The Market Doesn’t Care How Much You Need To Make When You Sell Your Home

You need to sell your home and you have to get a certain  number in order to pay off your mortgage and purchase a new home. Guess what? The market doesn’t give two hoots about how much you need to get for your home. It will sell for what the market will bear, no more. Even if you remodel to boost the value of your home, the market will decide.

Sometimes it can be a rock and a hard place

The Market Doesn’t Care How Much You Need To Make When You Sell Your HomeMany people found out during the real estate crash what that means. You owe a certain amount on your mortgage. Your mortgage company wants their money whether you sell for enough or not. You want to be able to buy a new home and to do that you also need to have money left over. It’s not an easy place to be.

What you paid doesn’t count when selling

Don’t even think that what you paid for your home should have a bearing on what you should recover when you sell. Some, unfortunately, bought at the top of the boom and some neighborhoods went downhill and hasn’t recovered or recovered enough to make your home worth what it was. People aren’t going to pay the inflated value you did, nor will any mortgage company write a mortgage for that amount. Pouring more money in by updating it won’t raise the value either.

In short, no matter what you need, you may not be able to get it out of the sale of your home. The market and what someone is willing to pay for your home determines its value, not your needs.

Why Accepting The Highest Offer Is Not Always Best

Your home has been listed and seen by a few or many people. Now you have a few offers. Your knee jerk reaction is to take the highest offer. That may not be your best plan. The highest offer may not be the best offer and here’s why.

The highest offer may not be best

Why Accepting The Highest Offer Is Not Always BestFirst reason the highest offer may not be best is that your home may not appraise for that price. This is especially  true if your home was the subject of a bidding war. If that top bidder has to get a mortgage then the mortgage company will have the property appraised. If they find that the contract price is higher than the appraised value, they won’t write a mortgage for anything more than the appraised value.

So unless that high bidder can put more money down to make up the difference, the contract will fall through. Those other bidders will have moved on and then you are left holding the bag.

Another reason:

That high bidder may just not have the financing in place or available to complete the sale. Just because they bid or offered the highest amount, it doesn’t mean they can get the financing they need or already have it in place.

Last big reason:

If they have the highest offer, they may also ask for the most repairs or concessions. Here is an example: A woman lists her home and gets a full price offer in less than a week. She accepts that offer and the home inspection takes place. The home, which was updated and in rather good shape inspected well, but the inspector mentioned a few things like “the heating system will eventually give out” although nothing is wrong with it now. The buyers then demanded that the seller replace the heating system, put an expensive filtration system on the well and make some other minor repairs. The seller refused to do anything but the minor repairs.

The house then was put back on the market and another buyer bid for under asking, but it was a cash sale and not one concession was demanded. The lesson? The seller actually walked away with more money in her pocket than she would have with the full price, higher offer.

Have your home appraised

So your best bet is to get information before accepting any offer about financing. Have your home appraised prior to sale so you know what that number will look like. Be prepared. Then you can accept the BEST offer, not necessarily the highest.

Why Now Is The Time To Sell Your Home!

Why Now Is The Time To Sell Your Home!You might have heard that it’s not a good time to sell your home now that the election has come and gone. Don’t listen to them! Despite the fact that there are signs of a slow down, the real estate market is still hot and you could easily sell your home today.

Sell in a slow or hot market

So even if the market is slowing down a bit, how can you sell so easily? Why should you? Well, if you could have a Realtor come and tell you what your home was worth now or after you update a few things would you believe it? Of course! Homes that are up to date, in great shape will sell in a slow market or hot one.

Don’t fear, the market is still hot

Many people were holding off buying or selling until after the election, causing the slow down. As with any election year and the time leading up to it, who is in office makes a difference in the economy and economic fortune telling. Will they be pro-business and make it easier for investors? Will they be big government regulators who demand that home prices be regulated so everyone can buy a home, affordable or not? That question scares people into not moving until they know. Now that it’s over, and now that we know which party will be in control, things will pick back up.

Don’t be afraid

So what does that mean for you? Don’t be afraid to sell now. The market it still active and looking up. Fix up your home, contact a Realtor and see how well you can do TODAY. Why wait?

Why The Market Slowing Down Is Good For Denver Real Estate

The real estate market in Denver has slowed down, but that’s a good thing. It sounds counterproductive, but for buyers and sellers, it is a good thing and here’s why.

Puts homeownership within reach

Why The Market Slowing Down Is Good For Denver Real EstateFor buyers it means that homeownership is within reach again. In a slower market home prices are lower. That’s great for buyers, obviously.

What makes it good for sellers is that they don’t have to rush to market. Knowing that they aren’t “missing out” on a hot market means that they have time to get it right. Updates can be made, and they can take a week or month to get their home in the best shape ever.

For a seller that means the best price for their property.

More time and less worry

In a slower market there are fewer frantic buyers buying anything and everything just because it may not be there the next day. Not great for sellers, obviously. But for buyers it means they can take time to see more homes and find the right one, instead of feverishly buying SOMETHING because it may disappear from the market the next day. With that also goes the bidding wars. Having more time to decide without the worry about being outbid.

