Selling Your Home - What Can Go Wrong With Pricing and Loans
So, you're selling your home (house, townhouse, condo,
apartment, land, lot, farm, ranch, etc.), what can go wrong? The
sad fact is that a lot of things can go wrong. However, don't
despair, there are almost as many solutions as problems. In this
article, we look at problems related to pricing and a buyer's
inability to get a loan.
Price Negotiation
A problem that shows up all too frequently during contract
negotiations is that the seller has left no room to negotiate
the price. If the seller shows no flexibility, they are apt to
chase buyers away. Mad.
The solution is simple and obvious, price your property a little
higher than you feel you have to get. It needs to be a
reasonable market price for your home, but you can start at the
top of the market. Then, if your buyer wants to negotiate price,
you have built in wiggle room.
Price isn't the only thing that matters to buyers. Settlement
and move in times are important, too. This is especially true if
the move involves a new employment situation, a new school
district, etc. If you can be flexible on those points, that can
tip the choice to your property over a competing home.
Another sticky wicket during contract negotiations is
encountered when buyers ask sellers to pay all, or some, of the
buyers' closing costs. Often, sellers' knee jerk reaction is,
"Why should I pay his closing costs? Mine have never been paid
by the seller."
Whoa! Don't worry about what the buyer is getting out of it.
Look at what you're getting. Is your bottom line what you want
it to be? Close to it? Maybe you should consider paying all, or
most, of what the buyer requested.
No matter what the proposal is during contract negotiations,
don't freeze into a negative position. Think big picture. Think
bottom line. Your bottom line.
The Buyer Can't Perform
Everything was going along swimingly and then you get a call.
The buyer can't qualify for a loan to buy your home.
Check to be sure the buyer has approached a lender who will make
loans to people with less than perfect credit. If that doesn't
work, write it off as a mistake. The next time someone wants to
write a contract offer, make sure they have a letter from the
lender saying they're qualified to buy your house.
The key to selling your home is to stay calm. There will be
hiccups and bumps, but don't let them overwhelm you. Typically,
the buyer really wants the property. Work with them and a
solution can usually be found.