5 Tips for Selling a Home Fast

1.  Make sure the buyer has actually been approved for the loan and has gone some of the way through lender "underwriting" and has not been merely "pre-qualified" for the loan before you accept or "ratify" that contract !

Don't just accept that lender's "approval" letter for face value without you or your listing agent conducting some due diligence or dialogue with the buyer's agent and lender and ascertaining whether there are any "conditions" of loan approval that need to be met or satisfied first, before final approval could be given by "underwriting."  There is a HUGE difference between pre-qualification (subject to verification of income/assets, credit issues that need to be cleaned up or explained, or other conditions of the loan) and an actual and true "approval" (which should only be subject to a satisfactory appraisal , title binder or other MINOR or routine conditions not part of the buyer qualification). 

2. Focus on comparables in your neighborhood that have actually been sold (not new or current listings still on the market) as a means of benchmarking or gauging your selling price.

But of course do follow up and watch those listings which may then become settled sales and show up on the appraiser's comps list.  Spending too much time or emphasis on listings that are currently active and still on the market should not be given much weight because; A) the appraiser will also not make a case or give any weight to active listings because, B) sellers can drop the price on them dramatically or overnight, C) active listing values do NOT establish, nor are an accurate or true indication of actual fair market value. 

Also, with regard to homes recently sold in your neighborhood, or those marketing cards that a listing agent sends out telling you how much homes have sold for in your neighborhood make sure you check for two elements in that list or grouping of data; WHEN the property was sold or the settlement date (not contract ratified or accepted date) AND also how much did the Seller give back to the buyer as a "subsidy" or "concession" for buyer's closing costs, repairs, etc.  In other words, a property which sold for $500K with $0 back in closing costs really sold for $500K; whereas a home which "sold" for $500K with $20K back to the buyer really only netted the Seller $480K (minus the real estate agent's listing commission as well, and pay-off of existing mortgage(s) on the property).

It is also a useful way to gauge or benchmark how much other sellers are making in concessions; so that if your listing agent or buyer suggests a certain amount back for closing cost assistance or to help subsidize the buyer on the contract, you also have "comps" for what the "going rate" or amount for that is too.  And if you, as the seller, feel everyone is asking you to keep reaching into your pocket and throwing out or down money for the transaction, you should likewise ask the buyer's mortage lender or broker to reach into their pockets too and take a cut of their "points" or charges for the buyer's loan; ask the buyer's real estate agent to take a cut of his commission, heck even ask your listing agent to reach into his pockets too.  Sure... let's ALL help the buyer out.  The seller is ALREADY paying the buyer's real estate agent commission -- what else do they want you to do; pay for the buyer's mortgage payments too and leave a bottle of Dom Pérignon champagne in the refrigerator for them, pay their moving expenses ???   Sure... it's easy for everyone else to keep suggesting that you reach into your pockets to help the buyer out, but wait until you see their faces and expression when you suggest that EVERYONE involved in the transaction pitches in or helps out too !  LOL

3. Frequent open houses. 

Comparison shop by actually getting out of your home and into ones for sale. Yes, it's convenient to view listings on your computer or Blackberry, but not until you've actually been inside or really looked at them can you really begin to measure or gauge how the competition stacks up against your property for sale.  I had a client once (Walid this one is for you) who was not amenable to lowering his asking price or being competitive with other townhouses in the cluster and kept citing his granite counter tops and other upgrades he had done to the property.  I told him, yea, they were great updates or upgrades; but the problem is, is that the others right across the street have the same or better AND are priced lower than his expectation or perception of value.  I told him, go look at the other ones for sale priced lower than his and see for himself.  Did he listen to me ?  No !  I ended up losing the listing, but the funny part of this story is that the market imploded on him right around 2005/06 and he ended up getting totally HOSED !  LOL : )  I had also been telling this acquaintance to SELL, SELL, SELL while he had the chance at the height of the market.  Penny wise and pound foolish...

4. Personalize the home's marketing for the Internet-savvy buyer.

In addition to the information put out by your real estate agent, do a parallel effort yourself too.  Put out flyers  at your work place break room (if that's allowed of course) or if your company or government agency publishes any type of on-line or in-print publication for its employees which has a "wanted" or a "for sale section" for ads put one there! Put one up at the local coffee shop where you frequent; heck you can even create a blog about your property too!  You get the point; the more comprehensive your marketing and adverting strategy is the greater your chances are of getting the property under contract and sold.  There could be someone right in your office, where you frequent, or within your "sphere of influence" or contacts that may be looking for a home just like yours.  There is even what is known as an "Open Listing" - where if you are the one who brings the buyer you do not have to pay the listing agent's commission unless he could establish that he was the "procuring cause" of you getting the contract through his advertising and marketing initiatives. Not too many listing agents would probably go for this; but it does exist and is an option to consider depending on your particular circumstances and market conditions.

5. Educate the appraiser about the home and the neighborhood.

Thanks to the new HVCC appraisals codes of conduct (which I wont go into here as I've covered it already very thoroughly in other blog articles here on my site - just do a search my site for "HVCC") there is a good chance the appraiser will not be as familiar with the subject area as you are. The problem today is you can't assume an appraiser knows the neighborhood or has access to all of the neighborhood transaction details in the MLS database, especially if they're from out of the area.  Furthermore, not all sales are conducted through real estate agents but are "arms length transaction" directly between seller and buyer.  The appraiser may not have also checked public tax records for evidence of these other type of sales which would not show up in MLS.  That could backfire on you too as the seller especially if other lower comps are found, but if there was at least one good higher value sale which was not in MLS that could certainly be to your benefit by pointing this out or proving that information to the appraiser. You obviously would not want to disclose any information to the appraiser (negative or poor value sales or condition of the property such as any defects or repairs that were needed) that would hurt or kill the valuation of your property.

In certain states, "known material defects" have to be disclosed to the buyer through your listing agent, or by you directly absent a listing agent if selling as a "FSBO" (for sale by owner) or a "URO" (unrepresented owner) notwithstanding any type of "as-is" contract clause stipulation or Residential Property Disclaimer form.  But definitely do not point out anything to the appraiser that may get your property downgraded in terms of overall condition and subsequent valuation.  By the way, if you have ghosts or poltergeist in your property that is NOT considered a known "material" defect!  LOL   : )