Thursday, May 21, 2015 / by Teresa DiPeso
Selling a home is an exciting and sometime stressful experience. Sellers may be faced with having to make multiple financial, legal, and lifestyle decisions. Being prepared for a buyers offer in advance can alleviate anxiety and help you make a better decision when the time comes.
There are 3 key positive actions sellers should begin before offers arrive, so that they are prepared for decision making and are less overwhelmed by the selling process:
#1. Start thinking that you're living in the buyer's new home
Mentally move out. Let go of "mine." Cut the emotional cord. Concentrate on making the property as attractive to buyers as possible and practical. If you wait to start this "cut the emotional cord to home" thinking when your real estate professional presents you with an offer, you're doing yourself a tremendous disservice. Making confident decisions is difficult when you're distracted by pride of ownership and personal history.
#2. Start thinking about what the buyer may ask you to do
Anticipate buyer requests regarding financing, moving dates, and other factors that may cause inconvenience or cost to you, the seller. For instance, if you had to wait many months for closing and the money from the sale, what problems could that cause you? Conversely, consider costs attached to moving in less than a month or at least sooner than convenient.
Do you understand possible costs and considerations if buyers ask you to hold a second mortgage to enable them to pay the top dollar you ask for? We would be happy to explain how seller-held mortgages work and what would have to be true for you to sell that mortgage and realize cash.
#3. Start thinking beyond list price to achieve full offer value
The value expressed in a buyer's offer to purchase involves 5 key elements - it's a financial package:
1. Purchase Price is not automatically the amount the seller receives since other factors, like unpaid property taxes, can reduce the total. It's not the purchase price, but the net proceeds of the sale that sellers should concentrate on. We can help you calculate, or at least estimate, the seller's net proceeds after costs related to the offer and deduction of commission.
2. Closing Date, or the day ownership is transferred and the seller receives the money, can represent cost or value to sellers. If the seller has to make two moves or has to pay two mortgages during the transition from one home to another, costs can add up and offer value goes down.
3. Inclusions and Exclusions represent costs and value. Appliances, light fixtures, and draperies are common seller inclusions, but the cost of replacing them in the next home reduces profit.
4. Terms and Conditions are clauses in the offer which cover "what if" risks and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. The degree of uncertainty attached to the conditions and the buyer's related ability to close effect the value of an offer.
5. Intent and Sincerity are vital aspects of an offer although difficult to quantify. For the seller, offer value lies in the certainty that the buyer will close in spite of market shifts and other problems ahead.
You're not alone and we are here to help with all aspects of selling your home. Call our team today and together we will get your home sold more quickly and for higher price!