5 Things You May Not Know As A First Time Seller

First-Time Sellers – 5 Things You May Not Know 

Selling your first home is an exciting journey that comes with its unique set of challenges and learning curves. Even if you feel well-prepared and have partnered with a skilled real estate professional, there are several aspects of the home-selling process that might surprise you. Here are essential insights to help you navigate your first home sale effectively. 

1. Pricing is Critical Setting the right price for your home is crucial. Tempting as it may be to start with a high asking price, this can deter potential buyers and lead to a longer wait time in selling your home. Overpricing can necessitate significant price drops later on, which might give buyers the impression that there's something wrong with the property. A competitively priced home, on the other hand, is more likely to attract interest and sell quickly. 

2. Preparation is Key Before listing your home, take proactive steps by addressing repairs and any deferred maintenance. This not only enhances the appeal of your home but also prevents potential buyers from being put off by the work they would need to do. A well-maintained home generally sells faster and possibly for a higher price, as buyers perceive the care you've taken over time. 

3. Understanding Disclosure Practices Transparency about your home's condition is generally expected in the home-selling process. Sellers often share details about the property's history and current state, which can include past repairs and any existing conditions. Providing this information can foster trust and facilitate a smoother transaction by ensuring buyers are well-informed about what they are purchasing. This approach is widely regarded as a best practice in real estate sales. 

4. Anticipating Closing Costs Understanding potential closing costs is crucial when selling your home. These costs can vary and might include fees such as title insurance, transfer taxes, and other related expenses. It's important to be aware that these costs are part of the transaction and can sometimes be negotiated with the buyer. By familiarizing yourself with these potential expenses, you can better estimate the net proceeds from your home sale and approach negotiations with a more informed perspective. 

5. Negotiations Negotiating the sale terms is more complex than just agreeing on a price. As a first-time seller, it’s crucial to understand that nearly every aspect of the offer can be negotiated, including closing dates, contingencies, and even appliances included in the sale. Having a flexible strategy and an experienced real estate agent on your side can significantly benefit this process. Whether it's negotiating repair responsibilities or adjusting the closing timeline to fit your needs, being well-prepared to discuss these aspects can make a significant difference in achieving a favorable sale. 

Navigating your first home sale can be daunting, but with the right information and guidance, you can successfully manage the transaction and look forward to your next steps in your real estate journey. Being informed about these key aspects will not only help you feel more confident but also position you for a successful and smooth sale. Remember, the best resource at your disposal is a knowledgeable real estate professional who can provide insights and expertise tailored to your specific situation.

Spruce Up Your Backyard by Adding Interesting Features and Spaces

With the warmer weather on the horizon, it is natural to turn your attention to the backyard. The backyard has become central to the modern lifestyle and a functioning extension of the home. If you’ve been staring longingly at the latest home magazine display of the “perfect” backyard, your own may seem lacking. The good news is that with simple projects and a little cash and elbow grease, you can add interest and function to any yard. 

· Add Visual Interest – The first and easiest change is to add some interest; something that grabs the eye. This can be a simple fountain or a bright planter. Consider varying shapes and sizes as well. 

· Create New Spaces – Use simple, and inexpensive, materials to carve out a new space. Lumber can be stacked to create a raised surface for a couch or chair or arrange gravel in a section of the yard for a small bistro dining set. 

· Build a Planter – Buy a pre-made raised planter or container and add some bright seasonal flowers. Another idea is to use blocks to build your own. Stand-up planters filled with herbs or vegetables can also be placed to create a sense of well-being. 

The key to an interesting and functional backyard is not the dollars but the way you use the space. By adding interesting features, spaces, and colors, you will build a yard that is inviting to guests and family alike.

What the New Credit Score Models Mean for Homebuyers

Starting in 2025, new credit scoring models will be used by lenders to determine the creditworthiness of potential homebuyers. Fannie Mae and Freddie Mac will mandate the adoption of the new FICO Score 10T and VantageScore 4.0 by the end of the year. For those interested in buying a home, these changes will impact their ability to purchase. The good news is that these scores aim to be more inclusive and to show a fuller picture than the old classic FICO scores did. 

These new scores have been noted to have better accuracy, and consider alternative credit data, as well as traditionally reported credit cards and car payments. For example, VantageScore 4.0 allows borrowers to add on-time payments for rent, utilities, and telecom bills. For those with limited debt or who prefer to use cash, this is a big advantage when seeking credit. 

The introduction of these new credit scoring models offers more opportunity and accessibility to credit for more individuals. This is particularly true for those with limited credit history or strong alternative credit data. Additionally, the VantageScore 4.0 only requires one month of credit history to generate a score, while FICO 10T still requires at least six months. 

Overall, the launch of these credit scores is a significant step towards hopefully allowing access to homeownership to more Americans. By considering alternative credit, these scores may provide lenders a truer picture of the ability of a potential homebuyer to pay their loan and extend credit to those previously unable to qualify.  

