How to Get to SOLD: Frequently Asked Questions…Real Estate 101

Average Sold Price

How to Get to SOLD: Frequently Asked Questions

What about pricing it high? We can always come down on the price later.

This is also known as riding the market down. This is not an effective pricing strategy. In fact, the property is never priced to be “picked” by the buyer. Overpriced properties will be overlooked and then Sellers find they have to reduce the price below market value to attract attention to get it sold. The house may very well have sold in the first critical weeks at a higher price, if it had been priced fairly to begin with.

Will the “extras” we’ve put into our house increase the selling price?

Cosmetic and decorative items – window treatments, built-ins, shelving, etc. – are not likely to increase the sales price and are not part of the appraisal. These items may make your house more appealing than the competition and encourage more offers.

What kinds of things WILL increase the selling price of my house?

Items that are likely to bring you a better selling price include; appliances, added square footage, and extensive landscaping. The more move-in ready your house is, the more valuable it will be to the buyer.

How much should we expect to pay in closing costs?

It all depends on current market trends, the borrower’s type of loan, and other factors. Often Buyers expect Sellers to be willing to pay the bulk – if not all – of the expenses associated with finalizing the transaction. Your real estate agent can advise you on this.

Should I use a lockbox?

YES! Having a lockbox on your home for showing purposes greatly increases the access to it. The easier and more available your home is to show, the faster it will be sold.

What kind of inspections are required when I sell my home?

Home Inspection

Many contracts are contingent upon the results of a home inspection, at the Buyer’s expense, to look at the property’s structure and systems. This is where the Buyer gets an idea about the condition of the home. It is common for Buyers and Sellers to negotiate on repair items noted in the inspection.

Appraisal – required by the Buyer’s mortgage company to validate the negotiated price in the purchase contract. An appraisal is a “snapshot in time” of the property’s value. Two challenges may arise as a result of the appraisal:

1. The appraiser may require some condition issues to be corrected or repaired. These may include peeling paint, lead-based paint, broken glass, roof repairs, damaged gutters, etc. These repairs are generally the Seller’s responsibility.

2. If the appraiser arrives at a lower value than the sales price, the Buyer is not obligated to complete the purchase. Low value can make your home unsellable. If an appeal to the appraiser is unsuccessful, you may have to lower the sales price in an effort to hold the deal together.

Termite Inspection.

The Buyer’s lender requires a recent report from a termite and moisture inspector to confirm that the property is free of wood-destroying insects, moisture damage, or conditions which might lead to such damage. Again, these corrections and/or repairs are generally the responsibility of the Seller.

Final walk-Through

Generally conducted a day or two before closing, the walk-through inspection is an opportunity for the Buyer to confirm that the property is in substantially the same condition as when the offer to purchase was made; agreed- upon repairs have been completed; the property is free of trash, debris and personal items; and all systems are in working order.

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Market Watch…What is for Sale in Virginia Beach?

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