Better price negotiations

A slower market also gives a buyer more negotiation room for buyers and sellers. For sellers a slower market means less competition. That will help with price negotiations. For buyers it means you can also negotiate price, but with it you can negotiate in repairs, closing costs and other concessions.

Don’t give up your dreams of homeownership or selling your current home because of a slower market. It can be a great thing for you as a buyer or a seller. Call your Realtor today and ask how they can help you.

Checklist for Preparing Your Home For Sale

This checklist for preparing your home for sale is quite detailed.

A. The Exterior of your Home

Checklist for Preparing Your Home For Sale1. The Yard, front and back

  • Cut, edge and fertilize the lawn.
  • Trim bushes & trees removing all dead limbs & debris.
  • Add low cost, colorful and seasonal foliage.
  • Remove all weeds from flower beds, rocks, & cracks in concrete.
  • Install/ Inspect decorative metal or stone borders between lawn & planting beds.
  • Add more rock or more mulch to garden beds.

2. Decks, Patios, Driveways, Porches, & Fences

  • Wash driveways & sidewalks.
  • Patch holes & cracks in concrete or asphalt.
  • Replace any broken areas in fencing or decking.
  • Paint and stain fences & decks.
  • Arrange outdoor furniture & firewood neatly.
  • Put away all lawn equipment, bikes, & toys.
  • Make any repairs or updates to all equipment
  • Remove debris from the street in front of your home, hose it down if the municipality doesn’t street sweep.

3. House

    • Inspect all exterior elements of home: gutters, downspouts, siding, windows sashes, trim, & shutters. Clean, paint, and/or replace as needed.
    • Replace any broken windows, doors, & screens. Make sure they all operate properly.
    • Clean windows & screens thoroughly inside and out. This helps brighten the home inside.
    • Roof: Inspect for missing/ damaged shingles & flashings. Make any necessary repairs.
    • Clean & touch up paint on the little things: House numbers, mailboxes, doorbells, etc…

4. Front Porch: Extra Attention Needed! This should be very welcoming.

  • Replace front door if damaged & can not be repaired.
  • Paint door & trim.
  • Clean porch, make any necessary repairs (depending on type of materials the porch is made from).
  • Put out a new doormat.
  • Depending on space, decorate with hanging or potted plants, chairs, etc.
  • Have a nice porch light that uses high wattage bulbs to make porch area brighter.

B. The Interior of your Home

1. Whole Home Improvements

  • Clean and repair windows & screens.
  • Clean curtains, drapes, & blinds, replace if necessary.
  • Clean carpets, professionally, if necessary. If not salvageable, replace.
  • Clean & wax wood floors, repair any stained beyond cleaning.
  • Clean vinyl & ceramic floors.
  • Clean, paint, replace all vent covers.
  • Clean, polish, paint/stain wood trim in home.
  • Have a friend come in once cleaning is done and advise if there are any lingering pet or smoke odors. Re-Clean areas where there are.
  • Remove dated wallpaper & borders.
  • Repair damages to walls & ceilings. Includes: holes, cracks, & water stains.
  • Freshly paint home using white, off white or beige paint, or a light, neutral color.
  • Clean all lamp shades & covers and replace bulbs with a higher wattage, if possible.
  • Have all home systems inspected: HVAC, electrical, plumbing, roof; and have any necessary maintenance or repairs completed. Keep a file of documentation to provide proof of what was done.
  • Have all appliances maintained and repaired. This includes hot water heater, laundry and kitchen appliances. Replace any beyond repair.

2. Closets

  • Completely empty out all closets and sort items.
  • Pack up out of season clothing, coats and shoes.
  • Pack anything not necessary to live for the time period you’ll have the home listed.
  • Leave only a few items on the floor of closets.
  • Neatly arrange items on shelving.
  • Leave extra space on shelves.

3. Pay Attention to the Little Things

  • Tighten loose door knobs.
  • Tighten loose towel racks.
  • Oil any squeaky doors or drawers.
  • Arrange furniture to give an open feel. Remove any unnecessary or oversized furniture.
  • Make sure all switches & outlets are clean & working properly.
  • Make sure windows open & close without squeaking.
  • Keep expensive personal items with you, including prescription medication.

4. Kitchen & Baths

  • Thoroughly clean all countertops, appliances, mirrors, ovens, sinks, toilets, tub, & shower walls.
  • Store small appliances to open up counter space.
  • Clear off vanity countertops & store all personal care items neatly.
  • Clean ventilating hood & exhaust fans.
  • Remove rust stains.
  • If old and dated, replace knobs on drawers & cabinets.
  • Clean & organize drawers, cabinets, & linen closets.
  • Clean all tile grout & caulk. Re-caulk if necessary.

5. Garage, Basement, Attic, & Storage Areas

  • Clean out all storage areas, throw away or donate anything you no longer need or use.
  • Thoroughly clean storage areas, garage and attic. If finished, consider painting white to make them appear larger. Paint garage floors with a sealant.
  • Arrange and organize remaining items.
  • Wipe off dirt/cobwebs from water heater, furnace, washer & dryer.
  • If you have a basement, make sure it’s water problem free.