Is worrying whether to sell your home while a "bad
housing market" exists keeping you up at night? Market values have
dropped considerably across the nation due to a glut of unsold homes,
mounting foreclosures and a general fear our economy is in the toilet.
Not
to fear. Your first step is to determine whether your home would fall
within the upside-down category, which means the remaining balance on
your mortgage will prove higher than what your property appraises for.
To
sell your home at a decent profit means you will have to swallow a
little humble pie, be practical, sensible and disciplined if you do
it. Forget if John Doe on your road sold his house that looks like
yours last year for $225,000. It will not matter.
When the lender
representing your buyer orders an appraisal, the value will be based
upon those homes most comparable to yours in square footage, style and
age that have sold within the past six months in a 2-5 mile radius of
your location. This is what the bank underwriters base their
determination on when the appraisal is reviewed and it's an industry
standard ... no exceptions. It will not matter if you order the
appraisal before you list or, the buyer does because nothing can
influence how the value is determined.
If you decide to list your
home with a realtor, they will perform a comparative market analysis
(CMA) firsts to determine what to list it for. You may disagree. Do not
assume they are a moron and have no clue what they are doing because
they base their decision on pretty much the same standards an
appraiser does.
Realtors know the industry and you need to trust
their judgment. To sell yourself, you need to do your homework and keep
a level head. Buyers today are savvy, on the web, tuned into the news,
reading articles and looking for enticements. If a duplicate house on
your road lists for $200,000, price yours at $195,000 and throw in a
cleaning service to sweeten the deal. Many buyers are strapped for cash
and offering to pay part, or all of their closing costs will most
definitely prompt a quicker sale.
Remember, when the Price Is Right, everyone walks away with a smile on their face.
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