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Get Pre-Approved for a Home Loan |
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We've known sellers who signed a contract to sell their
house before they knew if they were qualified to buy another. Either their
financial circumstances had changed since their last purchase, and they
could no longer qualify for a loan, or they weren't able to sell at a
price that allowed them to buy the type of replacement house they wanted.
They ended up renting or buying something that was far from ideal.
Before you decide to sell the house, get pre-approved by
a lender you trust and research the housing market in the area where you
wish to live so that you have a good idea how much it will take to buy a
replacement. |
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How To Start Researching
Start looking for two types of real estate: houses that seem to match the
one you'd like to buy and houses that seem similar to your current home.
How do the two categories compare in price? Can you handle
the difference if you're planning a step up?
- Search the Internet for homes for sale in your area
and read real estate ads in your local newspapers. You won't find house
locations without making phone calls, but browsing the general market is
a good start.
- Pick up free For Sale publications outside the
grocery store, or wherever you find them in your town.
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Check Your Mortgage Payoff |
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Make a call to your lender to check the payoff for your
current home mortgage. You'll need the figure to calculate your estimated
sales proceeds.
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How Much Is the House Worth? |
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- Determine your home's fair market value. Real estate
agents will usually help you determine value as a courtesy, but you
might prefer to order an appraisal.
- Do both of the above if you want to be sure the price
is right.
What have single-family homes in your neighborhood
sold for recently?
This fast, free
Home Sales Report will help you
find out.
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Estimate Your Costs to Sell |
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- Real estate commission.
- Advertising costs, signs, other fees if you plan to
sell by owner.
- Attorney, closing agent or other professional fees.
- Prorated costs for your share of annual expenses,
such as property taxes, home owner association fees, etc.
- Any other fees typically paid by the seller in your
area (surveys, inspections, etc.).
- If you are unsure of costs, ask a real estate agent.
Kathy & Rick deal with transactions every day and can give you a very close
estimate of seller closing costs.
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Determine Your Costs to Acquire a New Home |
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Total your costs to acquire a new home: moving
expenses, loan costs, down payment, home inspections, title work and
policy, paying for a new hazard insurance policy--all expenses related
to buying a home. Your lender should give you a disclosure of estimated
costs when you apply for pre-approval. |
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Calculate Your Estimated Proceeds |
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- Deduct your mortgage payoff from your home's fair
market value.
- Deduct your costs to sell from the remainder to get
an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to acquire a
new home? If not, do you have cash or other funding to make up the
difference? |
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Make Necessary Repairs |
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Make all needed repairs unless you want the house to be
regarded as a fixer-upper. We are not referring to cosmetic updates, but to
items in need of repair. Anything that's obviously broken gives potential
buyers a reason to submit a lower offer. Consider having a pre-selling
home inspection. |
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Get the House Ready to Show |
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Most houses need at least a little spiffing up before
they are shown to potential buyers. Great curb appeal, fresh paint indoors
(and sometimes out), organized closets and cabinets, sparkling clean
windows and appliances, and a clutter-free atmosphere are essential if you
want the house to appeal to buyers. |
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Get Psyched Up to Let People In |
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It is best if you to leave when the house is shown. Why? Because lurking
sellers make buyers nervous--they don't feel comfortable inspecting the
house when they feel they are intruding.
Unless there's a real reason for it, don't ask that your
agent to be present for all showings. That's the kiss of death for the
best showing rates. Other agents want privacy with their buyers and they
don't usually have time to work around your agent's schedule.
Make the house accessible. That means it's always ready
to show. Many agents won't bother showing a house that takes 24 hours to
get into. |
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If you're considering selling your property,
Contact Kathy & Rick Webb!
"It's ALL about Service"
Kathy 480.205.8890 ☼ Rick
480.213.9830
Kathy@www.WebbSellsAZ.com ☼ Rick@www.WebbSellsAZ.com |
Rick & Kathy Webb all rights reserved 2016©
