SELLERS TAKE NOTICE!

Sellers take notice of the three things that buyers are looking for in the house you are selling and what you can do to leverage their needs.

Below are three things buyers want when looking to buy a house today.

1. To buy a house. - Obvious you might say, but a simple truth that bears taking note.  Is your house their new house?  Have you priced your home to sell or are you trying to over leverage the market for a higher price and miss out on the current market bonanza?

2. To buy a house that continues to appreciate. - Do not know of too many buyers who are willing to purchase a home that will lose value after purchase.  Buyers want a house that will appreciate and provide a comfortable profit margin when they later sell it.  

3. To take advantage of current all-time low mortgage rates. - Buyers are eager to buy, but for the right price.  Lenders are eager to lend to qualified buyers who demonstrate they can service the debt. Today's mortgage rates are at an all-time historical low and buyers are eager to take advantage of these rates to move out of smaller houses, apartments, condos in favor of larger more functioning dwellings.

Sellers take note: Buying and selling is a two-way street.  Both parties need to be prepared to make concessions along the way.  

CONTINGENCY CLAUSES IN YOUR HOME PURCHASE

From time to time, it becomes necessary to insert contingency clauses in your home purchase contract.  A contingency clause defines a condition or action that must be met for a real estate contract to become binding to which both buyer and seller must agree. 

Types of Contingency Clauses

It is important to note that contingency clauses can be written for any need or concern on the part of the seller or buyer.  Below are the most common contingency clauses in home purchases.

1. Appraisal Contingency - This clause protects the buyer and is used to ensure a property is valued minimum, specified amount.  Should the property not appraise for at least the specified minimum amount, the contract can be terminated.

2. Financing Contingency - A financing contingency gives the buyer the time to apply for and obtain the necessary financing for the purchase.  It is important protection for the buyer in the event they are unable to secure financing and can enable the buyer to reclaim their earnest money.

3. Home Sale Contingency - This clause enables the buyer a specified amount of time to sell or settle their existing home to finance the new one.  This protects the buyer in the event the existing home does not sell. The seller retains the right to cancel the contract is the buyer's home fails to sell.

4.Inspection Contingency - Also called a due diligence clause, it gives the buyer the right to have the home inspected within a specified period.  It protects the buyer by allowing him to either cancel the contract or negotiate repairs based in the findings of the professional home inspector.  

5. Kick-Out Clause - The kick-out clause  protects for the seller who has agreed to a home sale contingency.  This clause allows the seller to continue to market the property.  Should another buyer step up, the seller can give the current buyer a specified amount of time to remove the house from contingency.  Otherwise, the seller can back out of the contract and sell to the new buyer.

As a buyer or seller, it is important to work with either a real estate professional or a lawyer to follow the laws of your state.  It is also important that when contingency clauses are attached to a real estate contract to read and understand your contract and pay attention to all the specified dates and deadlines.

3 REASONS TO SELL YOUR HOUSE NOW!

 

If you find yourself sitting on the sidelines trying to decide whether to sell your home, let me show you 3 reasons why now is the right time to sell.  

1. Low Inventory - High Demand - Sellers in today's market are a rarity.  With historically low inventory of single-family homes on the market versus high demand from buyer for those properties, sellers are in the best position to reap the benefits of today's housing market. 

The National Association of Realtors (NAR):

 “Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”

 2. Frequent bidding wars - Sellers have the opportunity, in the face of limited inventory, to enter bidding between buyers for their property.  The upside of this is obvious - homes sell for more. 

The NAR reported that the average number of bids received on the most recently closed sales was 4.8 offers.  This number has doubled since the first quarter of 2020.

3. Days on Market (DOM) - Sellers no longer have to wait long periods while eager buyers survey the housing terrain.  Homes are moving in record time, depending on locale.  83% of homes in March 2021 were on the market less than a month according to the NAR.

Remember, when you sell; you have to buy.  Look for a new home that falls within the range of profit you made on your sale.  Sometimes, downsizing has its benefits.

EASY TIPS TO MAXIMIZE THE SALE OF YOUR HOME

 There is a tremendous amount of competition among buyers for homes today.  With increasingly diminished inventories, buyers are forced to act quickly on a property.  Sellers can do more to help maximize the sale of their home.  Here are a few easy tips to help sellers and buyers alike.

1. Help buyers see themselves in your home.  The tip here is simple - do not over clutter your home with too much of "your things".  Allow the buyer to see their "things" on walls, coffee table and such.  Let the buyer visualize the home as if they already lived there. 

2. Keep it clean.  Most buyers will arrange a time to view your home with your agent.  Keep the house clean so that you can take advantage of opportunities to show your home daily.  Have "all hands-on deck" to do a quick walk through each morning to pick up, straighten up, and clean up.  

3. Show time. Do not make showing your home a difficult task.  Give your agent latitude to schedule showings that will be convenient to both you, as the seller, and potential buyers. 

4. Price it right.  Sure, you want to maximize the profit potential on the sale of your home, but you do not want to make the price so high that it turns buyers off.  Work with your listing agent to arrive at a market value for your home and stay competitive with your local market.

You can sell your home quickly and for maximum value if you apply these four easy tips.