If you take care to price your home correctly — that is, at a price that is in line with what similar properties in the area have sold for recently — then you have a good chance of selling it at or near your asking price.
That doesn’t mean you won’t get a low-ball offer. You might. So what do you do when that happens?
First, understand that the buyer may not necessarily be trying to steal away your home at a bargain-basement price. He might simply be mistaken about its true market value. Of course, he might also be coming in at a low price in the hopes he’ll get lucky.
You will never actually know the buyer’s motives. So it would be a mistake to get angry or dismiss the offer out-of-hand. That low-ball offer might end up being the beginning of a negotiation that results in you selling your home at a good price.
Your first step is to work with your REALTOR® to determine:
• How serious the buyer is.
• How qualified the buyer is. (For example, does he have a preapproved mortgage?)
• How amenable the buyer is to a counter-offer that reflects the true market value of your home.
• What that counter-offer should be.
This isn’t an easy process. It takes knowledge and experience to get it right. That’s why working with a good REALTOR® is essential.
Looking for a REALTOR® who is an expert at this stuff? Call today.
If you own a car, you know there’s more to the cost-of-ownership than just finance payments and gas. You also need to budget for maintenance and repairs. If your car is older, those costs are going to be higher. That’s just common sense.
The same is true of your home. It’s wise to budget for anticipated repairs and maintenance. Otherwise, you might be caught by surprise when you find that your furnace stops working and needs to be replaced. That can easily be a four-figure expense.
Experts recommend that you set aside 1% of the value of your home for repairs and maintenance. For a $500,000 property, for example, that would be $5,000. That is, of course, merely a rule of thumb. If your home is older, you may need to budget more.
Another recommended method is to budget $1 a square foot. If you have a 2,500 square foot home, that would be a budget of $2,500. Again, that number would need to be higher for older properties.
When budgeting, consider things that are getting old and will likely need to be replaced within the next three years. Examples include roof shingles furnace, A/C unit, deck, fence, plumbing, and windows. Depending on the size and model, a new A/C unit will cost at least $5,000. Anticipating that expense will help you plan accordingly and avoid the shock of an unpleasant and costly surprise.
Keep in mind that budgeting $2,000 for repairs and maintenance doesn’t mean you’ll actually spend that money this year. But, if needed, the budget will be there, and that’s peace-of-mind.
When you purchase a home, you’re hoping it will continually go up in value — just like a good investment.
However, there’s something else that you want to see go up in value as well: the neighbourhood. In fact, the neighbourhood plays a key role in what the home will be worth in years to come. If the neighbourhood goes down in terms of desirability, so will the market value of the home.
That’s why, when shopping for a new home, it’s important to get a feel for the value of the neighbourhood, and whether or not it’s on the upswing.
How do you do that? One way is to simply take a walk. Look at the
properties. Are they well maintained? Is the landscaping groomed and attractive? Those are signs of “pride of ownership” — a clear indication that owners value their homes and the neighbourhood.
Another way is to do some research. Has crime gone up in the
neighbourhood? Are there improvements planned, such as new parks? Is the neighbourhood attracting the kind of people you want as neighbours? How does the neighbourhood school rank?
Some of this information may be difficult to get on your own. A good REALTOR® can help you. Call today.
However, most often the decision to move is discretionary. Sometimes people move simply because they think it's a good idea. They feel that "now" is the right time to find their next dream home.
So how do you make that kind of decision?
There are, of course, many reasons to make a discretionary move. Usually, those reasons fall into one of two categories: need and want.
You may need to find a new home, for example, because you've outgrown your current property. Perhaps you have a growing family and require more space. Maybe you're doing more entertaining and need a larger backyard with a more spacious deck. It could be that the commute to work is arduous and you need to move to a place that's closer.
Those "needs" may motivate you to move, but sometimes a "want" plays an important role, too.
For example, you may want to live in a quieter neighbourhood or in a newly built home that requires less maintenance. Maybe you simply want a change.
If you're thinking of making a move, take a moment to write down a list of your needs and wants. Seeing them on paper will help make the decision easier.
Looking for expert help? Call today