Why Sell With Maralea?
This simple question is one that needs to be answered right away. Why should a homeowner trust me to sell their home in the shortest amount of time and for the most amount of money?
You want a Realtor who committed to a smooth transaction, who will take your special circumstances into account and treat you and the other involved parties as individuals and not numbers.
5 Reasons To Sell Your Home Now
- Demand Is Strong
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country, including Denver. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.
2. There Is Less Competition Now
Housing inventory has just hit the 7-month supply that is needed for a normal housing market. This means that, in the majority of the country, there are not quite enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values are still high and the buyers are looking. Additional inventory is beginning to hit the market and pricing is normalizing, so now is the time to realize the equity in your home, and in Denver we are beginning to see a return to the upward mobility of home owners.
Historically, the average number of years a homeowner stayed in their home was six, but has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.
3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 47 days.
- There Will Never Be a Better Time to Move Up
If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!
Prices are projected to appreciate by 4.3% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
5. It’s Time to Move on With Your Life
Look at the reason you though of selling in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
Closing Costs – Who Pays?
- Real estate commission.
- ½ of escrow fee (except VA loans where seller pays 100%).
- Payoff of any liens against the property.
- Fees like re-conveyance fees and prepayment penalties.
- Home warranty according to the contract, if any.
- Recording fees to clear all documents of record against the seller.
- Tax pro-ration for any unpaid taxes at the time of transfer of title.
- Any unpaid homeowner-association dues.
- Any assessments according to the contract.
- Any and all delinquent taxes per the contract.
- State real estate tax fee and sales tax.
- Owner’s title-insurance premiums.
- New approval of well, septic, and as-built survey (if required).
- Re-inspection fee with appraiser or home inspector (as negotiated in contract).
- ½ of the document preparation fee (unless VA or FHA loan, then seller pays 100%)
- Lender’s title policy premium – American Land Title Association.
- 1% of escrow fee (unless buyer is getting a VA loan, then seller pays 100%).
- Recording charges for all documents in buyers’ names.
- All new loan charges (except those required of the seller by the lender).
- Interest on a new loan from date of funding to 30 days prior to the first payment date.
- Assumption/change-of-records fees for takeover of existing loan.
- Home warranty according to contract.
- Hazard insurance premium for the first year.
- Home inspection.
- Reserve account for taxes and insurance.
- Flood-certification fee.
Other mandatory costs include:
- Both FHA and VA require that the seller must pay for documentation preparation, tax service, warehousing, and loan-review fee (if any). In addition, VA loans require 100% of escrow closing fee.
How To Get The Most Money From The Sale Of Your Home
Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.
- Price it REALISTICALLY
The market is changing and the days of demanding that buyers pay more than the home can appraise for are fast coming to an end. So, let’s look at a couple of strategies. Many homeowners think that pricing their home OVER market value will leave them room for negotiation. In actuality, this can dramatically lessen the demand for your house resulting in fewer showings and more days on the market. It is very important to work with a real estate professional who really understands what the demand for your home in your neighborhood looks like and who can discuss pricing strategies that make sense for your micro-market.
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In doing this, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house. We do have a cyclical market in Denver… think football. When football season starts, temperatures drop, snow is next. Selling a home in the winter will ensure that only the most serious buyers are looking. Winter buyers tend to have their ducks in a row, tend to be better prepared to buy, and tend to take less time to buy. However, waiting until after the Super Bowl is also a good idea. In the spring and summer months there are more buyers in the market and traffic for your home will likely be greater. Buyers get a bit more excited by the prospect of moving in our beautiful and mild weather. You may be able to price a little bit lower in Spring and drive the price up a little bit.
Be prepared for offers to be all over the board. Some buyers may offer WAY over asking to ensure that you choose their offer. When this happens DO NOT GET EXCITED. Here is the reality, if the home cannot appraise for that offer price that buyer will likely be forced to back out of the deal due to financing concerns and you will be starting over looking for a new buyer. That first offer is recorded in the MLS due to rules of ethics that bind Realtors -the new question for your home: “why did the last buyer back out? Is something wrong with this house?” Some offers will be substantially lower than your asking price. DO NOT BE OFFENDED. You too were a buyer once and you will likely be a buyer again when this house sells. Anyone making an offer is no different than you. The amount of loan they are approved for, the condition of the home relative to their desires (they may want to knock down that kitchen wall and they need to save the cash to do it), they may be concerned about your home’s ability to appraise for your asking price… you cannot dictate or control the offers you will get and every offer should be seen as a complement to the home, and never as an affront to you.
- Use a Real Estate Professional
This, too, may seem counter intuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.
A study by Collateral Analytics reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent. In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that: “FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.
Additionally, the real estate professional or the buyers may not be able to find your home listed when you FSBO. Finally, in Denver our tradition is that the seller pays a commission to his broker who then splits that commission with the agent who brings the buyer (the selling or buyer’s agent). The agent cannot tell the buyer not to look at your home. But consider this: The buyer is paying the earnest money, the down payment, his closing costs, getting the loan and essentially is fronting all of the funds for the transaction while the seller receives all the proceeds. Seems fair enough. But if you, Mr. FSBO, will not cover the split for the buyer’s agent, the buyer will likely not even view your home, because he is already maxed out in what he is bringing to the table.
Marketing Your Home
Selling a home takes a well thought out game plan. We have just that ready to list your home. The marketing plan is flexible and offers a menu of marketing channels for your home. Pricing is on a sliding scale based on the listing price of your home. Additionally, you can choose to sell your home using a flat rate fee rather than a percentage commission, but be prepared to pay the buyer’s agent a 2.5% commission for this limited listing service.View Our Marketing Plan
What’s Your Home Worth?
Not sure if this is a good time to sell? Wonder how much you could get for your home? Let us create a comparative market analysis and an analysis of estimated proceeds for your home to answer those questions and more.
NOTE: THIS DOES REQUIRE YOU TO TALK TO THE AGENT AND FOR THE AGENT TO SEE YOUR HOME INSIDE AND OUT. AN APPOINTMENT WILL BE REQUIRED. BY REQUESTING INFORMATION YOU ARE CONSENTING TO BE CALLED EVEN IF YOU ARE IN THE NATIONAL DO NOT CALL LIST.Request a Report