In this article you will learn some secrets that will help you sell your house and security issues that you should know when showing your house.
Show your house: The first trick you should try is to bake bread or some cinnamon rolls. If you’re not a big fan of baking, boil a cinnamon stick before a scheduled display. *Note: The aroma of something freshly baked or pastries will remind you of Grandma’s house. You should turn off all televisions, radios, and stereos, you don’t want distractions that could affect your buying decision to buy or not to buy. With any visit, she turns all the lights on (day or night) before the shoppers arrive and turns them off after they leave.
The next step is very important: make sure that the kitchen table is free of clutter and clean. *Note: This is where you can write an offer. Let the real estate agent do the talking and make yourself scarce. Allow shoppers all the time they need without feeling rushed. Buyers like to talk to each other without being overheard or heard by anyone. *This is how purchasing decisions are made. Please, no matter how much you want to help, do not offer any information. Let the realtor do their job, they know the wants and needs of their clients and the realtor knows how to keep them focused on buying their next home. Don’t apologize for any overlooked mess, remember, this is your house, you live in it, and they may not have noticed a mess until you bring it up.
A safety tip: *Very Important* – DO NOT show your home to a stranger who does not have a real estate agent with them, especially if you are alone. You don’t know their true intentions and you don’t want to put yourself or anyone in your family at risk. If they don’t have an agent, make a note of their name and phone number and tell them your agent will call them to make an appointment. Your safety should be the first thing on your mind and this is one of the best reasons to hire a real estate agent and not try to sell your home as “For Sale By Owner”.
Keep all your valuables (money, jewelry, credit cards, etc.) out of sight to avoid potential trouble.
When you get an offer, your agent will present it to you or the other agent may want to, either way, make sure your agent is there. Keep an open mind until you have a chance to really understand the pros and cons of the offer. Remember, you are now in the negotiation phase of selling your home. There are many sellers who never get to this stage, so don’t make up your mind until you have a chance to discuss it and ask questions. Don’t be insulted if the offer price is lower than you want, buyers are trying to get the best possible deal and many believe you start with a low offer. Again, don’t call yourself names or get defensive because they want you to leave your favorite curtains or microwave. Your agent will explain anything you don’t understand, and if there is something the agent is unsure about, they will speak to the other agent for clarification.
Don’t be afraid of seller financing, if done right you can safely make a lot of money and have an additional monthly income for a few years. The first thing to remember is that typically if a buyer wants to do seller financing, there is a problem with their old credit. There could be a lot of things that happened in the past that the banks don’t like and won’t deal with. To see if there might be a problem, have buyers provide proof of past rental history and utility payments. It’s best if they had been renting from someone who used some sort of property management, they will provide you with a detailed report of what your rent was, if they were ever late, etc. DO NOT accept handwritten receipts as proof of your rental history (receipts can be done at any time), copies of cashier’s checks will work as an alternative. If you’re happy with your rental history, insist on at least a 10% down payment. If the house sells for $200,000, then the down payment must be at least $20,000. If they don’t have a hefty down payment, I wouldn’t agree to the deal.
I want to give you an example of how much money you can make doing seller financing. Using the example above: House sold for $200,000, down payment $20,000, and terms of 7% at a 30-year fixed rate with a five-year balloon payment (a balloon payment is when the remaining balance is due). The monthly payment will be approximately: $1,200, now multiply the monthly payment by 60 months (five-year balloon), which equals $72,000. Now this is where it gets good, the balloon payment balance due is about $150,000, plus $20,000 (down payment) + 72,000 + 150,000 = $242,000. That’s an additional $42,000 that you just earned for carrying a note for five years.
If you decide to do seller financing, there are a few steps you should take to protect yourself and the buyer. Have all payments made through an escrow company, they are the third party needed to make sure payments have been made and all bookkeeping is accurate. Any dispute will be resolved by them as they have all the information and it is always very concise and detailed. If you are going to sell your home and bring the note, do so as a rent-to-own or lease option. This way, if a problem arises, you can evict after 30 days. However, with a sales contract you have to go through a foreclosure process and that could take anywhere from 6 months to a year.
I hope this information is helpful to you. If you are interested in learning more, please visit my home page at http://www.wrnottoli.com.