For most people, the home that they live in is the largest investment they will own in their lives. And aside from the financial aspect, homes are also the place people move into when they get married, raise their children in, have grown up in themselves, have celebrated holidays in, and have shared their lives in with loved ones. For this reason, selling a home can become a significantly emotional experience for many sellers as in a short period of time, they have to look at a selling a piece of history in their life as a business transaction. However, not addressing the sale as a such can lead to unnecessary delays, a lower bottom line for the seller, or even a home that won’t sell. Below are three specific reasons sellers need to dis-attach in order to sell their home and smoothly transition into the next period of their lives.
- Expecting an Unrealistic Price
Homes are certainly cornerstones in many peoples lives, and in that regard can be viewed as priceless. In real life, however, everything has a price-tag, and in real estate, the market is what determines the value of your home. Comps in the area, and the offers you receive should be key indicators of your home’s worth, and although you may think otherwise, the numbers don’t lie… and buyers go by numbers. If you can’t accept the number, it may not be time for you to sell… And overpricing your home on the market will lead to just that.
- Denying an Offer that Appraises Low
Receiving a low appraisal is common in today’s market, with prices climbing in various cities (Miami is one great example) – But what does that mean? Essentially, the bank places a value on the home based on a third party appraisal, and that is the amount of funds the buyer is allowed to secure. Should this number be something you as the seller are not happy with, and you decided to relist it, now your pool of buyers have enough cash to make up the difference between the amount the bank is willing to give them, and the price you are expecting. To illustrate: If your goal is $500,000 for your home, and it only appraises for $400,000, the buyer not only needs the standard down payment, but will have to come to the table with an additional $100,000 cash to make up the difference. Your market may be wealthy buyers and investors, but for a standard neighborhood, this isn’t the case. Therefore, be objective when considering your neighborhood, and types of buyers it attracts before re-listing your home should an appraisal leave your stomach churning.
- Re-listing your home after an inspection.
Say your buyers place an offer that you accept. Now its time to review their inspection reports, and they are asking for a discount that you think is greedy and unrealistic. This makes you angry (and makes you feel a bit violated as they pick apart the place you’ve lived your life in). If you want to immediately re-list your home, one thing to keep in mind is that you now have to report everything the buyer has disclosed to you on your property disclosure report. So going forward, any buyers that place offers on your home will be given a list of issues (major or minor) that you may not have been aware of before… and that DOES affect the value of your home, and in essence your bottom line. So depending on your situation and motivation to move, it may be more cost efficient in the long run to take less now than the offer price, and not subject yourself to lower offers once the property disclosure form is updated.
When listing your home for sale, it is always best to place yourself in the buyers shoes. And don’t take offers personally. You would most likely do the same for a house that someone else has called their own.