Tuesday, February 7, 2012

“Open House” to Closing: Set Up Your Sale for a Successful Close: Part 1

Getting ready to sell this spring? These days, as many as a third of all deals falling apart before closing. This week we’re reviewing the steps you can take to set up your home sale from the beginning for a successful closing.
At the end of 2010, real estate agents reported that about 9% of their deals disintegrated before closing. Now, that is up to a third, according to the National Association of Realtors. Industry analysts point to a host of factors that converge to derail seemingly solid deals off the tracks.
  • Appraisals often come in lower than expected – mainly because they count in foreclosures in the ‘comparables.’ This has set up a feud between real estate agents – who think that what a buyer is willing to pay is the only validation of market value that a lender should need – and appraisers, who maintain that their trustworthiness depends on doing a thorough job that mirrors market realities.  
  • Buyers don’t qualify after all. Household debt is starting to edge up again. Unemployment is down, but employment isn’t necessarily up. A buyer might make an offer in good faith, then be hit with hard economic circumstances that make closing impossible.  
  • Buyers don’t have the equity they need from their own homes. Anyone who bought in the past seven years doesn’t have much, if any, equity in their homes. They just don’t have enough to overcome financing hurdles that have cropped up since they purchased their homes.

The rules of the game have changed. Keep reading this week to learn how you can craft a selling plan that turns these circumstances to your advantage – and that keep your home sale on track from open house to closed deal.

Image courtesy of Morguefile contributor dubois.

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