Most of us are nervous about decision making. Many lack confidence in their ability. Yet, sellers will be faced with quickly making multiple financial, legal, and lifestyle decisions when a buyer’s offer is presented to them. You need to be prepared and in the right mind-set to make the quick and educated decisions involved in real estate.
When the time comes for you to get that offer, you have to be ready. Here are some simple actions you can take now to be ahead of the game and ready to sell your house.
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. 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?
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:
- 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. Real estate professionals can calculate, or at least estimate, the seller’s net proceeds after costs related to the offer and deduction of commission.
- 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.
- 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.
- 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.
- 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.
To prepare for offer presentation, read the offer form standard clauses soon after listing, so that you understand what the small print commits you to do, protects you from, and leaves you vulnerable to. For instance, the seller is usually responsible for keeping the property fully insured until title changes hands. Do you understand what responsibilities you have if flooding, storm damage, or fire strikes before then?
Positive thinking will get you prepared for your home to sell. The more prepared you are, the faster your home can sell. Help prepare yourself and your home for a great sale by calling Helen today at 847.967.0022 or email firstname.lastname@example.org.