Q. Tom, our home has been on the market for about 45 days and on the advice of our Realtor we intend to leave it on through the holidays. Are we making the right decision to leave it on and what, if anything, should we do to make it more attractive to buyers?
Good for you! Many sellers take their homes off the active market during the holiday period causing the available inventory to decrease, which means from a supply/demand standpoint you have a better chance of selling. That’s good. In order to optimize your chance of selling, I recommend you focus on two fundamentals. First, review your pricing to confirm that you are “value-priced” for the market. As we say in the business, in this market everything is “for sale” – and your house must be “on-sale” as only the best values get the attention of the savvy buyers in the marketplace. Second, keep holiday decorating to a minimum by not overdoing the lights and ornamental clutter. Keep in mind it is important that the buyer gets a clear view of the real property and not personal property.
Q. What is the purpose of the appraisal contingency in the standard home purchase contract?
Great question. The appraisal is the “check and balance” in the transaction to insure that the buyer is not unknowingly paying too much for the property. The verbiage is fairly straightforward, “this agreement is contingent upon a written appraisal of the property by a licensed or certified appraiser at no less than the specified purchase price.” It also affirms to the lender that the home is, in fact, worth what the buyer is proposing to pay for it thereby insuring that lending against is it a reasonable risk. If a particular home does not appraise for the agreed upon purchase price, then the buyer and seller can agree to re-negotiate the price (generally to the lower appraisal amount) or the two parties can agree to cancel the contract with the buyer’s deposit refunded in full.
Q. I will most likely sell my home sometime in 2011. Tom, what should I be thinking of now to insure getting the highest price possible?I love sellers who plan ahead and pay attention to the fundamentals! They always end up being the happiest with the entire process. The following should be your plan:
1) Determine when you want to sell – early or late spring, summer or fall. 2) If you don’t have a professional real estate agent, start researching one. If you do have a trustworthy agent, call him or her over for a consultative appointment to review market conditions, pricing levels and property condition issues. 3) Start the de-clutter and enhancement work early as nearly every home needs to be cleaned, painted, landscaped, and/or handy-manned in some way. 4) Accept the fact that your home is worth less than it was a few years ago. 2007 values are long gone. 5) Listen to your agent when he/she recommends aggressively pricing your home. The best agents are bluntly forthright about pricing and the most satisfied sellers are the ones who understand that “value-priced” homes are the ones that sell in today’s market.
You can contact Tom at 925-355-1187 or tom@tomhart.com
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