These hard truths can be like swallowing medicine for some. Others will welcome the truth. Realizing knowledge is to the home sellers advantage. If the sellers have improvements can they expect to see a 100% return on their investment? Can the home seller expect to get the same sales price as the home across the street? What are home values based on? Will everyone LOVE my home? Why should a home seller stage their home? When a buyer’s offer presented should seller accept mortgage pre-approval or pre-qualification letter? Just some 8 hard truths sellers should know selling home.
8 Hard Truths Sellers Should Know Selling Home
1. Do Not Expert 100% Return On Remodeling Or Upgrades.
Replacing roof and windows approximate recoup 80%. Minor kitchen upgrade will recoup approximately 72% to 80%. This varies based on area, materials and appliance replacements.
Remodeling a mid-range bathroom can cost approximately $17,000.00. Expect to recoup about 70%. An updated kitchen and bathroom will add home value. But homeowners will not recoup 100% of their investment.
Beware of over improvements. The client purchased one bedroom one bathroom condominium at the market value. Living space 1,000 square feet. Planning to install European hardwood costing $25,000.00. Based on purchase price clearly an over improvement. Do not over improve sellers.
Maintenance that is the keyword. If there is a leaky roof a new kitchen or bathroom is not going to increase the home value. Mold in the garage ceiling will put a damper on new windows installed. Before homeowner considers any remodels or renovations make sure the home fundamentals are sound. Home fundamentals are the roof, foundation, plumbing and electrical. These are the backbone of any home. Invest in the fundamental before making any cosmetic renovations. 8 Hard truths sellers should know when selling home.
Home improvements that reap the highest rate of return. Start with the project that cost relatively less in costs. Home improvements with the greatest rate of return: garage door, bathroom and bedroom additions, etc Read More……..
2. The House Across The Street Sold for Such and Such
Homeowners and neighborhood will always tell you about the house in the neighborhood that sold for such and such. Homeowners will call for listing appointment. At appointment telling what the house across the street sold for a month ago. They expect to get the same or higher sales price. What they forget to tell you is that house across the street has 500 square feet more living space. Additionally, the home across the street has an updated kitchen. Buyers will not pay the same price for a home with the lesser square footage. Nor will they pay the same for a kitchen with vinyl counter tops and floors, old cabinetry and appliances. 8 hard truths sellers should know when selling home.You cannot be uneducated when selling your home. You need to trust current market comparables and advice of a Real Estate professional. Hard truths sellers Should Know When Selling Home.
3. Keep Your Home Show Ready When Selling Stage
Home sellers always have your home ready to show prospective buyers. Sellers before placing your home on market stage home. Home staging reaps homeowners maximum profit. When staging a home it does not matter if a single family home, condominium or loft. Where would movies and plays be if they were not professionally staged? Entertainment companies invest millions in staging to reap the highest return on their investment. Your home is your treasured investment. Hard truths sellers should know when selling home. Invest the time and money in staging your home to reap the highest sales price. Always keep the 3 C’s in mind.The three C’s are simple: Clean, No Clutter, and Color. Staging yourself takes a little elbow grease but will pay-off in the resale of your home. Many buyers make their decision to purchase at first sight. That is curve appeal. Lawns and landscaping should be well kept. Remove clutter and trash from the exterior. The exterior may not need a complete paint job but check trimming for touch-ups. Look at the interior of your home. Check your rooms may want to brighten up with a new coat of paint. Check bedding in bedrooms, rugs, and towels in bathrooms. Consider neutral or stylish colored fresh linen and towels. Clean and vacuum carpet. Buff up your hardwood floors. Fresh flowers are always a bonus. If the home is listed show prospective buyers with lights on and drapes drawn. Nothing is worse than buyers viewing a dark room. Little things mean a lot. DIY Home Staging Ideas.
4. Not Everyone Will Love Your Home
You and your family love your home. You have gone through great pains designing the exterior and interior. Keep in mind that everybody is different. Diversity is what makes the world go around. Buyers will like one aspect of your home and not others. Prospective buyers may like your living room space but the bedrooms maybe too small. Some buyers may like your decorations and other will not. The location of your home may not be appealing. The neighborhood walkability may not be suitable for some buyers.
You’re looking for only ONE Buyer. That thinks your home is priced well. Loves home, neighborhood, and amenities. A buyer the envisions themselves living in your home. Most importantly are qualified buyers willing to purchase your home. 8 Hard Truths Sellers Should Know Selling Home
5. Illegal Add-On Will Cost You
Is your garage converted to a recreation room? Is there any illegal add-on in your home. Illegal add-ons make your home harder to sell. Home will be appraisal base on the assessor records. Illegal add-ons will not increase value. Conversely, may decrease home values. Hard truths sellers should know when selling home.8 Hard Truths Sellers Should Know Selling Home.
6. Home Values Not Based on Living Space Alone
The realtor will base the value of your home on recent comparable sells in the neighborhood. Sells should be within 1/2 mile from the subject. Due to sale scarcity distance may have to be extended. Do not let a Realtor give a home value just based on the home’s square footage alone. 8 Hard Truths Sellers Should Know. Home values combination of square footage, bedrooms, baths, functionally and condition. Home condition varies from standard, updated and renovated.
7. Requiring Buyer’s Mortgage Pre-Approval
You have an offer on your home. The buyer has supplied a Pre-Qualification from a lender. A PRE-QUALIFIED MORTGAGE LETTER IS NOT ACCEPTABLE. Hard truths sellers should know when selling home. Require the buyer has PRE-APPROVAL from direct lender. For the buyer to be Pre-Approved must supply the lender with two years 1040s or W2s. 3 -6 months bank statements and credit report. PRE-APPROVAL will give sellers best assurance that buyer can qualify for a secure mortgage. When I receive a Pre-Approval I always verify approval with the lender. Home sellers do not waste your time if the home buyer will only supply a Pre-Qualification. 8 Hard Truths Sellers Should Know Selling Home
8. There Can Be Gap Period Between Your Escrow Closing & New Home Purchase
Closing your existing escrow and buying your new home can happen at the same time. But more than likely it will not. There may be a gap in time periods. Anticipate this event and make arrangements. You may have to arrange a short-term rental or stay with family member or friend. Your belonging put in storage for a brief period of time.
8 Hard truths sellers should know when selling home. Sellers cannot expect to receive 100% recoup costs on renovations. Sellers your home value has to be based individually. What your neighbor’s home sold for may not apply to your home. Your home worth maybe less or more. When your home is listed have the home ready to show 24/7. Not everyone that views your home will love it. That is O.K., You are only looking for one qualified home buyers. Home improvement can increase home values. Conversely, illegal add-ons can decrease home values. Home values combination of square footage, location, functionally and condition. When an offer is submitted ONLY a mortgage Pre-Approval is acceptable. Finally, home sellers, have plans about where you are moving after the close of escrow. Knowing hard truths and how to resolve them. Learn now before selling or in the midst of selling your home. 8 Hard Truths Sellers Should Know Selling Home.
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