In most home sales, the seller waits for the buyer to ask for a home inspection prior to closing the transaction.  The inspection is primarily of benefit to the buyer, assuring them there aren’t any hidden problems that could cost big money to repair after they’re already paid for the home.  It also gives them bargaining power should an issue be uncovered. 

There are a few homeowners who decide to hire an inspector prior to marketing their home, and it’s not a bad idea.  Home inspections can give you a leg up on the competition, provide a guide for repairs and prevent any unpleasant surprises after and offer is made.  If you have an older home or if you bought a fixer-upper, this may be a wise move on your part.

Providing a buyer with a pre-inspection report shows buyers that you have nothing to hide.  It gives them confidence in you as a seller and in your home as a sturdy structure.  An assurance that there are no major problems with the home could be just the thing to put you a step ahead of the competition.  The buyers still have the right to have their own inspection done, so don’t take it personally if they choose not to waive it. 

If there are any issues, a home inspection will give you the chance to have them fixed before a buyer can start negotiating a lower price for your home.  It will also keep you from making unnecessary repairs.  You might think that foul smell has to be a septic tank problem but it could turn out to a cracked toilet flange or an improperly installed vent.  A thorough inspection can be like a road map to the right repairs.

No one likes an ugly surprise just before closing.  Time constraints with your impending move could force you to settle for a lower price if a problem shows up after the buyer’s inspection is complete.  Having your own inspection preformed ahead of time will give you a chance to spot any red flags with plenty of time for fixing them.

Older homes are usually in more need of maintenance but even newly constructed houses can have a problem or two so don’t think you’re in the clear just because your home is newer.  A home inspection can save you precious time and money so ask your Summit NJ real estate agent about having one done before you sell.

To store or not to store: that is the question many homeowners ask when it comes time to sell their home.  Is it really so important to pack up personal belongings when showing a home?  Just about any Summit NJ real estate agent will answer with an emphatic “Yes!”

It’s Distracting.
In general, people are nosy.  If you have family photos on the walls and collections in your home, buyers will spend most of their time looking at your things.  They might remember the room full of toy trains but they’ll have no idea how big the bedroom was.  Don’t distract buyers from seeing the beauty of the home itself.  First-time buyers are especially susceptible to being distracted by the décor and clutter in a home so you need to help keep them focused by clearing out the clutter.

Clutter Seems Unclean.
Even if a home is sparkling clean, if it has a lot of clutter it feels unkempt and even a bit dirty.  That’s not the impression to give buyers.  An abundance of clutter makes them think the home has not been well-maintained and is less valuable. 

The Past Blocks the View.
Showing off too much of your past in your home will block buyers from envisioning their own future in the property.  They need to be able to clearly see themselves living in and enjoying the home.  If your things are cluttering every corner, they will hinder the buyers’ imagination from conjuring up those happy images of their life in those rooms. 

Now that you understand how important decluttering is, here are some ways to get started.

• Start packing.  Box up out of season clothes to make closets look roomy.   Clean out the garage and attic, too.
• Wrap and pack collectibles and family treasures.  You probably don’t want strangers manhandling your grandmother’s china anyway.
• Minimize your furniture.  Once you’ve cleared out some clothes, make the rooms feel spacious by putting some furnishings in storage.  Keep only what enhances the space and flow of the floor plan and what is essential to keeping your belongings organized.
• Have a yard sale or donate to a local charity.  It’s much easier to get rid of unwanted objects than to move them to a new home.  Many charities offer pick up services so you won’t even have to leave home.
• Throw some things away.  If you haven’t used it, if it’s broken or missing parts, it’s likely just junk.  It’s OK to toss a few things but recycle what you can.

A little clearing out can go a long way to getting you the price you want from your home.  Keep the corners clean and you’ll soon be putting your things away in your next home.

