that occur on an ongoing basis.  And it is important that you know if you are in a buyer’s or seller’s market when you decide to buy or sell your home.

 

The importance of knowing that information is tied to how you can more effectively negotiate a deal that will work for you and your family.  When negotiating a sales contract always be aware of “time constraints” as they play an important role in any negotiation–and even moreso when buying and/or selling real estate.

 

In this discussion TheWealthIncreaser.com will present practical negotiating tips that you can use if you anticipate buying or selling your home–now—or in your future.

 

HOME BUYER NEGOTIATING TIPS

 

If you are buying a home there are many options that are available including creative financing.

 

Always realize that a cash purchase gives you the most negotiating power generally speaking when you are presenting an offer to a seller!

 

You can use a cash offer with a higher earnest money down payment and a shorter due diligence period to put your offer at or near the top of most seller’s consideration when you are in a seller’s market and the seller(s) are receiving multiple offers on the property.

 

Generally, you want to be prepared to pay the closing costs (they are usually low because no lender is involved) when you present a cash offer.

 

When financing is obtained to purchase your home you will have to select a lender and include a financing contingency in the offer contract and negotiate the closing costs.  As a buyer you should be aware that there are mandatory seller closing costs (scroll to the bottom of this page for a sample) and there are closing costs that can be negotiated out with lenders and/or negotiated to be paid by the buyer(s) or seller(s).

 

In a “buyer’s market” you will have more flexibility in your offer as there will be an abundance of homes on the market that may fit your and your family’s needs and if an offer is not accepted you can move along to another similar property that is on the market.

 

As a buyer you want to control the negotiating process so that you can maximize the transaction to your advantage, but also make it a winning situation for the seller(s) as well.

 

Your end goal is to “close on the property” and make the purchase a win–win situation for all parties involved.

 

HOME SELLER NEGOTIATING TIPS

 

If you are selling your home you want to select the offer that nets you what you want or nets you the closest to what you want with a high likelihood of closing in a desired time frame.

 

A cash offer with a higher earnest money down payment and a shorter due diligence period will normally be selected over other offers that may require financing or have longer due diligence periods.  A cash offer contract that is submitted with a “proof of funds” letter will carry more weight than one that does not contain a “proof of funds” letter.

 

A financing offer contract that is submitted with a “pre-approval” letter will carry more weight than one that does not contain a “pre-approval” letter–generally speaking!

 

When financing is to be obtained in the offer by the purchaser you will have to ensure that the buyer can obtain a loan with the lender outlined in the offer contract (verify loan commitment) and make sure the financing contingency  and other contingencies in the offer contract are met–and negotiate the closing costs to an acceptable level so that you can net the proceeds that you desire.

 

There are mandatory seller closing costs and there are closing costs that can be negotiated out (scroll to the bottom of this page for a sample) with buyer(s) and/or lender(s) and/or negotiated to be paid by the buyer(s) or seller(s).

 

In a “buyer’s market” you will have less flexibility in how discerning you can be with offers as there will be an abundance of homes on the market that may fit a buyers needs and buyer(s) may move along to another property if you do not accept their offer or delay in accepting their offer.

 

As a seller you want to control the negotiating process so that you can maximize the transaction to your advantage, but also make it a winning situation for the buyer(s) as well.

 

Your “end goal” is to “net the proceeds” that you desire or need to receive when all is said and done (when closing is complete).

Conclusion

 

When buying or selling your home, negotiation is critical and you must know what is involved in the process upfront—not in the middle of the transaction.  Even who chooses the closing attorney is negotiable in some cases depending on your locale and custom.

 

The costs below can give you a feel of what you might have to pay at closing if you are a buyer or seller depending on how negotiation occurs and local custom in your area.

 

HOME BUYER & HOME SELLER CLOSING COSTS IN GEORGIA

 

 S = “Seller” required to pay–otherwise negotiable

 

GA Residential Mortgage Act Fee $10

Intangibles Tax based on value–$3 per $1,000 and $1.50 per $500

 

Transfer Tax based on loan amount $1 per $1,000 and .10 per $100 S

Real Estate Taxes (pro-rated to S)

And Record Deed $12+ Trust/Deed Mortgage $44+

Commission usually 6% in GA but negotiable S

 

Credit Report $40+

Appraisal $450+

Underwriting $895+

 

Homebuyer Education $25-$100

Impounds (usually 3 months but depends on lender and loan type)

Insurance (POC or at closing)

Interest (prepaid—remainder of month of loan buyer pays)

Property Taxes (pro-rated)

 

Title Charges:

 

Settlement $700+

Insurance–lender & purchaser $300+

DOC $100

Examination $250

 

Binder $50

CPL (Closing Protection Letter) $50

Courier Fee $50+ New Line

 

Maximum Seller Paid Closing Costs: FHA Loan 6%–VA Loan 4%–USDA Loan 6%–203k Loan 6%–Conventional Loan 3%

 

As a buyer or seller you must also factor in the tax consequence of your home transaction and it is important that you know that information upfront as well.

