Listing Price vs Selling Price: The selling price of your home is what a buyer is willing to pay for it! Building trends such as open floor plans, stainless steel appliances and granite counter tops can influence the buyer to choose your property over another. Up to date landscaping, beautiful kitchens and luxurious baths can have a major effect on the decision to choose your home over another home. A licensed realtor is constantly showing and viewing properties and determining what most buyers want and what sellers offer, this is valuable experience available to you in determining what you can do to get the best price for your home. Sometimes a small investment of a few hundred dollars can bring you a return of thousands. Determine the selling price early, this can save you from expending valuable time, mortgage payments, interest, taxes and insurance premiums as buyers wait for a price reduction or instead, choose to purchase another property.
Buyers market – In a buyers market, the number of properties for sale far exceed the number of buyers. The buyer has multiple choices in his search. This type of market can affect pricing due to competition. Although the market is a major consideration for setting the price of your property, you also have to consider the market demand for your location and/or school district, popularity of the style of your home, cost per square foot, traffic conveniences and inconveniences, and whether your property has any outstanding features that would attract a buyer to select your property over someone else’s.
Sellers Market – In a sellers market, the number of properties for sale is less than the number of buyers, inducing the multiple offer and a set time to accept offers strategy for marketing your home. However, a market analysis of your area is necessary to determine if your home is in that market. A popular school district or a location near a popular neighborhood attraction can have this type of market even if the number of homes for sale is great.
Days on Market - The average days on market is determined by an analysis of “sold comparatives” for your property. The amount of time from the listing date to the closing date is the “days on market” for the property. A current analysis of comparative properties in close location with similar features and price is necessary to determine the price of your home. Also, considering the amount of time you have to sell your home can affect how you price your home. Setting the right price for your home can bring you a better price for your home and a speedy sale, preventing you from losing buyers as they wait for a price reduction on your home or choose to purchase another home.
Appraisal – An appraisal is necessary for most mortgages and is a good investment for any homeowner considering selling their home. The average price of an appraisal is from $100 to $300. A licensed appraiser will make an appointment with your realtor to meet and review the size and condition of your home. The appraiser will then compare your home with similar properties in nearby locations which are for sale and have sold, then use every feature of your home to determine a value for your home. Appraisers work with local realtors to access market information and selling trends.
Title Insurance – Title insurance is issued by a title insurance company to insure that you have proper title and deed to your property. The title company will do a title search to look for liens, easements, and a legal description verification to guarantee you legal ownership of the property. Upon determining there are no liens, they will then issue you an insurance policy with a one time fee at the time of purchase.
Title Search - This search of the properties title will inform you of any encroachments, codes, assessments, easements, leins, back taxes who the property rightfully belongs to. The Title Company will then give you and be liable for their search results. This is a very important part of buying property as any of these results can effect the price and future sale of the property.
Earnest Money – Earnest money can range from $100 to $1,000 to $10,000 in most purchasing transactions. When you make an offer to purchase, 99% of sellers will require earnest money to show the good faith of your offer. Upon acceptance of your offer, that money is then put into an “escrow account”, an account set up to hold funds through the purchasing transaction. You will receive credit for your funds in the escrow account at the time of closing.
Closing Costs – Closing costs always include title search fees, title insurance, appraisals, surveys, and any mortgage fees required to process your loan. The average closing fee can range from $100 to $2,500, depending on the type of financing you decide upon. Closing costs can be paid by the buyer or seller or split between both. Some types of loans offer no closing fees to be paid up front but add them to the balance of the loan. Your real estate agent or mortgage professional can help you with this process.
Disclosure Form - A disclosure form is a very length and detailed description of the condition of every feature, structural and functional system of your home. This includes but is not limited to the age and condition of the roof and any repairs made since you have occupied or owned the property; teh age and condition of your hot water heaters, whirlpool tubs, plumbing, septic or sewer, light fixtures, electrical plug ins; any fees, taxes or codes related to the residence. This is one of the most valuable pieces of paper when buying or selling - because it establishes liability either "for" the problem or "not for" a problem should it occur. Properties which do not have a disclosure filled out by the seller will sell for much less, simply because when you buy that property you will assume all liability for everything associated with that property. If you purchase a home with a detailed disclosure filled out by the seller and they say there is no problem with the septic system, then you move in and it doesn't work, that disclosure will protect you from being liable for that repair.
MLS Listing Sheet - This is the information sheet a Realtor uses when searching or inputting information on the multiple listing service. Every feature of your home, every measurement, lot size, room sizes, taxes are all on that sheet, even the photos. Always review that sheet with your Realtor!