Costly Mistakes to Avoid Before Selling a Home

You've decided to sell your home.  You are ready to accept an offer and sell your home today!  A piece of cake, right?  Not so fast.  

Don't guess on the sale price of your home.

Have your real estate agent help determine your home's fair market value.  This is not an appraisal for the purpose of a full loan amount, but an appraisal for the true market value.  There is a difference!  Nothing loses potential buyers faster than an overpriced home.  Then, when you lower the price it makes it look like you are getting desperate to sell.  On the flip side, you don't want to lose money by selling too cheap.  It might get you a fast sale, but you might miss out on several thousand dollars, too.

Don't go it alone.

Selling a home can be one of the most stressful things in your life.  Answering calls, setting appointments, cleaning house, boxing up memories, can be overwhelming for most.  When working with an agent, it's the agent's duty to track many of the day-to-day details that involve the buyers and taking phone calls.  The paperwork required in a sale alone is enough to drive anyone over the edge.

Don't sell before getting qualified to buy your new home.

Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.  Make plans in case you have to move right away.

Don't guess your loan payoff.

Check your mortgage payoff.  Call your lender to check the payoff for your current home mortgage.  Make sure there are no penalties written in your contract for early payoff.  Some lenders have a pre-payment penalty for paying off your loan too soon!

Don't underestimate your closing costs to sell.

Don't forget to calculate the following items:

• Real estate commission.
• Attorney, closing agent and other professional fees.
• Excise/Gains tax for the sale, if applicable.
• Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and utilities.
• Any other fees sometimes paid by the seller (appraisals, inspections, buyer's closing costs, etc.)

Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.

Don't panic if the appraisal comes in low.

At least, not at first.  There are some things you (and your agent) can do to correct the problem.  Talk through your options with your agent.

Don't forget to cancel or switch utilities and insurance.

That sounds simple, but you'd be surprised how many people forget to tell utilities they are moving or apply for utility service at their new home.  Call the utilities and your insurance company as soon as you have a contract.  Find out how many days lead time they need to switch or cancel, then get back with them when you have a firm closing date.

To learn more helpful tips or to find out more about what Century 21 Semiao & Associates can do for you, contact us!