A preapproval letter is much more valuable for both the buyer and seller. To get such a letter, the buyer goes through the mortgage application process without identifying a property to buy. In the end, the lender knows everything necessary about a buyer’s financial life and is better able to set a precise limit on the amount he could borrow and the interest rate he is likely to pay. If the potential buyer has neither a prequalification nor preapproval letter, then it may be better to keep your house on the market until they get one.
4. Have you sold your home?
Few people can afford to carry two homes at once, so hope that they’ve already sold their home before looking for another. Not only will that eliminate one contingency from a contract, but as the closing date for their home approaches, a buyer starts feeling pressure to identify and close on their next house.
PREPARE FOR BUYER'S NEGOTIATION TACTICS
And you thought identifying a buyer would be the hard part of selling a home yourself. Ha! Negotiating with a buyer, or a buyer’s agent, can be challenging. But forewarned is forearmed, and recognizing these common buyers’ tactics can help you negotiate a deal you can live with. Nibblers: These negotiators nibble at the price until you’re ready to scream. Their inspection finds some rotted trim, and they want $1,000 off the price; they want you to throw furniture into the deal; and on and on. The best way to deal with them is to spell out every detail in writing, then hold your ground. Repeat to yourself: Never fold! Trial-balloon testers: They throw out scenarios you’d never think 66
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