Seller FAQ

It depends on the market you’re dealing with, but typically homes sell best in the spring and summer and start to slow in the fall and winter. Summer is the most active and brings the most competition.

Find a real estate agent and they will do a comparative market analysis based off similar properties in the area.

Make necessary repairs and upgrade everything you can afford to. This could be new appliances, flooring, light fixtures, trim etc. Make sure to make repairs and upgrades on the exterior as well, including landscaping. Curb appeal matters. Find an agent to determine pricing, gather all information and market your property.

The list price is the price tag on a home for sale based off similar comparable properties in the area. Like car sales, the price is not set in stone. You may accept an offer that is the highest or a lower offer that has better terms like a cash offer with no contingencies. The sales price is what the home was actually purchased for at closing.

It depends on your funds and ability to find temporary housing. If a seller needs more equity to purchase a new home, then it is best to sell the current home before purchasing the new one. Temporary housing with friends or relatives or obtaining a short-term rental is necessary.

Contingent means “depending on certain circumstances”. It is a clause in the buy/sell agreement specifying a requirement that will need to be met before closing. The buyer and seller must mutually agree. Examples of a contingency include…

· Mortgage – a window of time to allow the buyer to obtain financing for the purchase.

· Title – provides time to conduct a title search on the property.

· Sale of prior home – the buyer is in the process of selling their current home. If they cannot find a buyer and close, the sale may be extended or terminated.

· Home inspection – a window of time to allow the buyer to have the home inspected by a licensed home inspector to ensure there are no serious issues with the property. The buyer will pay for this at closing.

· Appraisal – the lender will schedule an appraisal to determine the fair market value of the property. The buyer will pay for this at closing.

You should not be present when your home is being shown. The main reason is that the potential buyers can feel uncomfortable and may not be able to discuss things freely in your presence.

This is similar to a rent deposit. It’s made in good faith to show to the seller that the buyer’s offer is serious and legitimate. At closing, it’s applied as a credit toward closing costs.

A home inspection deals with the condition of the home and to determine what repairs are necessary. The goal of an appraisal is the determine the fair market value for the lender. Both are conducted by a licensed professional. The buyer typically pays for them at closing.

1. You can contest the appraisal and request a new one from a different appraiser.

2. Pay the difference between the amount the lender is willing to finance and the offer price.

3. Negotiate with the seller to reduce the price.

4. Terminate the agreement.

The probability is very low. Sellers are taking a big risk when offering this as possible financing. The terms may be less favorable for both parties. In most cases, the buyer cannot obtain a traditional loan due to low income or bad credit.

This is the sale of a home where the proceeds from the sale are less than the debt secured by liens against the property. In order to avoid foreclosure, the seller will do a short sale. These homes may be in less than favorable condition.

Also known as a REO, these are properties that are owned by a lender. Most of these are sold “as is”. Foreclosure is the legal process where the lender has attempted to recover the defaulted loan amount and was unsuccessful. They then take possession and sell the property.