Mike's Real Estate Team

What home sellers need to know?

When we want to sell something, admit it or not, we first make sure that what we are doing is right, right?

I mean, selling is as much risk as buying and more likely it will lead to a lot of questions since we all want to be prepared for the process and be confident going through with it. We will have you know that you’re not alone. Everyone wants to be sure and confident while going through the process just like you. I mean, who doesn’t? Especially when you are not sure what the outcome would be.

 

Let’s take a look at 3 of the most frequently asked questions by your fellow sellers and see if we can address them clearly. You might never know, maybe they have questions that you also had thought of asking.

Here we go!

FAQ #1: When will be the best time to sell my home?

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It’s a  D.E.A.L !

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D stands for DEBT-FREE.

Yes DEBT-FREE!

Why? Because, before you sell a house, you should make sure first that you can afford to buy a home you can move into. And best way to do that is making sure you are already financially mature enough, DEBT FREE first.

I’m sure you’ve experienced buying a home before. If you had moments or choices that you regretted doing before, learn from it this time around.

 

E is for EQUITY advantage.

Equity is the difference between the market value of your home and the amount you owe to the lender on the mortgage.

You have to make sure equity is on your side. Knowing the equity of your home could save you hundreds of dollars.

How? Well, According to Linda Domis, a Los Angeles-area Real Estate Endorsed Local Provider,

“If your home has recovered enough value to provide at least 20% equity for your next purchase” it is worth the sale. This is because putting 20% or more down on a home keeps private mortgage insurance (PMI) at bay.

If you are not sure where you equity stands, you can ask an experienced real estate agent to run a CMA or Comparative Market Analysis to know the approximate value of your home.

 

A means AFFORDING a new home .

Let’s say you are ready to move to your new home. Expect that there will be a bunch of necessary repairs. If only we could have a magic wand that can do all the fixing and not our magic wallets.

We have to face reality that we want our new home to be presentable just as our old one. Little investments made today can do you wonders.

If you think you and your pocket is ready for those little investments, then you know you will have no problems living comfortably in your new home. Having no regrets later on is practically the major key role here.

Last but not the least,

L refers to LIFESTYLE

There’s got to be a reason why you want to sell a home and move to another right? Is it because of work? Is it because you want a new environment? Or maybe live near you family? If that’s the case, let me hit you with this question,

Would you give up the lifestyle that you are currently living in? If yes, then good for you! You can disregard this, and just work on the other 3 mentioned above.

If no, then it’s either you can rethink about selling your home, or, you can find a new home that can fit your lifestyle needs. It’s that simple.

We all encountered the saying “There’s no place like home” one way or another. But where is home? Home is where you can live comfortably in.

 

FAQ #2: What will I disclose to the buyers?

Now there’s a question every seller has to face. Unless the home you are selling fell from heaven, or is made out of perfection, there will always be details regarding the house that most sellers fear because it might change the buyer’s mind.

But let’s face it. If there is one thing people hate the most, it’s being dumbfounded. No likes to be misinformed/ uninformed. You are lucky if the buyer finds out in the future that the roof had a defect for example, etc. and will not put you to court for breach of contract.

Just disclose anything you know about your home, the good and the bad. Who knows, maybe the buyer will actually be more willing to the repairs. Or maybe they are more than willing to buy your house despite the slight damages. Regardless of that, At least they were informed ahead of time.

 

FAQ #3: How long will the listing contract (agreement) last?

A real estate listing contract is a written agreement between you and a real estate agent that offers the agent a commission for selling your home. To earn the commission, the agent agrees to market the home and to handle the sales transaction.

The listing contract(agreement) contains the terms under which the real estate agent will perform marketing and selling services and how much commission she is due upon the closing of a sale. The length of the contract can be three months, six months, a year, or any other period you choose.

The average listing agreement would take Six (6) Months.

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