Basics of Property Management: Screening Potential Tenants
What To Expect When Selling Your Home In A Seller's Market
Jesse Obrien
Has the time come to sell your home, and you're being told that the current real estate market benefits you as the seller? You may be wondering what this will mean for you when the home is finally put up for sale. Here are a few things that you can expect.
Prep Work Will Be Minimal
While you need a home to present well to potential buyers, know that the preparation in a seller's market will be minimal. There is not really a need to fully stage your home if it's empty, since interest will already be at its peak. While it is possible that doing those minor repairs and staging can generate a higher offer, your real estate agent may tell you that it's not worth it when you can sell the home faster and save money by no longer paying property taxes due to holding an empty home.
Offers Will Be Fast And Plentiful
If you have a home that is priced right and in a neighborhood with people looking to buy, the offers will practically be coming in as soon as the home is put up for sale. That is because there is a significant shortage of homes for sale right now, and buyers are doing whatever they can to get into a home that they like. Don't be surprised if you receive multiple offers within a few days of the home being officially listed on the market.
Offers Will Be Above Asking Price
When you are in a situation where the real estate conditions favor the seller, buyers know this and need to make an appropriate offer. This means that you'll be receiving offers that are above your asking price because buyers want to remain competitive. If you receive multiple offers that are very similar, you can also ask buyers to put in their best and final offer to see how much higher they are willing to go to purchase your home.
Offer Selection Can Be Difficult
When it comes time to actually pick an offer, you may not want to go with the highest price due to a few reasons. You'll likely want a buyer that you feel will have no problems securing a mortgage, which means a solid pre-approval letter or even an all-cash offer. Closing on your home sooner rather than later can be advantageous to you, and it is sometimes worth taking a little bit less money for your home if the seller is offering you cash for peace of mind that financing is not an issue.
Talk to a real estate agent to get help selling your single-family home.
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For the last several years, I've used a property management firm to help with my rental properties. One of the tasks that they handle for me is screening applicants who would like to move into one of my vacant units. Their expertise has helped me lower my tenant turnover and find people who want to stay with me for years. Part of the process is a tenant screening credit check. Before any further contact takes place, my manager orders credit reports from at least two agencies. That is enough to tell us if an applicant is a good financial risk. Assuming the references work out, I meet the candidate and make the final decision. If you own rental properties, let me tell you more about the benefits of having a property manager. I'm betting you'll find this type of arrangement will work for you too.