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Deciding to SELL  Market Analysis  |  Evaluating Offers

Deciding to SELL

Consider your motivations for selling to help determine if you are really ready to part with your current home.

Are you ready to leave your current home?
Moving is a tiring and stressful experience and leaving your home can be emotionally difficult as well - especially if you've lived there for an extended period. Make sure you're really ready to go before you place the property on the market.

Moving Up
Probably the most common reason for selling a home is the need for more space or the desire to move up to more luxurious property. Many homeowners find that increased income - coupled with the appreciation in their current houses - makes moving up a feasible option. This strategy has also proven to be a successful long-term wealth builder as housing prices have generally continued to rise over time.

Financial and Tax Implications of Selling
A home is a major investment, and the decision to sell is one with major financial implications. Is now a good time to sell? Is it a good time to buy another home? Have you considered the tax consequences of the sale?

Selling for Financial Reasons
Many people sell for financial reasons. A reduction in income, added expenses (such as college tuitions), and the need to save or invest more to meet goals are common reasons for moving to a smaller home.

Remodeling vs. Selling
Even if you want more space or more luxurious appointments, there is an option to selling - you can remodel your existing house. Consider our remodeling checklist to help determine if this is your best option.

Selling for Retirees
Retirement is a great time to sell the old family home and purchase something smaller and more convenient. For many people, home equity is a major portion of total savings and net worth. Reinvested home equity can be a major contributor to a post-retirement budget - and help support an active and enjoyable lifestyle.

Sell First or Buy First?
This is one of the biggest questions faced by homeowners - and it's not an easy one to answer. Review our tips for determining which is best for you.

Rent Out Your Old Home Instead of Selling?
If you're moving but are reluctant to sell your old home you may have another option - renting. By renting you may be able to sustain the costs of both your old and new houses. Being a landlord is no picnic, however. Check out our rental guide to get an idea of what is involved.

 
Market Analysis

Market conditions will have a major impact on your selling experience. Understanding what is happening in the marketplace can help you plan and execute a realistic plan to sell your home.

Gauge market Conditions
Real estate markets are highly cyclical. The current status of the market can have a significant effect on your home selling strategy and the results you are likely to see from your marketing effort. Try to develop an understanding of the state of the market so you have some idea of what to expect - and a feel for how hard you can bargain when negotiating with buyers.

What's Best - Hot or Cold Market?
Unless you're planning to rent you will probably be buying a new home at the same time as you are selling your old one, so it's not always easy to decide if a hot market is helpful or harmful. As a general rule, if you are moving up - looking for a new home significantly more costly than your old one - you may want to act during a weak market, when the savings on an expensive new property will more than outweigh the losses on the older one. Conversely, empty-nesters looking to switch to a smaller home may want to plan the move during a hot market, when they can maximize gains on a larger home to be sold.

When is the Best Time to Sell?
There are two primary selling seasons - spring and fall. Spring is the strongest since many shoppers want to buy and move in before school begins. Summer and winter are generally very slow in most markets. Some areas have their own seasonality, however. If, for example, you are selling a home in a seaside vacation spot, summer is probably a great time to be on the market.

Understanding Area Sales
Don't listen to anecdotes and stories about bidding wars and houses getting snapped up in one day. There is no substitute for hard data when you are considering selling your home. Check out actual sale and closing prices of homes in the area and try to develop a feel for the true state of the market.

 
Evaluating Offers

Pricing is only one factor to consider when reviewing an offer on your home. It's important to consider the entire offer - with all of its terms and conditions - when making a decision.

Consider these areas when evaluating any offers you receive from interested purchasers.

Price
Obviously, price is a major consideration. How close is the offer to your asking price? Is the market strong - do you have a good chance of getting more if you stay on the market?

Contingencies
Virtually all home purchase contracts have some contingencies - and many of these are extremely reasonable. But it's important to consider the potential of these conditions to affect or terminate the transaction. It may be advisable to accept a lower price with few contingencies over a higher figure with a large list of conditions.

Pre-Qualified Buyers
Buyers who are pre-approved for mortgage financing are among the strongest purchasers. Not only do these buyers already have funding in place - they are also most likely among the most credit-worthy buyers.

Beware the Home Sale Contingency
Offers are sometimes conditioned upon the sale of the buyer's current home prior to the closing. This is an extremely onerous condition. You simply trade the risk of selling one home to selling a different one - and you have far less control over the buyer's house.

Seller Financing
Some offers are contingent upon the seller taking back financing. The exact terms can vary considerably, however it is usually not advisable to accept this type of deal unless there are no alternatives. Apart from the fact that most sellers want to cash out to buy a new home, holding a mortgage can be risky, involving costly legal enforcement actions if the borrower defaults. With the number of mortgage programs available from lenders, a buyer who demands financing from the seller is probably a high-risk borrower.

What Does the Buyer Want You to Do?
Few homes are in perfect condition, yet a buyer may expect to receive yours in pristine form. A purchaser who expects to buy a 50-year-old house in flawless condition is unrealistic - and could turn out to be a problem. While you should expect to repair any major problems, beware of a buyer who seems excessive in his or her demands.

Handling Multiple Offers
If you are fortunate enough to receive multiple offers make sure to review each one carefully. If one party is significantly stronger than the other(s) or one offer has fewer conditions you may want to try work with that buyer first. After reviewing the terms of the offers - and discussing them with your agent - you can submit a counter-offer to all of the parties.

Counter-Offers and Negotiation
Negotiation is very common in the real estate markets. When you receive an offer for less than the asking price you have three choices - accept it, reject it out of hand, or make a counter-offer.

 
 

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Campenni Real Estate And Investments
Phone: (954) 319-4150
License No. SL422692


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