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ANSWERS
TO BUYER'S FREQUENTLY ASKED QUESTIONS
WHAT
IF I NEED TO SELL MY HOME BEFORE I BUY A NEW ONE?
To put yourself in the best negotiating position before you
find the new home you want, enlist the services of a qualified
real estate agent to help you put your current home on the
market. Offers can be made "contingent" on the sale
of your home. A buyer in this position may not have the same
negotiating power as one whose home has already sold (or at
least has an accepted offer). Some sellers may be hesitant
to accept your offer. Your agent will assist you in working
through this issue.
ONCE
I HAVE FOUND A HOME, HOW DOES MY OFFER GET PRESENTED TO THE
SELLER?
Your agent will call the agent who is the listing agent for
the home you have chosen. They will make an appointment with
the seller to present your offer. Your agent is there to explain
the details of your offer and negotiate on your behalf.
WHAT
HAPPENS IF I OFFER LESS MONEY THAN THE ASKING PRICE?
If you offer less money, the seller has three options. They
can accept the lower offer, counter your offer or reject it
completely. Remember that there could be another buyer out
there who is also interested in the home you've chosen. If
they happen to write an offer at the same time you do, the
seller will have two offers to compare. There are usually
many aspects of each offer to consider, but ultimately the
seller will want to accept the best price and terms. In active
real estate markets, homes often sell for their listed price.
In hot markets, there may be many buyers vying for the same
house, which sometimes drives the final sale price above the
original listing price. Your real estate professional can
help you plan your strategy, based on the current real estate
market in your area.
DOES
IT COST ME MONEY TO MAKE AN OFFER?
When you write the offer on the home you've chosen, you will
be expected to include an earnest money deposit, typically
a total of 10% of the purchase price. The deposit is a sign
of your good faith that you are seriously interested in buying
the home.
WHERE
DOES MY EARNEST MONEY GO?
The earnest money is deposited into a trust account of the
real estate company or the closing agent. That deposit becomes
a credit to the buyer, and is applied towards the purchase
price.
CAN
I LOSE MY EARNEST MONEY?
Real estate contracts are complicated legal transactions.
This is another area where having a knowledgeable and professional
agent is a necessity. Rarely does the buyer lose the earnest
money. Most often, if the transaction falls apart, there are
circumstances beyond the buyer's control that cause it to
happen. However, if the buyer willfully decides that they
no longer want to buy the house, and have no legal reason
for rescinding their offer, they may lose the earnest money
deposit.
IS
THAT ALL THE MONEY THAT'S INVOLVED?
There are other fees, including: appraisal, credit report,
inspection, recording fees and taxes which will be debited
at closing.
ANSWERS
TO SELLER'S FREQUENTLY ASKED QUESTIONS
PRICING
YOUR PROPERTY
Determining Price is the most critical step in preparing your
home for sale, so you can get the highest return in the least
amount of time.
PRICING
STRATEGY:
Buyers who have seen the available homes in their price range
are waiting for the right home to come on the market. Pricing
strategy depends on the market conditions at the time your
home is put up for sale. A well-priced home often sells quickly
once it's put on the market. When your home is priced right
from the outset you maximize your opportunity of reaching
the most qualified buyers.
MARKET
ACTIVITY AND TIME:
The right price really is the right price range to attract
the maximum number of qualified buyers within a time frame
that suits your needs. A home receives its best exposure during
the first three to five weeks on the market. Multiple listing
service statistics show that the longer a home is on the market,
the lower the selling price.
TARGETING
THE RIGHT BUYER:
Pricing your property too low or too high won't provide the
best return. When your price is too low, you could lose thousands
of dollars on your family's largest investment. Overpricing
a property is risky; qualified buyers who might find the home
just right won't see your home because it's out of their price
range. Agents will hesitate to show an overpriced home, unless
it will make a competing property look like a better value.
THE
PRICING PROCESS:
Pricing is not based on appraised value, assessed value or
the financial needs of the seller. Rather, it is based on
the amount a buyer is willing to pay, as determined by current
market conditions. You'll receive a written estimate of value
based on an analysis of: Similar homes for sale now. These
show you which homes prospective buyers are comparing to your
home. Similar homes recently sold. These tell you what buyers
are willing to pay for your kind of home, in your area, at
this time. Expired listings and similar homes unsold for 90
days or more, illustrate the results of overpricing.
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