Part two of our look at the dynamics, techniques and attitude required to make the best deals in real estate covers sellers.
Let’s start with timing. The seller’s friends are scarcity and demand. When there are few houses on the market, and demand is high, the seller is in the driver’s seat. Whenever there are a limited number of opportunities, those available become more valuable. This is the time when sellers can demand good prices and superior terms. They may even be in a position where several buyers are bidding against one another for the privilege of purchasing the property.
You may have heard the term leverage. Another way to express leverage is to say “the upper hand”. Either the buyer or seller may have the upper hand in the transaction and several factors may come into play. A seller may have leverage if his property has a unique quality, is in an exceptional location, or has a pedigree, like a celebrated architect or former resident. Advertising these special qualities may bring in the buyers willing to pay a premium for these features or circumstances.
Price is first and foremost, but there are other things to consider. The terms and conditions of sale; as a seller, you want the most stringent terms of sale, few contingencies, a quick close and limited concessions.
Your ability to accomplish this is dependent on the factors discussed above. If it’s a buyer’s market, and you’ve only got one guy ready to move, you may have to pass on a few goodies to him to make that sale happen.
Now to financing – a crucial element in real estate transactions. The seller should be looking for a buyer with a “pre-approval letter” in hand, not a “pre-qualified letter”. A pre-approval letter means that the buyer has been approved for the loan contingent on the buyer finding a home, and that home appraising. This is not an absolute guarantee the buyer will succeed in obtaining a loan – he may be declined for reasons outside of his credit standing, but the seller’s risk is much lower in choosing a pre-approved buyer. If the buyer has all cash, all the better. Everyone loves cash. And finally, make sure that you get proof of funds, like a bank statement to verify that the buyer has liquid cash to cover the buyer’s closing costs and down payment.
Should you use a broker? Yes, definitely. Brokers have information about the general real estate marketplace and particular properties. They follow the trends and history of their neighborhoods. Knowledge, without doubt, is power. Your broker can help you set the right price for your property, which may be more than you thought you could achieve. They know how to stage the property to give it the most appeal, and how to market and advertise it to its best advantage. You will pay a commission, but utilizing the services of a good broker is the best way to get your house sold timely and well.
So, to sum up, seller, to get your best deal on the sale of your house, you want to put it on the market when inventory is low, possibly winter or late summer. You want to use the services of a broker to help you determine the best price, stage the house and market it properly. You want to look for buyers who walk in with a pre-approval letter from a qualified lender, and of course, you want to present yourself as the lovely person, couple or family who will pass on the property. It never hurts to make the buyer like you and feel happy to move into your house, for the right price, of course.
Del Phillips is a California Licensed Real Estate agent. He is a member of the National, California and San Diego Association of Realtors. You can reach Del at Ascent Real Estate at 619-298-6666 or at Del@DelPhillips.com DRE LIC #01267333.
