If you intend to list your residence, you'll need to think about how you'll price your residence. However, what you initially paid for your home is unlikely to match its value today. And if you set an initial asking price that is too high, you risk alienating potential homebuyers.
Lucky for you, we're here to help you determine the ideal initial asking price for your residence to increase the likelihood of a fast home sale.
Now, let's take a look at three quick, easy ways to establish a competitive price for your house.
1. Look at Housing Market Data
Housing market data is easy to find and can show you how your residence stacks up against recently sold homes in your area.
Evaluate the prices of recently sold local residences that are comparable to your own. With this housing market data in hand, you can better understand pricing trends for houses in your city or town.
In addition, don't forget to check out the prices of available houses in your region. This housing market data will help you understand the current state of the real estate market.
2. Conduct a Home Appraisal
A home appraisal is valuable because it allows you to receive a property valuation from a home expert. When the appraisal is complete, you may be able to prioritize various home improvement projects as well.
During a home appraisal, a property expert will examine your home's interior and exterior. This property expert also will assess the prices of recently sold and available homes in your area, including the prices of residences in your neighborhood. Following the appraisal, you'll receive a property valuation.
If a property valuation falls below your initial expectations, there is no need to worry. Remember, you can always perform assorted home maintenance and upgrades to boost your house's value.
3. Collaborate with a Real Estate Agent
Work with a real estate agent throughout the home selling process – you'll be glad you did. A real estate agent will go above and beyond the call of duty to ensure that you can get the best price for your residence, regardless of the housing market's conditions.
A real estate agent first will learn about you, your home and your home selling goals. Next, this housing market professional will list your residence, promote it to large groups of homebuyers and host home showings and open house events. If a homebuyer submits an offer on your residence, your real estate agent will help you analyze the proposal and determine whether to accept, reject or counter it.
Furthermore, a real estate agent is happy to respond to any home selling questions. This housing market professional knows exactly what it takes to sell a residence, and as such, is ready to respond to your home selling queries at all times.
Get the best price for your home – use the aforementioned tips, and you can price your house appropriately.
Buying or selling a house is one of the most significant financial transactions because in most cases, it involves spending a considerable amount of money. Getting the best possible deal is important to make sure that you are getting value for your money and not overspending unnecessarily.
To negotiate a better arrangement when purchasing a house, you need a good strategy, and you must know how to motivate and negotiate with all the parties involved in the transaction. Here are some tips that will place you in the right position to negotiate favorable terms:
Research the market
It is impossible to know the worth of property without carrying out appropriate market research. It is essential that you inspect similar properties in that vicinity and compare them. Also, you should be familiar with the selling price of similar properties in the past few months and know the trends of the property market in your area.
Dealing with the seller's real estate agents
You should be apprised of the fact the seller's real agents work for a seller and not for you. An agent's job is to get the best deal for the seller; therefore, they might employ a tricky tactic to make you pay more. Do not be pressured to offer more than what you are comfortable with and don't disclose too much information as regards your emotional attachment to the property and your budget.
Make use of a buyer’s agent
A buyer's agent is in the best position to find you the right property. Not only that, they will represent you all through the negotiation deal. A buyer's agent will help you examine different properties and negotiate on your behalf. Another advantage of using a buyer's agent is that you will have access to locations that are not in the market. You can find these off-the-market properties through the agent's industry network.
Research the property
To evaluate the value and know how much to offer for a property, you must take a closer look at the features as well as the downsides of the property. Also, you must know why the property is on sale.
Do not exceed your budget
The initial thing you need to do before you start looking for a house to buy work hand in hand with an accountant and a financial to work out your budget. Speaking with a mortgage broker is also a good idea as it will help you know how much you can borrow. Try to adhere strictly to your budget irrespective of the pressure faced.
If budgeting isn’t your thing, you’ll be glad to discover that it’s quite simple. There’s a way to categorize your spending and save money easily. If you learn the rule, it will become so automatic that you won’t even think about it. If you’re saving money for a home, this practice will be essential. Break your budget down into three categories:
- Living expenses
- Financial goals
- Personal spending
Half of your budget should go towards living expenses. This number includes all of the essentials like rent or mortgage, utilities, groceries, commute costs, and insurances.
20 percent of your income should go towards other financial goals like savings, investments, or paying down debt. Credit card bills, student loans, and other bills would fall under this category. This category is also where you’d save for your down payment, closing costs, and other expenses. This percentage can be adjustable depending on how much debt you have or how much you need to save for retirement.
The remaining 30 percent of your income can go towards personal spending. This category includes everything that you use your money for but isn’t a necessity. This percentage is also flexible. If your lifestyle doesn’t require you to use all 30 percent each month, you can indeed save more money.
