April 26, 2008

Our wish for privacy often slows the sale of our homes.  Most “Home For Sale” signs neglect to include an asking price:  the most important information for the prospective buyer.

March 1, 2008

Lending institutions have tightened mortgage loan requirements, and that gives an advantage to sellers who work with local mortgage brokers, and a licensed real estate appraiser.

Okay, maybe you don’t need to blast your asking price in large red letters; but at a minimum your big yard sign should be accompanied by a box of 8 ½ x 11 inch information flyers that feature your asking price along with pictures and other details about your home.

My daughter recently hosted a 20 year reunion dinner at my house for members of her High School graduating class.  I live on a street that ends in a cul-de-sac and Bob, one of the attendees asked me about a house with a “For Sale” sign on the other side of the street near the entrance to our cul-de-sac...

The most successful sellers are those who introduce themselves to a local mortgage broker as soon as they put up a “for sale” sign, if not before. Mortgage brokers are eager to meet and work with sellers because they make a living arranging mortgage loans whenever a home is sold.

 
The true value of a home is set by recent selling prices of similar homes in the neighborhood. Recent selling prices are available free of charge at the County Courthouse and on the internet but a $250 - $350 fee for a licensed appraiser might be a good investment, especially if the appraiser is one used by mortgage brokers in your neighborhood...

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Bob wanted to buy in the neighborhood. He felt the location was perfect and wanted to know the asking price and the condition of the inside.  He had no idea that I was a retired realtor, but I was still embarrassed to say that I did not know the asking price, and had been in the house only once to attend a block association meeting over a year ago.

This Seller lost Bob as a potential buyer because she neglected to tell me and her other neighbors something as basic as her asking price.  Every neighbor has family and friends who buy homes.  Neighbors are the biggest promoters of the neighborhood because most want family and friends to live close.

HOST AN OPEN HOUSE!  …and invite every home owner for several blocks around.

The purpose of the OPEN HOUSE is not to find an immediate buyer. The purpose is to let neighbors see the current condition of your home and take away an advertising flyer with  your asking price and pictures of your best rooms.

Yes, you will have lost some financial privacy.  The whole neighborhood will know how much you want for your house,  …but maybe one of those neighbors will find you a buyer.

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Sellers who purchased their homes at low prices several years ago can still make a profit selling at $2,000 below the price their neighbor got a month ago. FSBO sellers who don't have to pay a 6% real estate commission have even more flexibility to lower their prices and sell quickly.

As a retired real estate broker I'm viscerally opposed to reducing asking price, but the overwhelming forecast is for a year or more of falling prices.

The choice might be between selling your $200,000 house today at $198,000, or holding out and selling it a year from now at $160,000. Audrie...

You might believe your home is worth $200,000, but together the appraiser and mortgage broker perform a powerful reality check. The appraiser may report that the current value of your home is $190,000.  Your mortgage broker may tell you that banks will not finance the purchase of homes over $195,000 in your neighborhood.

Equally important, the mortgage broker can tell you if Johnny Doe, your eager potential buyer, can get a large enough mortgage loan to buy your property. Never sign a sales contract with a buyer who has not been pre-qualified by your friendly, neighborhood mortgage broker.

Falling home prices have brought droves of bargain hunting home buyers into the market so don’t be surprised or offended by offers far below your asking price. If Tim Lowe makes a low-ball offer it means that Tim wants to own your home.

If your mortgage broker says Tim can qualify for a big enough mortgage loan to pay your price, invite Tim back for a second viewing.  Show him your appraisal and engage him in conversation. Ask him why he think the house should sell below the appraised value.