 

Even though it is not required (you choose a highly competent buyer real estate agent to represent you or you choose a highly competent seller real estate agent to represent you) that you have the knowledge that was discussed above—it is important that you know that the buying and selling of your home is a major transaction and it is important that you know what is going on—or should be going on every step of the way.

 

Whether you are purchasing or selling a new home or a resale it is important that you know the type of market that you are operating in and you (or your agent) do your research upfront as that will help in the negotiating process.

 

By looking at past sales, expired listings, and the current market conditions in your area, you (along with your real estate agent) can craft an offer that works for you whether you are the buyer or the seller–regardless of market conditions and the type of property in question.

 

Always realize that all home loan closing situations are unique and variations to expected closings occur on a consistent basis!

Whether you are a buyer or seller always pay attention to special stipulations and the seller’s home disclosure statement when present in an offer and always consider a home inspection as well!

 

In addition, whether cash or a loan is involved in the transaction “you must negotiate in a manner that works to your advantage” as you move forward and pursue the goals that will make life on earth more rewarding for you and your family in a more sincere way.

 

Thanks for visiting TheWealthIncreaser.com today!

 

All the best to your negotiating success…

 

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How to Make Your Home Sell

PRICE, SMELL, LOOK OF HOME AND WORDS THAT MAKE YOUR HOME SELL…

 

Agent Thomas (TJ) Underwood

 

With the Home Buying Season in full swing TheWealthIncreaser.com thought that a helpful page that could help you prepare your home for the current market was in order.

 

In the end you must always remember that the right price, curb appeal, how your home smells along with what you (or your real estate agent) say about your home is critical if you desire to sell your home in a timely manner.

 

PRICING YOUR HOME

 

By pricing your home right–right from the start you help get your home sold faster and in a way that is more beneficial for all parties concerned.

 

It is important that you realize that the final listing (the price that you decide to sell with a real estate agent on the listing agreement) and selling price is your choice in the end.

 

However, if you decide to list too high—some real estate agents won’t take your listing because they know that the price is unrealistic and they know that an over-priced listing will have a negative effect on their reputation/brand and more importantly will not get you the sale that you desire.

CURB APPEAL

 

It is important that you realize that the exterior of your home determines if many potential home buyers will even want to enter your home, therefore it is important that your exterior is in the best position possible because potential buyers form an opinion of the value of your home based on the exterior.

 

If the exterior is not up to par in a potential home buyers mindthey will feel that the inside has been neglected even if it appears that there has been no neglect.

 

The curb appeal of your home is the first impression that a home buyer gets and it is important that the first impression is a positive one.  Many real estate agents often preview a home prior to showing the home and in some cases just a drive by is donebecause they realize that if the curb appeal does not meet the standards of their buyer they won’t even enter the house.

SMELLS OF YOUR HOME

 

The hard reality is that the smell of your home plays a larger role in successfully selling your home than most home sellers realize.  The “sense of smell” is very important to almost all buyers as it is a sense that goes to the brain immediately and affects the brain immediately (creates a positive or negative experience) in most potential home buyers mind.

 

Use one of the following scents to help neutralize odors in your home.  Multiple combinations don’t seem to work as well as just one scent based on experience that Realty 1 Strategic Advisors has had over the years while assisting home sellers.

 

Cinnamon or Cedar

Lemon

Orange

Vanilla

Extract of Pine or Basil

 

Prior to putting your home on the market for sale be sure to:

 

  • Wash all bed covers and wash or dry-clean drapes

 

  • Clean windows and blinds thoroughly–replace if necessary

 

  • Clean bath and kitchen areas thoroughly–including sinks, tubs and trash compactors

 

  • Have the carpet and ventilation system cleaned or, if necessary, replaced

 

  • Mop hard-surface floors with a lightly scented or unscented cleaner mentioned above

 

  • Scrub the bathrooms top to bottom, again being careful to use lightly scented cleaners or to allow time for the room to air out prior to putting your home on the market

 

  • Store old shoes in plastic boxes with lids and store other items in storage if clutter is an issue in the presentation of your home to potential home buyers

 

  • Wash pet and pet bedding thoroughly

 

  • If possible, move pet items and litter boxes to a garage or other area that is away from the main living areas

 

  • Clean walls, baseboards and ceilings–paint if necessary but allow house to air out the paint smell prior to putting your home on the market

 

  • Clean ceiling fans, chandeliers and lighting fixtures

 

 

When you are trying to sell your home for the best price in the least amount of time you want to create an atmosphere that says to the potential buyer upon entry that the scent in the home is familiar but not too overbearing.

