Avoid These Common Mistakes After Applying for a Mortgage

The 3 Things You Risk by Pricing Too High When selling your house, the price you choose isn’t just a number, it's a strategy . And in today’s market, that strategy needs to be sharp. The number of homes for sale is climbing. And that means buyers have more choices and can be more selective. If your price doesn’t line up with what else is out there, they’ll scroll right past it and go on to the next one. Pricing right from the start is your best move – and a great agent can help make sure you do. Overpricing Comes at a Cost And more sellers are finding that out the hard way. They list their house based on how things were a year ago – or based on a neighbor’s sale that happened under completely different circumstances. Then, when their house doesn’t sell, they’re left with three tough choices: Drop the price : Cutting the price might help get more eyes on the house again, but it can also trigger red flags. Buyers may wonder what’s wrong with it. And that’s going to impact any offers you get after the price cut. Take it off the market : Some sellers give up on the idea of selling right now. The worst part about this is it means putting their future plans on the back burner. That dream of more space, downsizing, or relocating? On pause. Rent it out : Others go the landlord route, but managing tenants and navigating leases isn’t always the simple fallback it seems. Renting can work, but it’s often a lot more hassle than people expect. None of those options were part of the original plan. And honestly, none of them are where you should end up if you wanted to sell. Here’s a look at how a local agent’s expertise can help you avoid these headaches. Let's use price cuts as an example. Where You Live Makes a Difference While the number of price cuts is up nationally, data shows some parts of the country are seeing far more of them than others. It all comes down to how much inventory has grown in that area (see map below): As Realtor.com explains : “Regionally, price reductions in June were significantly more common in the South and West (23% of listings) than they were in the Northeast (13% of listings), reflecting the inventory divergence across these regions.” That means pricing isn’t one-size-fits-all. What’s happening nationally might not reflect what’s happening in your zip code, and that’s why you shouldn’t try to determine your list price on your own. How a Great Agent Helps You Nail the Price A skilled agent doesn’t just toss out a number. As Zillow says: “ Well-priced homes are more likely to sell quickly, but pricing your home to sell quickly and for maximum dollar requires strategy and knowledge of your local market. You need to have a clear-eyed view of your home in relation to the competition, and knowledge about whether you’re in a buyers or sellers market. It also helps to know what buyers in your area can afford.” And that’s all knowledge your agent will have. They study your local market, compare recent sales, and factor in your goals and buyer behavior. Based on what’s happening where you live, sometimes the best play will be pricing right at current market value. Other times pricing a little lower actually will spark more offers and ultimately get you a better final sale price. So don’t skimp on the strategy or on your agent. With their local market know-how, you’ll be able to sell quickly, even in a shifting market. Bottom Line Overpricing can lead to tough choices you never want to face. But with the right price, and the right guidance, you can skip the stress and sell with confidence. Let’s connect so you have a pricing strategy that works for today’s market and gets you where you want to go.

What You Can Gain — Or Lose — Selling Your Home to an iBuyer An iBuyer can help you to sell your house quickly by skipping some of the hassles of having a home on the market and letting you set your own timeline. But selling to an iBuyer — a real estate company that uses tech to buy and resell houses — isn’t for everyone. Not all homes will qualify, even if you live in an area where iBuyers operate. And while you can be sure that the sale will go through because there’s no mortgage involved, you won’t know whether you could have gotten a higher price for your home from a traditional buyer. Here are some pros and cons to consider before selling your home to an iBuyer. Pros of selling your home to an iBuyer Convenience Not having to prepare your home for sale or make it available for potential buyers can be a huge plus for sellers. “That’s something that’s hard to place dollar values on too, like getting your kids and dog out the door to facilitate home showings,” says Charles Stewart, who’s in corporate communications for Opendoor. “It’s not just the final dollar amount you’re getting, it’s the convenience factor.” Timing In a buyer’s market, the need to sell quickly can work against you. If a traditional buyer finds out you’re in a hurry, they could use that as leverage to make a lower offer. But with an iBuyer, it’s expected that the process will be fast. Though you can always request a new offer, iBuyers’ initial offers are usually valid for less than a week. An iBuyer can also help with timing in a hot real estate market . If you’re concerned about finding a new place, you can choose a closing date that’s further out (depending on the iBuyer, it can be as distant as 90 days). You may also be able to rent back your house after the iBuyer purchases it, buying you a bit more time. Predictability With an iBuyer, you know exactly when things will happen since you set the closing date and you don’t have to worry about the mortgage financing falling through at the last minute. “People who are moving across the country trying to time their move to the sale of their house, it’s next to impossible,” says Amanda Pendleton, communications manager for Zillow. With an iBuyer, you’ll know exactly when to hire the movers. Cons of selling your home to an iBuyer Qualifications Not only do you need to be in a market where iBuyers operate, but you also need to have they kind of home they’re looking for. Houses that need extensive repairs are out, but so are higher-end homes, houses that are highly customized and most older homes. “Each market has its own set of parameters,” says Tyler Hixson, director of real estate partnerships and strategy at Opendoor. “Whatever is the typical home for that market, the typical home is one that we can service.” Broadly, houses, condos, and townhomes that are relatively new are the most likely to fit the iBuyer model. Opportunity cost Since iBuyers are still relatively new, robust data on what they’re paying for homes is hard to come by. Studies have conflicting evidence, with some finding that iBuyer offers are close to market value, and others demonstrating wider gaps. Both Zillow Offers and Opendoor emphasize that they offer “fair market prices” based on both computer algorithms and human analysis (iBuyers do have actual boots on the ground in the markets where they operate). But since you’re dealing with a what-if scenario, you can’t truly know whether you would have gotten a better price by selling your house the traditional way. Repairs After you’ve agreed to an iBuyer’s offer, the iBuyer does an assessment (this is similar to, though not the same as, a home inspection). The assessment is designed to uncover things the iBuyer might need to repair or replace in order to sell your house . Though you can negotiate to do the repairs yourself, that may not be an option if you’re in a hurry to move. If the iBuyer does the repairs, the costs will be deducted from what they pay you, meaning the assessment could end up taking a big bite out of your original offer. Weighing the pros and cons of selling to an iBuyer Determining whether your property fits an iBuyer’s qualifications is a first, necessary hurdle. If it does, and you’re curious as to whether to take the next step, bear in mind that many iBuyers will give you an offer without requiring a commitment. You may be able to request offers from more than one iBuyer, depending on where you live. iBuyers generally make limited-time offers (you’ll usually have less than a week to accept), but seeing an actual number might give you a nudge to move forward. On the other hand, it could tip your hand toward going the traditional route and looking for a listing agent. Either way, you’ll need to decide what’s worth more to you. Don’t want to deal with prepping your house to sell and making your schedule work around showings? An iBuyer might be right for you. More concerned with maximizing your profit? Getting a savvy seller’s agent and doing a traditional sale may be a better bet. The article What You Can Gain — Or Lose — Selling Your Home to an iBuyer originally appeared on NerdWallet.