Thursday, October 11, 2007

Preparing to Sell

Wow, with the high inventory of homes on the market these days, is it wise to put one's home up for sale?

Some areas are doing better than others, but sometimes one just needs to sell no matter what the market conditions, due to a job change, divorce, job loss, or just wanting to buy another house.

Realtors can offer lots of specific advice about preparing your home and yard for sale, and most of that is common sense. However, if they suggest some "freshening up" that you think is frivolous, make sure that your ego is not getting in the way!

There is another part of preparing to sell that people generally don't think about in advance. Unless you are planning to pay cash for the entire amount of the next home you purchase, you will need real estate financing. As we have been hearing nonstop for the past few months, the mortgage market has changed. You absolutely positively must get preapproved for your next purchase BEFORE you list your property for sale.

What if you didn't? Here is a really rotten scenario that could very easily occur: You list your property for sale and accept an offer. Then you get serious about looking for your next place, and contact a mortgage broker and realtor. The mortgage broker informs you that you will either have to put down more money than you planned on, or offers you a much higher rate than you expected, or tells you that lender guidelines have changed drastically since you last took out a mortgage, and that it will be difficult to find a lender for you. GACK! What now? You're in contract. Don't risk that situation. Get preapproved before you list your home for sale.

Mortgages explained and demystified. Call 408/483-2730.

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