It is a seller’s dream situation: you put your house on the market and receive multiple offers. While you might think the highest priced offer is naturally the best, that is not always the case. Learn how to evaluate real estate offers from home buyers so you can accept the offer that makes the most sense for your unique situation. 

Set Aside Your Emotions 

Selling a home is an emotional time. You may be looking forward to your next steps or feeling nostalgia for the home you have chosen to leave. Emotions will not help you when evaluating whether real estate offers are fair. Allow yourself to feel your emotions, then set them aside so you can be an impartial judge of the offers you have received for your home. 

Compare the Price With Recent Offers

While every home is different, your home should not go for significantly more (or significantly less) than other homes in the neighborhood unless the condition is much finer (or much worse) than similar homes. Look at the real estate data to understand pricing trends within your neighborhood. Recently sold home prices can adjust your expectations by allowing you to see the offer in context to recent deals. 

Check for Pre-Approved Status 

Mortgage lenders may pre-qualify or pre-approve applicants. These sound similar, but there is an important difference to know. A home buyer who is pre-approved has approval from the lender to obtain a loan in a certain amount. A buyer who is pre-qualified is qualified for a loan of a certain amount but is not yet approved. Accordingly, if you choose a pre-approved applicant, the deal can proceed faster than if you choose someone who is only pre-qualified. If you need to sell a home quickly, this factor can make all the difference. 

Check the Closing Date

If you want to sell a house quickly, focus on the closing date in the offer. Sometimes, homes close quickly. Other times, the deal can drag out, for example if the buyer is not pre-approved or if they are insisting on a home inspection. When time is critical, you may be better off accepting a lower-priced offer with an early closing date rather than delaying your move (and racking up expenses) while waiting for a far-off date. 

Read the Fine Print 

Home offers sometimes come with conditions. Read the terms of every offer. Your real estate agent can help you understand the considerations and what they mean for your real estate deal. Some home buyers will offer to cover the seller’s out of pocket costs, such as the closing costs or legal fees. Some home buyers will waive their right to a home inspection, essentially offering to buy the property regardless of condition. By understanding what a buyer may be giving up out of their eagerness to purchase the home, you can compare offers to one another with a better understanding of their impact on you. A buyer who pays the seller’s closing costs will save you money. A buyer who waives an inspection means that you will not be paying for last-minute repairs that a home inspection could have revealed. 

Then there are the buyers who ask for concessions from you, the seller. A buyer might request that you cover their closing costs, or they might request that you pay a certain percentage of the home cost. A seller concession of five percent would require you to pay five percent of the home sale price. This would decrease the out-of-pocket costs for the home buyer. 

When there are multiple offers, the one with zero seller concessions is often, but not always, the best offer. By taking the time to review the fine print, you will understand the true terms and conditions of each offer and be able to make an informed decision.  

Your real estate agent is your ally throughout the selling process. Make sure you choose a local real estate agent you can trust to explain all the terms of each real estate offer. This way, you will be able to weigh the pros and cons of different offers and make the best decision.

As a homeowner, knowing the value of your home will help prepare you to buy, sell, or refinance your home. It can also provide a picture of your overall financial health. The factors that determine the value of your home are as diverse and individualized as the homes themselves. In addition, those same factors may vary by neighborhood, depending on the house’s location and price range. A $220k home in a rural area will probably have different factors impacting its value than a $220k home in an urban area. So, how can you get a better idea of how much your own home is worth? Let’s look at the factors that determine your home value.

Location

The location of your home is a key factor in determining its value. It is not just about the neighborhood, but also about how close you are to amenities like parks, shopping, schools, and transportation. Here are a few things to think about when considering location.

• School district – The quality of local public schools can greatly affect the value of homes within that district. Some families will not move to a neighborhood where the quality of local schools is not up to the standards they want for their kids’ education.
• Local economy – The strength of the local economy directly impacts real estate prices. A strong economy may mean more people are moving into town and buying homes, while a weak economy could mean fewer people moving in and less demand for housing.
• Renters vs. homeownership rates – If more renters than homeowners live in an area, it could impact property values. Homeowners tend to be invested in their communities, while renters are not as involved since they do not own their homes or have any equity in them. This lack of investment from renters can negatively affect property values over time if too many renters move into an area without contributing to community activities or civic organizations as do homeowners.
• Neighborhood – The number of homes on the market in your neighborhood can have a significant impact on your home’s value. If many nearby houses are for sale, it can drive down your price. However, if not many nearby houses are for sale and yours is the exception, it may increase its value.

