Entering a contract to sell your home before you get qualified to buy another is problematic. Your financial circumstances may have changed since your last home purchase, and you might not be able to qualify for a loan. Or, your current home might not sell for an amount that allows you to buy the replacement house you have your heart set on. You could end up renting or buying something that was far from ideal. Before deciding to sell the house, get preapproved by a lender you trust. Also, do some research on your prospective housing market to get a good idea how much you’re likely to spend. Make plans in case you need to move right away.
WASTING TIME ON UNQUALIFIED BUYERS
It’s wasted effort to show your home to someone who can’t buy it. An example is the seller who spent two weeks preparing his home for an acquaintance who wanted to buy his home. The seller spent $1,000 removing an old shed and met with the prospect several times to discuss price and terms. It was well into the process when the seller found out the prospect couldn’t qualify for a loan. Real estate agents spend considerable effort weeding out showing to nonqualified and unqualified home shoppers.
“HOVERING”
Lurking sellers make buyers nervous. Whenever possible, don’t be home when showing. This is impossible or impractical if you’re selling the home yourself, though. Buyers may feel they’re intruding and then rush through. They could be hesitant to talk about changes to the home or features they don’t like. They’ll feel uncomfortable closely inspecting the house in front of the owners. It’s easier for buyers to visualize themselves in the home when 29
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