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Get Pre-Approved for a Home Loan |
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I've known sellers who signed a contract to sell their
house before they knew if they were qualified to buy another. Either
their financial circumstances had changed since their last purchase, and
they could no longer qualify for a loan, or they weren't able to sell at
a price that allowed them to buy the type of replacement house they
wanted. They ended up renting or buying something that was far from
ideal. Before you decide to sell the house, get
pre-approved by a lender you trust and research the housing market in
the area where you wish to live so that you have a good idea how much it
will take to buy a replacement. |
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2) |
How To Start Researching |
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Start looking for two types of real estate: houses that
seem to match the one you'd like to buy and houses that seem similar to
your current home.
How do the two categories compare in price? Can you handle
the difference if you're planning a step up?
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Click Here>Search the Internet for homes
for sale in your area and read real estate ads in your local
newspapers. You won't find house locations without
making phone calls, but browsing the general market is a
good start. |
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Pick up free For Sale publications
outside the grocery store, or wherever you find them in
your town. |
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3) |
Check Your Mortgage Payoff |
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Make a call to your lender to check
the payoff for your current home mortgage. You'll need the figure to
calculate your estimated sales proceeds.
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4) |
How Much Is the House Worth? |
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Determine your home's fair market value. Real estate agents
will usually help you determine value as a courtesy, but you might
prefer to order an appraisal.
Do both of the above if you want to be sure the
price is right.
What have single-family homes in your neighborhood
sold for recently?
This fast, free
Home Value Report will help you find out.
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5) |
Estimate Your Costs to Sell |
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Real estate commission. |
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Advertising costs, signs, other fees if you plan to sell by
owner.
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Attorney, closing agent or other professional fees. |
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Prorated costs for your share of annual expenses, such as
property taxes, home owner association fees, etc.
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Excise tax for the sale. |
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Any other fees typically paid by the seller in your area
(surveys, inspections, etc.). |
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If you are unsure of costs, ask a real estate agent. We deal with transactions every day and can give you a very close estimate
of seller closing costs. |
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6) |
Determine Your Costs to Acquire a New Home |
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Total your costs to acquire a new
home: moving expenses, loan costs, down payment, home inspections,
title work and policy, paying for a new hazard insurance policy--all
expenses related to buying a home. Your lender should give you a
disclosure of estimated costs when you apply for pre-approval. |
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7) |
Calculate Your Estimated Proceeds |
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Deduct your mortgage payoff from your home's fair
market value.
Deduct your costs to sell from the remainder to
get an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to
acquire a new home? If not, do you have cash or other funding to
make up the difference? |
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8) |
Make Necessary Repairs |
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Make all needed repairs unless you
want the house to be regarded as a fixer-upper. I'm not referring to
cosmetic updates, but to items in need of repair. Anything that's
obviously broken gives potential buyers a reason to submit a lower
offer. Consider having a pre-selling home inspection. |
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9) |
Get the House Ready to Show |
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Most houses need at least a little
spiffing up before they are shown to potential buyers. Great curb
appeal, fresh paint indoors (and sometimes out), organized closets
and cabinets, sparkling clean windows and appliances, and a
clutter-free atmosphere are essential if you want the house to
appeal to buyers. |
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10) |
Get Psyched Up to Let People In |
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It is best if you to leave when the house is shown. Why?
Because lurking sellers make buyers nervous--they don't feel comfortable
inspecting the house when they feel they are intruding.
Unless there's a real reason for it, don't ask that your agent to be
present for all showings. That's the kiss of death for the best showing
rates. Other agents want privacy with their buyers and they don't
usually have time to work around your agent's schedule. Make the house
accessible. That means it's always ready to show. Many agents won't
bother showing a house that takes 24 hours to get into. |
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If you're considering selling your house, Contact
Us Today! 480.854.1600 |
800.374.7431 |