A Clear Plan
These categories simplify your budget. Even if you make some adjustments to the numbers, the outline truly makes budgeting easy even for the most scatterbrained among us. It allows you to see where your money goes clearly. It also works no matter what kind of living situation you have.
The great thing about this budgeting plan is that you have some future needs built into it. Many times, when we budget, we think of our immediate needs and our shorter term goals. Saving for any occasion can never happen too early. You are able to not only focus on your current goals and the future.
Steps
First, determine your monthly income. This number is how much money you take home after taxes. From here, you’ll be able to split your money into categories by percentages. If your income fluctuates frequently, you’ll need to take an average of your monthly income to determine your numbers.
Next, you should take a look at your spending habits. These include everything from your morning latte to your monthly rent payment. From here you can make adjustments. Perhaps you need to look for a less expensive apartment. Maybe you need to cut down your weekly pizza to a bi-monthly purchase. Whatever you see in your finances, a simple percentage rule gives you the tools you need to become a saver and be well on your way to the purchase of your first home.
“Curb appeal” is a term that worries many sellers who are concerned that their house doesn’t have what it takes to woo buyers when they pull up to your driveway. Some aspects of curb appeal aren’t always in your control, such as the neighborhood your house is in, the state of sidewalks and roads, and eyesores like outdated power lines.
However, there are many things you can do to make your house stand out amongst the rest in a positive way. Better yet, you don’t have to spend thousands of dollars to achieve curb appeal.
In this article, we’re going to give you 6 inexpensive ways to increase the curb appeal of your home to woo potential buyers.
1. Match your landscaping to your home architecture
We all have our own preferences when it comes to bushes, trees, and plants in our yard. However, some landscaping decisions work more fluidly and naturally with the architecture of your home.
A good way to achieve this is by planting things that are native to your area and avoiding expensive trees that are in fashion one year and out of style the next.
2. Paint your trim, shutters, and front door
Sprucing up these accent items will improve the appearance of the entire exterior of your home. Don’t be afraid to choose bright and bold colors, so long as they match the color and style of the rest of your home.
3. Buy a new mailbox and house numbers
For less than $40 you can buy a new mailbox and house numbers that will give your home a sense of newness. Like with the other items on the list, go with options that match the style of your home.
4. Upgrade the lighting
Although the lights might not be on when people come to view your home, they will certainly notice old lighting. Make sure walkway lights are standing straight, equidistant from one another, and clean.
Installing or updating your porch light is also a good way to up the curb appeal when potential buyers get to your doorway.
5. Photograph the home at the best time
Since most home buyers begin their house hunting online, your first opportunity to show off your home’s curb appeal is in your listing photos.
While there is no set rule to the best time of day to photograph your home, you’ll want to avoid harsh glares or extremely overcast days. Try shooting after sunrise, sometime before noon, in the late afternoon, and just before sunset (the golden hour). Then review your photos and find the ones that show off your home the best.
6. Wash or pressure wash your home
Before spending hundreds on landscaping, take some time to wash the exterior of your home. Viewers will look at your house first and foremost, and dirty siding won’t win over any hearts.
You can use soapy water and a long-handled brush, or you can rent a pressure washer for as little as $30.
Securing a mortgage to buy a home is probably one of the best and most important milestones in a person's life. It comes with a lot of benefits and bragging rights.
But, even with all of the butterflies and feelings of being on cloud nine, the truth of the matter is that there are also costs in securing a mortgage — before and after the transaction.
The costs incurred before securing a mortgage.
The following are the costs incurred before you can secure a mortgage:
1. Before you obtain a mortgage, you need to pay for appraisal fees. An appraisal fee is a professional fee that you pay to get an estimated value of the house you want to buy. This one is the first step that you need to fulfill before securing a mortgage. It allows creditors to determine your loan-to-value ratio. A third party does it. The price ranges between $300 and $1,000.
2. You also need to pay for an inspection fee. The inspection fee is the amount that you spend for the potential house to get checked for leaks, pests, problems, and everything that may make or break your decision to purchase. It depends on the creditor if they require this, but it costs roughly around $300 to $500 for a home inspection service.
3. You also have to pay for your credit report fee. You may think that this should be free of charge, but it is not. More often than not, potential borrowers need to obtain a copy from each of the credit bureaus even before they apply for a loan. Some professionals would say that this is the first cost of securing a mortgage because if you have a bad credit rating, you might as well not push through with the loan. This aspect is all debatable. It will cost the borrower around $30 to $50 per report. If you are lucky, you can get this for free because some lenders cover the cost themselves as part of their credit check.
These three costs get incurred mostly before approval of the loan, and there are different costs once you get the approvals and purchase the house. The critical thing is for you to be a hundred percent committed to the purchase. Being fickle minded does not pay off in the real estate market.
If you are still potentially on the fence with your mortgage needs, ask a real estate professional to help you decide on what mortgage options might work best for you.
