Friday, August 30, 2013

Three Must-Dos for Selling a House

Three Key Tips for Selling Your Home

Knowing the value of your house and exercising patience and restraint are key. A good real estate agent can help you determine the market value of your home but you may want to go a step further and get your home appraised as well; it’s worth the $250 to $500 price tag. In a good market, the sale price may be above the appraisal with the right buyer. In a weaker market, the sale price may be around or below the appraisal figure. Either way, you can use it to defend your equity.

Remember, patience is key. Yes, it's true there is concern that homes can go “stale” after being on the market for too long, meaning they are no longer attracting interest from buyers. But a stale sale usually results from a seller overvaluing his or her home. The opposite can also occur: in a rush to sell a home, or to sell in time so as to move into a new house, a home can be undervalued.  This is another reason the appraisal and your real estate agent are important.

A home inspection is also important in avoiding complications during your sale. The buyer will get an inspection, but discovering problems during a pre-sale home inspection allows you to have more control over how to handle them. If your home inspection does uncover problems with your home, it’s essential that you familiarize yourself with your state’s disclosure laws to avoid future litigation. Generally, they require you to disclose the presence of any hazardous materials in your home or significant flaws in construction. If you’re unsure of what you have to disclose, consult a real estate agent, attorney or your local housing authority.

Finally, try to put your home on the market before buying a new one unless you are qualified and can afford paying two mortgages or your first home is own free and clear. If you do end up finding a house that you can’t wait to buy before selling your own, you can ask your lender for a bridge loan. A bridge loan is a special type of loan that, if you have enough equity in your current home, allows you to pay the down payment on a new home. You may also be able to get a home equity loan in order to help with the dual mortgage payments. Please consult a lender (or attorney) for further information.

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