Condition Of Your Home

Another important factor to consider is the condition of your home. A well-maintained home will always be worth more than a neglected one, but knowing which repairs and maintenance are most important can be difficult. It is easy to get overwhelmed by all the things your house needs, so prioritize appropriately.

To determine how much money you can expect when selling your home, have a professional appraiser inspect it first. An appraiser will tell you what it is worth based on factors like location and other amenities nearby (like restaurants or parks), as well as structural issues such as plumbing problems or cracks in walls that could cause issues in the future if left unchecked.

Size And Layout Of Your Home

The size and layout of your home are two important factors that determine its value. The more square footage you have, the more valuable your house will be. A big house is also likely to cost more than a smaller one.

It is no secret that having enough bathrooms helps keep things running smoothly in any household. For example, if your house has five bedrooms, but only one bathroom, it will not sell for as much as a similarly sized house with four bedrooms and two bathrooms.

Upgrades and Updates

Updates are different from upgrades. Updates are more cosmetic, while upgrades are structural. Upgrades can be very expensive and may not add as much to the resale value as you would expect. Likewise, some updates might add more value than others do. For instance, an upgraded kitchen will likely command more money than a new coat of paint on your front door or new carpeting in your living room. In general, if you are looking to make an expensive change to your home’s interior or exterior, it is best to consult with experts before making any decisions about what type of upgrades will increase the value of your home.

Energy Efficient Features

When it comes to the value of energy-efficient features, there’s no doubt that they are worth their weight in gold. A home with energy-efficient features (such as good insulation, efficient appliances, water-saving fixtures, and tight construction) can provide substantial savings on your monthly utilities.

Age and Amenities

Another factor that determines a home’s value is its age and amenities. Newer homes are typically valued higher than older ones. When it comes to amenities, having updated modern ones can make a difference in your home’s price point. If your neighborhood doesn’t have sidewalks or streetlights, this could negatively impact the value of your property because it will not be comparable when trying to sell or rent out your place later.

If there are houses within walking distance that offer similar size yards as yours but also feature new appliances and flooring (or even just granite countertops), those houses will probably be worth more than yours because they will appeal more to potential buyers.

The Bottom Line

Although these factors play a key role in the value of your home, the only way to know how much your home is worth is to get an appraisal. Contact a local real estate agent to get started, so you can feel empowered with knowledge about your home’s value.

If you want to sell your home quickly and for top dollar, you need to look at the house through the eyes of a buyer. That can be hard to do, and putting yourself in the buyer’s shoes can be a tall order.

From unpleasant odors your own nose has learned to ignore to repurposed spaces you have come to love, some of the most common things can dissuade would-be buyers. Ignoring these potential turnoffs will greatly reduce the appeal of your home and cause it to linger on the market longer than it should. Here are eight things potential buyers might hate about your home, and how you can fix them before they show up.

Repurposed spaces – Have you transformed your garage into a playroom for the kids or turned your spare room into a home office? If so, prospective buyers could be turned off. It might be a good idea to return those spaces to their original purpose before putting your home on the market.

Clutter – Clutter is always an eyesore, and the sooner you clear it out, the better. Buyers may assume that your home lacks storage space when they see toys and other items strewn about, so clean up now before you schedule that first showing.
Overflowing countertops – Stunning countertops can be a real selling point, but not if buyers cannot see them. If your countertops are overflowing with appliances, it is time to put them away.

Hobby rooms – As a fisherman, you might love your fly tying room, and an avid reader may enjoy their huge library room. Buyers, on the other hand, could be deterred by these purpose-driven spaces.

Holiday décor – Selling your home during the holidays can be a smart move, but some décor can be distracting. Now is the time to skip the tacky lawn displays, so take the reindeer off the roof and stash them away until you move into your new home.
Pet odors – You love your pets, but would-be buyers may not feel the same. Pet odors can be a red flag for home buyers, and open house attendees may spend their time looking for soiled carpets and other pet damage.

