November 11, 2016
Depersonalizing your space, planning your move and searching for interested and qualified buyers are but a few of the many, daunting tasks that selling your home will invariably entail. Once you’ve gotten all of these things right, however, you still aren’t in the clear. It’s also vital to avoid a number of all-too common missteps in this process. Following are five mistakes that can derail your home sale.
Not Disclosing Issues
Failing to be forthright about any damages, defects or other problems with your home is not only mistake enough to drive a profitable transaction to a grinding halt, but it could permanently stigmatize your home and make it all the more difficult to sell later on. When listing a property that has problems you don’t intend to correct, be sure to set an asking price that reflects these issues. Moreover, when crafting your listing and talking to buyers, make sure that these issues are clearly outlined and understand. You will want your agent to can share strategies for talking up strong selling points while still making all of the necessary disclosures for protecting your interests.
Setting An Incorrect Asking Price
Pricing is key – somewhere between an art and a science. And your asking price, or market position, can be very different than your selling price. There are marketing strategies to pricing, as there are to timing, and when you sell your home – where you price it initially on the market can make all the difference to you at the closing table. Setting your selling price too high may have you chasing the market.
Buyer trends, recent comparable sold data, and current supply and demand, will all play a factor in where you should price your home on the market. Much like failing to disclose serious problems with your property early on, setting your selling price too high or too low could make it hard to find interested buyers for some time to come.
An Inability To Make Decisions
Buyer’s remorse does happen. People think that they’re ready to purchase homes and then analyze their funding options, their projected living costs and the wealth of financial challenges that they’re poised to take on – and then decide that now might not be the right time. Seller’s remorse can happen too. What if you don’t receive the price you expected for your home? What if at the time it comes to sign a contract, you realize you’re not ready to sell your home? An experienced agent can prepare you for a sale. If you and your family have outgrown your home, but aren’t ready to part with the memories, think about selling your home to buyers who take a personable approach in their offers and who are likely to value and cherish your property just as much as you and your own family have.
There are reasons why a seller may miss a deadline. On one hand, a seller’s inability to make firm decisions could cause you to sabotage your efforts at selling your home. On the other, it’s vital to be mindful of the fact that the buyer is completing the contractual contingencies of home inspections and their mortgage commitment. A seller’s response will be needed throughout the process from signing a contract to closing. If a seller misses deadlines without responding, it could derail the home sale.
What happens when your home is appraised by a buyer’s lender for less than your accepted selling price? There are a number of things to consider. Some buyers do not need a mortgage, and with that there is no appraisal. Some buyers waive the appraisal altogether or up to a certain amount – so that even though an appraisal comes in lower than their offer, they come to the closing table with funds to make up the difference between what is being financed, and the purchase price. In some instances, the sales price can be re-negotiated, with a buyer and a seller meeting in the middle with a revised purchase price. Or, when parties can’t come to terms, the contract is unfortunately cancelled.
When you list your home to sell, it is crucial to have an understanding, especially in the highly competitive real estate markets in Northern New Jersey, and to have an agent who can use the data and experience to advise you on issues on homes not appraising, and who can help you consider all the options with a buyer’s financing.