Enhance Your Home with a Health and Wellness Room

 Creating a health and wellness room in your home can be a positive step in prioritizing your well-being and fitness. A step beyond just room for an exercise bike, this room should include areas for reflection and calm. A place where you remove distractions and can focus on yourself. 

Any spare space can be transformed into a health and wellness room. A spare bedroom, converted garage, or loft are great options. The room should have plenty of natural light and be located away from high-traffic areas. 

Design the layout of your wellness room by functionality. Have an exercise area where you can place treadmills or weights. Add area rugs or yoga mats for floor exercises and meditation. Choose soothing colors for the room. A soft sage green or subtle sky blues add a soothing yet energizing ambiance. 

If space permits, add a comfortable chair where you can relax after a workout or when you need a break from your busy day. Use minimal décor and use natural materials as treatments. Add plants to incorporate the sense of nature and add curtains that allow light to filter in. 

Finally, invest in technology. A screen that allows you to watch movies or a fitness routine during high-intensity workouts can help you power through hard workouts. Meanwhile, a sound system that can play spa music or brown noise during meditation can help center your thoughts for a calming experience. 

By creating a dedicated health and wellness room in your home, you will find it easier to find time to focus on yourself. Creating a room that you love being in, is the best way to ensure you prioritize your health and incorporate these routines into your lifestyle.

What to Expect From a Listing Agent

 

You already know that the best way to sell your home, and for the most profit, is to hire a listing agent. The fact is that people who sell using a real estate agent make more profit and have a smoother transaction than those who try to do it themselves. Yet often consumers don’t know everything the listing agent does. Listing a home properly entails so much more than putting a lockbox on the front door and slapping a sign in the yard. 

The listing agent is your advocate and partner in the selling process. They help guide you through the transaction, negotiate on your behalf, and work with the buyers’ agents to get you the best deal possible. A good listing agent will provide you with regular updates and input from showings. The most important thing is to discuss and set expectations at the beginning. 

Some sellers ask that their agent attend all showings. This is typical with luxury properties, for example. But often they do most of their work behind the scenes, encouraging offers, negotiating counter offers, working with lenders and appraisers, handling loose ends and hiccups. 

Once in a while, things don’t go well. The partnership becomes difficult or impossible. Since almost all listings involve a reasonable time limit, you may feel trapped or hopeless that there is a solution. In this case, you do have options. First, if your agent works for a brokerage, call the managing broker who can mediate, or if necessary, reassign your listing if needed. 

Your agent is your partner. Be honest and open with your needs and expectations. In this way, you can work together to sell your home quickly and for the best price and terms possible.

Change the Feel of Your Room for $500 or Less Using Rugs

 Everyone is looking for easy ways to spruce up their home. As spring approaches, those warm, cozy rooms that were so inviting in the cold can look cluttered and dark. If redecorating every season isn’t in your budget – and how many people can – then consider adding or changing a rug or two for big impact and often less than $500. 

Rugs have the ability to transform the look and feel of a room, adding interest, style, and personality. These decorative elements can be easily changed, stored, or removed as the season or mood determines. Imagine a bright blue area rug in the kids’ room or a soft-toned Kilim added to the family room. Experiment with color, size, and texture which can change the atmosphere of the space in a few short minutes. 

Rugs can also change the feel of the room by defining different areas. Modern floor plans boast big open spaces, so adding a rug under the sofa can distinguish it from the dining area, as an example. Different colors and patterns will affect the energy of the room as well. Bedrooms would benefit from the calming tone-on-tone of a neutral hue while a busy kitchen might be enhanced with a pop of bright yellow or red near the sink. 

Big box home stores and local marketplaces are filled with rugs of all sizes and colors. Even the larger area rugs can cost less than $500. Changing or adding a rug is a great way to change the look and feel of any room, updating or elevating the atmosphere and sense of home.

Selling Due to Divorce?

 Selling a home in the best of situations can be stressful; adding in a divorce and selling a home can seem impossible. It’s an emotional time for the whole family and this can cause you to make the wrong decisions in the sales process. In addition to finding the right real estate agent, who understands and can help guide you, here are a few tips for navigating this difficult process.

 Agree on Clear Objectives:

 Before listing your home, sit down with your partner and define the goals of the sale. Do you want to move quickly? Are you willing to wait to maximize profits? Create a timeline with benchmarks and decision points together and understand how and when to reevaluate the goals. 

Open Communication: 

Divorce involves complex emotions and selling the family home can certainly add to the stress. Determine ahead of time how, and how often, you will communicate regarding the progress of the sale. If amicable, you may be able to discuss the details together, if not, consider using a mediator to help. 

Set Realistic Expectations:

 Discuss with your agent the expectations for listing, price, showings, open houses, etc. If one party is still living in the home, it can be especially disruptive to show the home on short notice. Both parties must agree to the parameters, to avoid conflict. Selling a home during a divorce can be particularly difficult. By working with your agent and your partner, you can minimize the emotional turmoil by planning.