Friday’s Five – A Seller’s Home Run

Well, if you know me you know that I am a die-hard baseball mom.  I’ve been watching my son play baseball since he was four (he’s now is high school).  Just like in baseball, getting ready to list your house takes preparation.  So, before you step up to the plate (put the “for sale” sign in your yard) and before the first pitch (offer) is thrown, you need to determine what your scoreboard (Net Sales Proceeds) will read.  Here are the top 5 categories that well help you determine your final score:

1. Home Plate: Your Mortgage Payoff.  You must know what you owe before you step up to swing.  Do not go by your mortgage statement; instead call your mortgage company and ask for a payoff letter.  This will include the accurate payoff amount.  If you have a HELOC or home equity loan you will need to obtain this payoff as well.
2. First Base: Sellers’ Closing Costs.  Closing costs include attorney’s fees, Realtor commission and revenue fees.  It could also include a home warranty, HOA dues and property taxes.
3. Second Base: Listing Price.  Knowing the above costs, along with a Competitive Market Analysis (CMA) prepared by the Seller’s Agent, will help you determine how to competitively market your home.  This number is important as it will be how you attract your buyers.
4. Third Base: Offer Price.  When the opposing team (the Buyer) steps up to the plate to submit an offer, this is where we start looking to score a run.  You need to consider the strength of the offer and how it will help you round this base to a home run.
5. Home Run: Net Proceeds.  Achieving your net proceeds number is like hitting a home run in baseball.  The Net Proceeds is the amount you get to put in your pocket after the offer is accepted and the deducts are made.

Remember, you must look at your Net Sales Proceeds like your scoreboard in the home selling game.  To win, you need a solid team (your Realtor), some strategic plays (pricing and negotiation) and a strong focus on each inning (the preparation, the listing, and the sale).  If you properly prepare, there is no doubt you’ll get your financial home run.