Area rugs – If your home has hardwood floors, covering them up could be a huge mistake. Area rugs can look tacky and may potentially dissuade would-be buyers. Even worse, those potential buyers may assume that the rugs are hiding damage to those stunning hardwood floors.

Inadequate lighting – If you have been thinking about upgrading the lighting in and around your home, now is the time to do it. Darkness is a big turnoff for home buyers, and a smart lighting upgrade could increase interest and lead to more offers.

Selling your home can be stressful, especially when buyers show up in droves but fail to make a single offer. If you have been showing your home for months with nary a nibble, it is time to take a hard look at your property and what you might be doing wrong. Correcting the eight items listed above could turn things around, so your next open house will be your last.

The gutters on your home serve as the first line of defense against water damage. They perform a critical function by redirecting rain and snow away from your house and foundation. Gutter systems are designed to protect your house, foundation, roof, and siding, as well as your basement and landscaping.

A properly functioning gutter diverts water away from the home, ensuring it does not seep into your house through cracks in the foundation. But, as with most things, even the best rain gutter system won’t last forever. If you notice water pooling in the gutters or dripping from your roof’s edge, it may be time to replace your old gutter system with a new one (though it may also just mean you need to clean out the gutters). Let’s look at some signs that your rain gutters need to be replaced.

Your Rain Gutters Are Rusty

Rust is one of the first signs that your rain gutters need an upgrade. Keep an eye out for rusty areas, and perform a thorough visual inspection at least once per year for signs of rust. Why is rust a problem? It creates areas of weakness that can lead to leaks. If you see more than surface rust, it’s time to replace your gutters.

Also, look for signs of corrosion. With heavy rains, corroded or rusty areas become prone to leaks and can collapse under pressure from the weight of water during the storm. Being weaker, corroded metal may also break when human hands touch it, making it unsafe for anyone who works on roofs.

You Have Leaks

One sign that your rain gutters are performing poorly is rainwater pooling at the bottom of your home or around the foundation. Another sign of poorly functioning rain gutters is water stains on your ceiling or walls. You might notice spots on your ceiling or walls from inside your home. Another sign is staining on the inside portion of the gutter or the wall behind it. This means that water is not draining properly down the side of your house.

Leaks and clogs can cause serious issues. If there is a clog in the gutter, water can back up and cause problems with the foundation or exterior paint job. If you have cleaned out the gutters recently, and they clog again in a relatively short time, this can be a sign that your gutters are not doing their job and need to be replaced. Excessive leaking can also lead to mold growth inside your home’s walls and on your house’s exterior. Mold is not only unsightly, it is also a health issue. A professional contractor can help solve this problem by repairing or replacing damaged gutters as needed.

You Have Leaves in Your Gutter System

It’s not uncommon for leaves and other debris to make their way into your gutter system, but don’t let them stay there. Leaf and debris build up, obstruct water drainage, and cause damage, including foundation cracks if you ignore it. Inspect your system regularly and remove build-up before it creates more costly problems.

Your Rain Gutters Are More Than 20 Years Old

If your gutters are more than 20 years old, there’s a good chance they are coming apart at the seams. Rain gutters have a finite life span. While some signs of rust or corrosion could show after only 10 years, rain gutters can last 15 or 20 years before you need to replace them. But don’t count on your rain gutters to perform well after that. Faulty construction, poor installation, or external damage from storms can further shorten their lifespan.

Hire a Professional for the Job

Are you convinced you need to replace your rain gutters? If you’re not comfortable or familiar with installing a new rain gutter, hire a professional to do it for you. You can save money by doing it yourself, but it’s time-consuming, messy, and risky. Also, a professional can tell you whether you need to replace the whole system or just a portion of your rain gutters. If your gutters are fairly new, you may only need to repair one or two areas. Repairing is easier and less costly than replacing the whole system.

The Bottom Line

Gutters are one of the most neglected parts of a home, but they play a critical role in protecting the exterior of your home. You’ll need to remove your old gutters before installing the new one, and that’s a hassle if you’ve never done it before. Keep an eye on them, though. Don’t let leaves or debris block them or let rust go undetected.

