Before you make the big decision to sell your home; be prepared for a lot of decision-making. You’ll be making a lot of potentially life changing decisions quickly, the process can be intimidating and downright stressful. here a few tips you should do before the first offer comes in.
1 .) Let Go of “Mine”
Start thinking that you’re living in the buyer’s new home. Mentally move out, cut the emotional cord. Concentrate on making the property as attractive as possible and practical. If you wait to cut the emotional cord to home, you’re doing yourself a disservice. By cutting the cord ahead of time, you can make confident decisions from a place of detachment.
2.) Anticipate Buyer requests
Think about what a Buyer might ask you to do in terms of financing, moving dates, furniture pieces, repairs, etc. things that may cause inconvenience or cost to you as the seller. Example, what if the buyer asks you to have a delayed closing – think about the monthly carry costs and the impact on you and the family while you wait. What if the Buyer asks you to carry a 2nd mortgage? Think about how that might work to your favor. Example, they would pay full price. Your real estate professional will be able to help you develop your thinking on this and strategies.
3.) Beyond Price to Full Offer Value
The value expressed in a Buyer’s offer to purchase involves 5 key elements, it’s a financial package
- Purchase Price is not automatically the amount the seller receives; other factors, like unpaid property taxes, can reduce the total. It’s not the purchase price, but the net proceeds of the sale that you want to focus on.
- Closing Date, or the day ownership is transferred and the seller receives the money, can represent cost or value to sellers. If you have to make two moves or pay two mortgages during the transition from one home to another, costs can add up and value of the offer goes down.
- Inclusions and Exclusions represent costs and value. Appliances, light fixtures, and draperies even furniture are common seller inclusions, but the cost of replacing them in the next home reduces profit.
- Terms and Conditions are clauses in the offer which cover “what if” risks and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. The degree of uncertainty attached to the conditions and the buyer’s related ability to close affect the value of an offer.
- Intent and Sincerity are vital aspects of an offer although difficult to quantify. For the seller, offer value lies in the certainty that the buyer will close in spite of market shifts and other problems ahead.
Weeks or months may pass from the time that you decide to sell and the day you receive an offer. Before your first offer arrives, think about all aspects of the selling process, ask you real estate agent what you may have missed and most important think about what your ideal outcome looks like.
Suggestion: To prepare for the offer presentation, read a blank offer form and the standard clauses soon after listing, Understand what the small print commits you to do, protects you from, and leaves you vulnerable to. For instance, the seller is usually responsible for keeping the property fully insured until title changes hands. Do you understand what responsibilities you have if earthquake, flooding, storm damage, or fire strikes before then?
Ask your real estate professional to show you typical offer clauses well in advance, so you have time to digest details and ask a lot of questions before you’re up against the offer deadline which may only be a few hours away.
Having the right team on your side will be critical to the marketing and sale process. Discussing strategies and contingencies ahead of offer presentation will help the you negotiate a solid high-value agreement with the buyer. Mentally preparing yourself, and anyone else who has a say in what happens to the property, means no one will be pressured into snap decisions or miss opportunities under the tight timelines common with offers.
Find the right real estate professional that can guide you thru the process. Although they cannot advise you exactly what to do, nor make the decisions for you, they can help you see all of your options and make good decisions by providing necessary context and details.