Selling Your Home - What Can Go Wrong?
You've decided to sell your house. What things can go wrong? Unfortunately, a lot of things can, and sometimes do, go wrong. But, there are solutions to many of these problems. Some problems can't be fixed. It's imperative to figure out whether your problems are repairable. You can either fix them or move on and hope to find another buyer. If your home is priced right, there will be a buyer out there.
Contract Negotiation
A problem which crops up frequently in contract negotiations is the seller left no room to negotiate the price. If the seller shows no willingness to negotiate, they'll drive buyers away. The solution? Price your home a little bit more than what you are willing to settle for. It should be a fair market price. That way, if the buyer wants to negotiate price, you have the flexibility built in. The sales price isn't the only thing that buyers are concerned with. Settlement and move in dates are important also. This is especially true if the move involves a new job, new school district, etc. If you as the seller, can be flexible on those points, that can tip the buyer to select your property over a competing home. One other major dilemma is when the buyer asks the seller to pay all or some, of their closing costs. Often, the seller's instant response is, "Why should I pay his closing costs? No one ever paid mine!" Here is a good rule of thumb to remember: Don't worry what the buyer is getting out of it. Look at what you're getting out of it. Is your bottom line what you want it to be? Close to it? You should consider paying all, or most, of what the buyer requested. No matter what the proposal is during contract negotiations, don't slip into a negative position. Think about the bottom line...Your bottom line.
The Buyer Can't Perform
Everything is going along great and then you get a call. The buyer can't qualify for a loan. I would check and make sure the buyer has used a lender who will make loans to people with less than perfect credit. If that doesn't work, write it off as a mistake. The next time someone wants to write a contract offer, make sure they have a pre-approval letter from their lender saying they're qualified to buy your home.
Lender Objections
Example One: The lender calls and says your garden shed is encroaching on your neighbor's property, and her fence is encroaching on yours. The lender won't fund the buyer's loan until everything is moved to where it belongs. If you are friendly with your neighbor and can do the work yourself (or can afford to have it done), the problem can be solved quickly.
Example Two: The lender says your property will appraise for the amount needed for the loan so long as the following repairs are made. The list which follows really upsets you. Time to step back and think. How can you get them taken care of before close of escrow? Can you do them yourself? Can you get a qualified professional to do them? Would the buyer be willing to help out?
Example Three: The appraiser submits an appraisal below the agreed sales price. The lender is willing to lend based on the appraisal, not the previously agreed price. Here are some possible solutions: Reduce the price to the appraisal price. If the buyer wants your home enough and has enough funds, he can pay a larger down payment and leave the purchase price the same. Or, you both can split the difference. Unfortunately, the whole deal can fall apart over this issue. The best manner to deal with problems is to stay calm, open minded and flexible. Most of the problems that do occur have solutions. You just need to aggressively look for them!
The author, Roy White, and his wife, Shirley, have over 28 years experience helping people buy and sell Las Vegas real estate. They are also investors themselves. For questions or comments please feel free to call Roy and Shirley toll free at 1-866-374-3444 or e-mail them at CENTURY21WHITE@aol.com
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The Roy and Shirley White Team
CENTURY 21 Aadvantage Gold
5041 N Rainbow Blvd
Las Vegas, NV 89130
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