You’re selling your home at a price decided upon with the help of your real estate agent. Together you have researched the market and prepared to list your home at a price you believe to be viable and suited to the condition of the property. A potential buyer makes an offer, but it’s lower than the asking price. What do you do next?

When an offer is made, negotiations are underway. Your real estate agent will be invaluable to help you decide how to proceed. The buyer may be checking to see if you’ll accept a lower price. They might also want other conditions to be met – frequently home repair. You will need to determine if it’s a serious offer or if it’s unrealistically low. By industry standards, any offer that is 20 to 25 percent below asking price is a low-ball offer. You may choose to ignore it or to make a counteroffer.

In advance of the counteroffer, you want to recheck the property values of other homes in your area. To continue negotiations, discuss the price range you are willing to consider with your agent. Rely on the agent’s knowledge of the market to help you set a counteroffer price back to the buyer. Set it too high and they may leave to find a different seller. Set it too low and you might be leaving money on the table. You may consider lowering the price just a little, but add an incentive, such as a flexible closing date. Your agent will handle the counteroffer for you.

Knowledge is power in negotiations and you want to put yourself in the best position to make smart counteroffers. Perhaps you’re already in negotiations to purchase your next home. Maybe the buyers are facing a pressing timetable because of an imminent job transfer or because they want to be settled before a new school year begins. Have your agent discuss the situation with the buyer’s agent to gain as much information as you can.

With an informed approach and a reasonable attitude, you can quite likely reach an agreement that is acceptable to everyone. Don’t take the negotiation personally. This is a business transaction. Remember, if you don’t reach an outcome you want, you can always walk away from negotiations and wait for the next opportunity.

Although there is a great deal of information on the Internet that can help you decide how to set the price on your house, it takes a real estate professional to evaluate the data to your best advantage. A deep knowledge of your surrounding area and current market conditions is a big part of an agent’s expertise, and their sales experience working with many different clients gives them valuable insight into the psychology of buyers.

Finding the right price for your home is vital if you expect a quick sale. If potential buyers think your property is overpriced, they may move on, leaving your home on the market too long. A house that sits without an offer in the first two or three weeks will lead buyers to speculate why it hasn’t sold and assume there are problems. Studies show that homes priced 10% above market value are far less likely to sell within the first 30 days than those priced within 5% of market value.

Of course, if you price the home too low, you will probably be leaving money on the table. In either case, a real estate agent can help you find the sweet spot to price your property correctly the first time and make your sale as quickly and painlessly as possible. Here are the things to consider:

Sales History of the Area
Your agent will pull comparable listings and sales from your immediate neighborhood for the past three months. The radius of the search will be about ¼ to ½ mile from your home. Pay attention to dividing lines such a highways or other major dividing streets. Comps from “the other side of the track” will not apply to your home. The comps will only be effective when comparing apples to apples, including age of the property, square footage, and desirability (dream homes might be able to tack on a premium). Other considerations include lot size and configuration, amenities and upgrades. Your agent can also compare final sales prices against original list prices.

Check Out Your Competition
Your agent can find out the details on pending sales in your neighborhood and how long these homes have been on the market. Take a careful look at the active listings as well. Remember that sellers can ask whatever they like, so the prices you see might not reflect the final sales amount. Tour the homes if possible to experience what buyers will find when they visit. Your agent will help you evaluate what makes your home preferable to these and adjust your asking price accordingly.

Market Trends and Micro Trends
Your agent will consider national, regional and local market trends when setting the price for your home. National factors could include possible rising interest rates. Locally, consider whether sales prices in your neighborhood have been rising or falling. Micro trends are changes that could directly affect your neighborhood. For example, is a new shopping center or park being built nearby? These sorts of things can increase the value of your home.

Be Aware of Your Immediate Neighbors
Even the most luxurious house can be adversely affected if the people living across the street never mow the lawn or have a fence that is falling down. On the other hand, if they have a lovely garden and pristine curb appeal, that could help you as you determine the asking price for your home.

Your agent will be invaluable to you as you evaluate all of these details. Working with a reputable, experienced agent will make all the difference as you negotiate the entire sales process. Lean on your agent to guide you successfully to set just the right price and meet your goal for the sale of your home.