2 Tips to Ensure You Get the Most Money When Selling Your House

Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below). Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house. Realtor.com, gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This too may seem counterintuitive. The seller may think they would net more money if they didn’t have to pay a real estate commission. With that being said, studies have shown that homes typically sell for more money when handled by a real estate professional. Research posted by the National Association of Realtors revealed that:

“The median selling price for all FSBO homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $163,800. However, homes that were sold with the assistance of an agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.

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GSE Announce New Modification Program

On Dec. 14, 2016, the Federal Housing Finance Agency (FHFA) announced the development and implementation of Fannie Mae and Freddie Mac’s new Flex Modification program which will replace the Enterprises’ current Home Affordable Modification Program (HAMP®) which expires at the end of the year.  The program incorporates elements of a joint white paper developed by the U.S. Department of the Treasury in conjunction with the U.S. Department of Housing and Urban Development (HUD) and FHFA titled Guiding Principles for the Future of Loss Mitigation. Terms of the program… Read More

International Money Laundering Organization Issues U.S. Recommendations

The Financial Action Task Force (FATF), an inter-governmental body created to promote policies related to anti-money laundering and combating the financing of terrorism (AML/CFT), released a new report on the United States, which is one of 32 member countries pledging to implement FATF recommendations.  Last updated in 2006, the FATF report revealed improved and well developed AML/CFT measures by the U.S., especially by financial institutions subject to … Read More

FHFA Scorecard Includes Credit Scoring

On Dec. 15, 2016, the Federal Housing Finance Agency (FHFA) released its annual Scorecard for Fannie Mae and Freddie Mac (the government sponsored entities, or “GSEs”).  The Scorecard acts as an agenda for the GSEs by setting specific priorities for the two companies while in conservatorship.  FHFA maintained its three strategic goals:

• Maintain, in a safe and sound manner, credit availability and foreclosure prevention activities for new and refinanced mortgages to foster liquid, efficient, competitive and resilient national housing finance markets;… Read More

FHFA Finalizes Duty to Serve Rule

On Dec. 12, 2016, the Federal Housing Finance Agency (FHFA) released its final “Duty to Serve” rule.  The rule is intended to facilitate a secondary market for mortgages on residential properties in specified underserved markets.  The rule requires Fannie Mae and Freddie Mac to each submit a Underserved Markets Plan (UMP) detailing how each entity will carry out their Duty to Serve responsibilities with each plan subject to a public input process. The final rule reflects NAR’s policy to allow Duty to Serve credit for expanding financing opportunities for affordable… Read More

Home-staging tips for a show-worthy home

Staging your home is a great way to enhance the appeal of your property to buyers. Home-staging and lifestyle expert Tori Roth shares some tips for homesellers.

Add natural touches
Take a cue from the geography surrounding the home and use natural elements that reflect that area. You want to add plants and flowers to soften spaces and subliminally remind buyers that life grows here.

Rearrange furniture
Moving furniture to open traffic flow can make a room feel bigger, or arranging it to create a conversation area gives the space purpose. 

Set the mood with lighting
A house that’s illuminated says, “Come on in.” Open your blinds and curtains to let in natural light, and put the maximum allowable wattage in fixtures to boost illumination.

Accessorize the entryway
Add strategic pieces—a table lamp, artwork, mirror, decorative box—to create a statement when welcoming people into a home.

Get more tips, including a free home-staging video series, at toritoth.com.

The Impact Your Interest Rate Has on Your Buying Power [INFOGRAPHIC]

Some Highlights:

• Your monthly housing cost is directly tied to the price of the home you purchase and the interest rate you secure for your mortgage.
• Over the last 30 years, interest rates have fluctuated greatly with rates in the double digits in the 1980s, all the way down to the near 4% we are experiencing now.
• Your purchasing power is greatly impacted by the interest rate you secure. Act now before rates go up!

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The Impact Your Interest Rate Has on Your Buying Power [INFOGRAPHIC]

Some Highlights:

• Your monthly housing cost is directly tied to the price of the home you purchase and the interest rate you secure for your mortgage.
• Over the last 30 years, interest rates have fluctuated greatly with rates in the double digits in the 1980s, all the way down to the near 4% we are experiencing now.
• Your purchasing power is greatly impacted by the interest rate you secure. Act now before rates go up!

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Why You Shouldn’t Take Your House Off the Market During the Holidays

If you are one of the many homeowners who is debating taking your home off the market for the next few weeks, don’t! You will miss the great opportunity you have right now! The latest Existing Home Sales Report from The National Association of Realtors (NAR), revealed that the inventory of homes for sale has dropped to a 4.3-month supply. Historically, a 6-month supply is necessary for a ‘normal’ market, explained below: There are more buyers that are ready, willing, and able to buy now than there have been in years! The supply of homes for sale is not keeping up with the demand of these buyers.

Bottom Line

Home prices are appreciating in this seller’s market. Making your home available over the next few weeks will give you the most exposure to buyers who will be competing against each other to buy it.

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The #1 Reason to Sell Now… Not Next Spring

The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases. According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2016: Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

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