Short sales have been getting a lot of press lately, sharing headlines with foreclosures and sub-prime loans.  Many sellers have chosen this option to get out from under an oppressive mortgage, but it may not be the best choice if you have other options.  Homeowners considering a short sale should be aware of the ramifications of taking this drastic step.

A short is, in the simplest terms, when the lender agrees to allow a homeowner to sell at market value or below and accepts the price as full payment even though it is less than what the owner owes on the home.  It is typically used in situations where the owner owes more than the home is worth or when there has been a significant financial hardship.   A short sale is a last resort measure to avoid foreclosure and should not be seen as an easy answer.  A seller should seek expert help from a Summit NJ real estate agent specializing in short sales to negotiate this unpleasant and complicated process.

Lenders sometimes allow a short sale in order to prevent a larger loss from a foreclosure.  But make no mistake; your lender is under no obligation to agree to a short sale.  You may not even qualify to attempt a short sale.  Claiming a financial hardship is not a sure thing.  Unwise spending habits won’t qualify as a true hardship like a divorce or sudden severe illness might.

A short sale is dependent on finding a buyer and must be approved by the lender.  If you cannot find a buyer to purchase at the price required by the lender, you may still face foreclosure.  The lender is attempting to recoup their losses so they are the decision-makers, not the homeowner.

This process is not without its consequences: a short sale will affect your credit.   The dent that a short sale will put in your credit rating is nearly identical to the one a foreclosure would make.  The damage will likely be in the 200-300 point range.  The difference is that a short sale may allow you to buy again in 24 months or possibly less, whereas a foreclosure could put you out of the real estate market for closer to 72 months. 

There are also tax issues to be sorted out.  A short sale is still a home sale and subject to the codes of the IRS.  It may not seem fair but you may owe taxes even if you sold at a loss.

Other costs may be involved such as the services of a real estate lawyer, tax attorney and real estate agent to help you sort out the details of the your obligations.  You could even be on the hook to your lender for the difference between the selling price and the amount owed, so this isn’t the time to go it alone.  Get professional help if you have no other choice but to sell short.

Have you been getting the runaround from listing agents lately?  Had trouble getting your calls returned?  Maybe it’s time to set yourself apart from all the looky-loos and tire kickers that have been browsing the market looking for steals and deals.

Take control
You can take control of the buying process by getting preapproved for a mortgage.  It’s more important than ever to walk into an agency and show that you are a serious buyer who won’t waste their time.  A preapproval is usually a written statement from a lender stating that they have gone over your financial records and, as long as the data you’ve provided proves accurate, they will lend you a certain amount of money. 

Prequalification vs. Preapproval
Prequalification does not hold the same level of commitment that preapproval does.  You can have a lender prequalify you or you can even do it yourself on-line.  Prequalification just takes a quick peek at your situation to see if you might meet the lenders standards.  It is not a written statement that you definitely do meet these standards or a commitment for a dollar amount to lend.  Prequalification information doesn’t even have to be verified.  Preapproval usually involves pulling your credit reports from the three major reporting agencies.  It will probably require you to provide other pertinent details like bank and salary statements, tax forms, etc.  With a preapproval, you essentially have a letter from a lender that says how much they are willing to lend you and a promise to do so, as long as no major issues arise during the actual loan application.

What preapproval can do for you
Having a preapproval in hand does more than show the seller you are serious.  It will show you how much house you can truly afford to buy.  This information is a big help when house hunting, especially for first-time buyers.  You don’t want to fall in love with a house with a price tag far outside of your means.  It will help you and your Summit NJ real estate agent choose properties that will suit both your need and your budget.  Preapproval can also smooth out the road to the closing table.  If there are any problems, you can deal with them before you start your home search.  It may also help close a deal with a seller.  Sometimes, an offer made by a preapproved buyer will be accepted over an offer made by another buyer whose financing has not been secured.  The seller has much more confidence that a preapproved buyer will make it to closing without any delays or problems.

Start your hunt for you next home in a position of strength - get preapproved for a mortgage first.