The Common Questions
All that paper work - why?
Will I have to move twice?
If I do where will I move to?
Pre-inspection - Pros and Cons
How will my home be marketed?
I have to sell for X amount.
All that paper work--why? There sure is a lot of it these days. It is best to have it in advance so you can read over it and then discuss it with your agent. Remember don't sign it unless you understand it. That is the cause of many misunderstandings in this process. If your Realtor does not like this idea look for another Realtor! I feel it is that important.
Will I have to Move twice?------That is something that you need to consider. In a buyers market like it is today I would strongly recommend it. If you put a contingency on your home that you have to find your new home before you can move that is a road block. That could affect how many buyers will be interested and the pool of buyers is small already. I am not saying this is not done but it will have an impact on your market presence. Most of the time buyers looking are ready to move in, they have sold their homes, or are being transferred here in a certain amount of time. When they see that you could change your mind if you do not find a home of choice they realize that they really don't have their new home purchase locked. There are too many homes for them to choose from today to take a chance on the seller not finding a home they like or changing their minds. In a sellers market this would be different because there are fewer homes out there to choose from and the seller is more in charge.
Either way will work but do you want to put up that road block in this market? Once you have your home sold , you now have cash in your pocket and you are a real buyer ready willing and able to buy. That is what sellers always want in any market. When you have cash in pocket your negotiating strength is stronger, especially in this market.
If I do where will I move to? This will depend on many things such as if you have a pet, how long we think it will take to find your new home etc. There are apartments that will allow a short term lease, maybe there is family or friends that you could stay with for awhile. As part of the whole process I feel it is best to talk to movers ahead of time and get and idea of what the cost would be to put your things in storage for awhile. Some movers have pods that they will deliver and you can pack it yourself.
Pre-Inspection--Pros and Cons In any market , a pre-inspection is great to put you ahead of the pack. It shows the buyer that you are taking an active part to make your home the best it can be. It will also let you choose the inspection company and be there when the inspection is being done. Inspection companies are not all created equal. If there is a problem with your home that you do not know about you are going to have to deal with it anyway. It is better to do it on your terms than that on a potential buyers. If you have a pre-inspection it does not stop the buyer from having their own.
How will my home be marketed ? Selling a home is more than putting a sign in the yard. Your agent should be able to tell you where and how and why it will be marketed. If they cannot do this and have reasons and statistics to support a comprehensive plan, there is a problem. Marketing means exposure to the most buyers possible. Today that mean pictures, and a virtual tour at the minimum. 80% of buyers start their search on the internet today. If you look at the homes magazines and the newspaper ads, you will notice that they are getting smaller and smaller. Why? Because that is not where the majority of buyers are looking. I have a very complete, comprehensive and proven marketing plan.
I have to sell for X amount. This is a tough perception to over come but the easiest one to explain. This goes back to your home being a commodity. What you need does not matter to the buyers out there. They are the ones who decide what your home is worth to them. If you plan to wait until the market moves up, remember if your house is worth more, then the one you buy is also going to be worth more. If you take this whole transaction not just the sale of your home or the purchase of your next home, it is much easier to understand. Do we like it? Not necessarily. When you are an informed consumer, you become a very savvy consumer. You will be able to move on in a confident manor with the least amount of frustration. I recently had one seller spend over $40,000 to get his house ready to go on the market. (This is not the norm but if you had seen this house you would have known why!) and we talked about putting it on the market for a certain price. By the time we got it ready to put on the market the market had dropped by almost $15,000 dollars. When we sat and looked at the numbers the seller said price it $5000 under what the last one sold for and lets move on. His home sold in 25 days, he had his money in his pocket and he moved on with his life. A quote from him was "until I have my money I can't make more money". He truly understands about supply and demand. The thing is some of the homes that were on the market when we started were still on the market after we settled. Who got the best price for their home?