Twelve
Selling Tips for the Ventura County Real Estate Market
If you're planning on selling a house, you'll have
to decide what price you're going to ask for the home. This
is one of the most important and difficult decisions you'll
have to make. Buyers select by comparison shopping, so your
home will have to have a fair market price in order for it
to sell. A real estate professional can help you determine
the market value of your home while still obtaining the top-dollar
price for your piece of property.
Basic
Steps for Selling Your Home:
1. Set your price right! It's definitely not good when
you your home is on the market for a long period of time and
that usually is the result of a bad pricing job.
So should I buy or use an appraisal? Appraisals may show what
your home is valued at however, many times that price is too
high for current market conditions. Also, some lenders will
only allow appraisals from an approved lender list so you
might not be able to sign it over to a future buyer. Many
people who just use appraisal prices end up having their home
sit on the market.
The best source for setting value is going to be through a
Realtor and you can for free. A Realtor can give you what
homes have been selling in the area comparable to yours and
can show you what homes currently on the market as well.
2. Prepare Your Home. This is where many sellers make
costly mistakes, if your home isn't going to "show well,"
the buyers wont buy your home unless it is a "killer
deal." Be sure to make sure your home shows well!
3. Market Your Home. Now this can be a tough one. There
is a chance that someone will drive by your home or even see
it in a newspaper and therefore you may just maximize your
profits and minimize your costs in selling your home. That's
a small chance though, and here are some statistics on real
estate transactions: 75% of buyers buy through a real estate
agent. 14% buy through a builder. Approximately 5% buy from
their relative. And approximately 4% buy from a "for
sale by owner". You can see where the odds lie. So if
your not in a hurry to sell, let's take a look at your marketing
vehicles:
A. Internet - 75% of all homebuyers are looking
on the internet for their home. This can be extremely expensive
so find a website that has a web presence already.
B. Magazines - Go to your local Grocery store
and see what magazines are in the rack. Compare prices and
distribution and advertise in the one of your choice.
C. Newspaper - Now this has proven to be
not very effective at all. However there is a chance you will
sell via this method.
D. Neighbors! Sometimes your neighbors will
either buy your home or know a buyer who will (this is the
main way for sale by owners sell their home). So you have
a couple of options. First, you must have a sign in your yard,
(just go to local Home Depot or other store and buy a sign)
Second, you must create a flyer, three you might want to distribute
flyers to all your neighbors. Again, the flyers to all your
neighbors could be costly and time consuming.
E. Post your sign! Be sure to post sign after
you've completed all the above steps.
F. Post a phone number in all your marketing
where people can get a hold of you no matter what time of
day it is...be sure to have voicemail just in case.
5. When people call what to do -
A. Answer any questions they have, get their
name and phone number, and ask them if they are pre-qualified
with a lender. Many buyers calling you may not be qualified
with a lender....this just wastes your time. If they leave
a voicemail be sure to call back ASAP or they might buy something
else... this can happen quick!
B. If they are pre-qualified go ahead and
show it.
C. If they aren't pre-qualified just ask
them this "before I show you the property I have someone
who I want to call you and pre-qualify you first. Is it okay
if I have someone call you and ask you a few questions before
I show you the property?"
D. Keep their names and numbers for feedback
and to call them back later just in case you reduce the price.
E. Obtain Feedback. This may be sensitive
talking directly to the potential buyer trying to find out
why they didn't like your home. So you might want to call
them and see if you can fax them a feedback sheet or even
mail one out. The point is, you need feedback as to what would
make your home sell!
F. Ask them if they would like to make an
offer and if they do you will you have the paperwork to write
it up.
6. Now they want to make an offer. First of all, have
them do it in writing. Second of all, make sure it accompanies
a pre-approval letter from a lender! Don't do an offer unless
they have a pre approval letter from their lender.
7. Drawing up the offer. When drawing up an offer earnest
money is usually deposited. Earnest money usually is deposited
into a trust account. (You can deposit this with the title
company you are going to use.) Earnest money can be any amount
of money. Banks and HUD homes usually ask for $1000.00.
However, depending on the price of the home this may range
from $250 on up. Now this money will go towards the buyers
down payment. However it may be given to the seller as damages
in the event the buyer decides not to buy the home at the
last minute.
Read through the offer carefully as you will set deadlines
that each party needs to adhere to.
8. Contact the Title Company. Title companies conduct
the closing of your homes sale. Now you can close where the
buyer's lender wants to close or you can both close at a place
of your choosing. Just look up "title companies"
in the yellow pages. When you call the Title Company you will
need to order a preliminary title report for the buyer. You
will be paying for an insurance policy that covers your hide
and the buyers hide in case any body in the future has a claim
against your property unknown to you.
9. Follow through with Deadlines and with the buyer's lender.
Be sure to follow through with your deadlines and have the
seller follow through with theirs. Also, keep in contact with
the lender and buyer so that you know when closing will be.
One reason why a lot of for sale by owner homes don't sell
is because the buyer doesn't ever obtain an approval for a
loan. This is why it's important to have someone constantly
in contact and following up with the lender so that you don't
wait around for nothing to happen.
10. Close the deal! The Title company will take care
of all this. You will just want to take a close look at the
final sheet called "HUDS". This final closing
statement shows where all the money in the sell of your home
is allocated. Its nice to have someone who knows these documents
and have look over them with you.
11. When to let them move in and you move out. The
safest time to let them move in is when your transaction has
funded and recorded. This isn't after you sign the documents.
It could be a few days after that. This means that you have
your money and you are paid off and the title company proceeded
with recording the sale of your home at the county. It is
possible that if you let them move in before funds transfer
that they might get denied a loan - yes, denied a loan even
after you all signed papers. Then you are stuck with buyers
in your home and you still own it! So be very careful and
clear as to when the buyers can move in. After the Title Company
records the sale at the county its official, it's the buyer's
home.
12.
The Best Advice. Remember, your home is only worth what someone is
willing to pay for it. By working with a qualified real estate
professional, you can ensure that your property will receive
the needed exposure to attract interested parties who are
willing to make an offer.
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