 

When preparing a home for sale, homeowners (you if you desire to sell at this time at the best price possible) need to remove or clean the sources of any bad smell – including trash, cooked food, dirty home appliances, clothing and shoes, pets, smoke and mold – even un-cleaned air vents can cause potential home buyers to frown.

 

MARKETING OF YOUR HOME

 

By stating that you have a fenced backyard, a split floor plan, a master  bedroom on the main level, a split bedroom or floor plan on the main level, laminate or hardwood flooring, an updated kitchen, a finished basement, a home that is move in ready, a home that has recently had landscape improvements, a home with an open floor concept, a home that is single story with no steps, a home that has a natural daylight environment, a  home that has a kitchen foyer, a home that has stainless steel appliances, a home that has vaulted or high ceilings, and/or any other highly descriptive details that apply to your home that gives a potential home buyer a better mental picture of your home–that will “aid in the showing” and “ultimate selling” of your home in the current market.

 

Fenced yards, quartz counter-tops, and flooring with natural stone tile is very popular for homes priced 250 thousand dollars and up.  For luxury homes–golf course, gourmet kitchen, acres, two stories, custom built, ceramic tile, formal dining room, large kitchen, granite counter-tops, first floor etcetera are popular buzzwords that help homes sell at a more rapid pace.  However keep in mind that the higher end homes are taking longer to sell in most markets across the United States.

 

A highly skilled selling agent will help you craft powerful word combinations and phrases that can help you get your home sold faster and at top dollar.

 

CONCLUSION

 

Prior to putting your home on the market AT THE RIGHT PRICE AND CREATING AN INVITING ENVIRONMENT FROM THE OUTSIDE (CURB APPEAL)  take the time to clean out your home in a thorough manner.  If you are not up to the task pay a cleaning company–it could be money well spent as you will normally more than recoup the amount spent when your home is sold.

 

By cleaning your home thoroughly it will help permanently remove scents in your home that might be of concern to home buyers. 

 

In addition it is just plain good living to clean your home regularly so that you can avoid stale or undesirable odors that can linger in the air–however if you don’t clean regularly you may not realize that the odors are lingering!  When you decide to use a fragrance–use one that can help neutralize odors without being overbearing.  Furthermore, by cleaning your home on a regular basis you help maintain and/or improve your and your family’s health.

 

In addition be sure you are aware of environmental concerns both inside and outside of your home!

 

Always keep in mind that the sense of smell is the “strongest of all of our senses” and it is important that you get this often overlooked area of preparing your home for sale–right.  Don’t run away potential buyers by having a home with a bad odor.  Help ensure that buyers will connect with your home by having the “sense of a bad smell” removed from their list of objections to your home.

 

Be sure to change the filters in your ventilation, heating or air conditioning system prior to putting your home on the market to help avoid allowing a smell to circulate in your ventilation system. This will not only deter lingering smells throughout your house, but it will help keep those systems working better and longer.

 

Also, check air vents and wall outlets as an odor source, because there may be a rodent, pest or something else in the wall that might be causing your home to smell.  As an added step make sure your attic is neat and in good order–clean or repair if needed.   In addition take a thorough look at your roof from inside the attic with a high beam flashlight to ensure that there are no water leaks or other obvious damage.

 

A pre-listing home inspection might also be a worthwhile investment depending on your property and your level of upkeep during your ownership.

 

Finally, realize that by using powerful word combinations to market your home–you can possibly put yourself ahead of the competition in your market and that could be the decisive edge that you need to get the showing and ultimate sale at  a competitive price that allows you to pursue your other goals that you have after your successful selling of your home.

 

While you can’t do anything about other homes going on the market for sale this year–“you” can take the steps mentioned in this discussion to help your home sell in a more timely manner–and at top dollar.

 

All the best to your timely home selling success…

 

 

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Lending Patterns in the United States…

 

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