Home sellers and buyers can win with flexibility and diligence
If you’re on the edge about buying or selling a home right now, consider this: according to the Beacon Economics Home Affordability Index, homes are at their most affordable level since 1969. An August 2010 estimate shows the cost of home ownership, including mortgage, interest and principal payments with a 20 percent down payment, leveling at 16.9 percent.
Nationwide, prices are down approximately 25 percent from their peak, and mortgage rates are at all-time lows, according to Christopher Thornberg, Beacon Economics Founding Principal.
All well and good, but how do buyers and sellers come away from a transaction with satisfying results? Flexibility, adaptability, and above all, respect are the keys.
Buyers should:
Respect a budget. Even before you start the search, check your finances and be realistic about what you can afford. Don’t just consider the purchase price, but all the expenses that come with buying and maintaining a house. Write that number down–make it real–and keep that number in your head. If you are buying with a partner, be sure both of you agree on a price in the beginning. Purchasing real estate can be stressful without adding personal conflict.
List your home first. If you own a home now, get the property up and running. Simplicity is the key right now. Lenders prefer uncomplicated sales and contingencies can be rejected.
Make a reasonable offer. While many homes are selling below asking price, submitting a really lowball offer is offensive and counterproductive. Do go for a good deal, but show respect for the seller too.
Get an inspection. Hiring a trusted inspector to check out your potential home is an absolute must. You don’t want surprises just before the keys are yours. The cost of an inspection is miniscule in comparison to massive repairs you may have to make in the future.
Sellers should:
Be reasonable. The market, not your emotions, will dictate your selling price. Being greedy in this market is counterproductive. If you price at market, or a bit below, you could experience a bidding war and end with more money.
Clean it. Decluttering is essential. Pack up all personal collections that make the potential buyer distracted from your home’s architectural features and seeing the home as theirs.
Be flexible. One small thing may push a potential buyer into a contract. If the buyer really likes your wine cooler, consider it part of the sale. What is the advantage of haggling over a small appliance in relationship to selling your home at the best price?
Both buyers and sellers can work together for a happy ending with a bit of flexibility and respect.
