ARE YOU ENTERTAINING AN IDEA OF SELLING YOUR HOME?
ARE YOU READY TO SELL?
Putting a house on the market is not an easy decision, neither an easy task... There are a lot of factors, fees and costs associated with the sale of a house.
Life throws a lot of surprises our way. Life circumstances change our plans - sometimes for the better sometimes not. But whatever your reasons are the life goes on and the decision has to be made.
Do you know where to start with the process? Do you know what needs to be done, thought of, prepared, fixed, arranged, addressed, checked ? etc, etc...
What inspired me to write this post is the turbulent journey my clients went through ...
First they had to sell their house in another town before they could purchase a house in Yukon (greater OKC area). While having their house on the market, we already started the 'finding process' here. I kept in touch with the other Realtor. Everything on our side looked good. My clients were pre-approved, in constant touch with the lender, (best lender in my opinion, read about him here: Scott Champlain your friend and mortgage lender), we have done our work here and had our eyes on a specific property. All of us were ready to go...just waiting for closing on the first house, which was already under the contract. But ...
The first scheduled closing date was postponed, then moved, then moved again...At the end my clients ended up with a little over 10,000 short on their proceeds from the sale, homeless during holidays, and uncertainty what will happen...The domino effect started. Because they have been 'shorted' (I think that there was a early pay-off penalty which my clients were not aware of) there was not enough money to payoff some liabilities and add to the down payment.
After all this work we were faced with 'starting from scratch' process. With re-written loan, paperwork and all new laws and requirements from FHA (it's a fouled up unfriendly process) satisfied we are going to sit at the closing table tomorrow!
SO WHAT QUESTIONS DO YOU NEED TO ASK YOURSELF
BEFORE YOU PUT YOUR HOUSE ON THE MARKET?
- Do you have enough equity to pay off your mortgage/second mortgage?
- Do you know the terms of your home loan? Is there a penalty for early pay off? Any specific clauses which will need to be addressed (read: penalties or requirements) for selling your house? (ex: you borrowed/were given the money from the federal assistance for down payment)
- Do you have a home equity loan/line of credit and will you be able to pay it off?
- Do you know how much your closing costs will amount to?
- Did you consider possible repair costs needed (additional after inspection)?
- What is the condition of your house? What needs to be repaired, brought up to code, carpet condition, interior/exterior painting, etc.
- Did you calculate the expense of the listing commission?
- Do you know if you have a Marketable Title to the Property, are there any outstanding liens etc...
- Did you check your roof? Check with your insurance provider...Here in Oklahoma the elements are relentless from extreme heat to freezing temps and hail and wind damage. Your roof doesn't have to leak in order to be damaged or totaled.
- Ask questions, ask and ask again...don't take someones word for it, check and recheck and the best way? Ask for having it in writing! As I always say: Black and White talks. Having all necessary documents, letters, statements etc is always the best policy.
And after all of that you still will have unexpected things coming your way...But being prepared, acting proactively and choosing an experienced Realtor on your side will let you get to the 'winner's circle'. Know the process and be prepared to welcome surprises...
I say: it is always better to be nicely surprised than badly disappointed.
With smiles,
Bo in Yukon
PS. Just in case when you sell your house here is my list for the Buyers: Top 10 List before you start looking for a home
With smiles,
Bo in Yukon
