1. Selling your home? Here are some common myths that you may have heard and the real facts you need to know:
Myth: Setting your price high will leave room for negotiation.
Truth: A pricing strategy like this backfires more often than not. Many potential buyers won’t even view your property if you value it above their price range. And when an overpriced home sits on the market, buyers wonder what’s wrong with it.
Myth: Not every offer is worth your time.
Truth: Don’t be insulted if a potential buyer presents an offer way below your asking price. It’s nothing personal, and you’re not required to reduce your price. Some buyers use such offers to start negotiations, and it’s not hard to determine if the person genuinely wants to purchase your home.
Myth: You’ll make more money if you sell it yourself.
Truth: No, Shad Bogany Team don’t work for free. But they guide clients through property transactions every day. Plus, selling a home requires a lot of time. You’ll need to hold open houses on weekends and be available to show your home whenever someone wants to see it. Be sure to weigh any hypothetical savings against the time, effort, and risk you take by selling the property yourself.
2. If I’m the buyer, what kind offer should I make on the home of my dreams?
First, decide on the right price. You can do this by finding out how the property compares to similar homes nearby, what The Shad Bogany Team call “comps.” Comps are an important part of determining price because they reflect neighborhood conditions. Real estate markets are localized, so the sales price of a home across town may have very little to do with what a home in another area of town is worth.
Hitting a seller’s magic number doesn’t guarantee he’ll accept your offer. The homeowner will consider the amount of earnest money in the proposed contract. A higher number shows a higher level of sincerity about the purchase and may place your offer above others.
Some sellers may have a strong preference for when they close on the sale. If you can meet their timeline, your offer gains strength. And when you can help it, stay away from contingencies, or make them as moderate as you can. Why? Put yourself in the seller’s shoes. A slightly lower offer may be more attractive than a higher offer that’s contingent on the buyer needing to sell her own home.
Many things combine to make an attractive offer. Your Shad Bogany Team Member can help put together an offer that gives you the best chance of getting the home you want at terms that are favorable to you.
3. What is the first thing I should do when I want to buy a home?
If you’re planning to buy a home, you likely have a long to-do list. But one item that should take priority is obtaining pre-approval or pre-qualification for a mortgage loan. Either puts you in a stronger position as a buyer, but they mean different things.
To get pre-qualified for a home loan, you must provide a lender approximate income, current debts, and any important details from your credit history. The lender calculates how much money you may be eligible to borrow based on this info. However, all information submitted during pre-qualification is subject to verification at the time your actual loan application is submitted. Because your financial situation has yet to be verified, there is no guarantee of a home loan.
Pre-approval means that your financial situation has been verified by the lender. When you get pre-approved, you fill out a mortgage loan application and may have to pay an application fee. After examining your financial situation, your lender will commit in writing to fund your loan, pending a successful appraisal of the home and a few other conditions.
Be smart, take steps to secure your finances, and get pre-approved for a home loan. Soon you’ll be in the home you’ve always dreamed about.
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