Frequently Asked Questions
Here are some answers to the most commonly asked questions we receive at Solidarity Realty.
Why shouldn’t I price my house a little high, and leave room for negotiation, since I can always drop the price later?
That’s a strategy that sounds good – but, in fact, is more likely to result in a lower price. Here’s why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are almost certainly larger or have newer/more luxurious features.
So the overpriced home is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it’s overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price – and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.
What methods are used to try to predict my home’s value?
A Comparative Market Analysis (CMA), which is an informal estimate of value based on the recent selling price of similar neighborhood properties, and an Appraisal are the two most common and reliable ways to determine a home’s value.
Do I have to disclose negative information about my house?
Almost all home sellers are required to fill out a Real Estate Condition Report. These property disclosure forms include questions regarding the major components of the home including the electrical, plumbing, appliances, heating and cooling, and are intended to make the potential buyer aware of any structural or safety issues. Disclosing all adverse material facts, is not only the right thing to do, it could protect you from a lawsuit.
What is meant by the term “contingency” in a sales contract?
Sales contracts typically contain several “contingency” clauses, or stipulations that the sale is subject to. Some examples are inspection, appraisal, and financing. With a mortgage contingency, for example, if the buyer is unable to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase.
How do I know exactly what my house is worth?
The truth is, we don’t know for sure until we put it on the market. If another agent is telling you they are sure, they are not telling the truth. Simply stated, a home is ultimately worth what an informed and unbiased buyer will pay for it. It can change from one week to the next, depending on the number of buyers on the market. Everything else is really an estimate of what a buyer might pay. Your home is ultimately worth, what the market says is worth. If you aren’t getting many showings, that is one way the market says the price is too high. Consider lowering the price before your listing gets stale.
What is meant by “Staging a Home”?
Staging a home can happen in 3 ways. If your house is vacant, we could bring in a service to stage at least the major rooms of the home. We can also “virtually stage” the house with our photography services. Finally, we can work with your existing furniture to tweak some details to make your home attractive to the most number of likely buyers. Please don’t take our suggestions to move a few items and bring in a couple others as a critique of your style! By taking hundreds of buyers through homes, we have become experts in what details and décor please the most number of people, and what details distract or even offend people. Again, our job is to make your home attractive to the most number of likely buyers. When we realtors sell our homes, we end up making many of these changes ourselves! If you choose not to have us make any suggestions about your home, that is your choice. Please be aware, though, that your home may take longer to sell and/or sell for less.