Home sellers currently have the upper hand in the housing market because of the prevailing low housing inventory on one hand and price gains on the other hand. As a homeowner, you may want to take advantage of the current housing market condition to sell your current property and find another one that you can call “home”. You need to act efficiently if you have plans of putting your home in the market. Here are the smart strategies you may want to consider so your family can have a smooth transition.
Stage your home to attract homebuyers
Staging is a real estate term where you strategically arrange furniture and declutter your home so potential buyers could easily visualize what it feels like to live inside your home. It’s a way to make good impressions from buyers who have obtained a mortgage pre-approval. Staging a home not only attracts more buyers in a hot market, but it could also increase the property’s price compared with other nearby homes that are not staged. Aside from decluttering, some home sellers even rent furniture to accentuate parts of the home or hire professional stagers. Staging could make your home stand out from other homes in your neighborhood.
Prepare your documents
Real estate transactions are typically fast in a hot market, and as a seller, you need to immediately prepare all the relevant documentation needed to complete a sale. Some of the documents you initially need to prepare before listing your home include original sales contract, updated homeowner’s insurance records, inspections, and your recent mortgage statement. Keep in mind that you’re going to deal with a lot of paperwork through the process, and you might find it ideal to seek professional help. If homebuyers know that you have all your documents ready and in order, they will likely quickly pursue to buy your property.
Determine a realistic offer price
When selling your home, you need to come up with a price offer that homebuyers would think reasonable. Getting a home appraisal could give you an accurate estimate of your home’s market value but it comes with a cost and the buyer’s lender could come up with different figures when appraising your home. Determining that your home’s current value matches the amount the homebuyer will borrow from the lender is important. A prospective buyer may have difficulty securing a mortgage to buy your home if the lender’s appraiser finds out that your home does not have enough equity to secure a mortgage. To determine the home’s approximate value without having an appraisal, some homeowners either search online listing sites for prices of homes sold in their neighborhood or ask a few real estate agents.
Work with a seller’s agent
In a hot housing market, you may find it tempting not to hire a seller’s agent and instead sell your home on your own. If you’re selling a home for the first time, you need to know that it’s not just simply taking good pictures of your home and posting them at online listing sites. You may find yourself overwhelmed with the volume of paperwork, negotiating or making counteroffers with several buyers. Also called a listing agent, a seller’s agent is a market expert that could help you with all the complicated processes of home selling so you can focus on other important matters, like looking for a new home for your family. Home sellers find it ideal to ask relatives and close friends if they could recommend a seller’s agent who would properly represent you and protect your interest as a seller. Before hiring an agent, make sure to ask everything including commissions and the scope of work he or she will provide.
Consider getting a bridge loan
In a seller’s market, you may already know that buying a new home could be a challenge. Renting a home could be one of your temporary options but prices of rental homes have also increased. Your family may also find it inconvenient and costly if you move several times until you find a new home that suits your needs. Getting a bridge loan could be a viable option if you want to avoid the hassles and additional costs involved in selling a home and buying a new one. Bridge loans enable you to buy a new home and move in right away even if your existing home is in the market.
Speak with an RPM loan advisor if you need a bridge loan
Selling your home in a hot market is worth considering if you want to take advantage of the ongoing conditions in the sellers’ market. As a home seller, there are smart strategies you could do to find the right buyer and to have a smooth transaction. However, if you want to buy another home while your existing home is in the market, a professional RPM loan advisor could help you get a bridge loan.