-BUYER TIPS-
1) Hire a Broker to help you - It costs you nothing
In illinois, the seller pays both brokers, so buyers may hire a broker to provide expertise, market analysis and negotiation services at no cost. Buying a property is a much more complicated process than most people assume and there are many challenges that a broker can help negotiate.
2) Get pre-approval for a loan before you search for a property
Once you find the perfect property, you will need a pre-approval letter to demonstrate that you are capable of purchasing the property. Without one, you run the risk of losing the property during the time it would take to get a pre-approval letter on the fly.
3) Make a list of your top 10 must-haves AND top 10 must-not haves
Many buyers cast a very wide net and look at dozens of properties hoping THE ONE will appear. This approach can be extremely frustrating and confusing. After you have made your two lists, prioritize them by assigning a number 1-10 for each item where #1 is the most important thing to you. Then, you must accept that you will most certainly not get everything you want. Unless you have an unlimited budget, it is nearly impossible to get everything you want in a house that is in the location you want.
4) Be ready to write an offer - when you find a house you really want
Many buyers lose out on property after property because they hesitate before writing an offer. If its a sellers market you have to expect that the competition will take a desirable property if you wait too long.
-SELLER TIPS-
1) Prepare your property before listing
Repair any obvious problems.
Neutralize and Depersonalize the home. Buyers need to be able to imagine themselves living there.
Have property professionally cleaned.
Have walls painted a neutral color.
Go to a few open houses to get a sense of how your home should look.
2) Price your home according to appraised value
If your property is priced above the appraised value it will initially deter offers because buyers will see that you are priced above the competition and will avoid seeing the property. Even if a buyer offers an amount that is above the appraised value, their lender will send an appraiser to value the property before approving a loan. The danger is that the deal will fall apart and you will have wasted valuable market time.
If the comps suggest your home will sell for $350,000, and the market average sales price is 97% of list price, then it is best to price no more than $350,000 divided by .97
Homes priced too high sit on the market for an average of double the average market time and sell for an average of 10% less than those priced according to fair market value.
If you cant find any truly similar comps, it may be worth it to pay a few hundred dollars to have your property appraised before listing.
3) Calculate the cost of waiting
Before you decide to wait until next year to list, find out what the estimated appreciation rate is for your market. If its less than the rate of inflation, you will not likely make any more money next year than you will if you sell now.
What direction interest rates are moving? If they are expected to increase, that will reduce buying power. Every 1% interest rates increase reduces buying power by 10%. If you are selling and buying, this will impact your next purchase greatly. It will also mean that those who can afford your property today might not be able to afford it when the rates increase.
Decide which is more important to you; Your reason for moving or the possibility of more money? Waiting is a gamble, so unless your reason for moving can easily be deferred, it is best not to expect that waiting will necessarily mean more money later.
~Thank you Matt Tiegler~
