Saturday, November 27, 2010
Properties seem to be sitting on the market longer and also taking longer to close escrow once they are in contract. There are many reasons why this is happening. If a property is sitting on the market without interest, it’s probably because it is not priced right and doesn’t show well. You may want to consider a price reduction. The value of what you think your home is worth may not be the same as the actual market value. If the escrow is taking longer than expected, there may be issues with the loan. An FHA loan can take longer to close than if a conventional loan due to the paperwork involved and the appraisal process. FHA follows stricter guidelines than a conventional loan and this often can lead to a slower process of closing the deal if anything comes up that must be addressed.
In addition to lending, buyers are savvier than ever. With less competition they have more bargaining power than ever. Often times, buyers will get into contract and then during the inspection contingency discover issues with the house that have not been addressed and rightfully so they want to renegotiate terms. This negotiation process may take longer than in the past.
The best decision a seller can make is to provide as many inspection reports as possible before taking offers. By doing this, the seller will minimize surprises during the transaction and it will allow you Realtor to price your property appropriately. Your house will most likely get in offer faster than if you don’t provide reports.
Reports can vary in price. A typical fee for a pest report is approximately $250, a home inspection is about $400 and a roof inspection is about $150. The pest report will help you to determine if you should get a foundation report and if so that can cost up to $500. It’s also important to make sure you use a reputable company and your Realtor should be able to refer you to reputable inspectors and contractors
Don’t let the buyer determine the price of your house. By being prepared, you will minimize surprises and have a smoother transaction.
Posted by Gina Odom, Realtor